programs

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The California Association of Realtors has become the latest group to offer to make mortgage payments if you lose your job after purchasing a new home.

It applies only to first-time homebuyers (or those who haven’t owned a home for three years), who open escrow beginning today and close by the end of the year in the beautiful state of California.

To be eligible, the borrower must be under the age of 70 and use a California Realtor in the transaction; self-employed borrowers are ineligible.

If you do qualify, and subsequently lose your job, CAR’s “Mortgage Protection Program” will provide monthly payments of up to $1,500 for six months (have they seen home prices in California?).

The program has a $1 million cap, so only about 3,000 families could benefit from the initiative.

Recently, homebuilder Lennar offered a similar homebuyer insurance policy via its “Peace of Mind” mortgage payment protection program.

The company, which called loss of employment the number reason for mortgage default, said it would cover up to six months of mortgage payments if a new homeowner lost their job involuntarily.

Personally, I feel this whole new trend of payment protection is troubling, because these programs seem to promote irresponsibility.

If you think your job is in jeopardy, or you make the decision to buy a home based on the fact that you might be covered temporarily if you lose your job, perhaps it’s not the best time to purchase a home.

I think one important requirement for purchasing a home is having a steady, proven flow of income to ensure you can keep up with payments no matter what happens.

These programs don’t really seem all that well-intentioned; in fact, they just look like publicity stunts aimed at selling more homes at a time when most should just wait for a better deal, or perhaps until they’re in a better position financially to consider such a purchase.

Source: thetruthaboutmortgage.com

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When deciding which applicants to accept, colleges and universities typically look for the best of the best. But, that doesn’t always mean the “best” is the person with the highest grades in high school.

Yes, a student’s grade point average, or GPA, is a good metric for measuring just what and how successfully they completed their high school course, but how much does a student’s GPA really matter for college admission? It depends.

Keep reading to find out when it matters, when it doesn’t, and all the other factors college admissions take into account beyond a student’s GPA.

Weighted vs Unweighted GPA

Traditionally, high schools measure a student’s academic performance on an unweighted GPA scale, meaning the number only goes up to a 4.0 for an A in a class. This measurement method does not take into account the difficulty level of classes, so an honors English class will be measured in the same way as a non-honors class.

On the other hand, weighted GPAs do take into account the difficulty level of a student’s coursework. Most weighted GPA scales measure from a 0 to a 5.0. This means, an AP-level or honors level class could earn a student a 5.0, while a lower-level class will only reward A work with a 4.0.

A weighted scale can offer students a little more flexibility when it comes to their overall GPA. Say a student is taking four classes, one is an honors level course and the three others are typical classes. The student receives an A in the honors class, which accounts for a 5.0; an A in two other courses, denoting a 4.0 and a 4.0, and a B in the last, at a 3.0. Despite receiving a B in a course, that would still end up with a weighted 4.0 GPA.
💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Do Colleges Look at Weighted vs. Unweighted?

For the sake of looking at all applicants equally, colleges generally look at unweighted GPAs. They will typically separately consider how rigorous the coursework was. So, for example, if you took all AP classes and have an unweighted 4.0 GPA, you would be seen as a stronger applicant than someone who took less challenging courses and also got an unweighted 4.0, even though your GPAs are the same.

Colleges also look at unweighted GPAs (as well as standardized test scores and other factors) for merit-based scholarships. The more successful students are more likely to receive tuition funding.

College admissions staff may also look into other things when it comes to a student’s GPA, including grade trends. If a student didn’t start out high school on the best note, but performed well during their junior and senior year with a strong GPA, admissions may see that as excellent growth and perseverance in a student’s academic career.

Recommended: How Do Grades Affect Your Student Loans?

A “Good” GPA

Again, it’s important to remember that your GPA isn’t everything and that college admissions staff will likely look at much more than just your grades. However, it’s also always nice to know where you stand amongst the pack.

The average high school GPA is around 3.0 (or a B), including students who do and don’t apply to college. However, the average GPA for students applying to college is closer to 3.5 to 4.0, and the average for students applying to Ivy League schools can be even higher – 4.00 or close to it.

The average weighted GPA is 4.15 at Harvard and MIT.

While GPA isn’t everything, it’s a good idea to keep it in mind when deciding which schools, or how many, to apply to.

Recommended: How to Get Into College With a GED

What Else Do Colleges Look At?

Yes, colleges will take into account a student’s GPA. However, colleges and universities also take into account a complete picture of who a student is. That means they look into trends in a student’s grades throughout their education and likely look at a student’s test scores on the SAT or ACT.

College admissions officers also look at a student’s involvement in extracurriculars, sports teams, their involvement in their community through organizations and volunteer work, and any relevant work experience.

Admissions staff will also likely weigh a student’s application using their recommendation letters, which speak to a student’s merit far beyond their grades. Admissions will also read a student’s complete application and read any required essays.

Again, a lot goes into the admissions process, and grades aren’t the end all be all. This all means when you are preparing for college, even in your early high school years, you may want to prepare by diversifying your interests and pursuits to ensure they can tell a larger story in their application.

Colleges That Don’t Take GPA Into Account

There are schools out there with low or no minimum GPA requirements for applicants. These include many for-profit schools, as well as community colleges. In fact, if your GPA is on the lower end, you might consider attending a community college for a year or two and then transferring to a four-year university or college.

For example, California Community Colleges do not have a minimum GPA or testing requirements for incoming students. Attending a community college could be a great way for students to learn and grow personally and academically, and to increase their academic performance before transferring.

No Matter a Student’s GPA, It’s Good to Have a Plan

Being financially prepared for college can help take some of the stress away from worrying about how your GPA will affect your chances of admission.

