Don’t Forget These Five Essentials in Your Apartment

As you prepare to move out of the house or dorm and into your first real apartment, you will have a long list of items you need to buy, borrow or steal. For starters, there is the furniture: a bed frame and mattress, dressers or drawers, a couch and other seating and a table. Then you’ll need staples like dishes and cookware and cleaning supplies.

In the midst of all this shopping and packing, a few things are bound to slip your mind. So before you move, make sure you have these five essential items often left out of a first apartment.

Tool Box

While setting up decorations and picture frames, making small repairs or replacing batteries, you will need a tool kit. However, these handy tools are easily overlooked when moving, especially by girls. You don’t need to make a major investment in your tools (nice and detailed boxes can cost hundreds), but make sure you have the basics: hammer, pliers, screwdriver, wrench, nails and screws. This kit will make your life much easier when a picture falls in the middle of the night or your necklace breaks as you’re about to leave.

Read more: Top 5 DIY Skills for Renters

Storage Bins

At your childhood home, you are likely to have much more storage room than in your new apartment, so finding places to put all of your stuff in a tighter space may be a challenge. After ciphering through your things and throwing the junk out, buy a few cheap but durable, large plastic bins. Use them to store off-season clothes, school and home supplies, extra blankets, sheets and pillows or books and movies. Then, move the bins to the back of your closet or under your bed.

Read more: Creative Home Storage Ideas

First Aid Kit

Accidents happen, and you should always be prepared for the medical variety with a first aid kit. Whether you buy it or build it, yours should include: tweezers, ibuprofen, adhesive bandages (several sizes), antibiotic ointment, hydrogen peroxide, medical tape, gauze, rubbing alcohol and gloves.

Read more: How to Baby Proof Your Apartment

Lighting

Since most apartments come equipped with the big lighting fixtures, the smaller ones are often left off apartment checklists. You’ll need lamps for your bedside table and desk and perhaps for extra lighting in your living room. You’ll also need a flashlight and candles in case the power goes out. Therefore, make sure you also have appropriate battery sizes and matches on hand.

Read more: Fire Prevention Tips: 14 Ways to Avoid Setting Your Apartment on Fire

Sewing Kit

You may not be the next fashion designer or expert seamstress, but you should know how to (or at least have the supplies for) re-sewing a button or quickly stitching up a small hole. Sewing kits are cheap and contain a few needles and small spools of the most common colors.

Read more: DIY Fixes for Old Items

Tomboy Tools, Inc., an Entrepreneur Magazine Top 100 Brilliant Company, and provider of hands-on education and high-quality tools for women, sponsored this post.

Photo Credit: iStockphoto/Nadzeya_Kizilava

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Source: apartmentguide.com

The Art of Mortgage Pre-Approval

Buying a home can feel like a cut-throat process. You may find the craftsman style house of your dreams only to be bumped out of the running by a buyer paying in all cash, or moving super swiftly. But fear not, understanding the home buying process and getting a mortgage pre-approval can put you back in the race and help you secure the house you want.

What is Mortgage Pre-approval?

Mortgage pre-approval is essentially a letter from a lender that states that you qualify for a loan of a certain amount and at a certain interest rate based on an evaluation of your credit and financial history. You’ll need to shop for homes within the price range guaranteed by your pre-approved mortgage. You can find out how much house you can afford with our home affordability calculator.

Armed with a letter of pre-approval you can show sellers that you are a serious homebuyer with the means to purchase a home. In many ways it’s competitive to buying a home in cash. In the eyes of the seller, pre-approval can often push you ahead of other potential buyers who have not yet been approved for a mortgage.

Getting pre-qualified for a mortgage is not the same as pre-approval. It’s actually a relatively simple process in which a lender looks at a few financial details, such as income, assets, and debt, and gives you an estimate of how much of a mortgage they think you can afford.

Taking out a mortgage is a huge step and pre-qualification can help you hunt down reputable lenders and find a loan that potentially works for you. Going through this process can be useful, because it gives you an idea of your buying power, or how much house you can afford.