While filling out applications, you may want to also look into all your financial options as well. This begins with filling out the Free Application for Federal Student Aid (FAFSA) to see if you are eligible for federal student aid, which include grants, scholarships, work-study, and federal loans.

If you still have gaps to fill, you may also want to consider a private student loan via a bank, credit union, or private lender. Unlike federal student loans, this involves a credit check. Students who have strong finances (or have a cosigner who does) stand to get lower interest rates and more favorable loan terms. Keep in mind that private student loans don’t come with government protections such as forbearance and forgiveness programs.
💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

GPA is one factor in the college admissions process. How heavily GPA is weighted as a factor in admissions decisions will vary from school to school. Many schools will list the average GPA of admitted students, which can help give you an idea of how your GPA stacks up to students at that school. Other factors for admission might include a student’s transcript, letters of recommendation, and personal essay.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.


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.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

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In an effort to make homeownership more accessible, seeing that down payment is often the biggest hurdle, Fannie Mae and Freddie Mac have announced that they will now allow loan-to-value ratios as high as 97%.

Only 3% Down Needed to Qualify for a Mortgage

  • Fannie Mae and Freddie now only require 3% down payment
  • Which is slightly lower than the 5% minimum they used to require
  • More importantly it means conventional home loan financing
  • Requires a smaller down payment than government options like the FHA (3.5% minimum)

In other words, prospective home buyers can put down just 3% instead of the previous 5% down payment requirement that was in place for conforming mortgage loans. This should make it a little bit easier to qualify for a mortgage without going through the FHA.

Additionally, if you already have a mortgage that is owned by Fannie Mae or Freddie Mac, you’ll be able to get a rate and term refinance up to 97%, as opposed to just 95%, assuming you don’t qualify for HARP.

These new guidelines should make conventional loans a lot more popular than FHA loans, the latter of which require 3.5% down and come with very costly insurance premiums.

However, there are a few caveats to ensure loose lending doesn’t return just several years after the worst housing crisis in recent memory.

For one, both programs require the subject property to be owner-occupied. So investment properties and second homes won’t be eligible. But condos, co-ops, and PUDs are just fine.

Additionally, you can only get a fixed-rate mortgage via these new 97% LTV loan programs and the mortgage term is limited to 30 years. Shorter-term fixed mortgages are also permitted.

Though Fannie Mae and Freddie Mac are very similar, there are some differences between the two programs that I’ve highlighted below, most importantly the implementation date.

So if you were struggling to come up with a down payment, you might now be able to qualify for a mortgage thanks to these new programs. Take a look to see if you’re eligible and then contact banks/brokers to see if they’re available.

Most lenders that work with Fannie and Freddie will add these loan programs to their suite of offerings.

Fannie Mae’s 97% LTV Offering

Fannie Mae actually has two separate 97% LTV home loan programs available, one open to everyone and one only for borrowers in low-income census tracts or income-restricted in all other tracts.

The income-restricted program is known as “HomeReady” and comes with cheaper mortgage insurance coverage along with lower loan level pricing adjustments (LLPAs).

Those lower LLPAs mean borrowers can obtain lower mortgage interest rates, an important benefit for those with affordability concerns.

The LLPAs are waived for borrowers with LTVs above 80% and credit scores equal to or greater than 680, and capped at 1.50% for borrowers with attributes outside those parameters.

It also allows cash-on-hand as an eligible source of funds, but requires at least one borrower to take an online homeownership education course.

Here are the other rules that apply to both programs:

– Available on 1-unit principal residences only
– Maximum loan-to-value ratio 97%
– Down payment can come from gift, grant, or Community Second
– No minimum borrower contribution necessary
– Reserves may be gifted
– Only fixed-rate mortgages with terms up to 30 years are eligible
– No high-balance loans or adjustable-rate mortgages
– Manufactured housing not permitted
– Mortgage insurance is required
– Minimum 620 FICO score
– Must be underwritten through DU
– Available now

For the standard Fannie Mae 97% LTV program, there are no income limits and no discounts in the way of mortgage insurance or LLPAs.

And at least one borrower must be a first-time homeowner (no ownership interest in last 3 years). However, no pre-purchase home buyer counseling is required.

Freddie Mac’s Home Possible Advantage

– Available for low- and moderate-income borrowers
– Both first-time buyers and other borrowers with limited down payment savings can qualify
– First-time home buyers must participate in homeowner education program
– Maximum loan-to-value ratio 97%
– Loan options include 15, 20, and 30-year fixed mortgages
– Can be used to purchase a single-unit, primary residence
– Minimum 620 FICO score
– Manufactured housing not permitted
– Income limits vary by area (no limit in underserved areas)
– Lender-paid mortgage insurance permitted
– No reserves required
– Available March 23rd, 2015

For the record, there are already individual lenders offering loans with as little as 3% down that aren’t backed by Fannie or Freddie.  Examples include TD Bank’s Right Step program and various loan programs via credit unions nationwide.

However, the Fannie/Freddie guideline change will allow such loans to become widely available to many more borrowers.

(photo: Anna & Michal)

Source: thetruthaboutmortgage.com

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TPO Programs, Broker Locking, New Media Company, CRM Products; Investor News; Capital Markets

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TPO Programs, Broker Locking, New Media Company, CRM Products; Investor News; Capital Markets

By:
Rob Chrisman

13 Min, 13 Secs ago

Planet Home’s Michael B. reminds me, “I miss every shot I don’t take.” The topics here in Orlando at the FAMP convention include not only prospecting, prospecting, and… prospecting, but also not missing a shot by offering clients more than a couple products. Freddie, Fannie, FHA, and VA are fine, but every client and referral source is precious, and what happens if someone walks through the door and needs a loan for a renovation (remodel), or a condotel, or a non-warrantable condo, or qualifies for a bond program, or… the list goes on. In the category of leads, have you looked into any local real estate investment clubs as a source of business? What about going after leads from divorce attorneys or local hard money lenders? Persistence! Another big topic at the FAMP conference is saving money, and STRATMOR’s current blog is titled, “Improving Revenue Might Be Right Under Your Nose.” (Today’s podcast can be found here and is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Listen to an interview with Ally Home’s Glenn Brunker on the homebuyer affordability issue and potential ways to alleviate it.)

Lender and Broker Software, Products, and Services

School is back in session for the majority of America’s youth. But just because you are an adult doesn’t mean you should pass up on opportunities to polish your professional skillset. Surefire℠, Black Knight’s CRM and Mortgage Marketing Engine, has created Mortgage Marketing University (MMU) with free 101, 201 and 301-level courses designed to help brokers, LOs, LOAs and your marketing team get up to speed on best mortgage marketing practices and stay on top of their game. The MMU companion eBook is an ideal resource for your team to keep at its fingertips. Download the MMU eBook today.

Debuting Rebel Chics Media! “We understand the needs of the real estate industry and are here to help you engage, “edutain” and inspire homebuyers with branded social content. Our agency-quality subscription content, along with writing prompts, allows you to address the questions and concerns of potential homeowners. This content is ideal for LOs, banks, credit unions, and Realtors looking to build a strong social brand. Benefit from 50+ years of combined industry experience of our founders, Jillian Sorensen & Dana Trajcevski. Move beyond generic posts like Spring Cleaning tips and Pumpkin Pie recipes, and instead, unlock the power of storytelling. Now is the perfect time to build your brand, and Rebel Chics Media is here to support you. We understand that you’re busy and don’t have the time, energy, or tools to create content yourself. Leave that to us and focus on growing your brand and connecting with your audience.”

Brokers can now shop, lock, and deliver on one platform that seamlessly connects brokers, lenders, and originators. In this market, hustle is everything. You can’t afford to waste a single deal… or a single minute. That’s why ReadyPrice has launched its innovative new Shop, Lock & Deliver loan exchange platform, designed to help independent mortgage brokers like you save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, and all on a single platform, at no cost to brokers. It’s the industry’s most powerful universal delivery portal, and it’s already helping thousands of brokers around the country thrive and compete in even the toughest market environments. Multiple lenders. One platform. Zero b.s. Come check ReadyPrice out today.

TPO Programs for Brokers and Correspondents

Profitable mortgage companies are focused on the long-term value of the customer relationship. Essex Mortgage’s partners enjoy greater customer retention, GNMA pass-thru pricing, no overlays, no LLPAs, NO EPOs, and NO EPDs. They also receive Tax Deferred asset growth and a long-term cash flow stream without having to be a GNMA issuer themselves. Please contact us to discuss how the Essex GNMA Excess MSR program can help retain and enhance your customer relationship, broaden guidelines, and expand into new markets. Please contact Kimberly Schenck.

Push strongly through the summer buying season with Luxury Mortgage Corp. (“LMC”). LMC is offering a 100-bps price special for newly locked Full and Alt Doc (Bank Statement, 1099 Only, Asset Qualifier) purchase loans until August 31st. LMC’s elite team isn’t stopping there; they are also offering a 50-bps pricing improvement on DSCR purchase loans! Click here for full details of the specials. Are you, not an approved broker? It’s time to align with true partners who will be here for you and execute at the highest levels. Take your business to sustainable new heights with the elite team. Click here to become an approved wholesale broker.

Investor and Agency News

Ginnie Mae launched a New Environmental, Social, and Governance (ESG) Composite and Webpage, view the Press Release.

USDA Rural Development issued Updated HB-1-3555, Chapter 3, Lender Approval bulletin on 07/24/2023.

On 7/26/2023, with Amendment No. 6 to DR-4720, FEMA declared federal disaster aid with individual assistance made available to Vermont’s Orleans County affected by severe storms, flooding, landslides, & mudslides from 7/7/2023 and continuing. See AmeriHome Mortgage Disaster Announcement 20230706-CL for inspection requirements.

AmeriHome Correspondent 20230702-CL Disaster Announcement. On 7/14/2023, with DR-4720, FEMA declared federal disaster aid with individual assistance has been made available to 6 Vermont Counties; Chittenden, Lamoille, Rutland, Washington, Windham and Windsor affected by severe flooding from 7/7/2023, and continuing. See the attached announcement for inspection requirements.

PHH Mortgage had a Disaster Alert for Vermont and California. “The following disaster declaration is being issued or modified today pertaining to: Vermont DR-4720: New Disaster declared 07/14/23, and California DR-4699: Update to End Date of Occurrence.

Citi Correspondent Lending Bulletin 2023-06 includes credit policy updates on mortgage assumptions, public assistance & Section 8 income, and unplanned buydowns. Mandated screening – submitting non-obligated party detail notification, and clarifications on restricted stock & non-vested stock, and Chinese assets.

Collectively, average older homeowners sit on over $9 trillion in equity and have an average retirement savings is less than $60,000. But through a reverse mortgage, senior homeowners can maximize their financial stability by unlocking the accumulated equity without selling their property, allowing them to access the increased value of their homes and provide a financial cushion in a rising housing market. The time is now to build your reverse mortgage business with Plaza Home Mortgage®. We have the programs, including FHA HECM. Plus, we offer training and dedicated reverse mortgage staff to get you rolling into this right. Email [email protected] to get in touch or submit your details for a full reverse pre-qual.