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It also gives you an idea of what your monthly payment might be and is a chance to shop around to various lenders to see what types of terms and interest rates they offer. Pre-qualification is not a guarantee that you will actually qualify for a mortgage.

Getting pre-approval is a more complicated process. You’ll have to fill out an application with your lender and agree to a credit check in addition to providing information about your income and assets. There are a number of steps you can take to increase your chances of pre-approval or to increase the amount your lender will approve. Consider the following:

Building Your Credit

Think of this as step zero when you apply for any type of loan. Lenders want to see that you have a history of properly managing your debt before offering you credit themselves. You can build credit history by opening and using a credit card and paying your bills on time. Or consider having regular payments , such as your rent, tracked and added to your credit score.

Checking Your Credit

If you’ve already established a credit history, the first thing you’ll want to do before applying for a mortgage is check your credit report and your FICO score. Your credit report is a history of your credit compiled from sources such as banks, credit card companies, collection agencies, and the government.

This information is collected by the three main credit reporting bureaus, Transunion, Equifax and Experian. Your FICO score is one number that represents your credit risk should a lender offer you a loan.
You’ll want to make sure that the information on your credit report is correct.

If you find any mistakes, contact the credit reporting agencies immediately to let them know. You don’t want any incorrect information weighing down your credit score, putting your chances for pre-approval at risk.

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Stay on Top of Your Debt

Your ability to pay your bills on time has a big impact on your credit score. If you can, make sure you make regular payments. And if your budget allows, you can make payments in full. If you have any debts that are dragging on your credit score—for example, debts that are in collection—work on paying them off first, as this can give your score a more immediate boost.

Watch Your Debt-to-income Ratio

Your debt-to-income ratio is your monthly debts divided by your monthly income. If you have $1,000 a month in debt payments and make $5,000 a month, your debt-income ratio is $1,000 divided by $5,000, or 20%.

Lenders may assume that borrowers with a high debt-to-income ratio will have a harder time making their mortgage payments. Keep your debt-to-income ratio in check by avoiding making large purchases before seeking pre-approval for a mortgage. For example, you may want to hold off on buying a new car until you’ve been pre-approved.

Prove Consistent Income

Your lender will want to know that you’ve got enough money coming in each month to cover a potential mortgage payment. So, they’ll likely ask you to prove that you have consistent income for at least two years by taking a look at your income documents (W-2, 1099 etc.).

For some potential borrowers, such as freelancers, this may be a tricky process since you may have income from various sources. Keep all pay stubs, tax returns, and other proof of income and be prepared to show them to your lender.

What Happens if You’re Rejected?

Rejection hurts. But if you aren’t pre-approved, or you aren’t approved for a large enough mortgage to buy the house you want, you also aren’t powerless. First, ask the bank why they made the decision they did. This will give you an idea about what you might need to work on in order to secure the mortgage you want.

SoFi Mortgage.


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.
SoFi Mortgages are not available in all states. Products and terms may vary from those advertised on this site. See SoFi.com/eligibility-criteria#eligibility-mortgage for details.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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10 Cities Near Philadelphia To Live in 2021

The brilliant city of Philadelphia is a wonderful place to work and play. But city living isn’t the life for everyone.

Fortunately, the region – known as the Delaware Valley — has a slew of options for incredible boroughs, towns and cities near Philadelphia in which to live. These spots offer a wide range of entertainment, dining, nightlife, recreation and comfortable apartments.

Of all the incredible places to live within easy commuting distance of Philadelphia, it’s hard to narrow down to a top 10. But we are sure you’ll find these 10 cities near Philadelphia — all within five to 25 miles of Center City and listed by distance from the city — perfect places to call home.

  • Haddon Township, NJ
  • Ardmore, PA
  • Conshohocken, PA
  • Hatboro, PA
  • King of Prussia, PA
  • Langhorne, PA
  • Phoenixville, PA
  • West Chester, PA
  • Wilmington, DE
  • Doylestown, PA

Haddon Township, NJ facing the City Center in Philadelphia.Haddon Township, NJ facing the City Center in Philadelphia.

  • Distance from downtown: 7.0 miles
  • One-bedroom average rent: $1,530 (down 3.38 percent since last year)
  • Two-bedroom average rent: $1,713 (down 13.88 percent since last year)

In New Jersey, townships are full-fledged municipalities, and Haddon Township is one of the region’s best cities near Philadelphia. Just 10 or so minutes from the Ben Franklin Bridge to Center City Philadelphia, the township offers both the quiet of a suburb and a main street that rivals any in the state for drinking and dining options.

Bustling Haddon Avenue in the downtown Westmont section is a mile-long stretch featuring some bakeries, cheesesteak joints, pasta shops, pizza places, taquerias, bars and taverns. Farther out, chain dining and big box stores line White and Black Horse pikes.

Haddon also offers plenty of green space, from Cooper River Park in the north along the lake to Newton Lake Park and Saddler’s Woods on the south.

Public transportation into Philly is a snap with Westmont Station a direct link via PATCO with park-and-ride facilities.

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Ardmore, PA. Ardmore, PA.

Photo source: Apartment Guide / One Ardmore Place
  • Distance from downtown: 7.7 miles
  • One-bedroom average rent: $1,357 (down 61.90 percent since last year)
  • Two-bedroom average rent: $2,552 (down 35.50 percent since last year)

Among swanky locales like Bryn Mawr, Villanova and Gladwyne, Ardmore is the iconic Philadelphia Main Line’s most accessible city to everyday folk.

Ardmore’s median income comes in at a tenth that of some of the region’s richest communities and is a much cheaper home value. But Ardmore is also less insular. The city is a destination for visitors and day-trippers from across the Delaware Valley.

Ardmore splits down the middle between Montgomery and Delaware Counties and Haverford and Lower Merion Townships. Its backbone is busy Lancaster Avenue that offers retail shopping, trendy restaurants and the 500-capacity Ardmore Music Hall, one of the area’s top concert clubs.

While other Main Line towns shun outsiders, the hum of Lancaster Avenue feels welcoming to all.

And on the north end of town is one of the region’s best spots for retail therapy or even just window shopping. Suburban Square is a six-square-block upscale outdoor shopping plaza. Dating back to the 1920s, the square is one of the nation’s oldest planned shopping centers.

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Conshockocken, PA, one of the cities near philadelphiaConshockocken, PA, one of the cities near philadelphia

Photo source: Conshohocken Borough / Facebook
  • Distance from downtown: 12.6 miles
  • One-bedroom average rent: $1,705 (down 7.82 percent since last year)
  • Two-bedroom average rent: $2,265 (up 7.69 percent since last year)

Throughout its history, Conshohocken has always held an important geographic location. Sitting at one of the largest bends of the Schuylkill River, the land was originally a large milling region along rail and shipping lines.

As interstates went up, the region morphed into a factory industrial center. As manufacturing declined, it was those same highways that turned “Conshy” into one of the most desirable suburban-chic and cosmopolitan residential commuter communities in the city.

Conshohocken lies between the I-476 Blue Route and I-76 Schuylkill Expressway at the “Conshohocken Curve.” As industry left, easy access to the region’s two major highways transformed it into a hub for upper-middle-class commuters into the city, especially as apartment complexes and mid-priced high-rise rental towers rose.

And as the population increased, so did the enclave which features shopping and dining spots and many glittering hotels.

The shoreline also features a section of the running and biking Schuylkill River Trail path.

Nearby, Conshohocken’s Fayette Street main street is popular among its young professional population, with a median age of 32 with 63 percent single. The downtown strip offers a selection of quaint boutiques, eateries and cafes, as well as a variety of notable bars.

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Hatboro, PA.Hatboro, PA.

Photo source: Apartment Guide / Livingstone Apartments
  • Distance from downtown: 15.9 miles
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: $1,695 (up 9.18 percent since last year)

Eastern Montgomery County has just a few towns with true main streets, but one of the best of the bunch is Hatboro. The borough sits along the Bucks County border, a suburban town settled among some residential communities.