In Pennymac announcement-23-49, the go-live date of Extended Lock Commitments was revised to “TBD,” and the updated schedule will be communicated through a future announcement.

American Heritage Lending Wholesale offers DSCR No Doc Loans including Non-Warrantable Condos.

On June 27, 2023, FHA published ML-2023-13 announcing that it is adopting the Fannie Mae/Freddie Mac Form 1103, Supplemental Consumer Information Form (SCIF) for mortgage applications dated on or after August 28, 2023. See AmeriHome Mortgage Product Announcement 20230705-CL.

Fairway Wholesale Lending Client Announcement 2022-07-27 issued a reminder about its new Admin Fee schedule that went into effect for all applications dated on or after 7/26. They will work through a transition period with the Admin Fee as this change becomes effective with applications taken & loans disclosed on & after Wednesday, 7/26. Fairway will begin using the new fee schedule for all loans we issue initial disclosures effective Wednesday, 7/26.

Capital Markets

Call it whatever you want, or believe whatever you want, in the rating agency Fitch’s downgrade of U.S. Treasury debt, one of things highlighted was the Jan. 6 insurrection. Once again, a reminder that politics, interest rates, and mortgage banking are intertwined. But overall, despite the increased hikes by the Federal Reserve, for the most part the U.S. economy continues to chug along.

Today we saw the “first Friday of the month” jobs situation figures. But it seems that the unemployment rate is not a leading economic indicator. Looking back at changes in U.S. unemployment rate data since 1953, a period including 10 recessions, on average the unemployment rate has not noticeably changed during the 12 months leading up to a recession. Dr. Elliot Eisenberg, Ph.D. points out that, “But once the recession begins, the unemployment rate slowly rises and peaks 12 months later at a level three percentage points higher than when the recession began.”

Yesterday began with the Bank of England raising UK rates to a 15-year high, though investors domestically continued to react to the U.S. credit downgrade by Fitch Ratings, which led to another “bear steepener” in the bond markets. “Risk-off” themes were present, and Wednesday’s route in U.S. Treasuries spilled over into yesterday’s session. The 10-year yield rose to a 9-month high as market participants took a closer look at rising debt-service levels.

The downgrade of U.S. government debt to AA+ from AAA by Fitch on Tuesday won’t affect the U.S. economy much and puts the Fitch rating at the same level as S&P, which made the downgrade in 2011. A couple other reasons not to worry include debt ratings mattering much more for emerging economies, most bond traders will keep buying U.S. debt at the same level, and the Fed can essentially set the interest rates on U.S. debt, anyway.

On the data front, weekly jobless claims increased by 6k to 227k while the ISM Non-Manufacturing Index and the Manufacturing PMI report showed a deceleration in growth consistent with reports from other major economies. Services sector activity continued to expand in July, but at a slower pace than the prior month. Even so, the report said that the majority of respondents remain cautiously optimistic about business conditions and the economy. Finally, productivity increased 3.7 percent in the second quarter, well above 1.7 percent expectations, with output up 2.4 percent and hours worked down 1.3 percent. Unit labor costs, meanwhile, were up 1.6 percent, lower than expected and which reflected a 5.5 percent increase in hourly compensation and a 3.7 percent increase in productivity. The pickup in productivity and the deceleration in unit labor costs is a good combination for the soft-landing view. After one of the better-than-expected releases this week was the ADP report which reported 324k in private jobs creation versus 189k expected, risks for an upside surprise in nonfarm payrolls were raised.

As for that BLS report, nonfarm payrolls increased 187k versus 200k expectations and back months were revised down 49k jobs. The unemployment rate dropped to 3.5 percent, and average earnings are still solid versus 0.3 percent month-over-month and 4.2 percent year-over-year expectations. After any knee jerk reaction, the Treasury market will begin setting up for next week’s $103 billion Quarterly Refunding beginning Tuesday with $42 billion 3-year notes followed on Wednesday and Thursday by $38 billion 10-year notes and $23 billion 30-year bonds. Both 3-years and 30-years were increased by $2 billion and 10-years by $3 billion versus the prior Quarterly Refunding. We begin the day with Agency MBS prices unchanged from Thursday, the 10-year yielding 4.19 after closing yesterday at 4.19 percent, and the 2-year up to 4.89.

Jobs and Transitions

William “Bill” Sohan, an industry veteran and former Senior Vice President with Academy Mortgage, has joined employee-owned USA Mortgage as a regional Vice President. Sohan will oversee USA’s Maryland operations and work to expand its national footprint. “I found USA’s loan-officer-first mentality, freedom for their regional leaders, and transparent work environment very attractive,” he said. “I am in business for myself, but not by myself. It’s a huge advantage that USA is run by former high-producing loan officers who understand the needs of their salespeople. I’m excited to give my sales team access to some great new resources, while still maintaining their access to Fannie and Freddie direct and dozens of loan programs.” Founded in St. Louis in 2001, USA has offices in 34 states and is licensed in 49 states plus the District of Columbia. For a confidential conversation about joining USA, contact Brooke Anderson at 609-500-1520.

Presidential Bank Mortgage is expanding into the Southeast! John Pruitt, former Director of Fidelity Bank Mortgage in Atlanta, has joined the senior management team of the Bethesda, Maryland-based Community Bank as SVP of Production and Strategic Initiatives. “I’m so excited to join Presidential at this opportune time in the industry to help grow a best-in-class mortgage lending platform,” Pruitt said. “The combination of a solid Community Bank and entrepreneurial mortgage lending model is truly unique in our industry.” Expansion plans are underway to open full-service lending markets in Georgia and the Carolinas. Leadership, Sales, and Operations positions are available throughout the region. Please send your confidential inquiry to John Pruitt.