Hatboro is known for its plethora of parks and green spaces, including the popular Hatboro Memorial Park and Memorial Pool. But its growing notoriety as a suburban craft beer lovers’ destination is what’s gaining prominence.

In the heart of the Craft Beer Trail of Greater Philadelphia, Hatboro offers Crooked Eye Brewery and Artifact Brewing, both opened within the last several years.

The breweries sit along York Road, Hatboro’s main street. The corridor also offers many bars and gastropubs, vintage clothing stores, hoagie shops and produce grocers, cafés and popular bakeries and Daddypops diner, a favorite of Food Network’s Guy Fieri.

The borough is also convenient for commuters, with Hatboro station along the Warminster Line to Center City just off York Road.

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King of Prussia, PA, one of the cities near philadelphiaKing of Prussia, PA, one of the cities near philadelphia

  • Distance from downtown: 16.9 miles
  • One-bedroom average rent: $2,204 (up 5.44 percent since last year)
  • Two-bedroom average rent: $2,544 (up 0.81 percent since last year)

To speak like a true Philadelphian, pronounce the name of the city of King of Prussia the proper way, “Kingaprusha.”

If you’re familiar with the western Montgomery County city, it’s most likely for one thing: its megamall. The King of Prussia mall is massive, at 2.8 million square feet and 450 stores. It’s the third-largest mall in the nation behind only the Mall of America and the new American Dream in New Jersey.

This central town nestles right along the Schuylkill River — between four major thoroughfares: the Pennsylvania Turnpike, I-76 Schuylkill Expressway, and U.S. Routes 202 and 422. Sitting between renowned Valley Forge Historical Park and county seat Norristown, King of Prussia is both a popular commuter city and an important edge city in its own right.

One key location in KOP is the King of Prussia Town Center. Opened in 2016, the large planned lifestyle development has become a hub of residential activity in town. Acting as the city’s downtown, Town Center offers a bevy of apartments and townhouses at Village at Valley Forge with mixed-use and office space, upscale department stores and a Wegman’s grocery, retail shops and several new restaurants and bars.

Nearby are several office parks, Upper Merion High School and the Valley Forge Casino Resort.

The area is growing so quickly, local transportation authority SEPTA is developing a $2 billion regional rail line to directly connect King of Prussia with University City and Center City Philly.

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Langhorne, PA.Langhorne, PA.

  • Distance from downtown: 22.0 miles
  • One-bedroom average rent: $1,413 (down 1.55 percent since last year)
  • Two-bedroom average rent: $1,691 (up 6.72 percent since last year)

One thing you can have living in the suburbs that you usually don’t in the middle of a city is an amusement park down the street. That’s one of the features of living in the borough of Langhorne and adjoining Middletown Township. Here you’ll find Sesame Place, the Sea World-owned young children’s Sesame Street theme park.

Langhorne borough proper and surrounding Middletown Township are collectively referred to as Langhorne.

The area is an important business and shopping center along Neshaminy Creek in charming Bucks County. Along with numerous national chains and big box stores, a myriad of service centers, retail shops and old-school restaurants line Pine Street and Maple Avenue.

In addition, the borough features a quaint historic district dating back to the 19th century. Sitting just off the I-295 beltway, Langhorne is a popular bedroom community for commuters to Trenton as well as Philadelphia.

The expansive Middletown Country Club splits the borough, with the multistory Oxford Valley Mall out in the Township. And surrounding Lake Luxembourg is the expansive 1,200-acre Core Creek Park. The region offers a variety of housing options, from affordable apartments to large suburban mansions.

Several locations still offer 1950s style tract housing leftover from the expansion of the nearby Levittown planned community.