Academy Mortgage is proud to be among the small number of lenders who have been selected to offer the Freddie Mac BorrowSmart Access℠ program. This equitable housing program allows qualified first-time homebuyers looking to purchase a home within one of 10 eligible metropolitan markets to obtain a credit for their down payment and/or closing costs through combined contributions from Freddie Mac and Academy Mortgage. Through this assistance, borrowers can fund 100 percent of the cash required to close; prepare for long-term sustainability through homeownership; and receive pre-purchase homebuyer counseling through the Freddie Mac BorrowSmart Access program. Academy is proud to support this initiative to bring equitable housing opportunities to traditionally underserved communities. Academy is committed to fulfilling its Vision to Inspire Hope, Deliver Dreams, and Build Prosperity in all communities by helping its clients build generational prosperity through homeownership. Join a team with the loan products and the Vision to advance housing for underserved communities: contact Scott Starr to explore the possibilities that await at Academy.

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Source: mortgagenewsdaily.com

Apache is functioning normally

Travelers are flocking away from overcrowded airport terminals and into airport lounges. And so, these lounges have a problem. The exclusive spaces that purportedly offer a refuge from packed airports have become just as chaotic as the general terminals.

Overrated or not, airport lounges still tend to stand superior to most airport terminals. In a lounge, travelers can at least munch on a cheese cube without boarding announcements blaring from the loudspeaker.

As a result, people go to great lengths to enter them. They pay hundreds of dollars in annual fees for credit cards that offer lounge access. They linger outside lounges until their names are off the waitlist.

But now, lounge operators have had to step in to reduce overcrowding. Many lounges often have standing room only, while other lounges enforce entry waitlists to prevent the problem entirely. In 2023, Delta Sky Club increased membership and guest fees and put a limit on how many hours people can spend in the lounge. Meanwhile, American Express made its Centurion Lounge guest policy more stringent to cut back on how many people can gain access.

The problem isn’t so much an obsession with airport lounges. Instead, it’s that most U.S. airport terminals are abysmal for a variety of reasons.

Reduced resources and dated design impact terminals

U.S. airports have a backlog of both approved and necessary infrastructure improvements that’s projected to cost $151 billion, according to Airports Council International-North America (ACI-NA), an airport trade association that represents about 300 airports in the U.S. and Canada. That’s a 31% increase from the $115 billion backlog cited in 2021. ACI-NA has pointed to inflation as one reason that figure ballooned.

A key revenue source for airport upkeep and maintenance is a passenger facility charge, which Congress capped at $4.50 per ticket. When the charge was introduced in 1992, it was just $3, but the charge hasn’t been increased since 2001.

For context, $4.50 in 2001 would be more than $7.50 today, according to the consumer price index, giving some reason to believe that the cap should be increased to align with today’s equivalent purchasing power.

When the COVID-19 pandemic cut travel, airports lost income from reduced passenger facility charges, as well as other revenue streams like parking and rental car fees, retail sales and concessions. Even with funding, implementing airport improvements can be slow.

“Overregulation of airport land use decisions have delayed project approvals,” according to the ACI-NA’s 2023 U.S. Airport Infrastructure Needs Report.

Airport design significantly changed after 9/11. The establishment of the Transportation Security Administration (TSA) in November 2001 led to a greater physical footprint for security checkpoints. Unpredictable queues have also increased the number of people in airports, as passengers who might previously have shown up 30 minutes before boarding now arrive much earlier, with hours to spare.

How to make U.S. airports better

If funding weren’t an issue, what improvements could make airport terminals more appealing than lounges?

Activities to pass the time

Singapore’s Jewel Changi Airport won a Tripadvisor Travelers’ Choice award as one of the country’s top attractions. The airport has a seven-story indoor waterfall, a rock wall and a hedge maze.

Airports don’t need to resemble a runway-lined Disneyland, but the best ones have amenities that are especially relevant during long flight delays, like yoga rooms, live music and museums.

Higher ceilings and bigger windows

Not every airport has the benefit of sitting within Grand Teton National Park, but Wyoming’s Jackson Hole Airport — considered one of America’s most charming airports — takes full advantage with soaring windows that frame the mountain range.

Even without picturesque views, other airports could curtail traveler anxiety and claustrophobia with higher ceilings and outdoor seating. Delta Sky Clubs’ Sky Decks are a good example of how airports could build a compelling outdoor space.

Quiet airport programs

In 2018, San Francisco International Airport (SFO) launched a Quiet Airport program. It cut back on sounds emitted from retailers and gate agents, including a reduction in audio paging and boarding announcements for passengers.

Within two years of implementation, SFO officials said that more than 90 minutes of unnecessary announcements had been eliminated daily in its international terminal alone, which they claim makes air travel less stressful for passengers.

Better food

Starbucks and Sbarro might be concession staples, but the best airports are foodie destinations. The 2023 Global Tastemakers Awards from Food & Wine magazine named SFO the winner of Best Airport for Food in America. SFO hosts outposts of beloved local joints, including Ritual Coffee and vegetarian fast food favorite, Amy’s Drive Thru (its owners also run the organic frozen food brand Amy’s Kitchen).

Even if the meals aren’t free (as they typically are in airport lounges), an order of Amy’s mac and cheese — whether the real stuff or vegan — is probably better than a cube of lounge cheese.