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Phoenixville, PA, one of the cities near philadelphiaPhoenixville, PA, one of the cities near philadelphia

Photo source: Borough of Phoenixville / Facebook
  • Distance from downtown: 23.9 miles
  • One-bedroom average rent: $1,229 (down 14.82 percent since last year)
  • Two-bedroom average rent: $1,426 (down 12.71 percent since last year)

In 1958, a large gelatinous alien creature was let loose and devoured dozens of residents of Phoenixville, Pennsylvania. That of course only happened on screen, in the Steve McQueen horror classic “The Blob,” which filmed and took place in the Chester County suburb.

The movie features a famous scene where terrified residents flee the alien out the Colonial Theater’s doors. That real-life theater is the centerpiece of Phoenixville’s Bridge Street main street as well as the annual Blobfest which celebrates the landmark film.

But as important as the film is, younger residents will tell you it’s the craft beer scene that makes Phoenixville special. After languishing for years as a rundown mill town, a revitalization plan included a call for brewers to set up shop. Today the city of just 17,000 offers 10 craft breweries.

On Bridge Street alone are four breweries, along with a tap house, a distillery and three winery tasting rooms. That collection gives downtown Phoenixville the distinction of having the most breweries per square foot of any place in the nation.

For residents, Phoenixville is more than just beer and blobs. Its absolutely teeming downtown along Bridge Street has boomed with pizzerias and bistros, coffee and smoke shops and boutiques and galleries.

Phoenixville Area High School offers a high ranking and a 15:1 student-teacher ratio. And many parks and green spaces dot the region, including the large Black Rock Sanctuary wildlife refuge along the Schuylkill River bend that also features Basin Trail for hiking and biking. The Schuylkill River Trail also crosses the borough, along French Creek.

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West Chester, PA. West Chester, PA.

  • Distance from downtown: 25.0 miles
  • One-bedroom average rent: $1,631 (down 1.23 percent since last year)
  • Two-bedroom average rent: $2,095 (up 7.54 percent since last year)

A little under 25 miles from Center City, West Chester is a more affordable alternative to the nearby Main Line. The seat of Chester County offers a selection of bars, restaurants and shops in its surprising downtown along Gay and Market streets.

Local businesses are accessible, catering to the borough’s young, affluent residents as well as budget-conscious clientele. Need proof? West Chester’s downtown sits on the top-three list of “Great American Main Streets.”

West Chester is a more affordable, younger enclave surrounded by old-money communities like Malvern, Kennett Square and Chadds Ford, with swaths of an urban-rural buffer.

The borough offers high-ranked schools and an average age of just 24.9 years old. A vibrant part of that young community is West Chester University, ranked a Top 10 Public Regional University by U.S. News.

Why is West Chester attractive to young professionals? Perhaps it’s the borough’s title as “Most Exciting Place” in all of eastern Pennsylvania. It’s a locale to meet new people, as the state’s second-most densely populated city, fifth-best for nightlife and fifth-best spot to lead an active lifestyle.

Or maybe it’s because it’s the world headquarters of the QVC shopping network.

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Wilmington, DE. Wilmington, DE.

  • Distance from downtown: 26.2 miles
  • One-bedroom average rent: $1,186 (down 14.08 percent since last year)
  • Two-bedroom average rent: $1,477 (up 1.09 percent since last year)

Look behind Pennsylvania and New Jersey to find the best cities near Philadelphia — don’t forget about Delaware!

Wilmington is certainly having a moment. While the previous president spent his weekends at swanky Mar-a-Lago or Bedminster golf club, the current chief executive has been taking his off weekends back in his home state of Delaware. President Biden famously grew up in and around Wilmington and is known to have commuted back to his residence weekly dating back to his earliest days as the Diamond State’s senator.

Wilmington, despite being the largest city in a completely different state, is just a half-hour drive from Center City Philly. But it’s the finance industry that fuels the economy of the Corporate City.

The 1980s Financial Center Development Act liberalized financial regulations in Delaware, removing usury laws and interest rate caps. This caused financial and insurance corporations from around the world to set up shops in Wilmington.

An attractive city to big money employers is an attractive city to its white-collar workers. And one of the favorite locals is the Christina River waterfront. Popular waterfront spots include the Blue Rocks’ Frawley Stadium, the Delaware Children’s Museum, a convention center, a movie theater, parks, trails, hotels and a slew of cafes, restaurants and bars.