Sadly, these examples are the exception, not the norm. For now, options aren’t exactly promising for air travelers — either at crowded and chaotic airport terminals or crowded and chaotic airport lounges.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

Apache is functioning normally

When facing the loss of a loved one, the last thing someone wants to think about is the expense related to the funeral. Often the cost comes as a shock to the family.  When I lost my father in 2006, it was up to my step-mom and me to go about planning his funeral arrangements.  I guess I always knew that the cost of a funeral could get pricey, I just never realized how much

Table of Contents

Average Funeral Costs 

The cost of the average funeral has dramatically increased in the last 25 years. However, it’s an expense that we can’t avoid. Being prepared and understanding the costs involved can help the process of planning for a funeral a little bit easier and help people decide whether getting a burial insurance policy is the right choice to support their loved ones.

Breaking Down the Costs of a Funeral

From death to burial, and all the steps in between, today’s average funeral can cost upwards of $15,000. There are a few areas where the expense can be cut, such as in choosing the style and extravagance of the casket.  But some basic services, such as the cost of the funeral directors services cannot be avoided. 

There are two areas that need to be looked at in terms of expense:  the funeral service/funeral home fees, and the burial/cemetery fees. This is where a burial insurance policy can be very helpful.

Costs of Funeral Services

According to the National Funeral Directors Association, the average funeral cost is around $6,500. This does not include the burial fees, including plot and headstone.

Here’s a look at some of the fees broken down and what they cover:

  • Non-declinable basic services fee, $1800 – this fee can include the cost of the funeral directors services in securing permits, overhead, arranging the funeral plans, and coordinating services
  • Removal/transfer of remains to the funeral home, $250 – while your loved one may pass at home, in a hospital, or someplace else, their body has to get moved to the funeral home for the services
  • Embalming, $625
  • Other preparation of the body, $200 – this may include dressing the body, grooming, or applying make-up
  • Use of facilities/staff for viewing, $395 – average cost, but can change based on the duration of viewing hours and space needed
  • Use of facilities/staff for a funeral ceremony, $450 – let’s face it, those folks who drive the hearse, open the doors for visitors, fetch more tissues, etc… need to get paid
  • Use of a hearse, $275 – includes a driver and their services as well
  • Use of a service car/van, $125 – this is usually a limousine used to transport the family from the funeral home to the church and/or cemetery
  • Memorial printed package, $125 – can include programs and mass cards

The Cemetery Costs

Costs related to the burial are separate than those of the funeral.  The burial costs include:

  • The cemetery plot, $1000 – this is the area of land purchased in the cemetery for the burial of the body
  • The vault, $700 – an airtight container is required to hold the casket, the cost can vary based on the material used
  • Headstone, hundreds to thousands of dollars – this cost varies greatly based on the size, material chosen, engraving and details.

Regarding the headstone, I have to emphasize “cost varies greatly”.  I was unaware of all the subtle differences that can go into selecting a headstone and much the cost can escalate.  For example, by having smooth sides or edges really jumped the price up considerably.

Planning Ahead for Funeral Costs 

It is common now for people to plan ahead for their funeral services and even pre-pay or purchase a burial insurance policy.  Arrangements and payments can be made over time with the funeral home to help family members not be burdened with the costs and details of funeral arrangements in their time of grief. 

Even if your loved one hasn’t paid ahead, taking the time to consider what costs are really necessary and where you might be able to save is a good idea.

Word of caution on pre-paying funerals: make sure you know where the money is going.  An estate attorney that I work with shared a story of a funeral home that was selling pre-paid funeral plans.  Those plans became obsolete when the funeral home went bankrupt.

For some people, burial insurance isn’t enough – they need a traditional life insurance policy. 

Did you have to bury a loved one and get shocked at how much it cost?

Source: goodfinancialcents.com

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Source: pressherald.com

Apache is functioning normally

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Are you struggling with debt and feeling overwhelmed? You might also be tired of hearing the same old tips that don’t help at all, like “Don’t buy coffee out” or “Just stop spending money.” Don’t worry — you’re not alone.

Many hardworking individuals like you face similar challenges. The good news is that there are effective strategies for paying off debt faster, even on a tight budget.

This guide will walk you through 10 practical and actionable steps that can significantly impact your journey to financial autonomy. Are you ready to better control your finances? Here is how to pay off debt fast with low income.

In This Piece:

  1. Take Inventory of Your Debts
  2. Create a Realistic Budget
  3. Avoid Any New Debts
  4. Try the Debt Avalanche Method
  5. Consider the Debt Snowball Method
  6. Increase Your Income
  7. Negotiate a Better Rate
  8. Increase Your Credit Score
  9. Consider Debt Relief or Consolidation
  10. Stay Consistent

Step 1: Take Inventory of Your Debts

Before tackling your debts, taking inventory of them is a crucial first step to clearly understanding what you owe, allowing you to understand the full extent of your financial obligations, and developing a comprehensive and more effective action plan.

Start by gathering all your financial statements and creating a comprehensive list of your debts. This includes credit card balances, student loans, medical bills, and other outstanding obligations.

You gain a complete picture of your economic landscape by documenting each debt, including the creditor, outstanding balance, interest rate, and minimum monthly payment. This knowledge empowers you to make informed decisions and prioritize debt repayment strategies.

Step 2: Create a Realistic Budget

A budget can help track your income and expenses, clearly showing where your money goes, but if you want a successful budget, it needs to be realistic.

Creating a realistic budget is essential to pay off debt fast with a low income. You can start by identifying areas to cut back on unnecessary expenses, like reducing discretionary spending, such as eating out. Look for creative ways to save money, such as using coupons, shopping sales, or negotiating lower bills. Though this is good advice, it might not be enough or as simple as it sounds.

Here are more steps and tips to help you create a budget that could work for you:

  1. Track income and expenses: Start by calculating your total monthly income, including your salary, freelance earnings, or any other sources of income. Next, track your expenses for a month to understand where your money is going. Categorize your expenses into fixed costs (rent, utilities, etc.) and variable costs (groceries, entertainment, etc.). 
  2. Set attainable goals: Determine how much you can allocate toward monthly debt payments while covering your essential expenses. It’s crucial to set realistic goals that consider your income. Remember, even small monthly contributions can make a significant difference over time.
  3. Prioritize debt repayment: Allocate a specific portion of your budget to debt repayment. Consider prioritizing your debts using the debt avalanche or snowball methods mentioned earlier. By focusing on one debt at a time while making minimum payments on the others, you can make steady progress and gain a sense of accomplishment.
  4. Monitor and adjust: Regularly review your budget and track your progress. Adjust as needed to stay on track and meet your financial goals. Be flexible and willing to adapt your budget as your circumstances change.

Creating a realistic budget requires discipline and commitment, and it’s crucial to paying off debt. By understanding your income, tracking your expenses, and making intentional choices, you can take control of your financial situation.

Step 3: Avoid Any New Debts

It might sound obvious but avoiding new debts can help greatly. Avoid the temptation to rely on credit cards or take out additional loans. Instead, focus on living within your means and prioritizing your financial goals. Of course, implementing this step is easier said than done.

Here are some recommendations to help you avoid accumulating additional debt:

  • Change your mindset: Understand that taking on new debts will only prolong your journey to becoming debt-free. Embrace living within your means and making conscious choices to avoid unnecessary borrowing will help you pay off your debt faster.
  • Cultivate healthy financial habits: Practice mindful spending, distinguishing between needs and wants, and make conscious choices aligned with your financial goals.
  • Building an emergency fund: This is a crucial step to prevent relying on credit or loans during unexpected expenses or financial setbacks. Start by setting aside a small amount from your monthly income until you have a comfortable cushion to cover unforeseen emergencies.
  • Practice delayed gratification: Avoid impulsive purchases and practice delayed gratification. Before making a nonessential purchase, give yourself a 24-48 hour cooling-off period. This allows you to assess whether the item is a genuine necessity or a momentary desire.
  • Seek alternative solutions: When faced with financial needs, explore alternatives before committing to new debts, like borrowing from friends or family, negotiating payment plans with service providers, or seeking assistance from local community resources or nonprofit organizations that offer financial aid or low-interest loans.

Remember, avoiding new debts requires discipline and commitment. By adopting a proactive approach to managing your finances and being mindful of your spending, you can stay on track toward paying off your existing debts and achieving financial freedom. Stay focused, make intentional choices, and celebrate your progress.

Step 4: Try the Debt Avalanche Method

The debt avalanche method is a powerful strategy for paying off debt efficiently. With this approach, you prioritize the debts based on interest rates. Additionally, this method provides a clear road map for debt repayment, allowing you to stay focused and motivated as you see progress with each debt you eliminate.

Start by arranging your debts in descending order based on their interest rates, with the highest interest debt at the top of the list. This order will determine the repayment priority. Doing this minimizes the interest that accrues over time, saving you money in the long run. Once you pay off the highest interest, move on to the next one and continue the process.

Remember to continue making at least the minimum payments on all your debts to maintain a good credit standing and avoid penalties. By staying committed to this method and directing your extra funds strategically, you’ll make significant strides toward paying off your debts.

Step 5: Consider the Debt Snowball Method

Another effective debt repayment strategy is the Debt Snowball method. It involves listing your debts from smallest to largest balance and focusing on paying off the smallest debt first while making minimum payments on the others. Once you pay off the smallest debt, you apply the money you were putting toward it to the next smallest debt.

Begin by creating a comprehensive list of all your debts, including credit cards, personal loans, student loans, and other outstanding balances. Arrange your debts in ascending order based on their balances, with the debt carrying the lowest balance at the top of the list. This order will determine the repayment priority.

Continue focusing on one debt at a time until you can pay off all your debts. The debt snowball method is advantageous because it focuses on building momentum and providing a sense of accomplishment by creating small wins, motivating you to continue your debt payment journey.

While this method may not prioritize debts based on interest rates, it provides a structured and motivating approach that can be particularly beneficial for individuals seeking emotional and psychological encouragement along their debt repayment journey.

Step 6: Increase Your Income

How to get out of debt when you are broke? Finding ways to increase your income can significantly impact you but can also be challenging. Consider taking up a side hustle or part-time job to generate extra money.

There are numerous opportunities available, such as freelance work, online tutoring, or selling handmade crafts. Dedicating your additional income solely to debt repayment accelerates your progress. It helps you achieve financial goals sooner, and if everything goes well, you’ll only need to do this for a short time.

Here are a few ideas on how to make extra money to pay off debt fast:

  • Explore freelance opportunities in your field of expertise
  • Take on part-time jobs or gig work
  • Monetize your hobbies or skills
  • Consider renting out a spare room or property
  • Participate in online surveys or market research studies
  • See if you qualify for blood and plasma donations, some places pay for this help

Step 7: Negotiate a Better Rate

Lowering the interest rates on your debts can help you save money and pay them off faster. Reach out to your creditors and explore the possibility of negotiating a lower interest rate. Even a slight reduction in interest rates can make a significant difference.

Here’s a detailed explanation of how to negotiate a better rate and why it can be beneficial:

  1. Review your current rates: This includes credit cards, personal loans, and other forms of debt. Take note of the interest rates, promotional offers, and the terms and conditions associated with each debt.
  2. Research and compare: Understand market rates basics and terms for similar financial products. This will provide you with a baseline for negotiation and help you determine if your rates are higher than what is commonly available. Look for competing offers, promotions, or lower interest rates from other lenders or credit card companies.
  3. Prepare your case: Highlight your payment history, creditworthiness, and loyalty as a long-term customer. Compile improved financial stability or credit score evidence since you obtained the debt. The goal is to present a compelling case for why you deserve a better rate.

If negotiating directly with your creditors doesn’t yield the desired results, consider other options like balance transfers or refinancing.

Balance transfers involve moving high-interest debt to a credit card with a lower interest rate, often with an introductory 0% interest period. Refinancing involves replacing an existing loan with a new one with better terms and a lower interest rate. Both options can help reduce the overall interest you’ll pay and accelerate your debt payoff.

Step 8: Increase Your Credit Score

Improving your credit score can have a positive impact on your financial well-being. A higher credit score can lead to lower interest rates on future loans and credit cards, potentially saving you thousands of dollars in the long run. To boost your credit score, make timely payments, reduce your credit card balances, and keep your credit utilization ratio low. Regularly review your credit reports to identify and address any errors or discrepancies.

Step 9: Consider Debt Relief or Consolidation

If your debts feel overwhelming and unmanageable, exploring debt relief or consolidation options might be a viable solution. Debt relief programs, such as credit counseling or debt settlement, can help you negotiate with creditors to reduce the amount you owe or establish more manageable payment plans.

Debt consolidation allows you to combine multiple debts into a single loan with a lower interest rate. However, it’s essential to research and choose reputable organizations to ensure you make an informed decision that aligns with your financial goals.

Step 10: Stay Consistent

So, what is the best way to pay off debt fast? Consistency is always key. Make your debt repayment a priority and stick to your plan. Celebrate small victories along the way to stay motivated and maintain your momentum.

Remember, achieving financial freedom takes time and dedication. You can overcome your debts and build a brighter financial future with persistence.

Congratulations on taking the first step toward improving your financial well-being. Remember, Credit.com is here to support you on your journey.

Explore our ExtraCredit® program, which provides valuable resources to help you monitor and manage your credit for a small monthly price Or sign-up for our free service that provides an Experian Vantage 3.0 score along with a free credit report card.

Source: credit.com

Apache is functioning normally

Slightly more than 10 percent of borrowers who took out FHA loans in the first quarter of 2008 were at least two months behind within the first 10 months, according to data analyzed by the WSJ.

That’s up from the 9.4 percent rate seen a year earlier, indicating that more recent vintages of mortgages are performing increasingly poorly.

And about 12.3 percent of FHA loans made in 2007 were at least 90 days late, including four percent that were in foreclosure or bankruptcy.

That’s contributed to the overall delinquency rate, which rose to 7.5 percent at the end of February, up from 6.2 percent a year earlier.

On the bright side, the FHA said only about 10 percent of the 60-day delinquencies actually end up in foreclosure, compared to a rate of 27 percent for private-sector loans, thanks to so-called “robust loss-mitigation programs.”  I hope they’re not talking about Hope for Homeowners…

While it may be true, the agency is teetering on the brink of insolvency and inching closer to needing government assistance to operate, a first in its 75-year history.

Perhaps because FHA lending has accounted for more than one-third of all residential mortgage originations recently, up sharply from the two-percent level seen two years earlier.

Meanwhile, higher loan limits have exposed the agency to riskier parts of the country, such as Florida, where 14 of the 50 markets with the highest FHA default rates are located.

Luckily, lower loan limits helped the FHA avoid big losses in places like California over the past few years, but that may change as newer vintages with larger loan amounts mature.

Apparently HUD officials are evaluating loan performance in some of these previously untapped areas to determine credit risk.

The FHA also stamped out seller downpayment assistance loans and slashed the maximum cash-out loan-to-value to 85 percent recently to mitigate risk.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Nearly a quarter-of-a-million loan workouts were carried out by foreclosure prevention alliance Hope Now last month as modifications finally accounted for more than half.

Completed loan workouts totaled 244,000 in February, down ever so slightly from January, but more favorable loan modifications increased nine percent.

The combination of 134,000 loan mods and 110,000 repayment plans made February the sixth straight month where workouts surpassed the 200,000 mark, a 30 percent increase over the previous six months.

“We expect the trend to continue as many companies expand their offerings to include the administration’s Making Home Affordable refinance and modification programs,” said Faith Schwartz, Hope Now’s executive director, in a release.

“The mortgage lending industry is responding to the needs of its customers and offering solutions that are appropriate to the current market and economic conditions.”

Unfortunately, Hope Now’s efforts are being tested by rising foreclosure sales, which totaled 87,000 in February, up from 68,000 a month earlier.

Nearly two-thirds were tied to prime loans, a huge swing from last month, marking the first time such loans have outnumbered subprime-related foreclosures (could it be a lack of home equity thing?).

However, workout plans for subprime loans continued to outpace those directed towards prime borrowers.

“Currently 5.5 percent of the total mortgage market is 60 days or more delinquent,” Schwartz added.

“Because of this, HOPE NOW members are working hard to help the administration implement its recently-announced foreclosure prevention initiative as well as working on additional ways we can be more efficient in helping at-risk homeowners.”

Perhaps a greater reliance on more sustainable loan modifications will lead to a lower re-default rate, which ranged between 30 and 40 percent in 2008.

Source: thetruthaboutmortgage.com