And for those concerned about Wilmington’s less-than-stellar crime safety record, there is good news. The city reports being “safer now than it’s ever been.” The city is noting its lowest crime rate in recent history.

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dolyestown, PA, one of the cities near philadelphiadolyestown, PA, one of the cities near philadelphia

Photo source: Doylestown Township / Facebook
  • Distance from downtown: 27.2 miles
  • One-bedroom average rent: $1,408 (up 25.06 percent since last year)
  • Two-bedroom average rent: $1,999 (up 9.93 percent since last year)

Gateway to the colonial-estate-and-covered-bridge tourism lands of Upper Bucks, Doylestown is the charming exurban seat of Bucks County.

The borough offers a slew of cultural and entertainment options not usually found in a town of under 9,000, about an hour commute from Center City by either train or car.

Doylestown has one of the densest gatherings of museums out of all of the cities near Philadelphia. James Michener Art Museum (named for the native son author), the Moravian Pottery and Tile Works, the Mercer Museum and Oscar Hammerstein II Farm (the final residence of its namesake) can all be found here.

Just off the center of town is the historic art deco movie house County Theater which shows blockbusters and arthouse films alike.

Elsewhere in Doylestown’s downtown along State and Main streets are quaint thrift shops, big city-worthy restaurants, bookstores, coffee shops and brewpubs.

For those seeking a more natural setting, just as appealing is the natural beauty of rural Bucks County just outside of town, packed with hiking trails, bike paths, water recreation and nature watching. Favorite spots include urban 108-acre Central Park and wooded 1,500-acre Peace Valley Park.

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Make one of these cities near Philadelphia your next home

No matter where you decide to call home, you can’t go wrong with any of the amazing cities near Philadelphia you might choose.

Whether in Bucks, Montgomery, Chester or Delaware Counties, across the river in South Jersey or down I-95 in Delaware, you’ll have tons to do all within a short commute into the city.

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory of one-bedroom apartments in April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

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Source: apartmentguide.com

Couponing Do’s & Don’ts — How to Save Money Shopping With Coupons

You’ve probably already used coupons at some point in your life. According to a 2020 survey by Statista, almost 90% of respondents reported having used coupons for shopping. Considering that coupons provide a fast, free way to reduce spending on groceries and essentials, it’s clear why coupons are so popular.

But to make your couponing efforts more successful, it’s crucial to familiarize yourself with the tips and tricks successful couponers use. The last thing you want to do is waste time collecting coupons only to realize none of them is valid when you’re checking out.

If you’re relatively new to couponing, start slowly by bringing a few paper coupons to your next shopping trip. Over time, you can incorporate more of these couponing do’s and don’ts to save more.

Couponing Do’s

Couponing doesn’t have to feel like a marathon or take up hours of your week. By following one or more of these couponing do’s, you can start to trim your monthly spending — and ultimately save more money.

1. Do Know Where to Find Coupons

The most basic step in starting to coupon is to collect them. Ideally, you can gradually build a stash of coupons for the stores and brands you frequently shop so you can always find some savings at the register.

To begin your coupon hunt, plan your weekly meals around sale products if possible. That helps you find discounts without even having to coupon. To find in-store sales, look for digital flyers on grocery store websites.

Another resource is Flipp, a free app that provides weekly flyers, deals, and online coupons for over 2,000 stores. Flipp has weekly flyers for stores like Aldi, Kroger, and Walmart. You can clip deals you find to the in-app shopping list to help you keep track.

Once your virtual or paper shopping list has all the food you need for the week, finish the list with any household essentials you need to restock, like toilet paper or cleaning supplies. You’re now ready to track down coupons for everything on your shopping list.

There are several free websites you can use to print paper coupons. These websites include coupon databases and brand websites like:

Coupons.com, Coupon Sherpa, RetailMeNot, and Valpak also have mobile apps that let you find and redeem digital coupons at the register. If you don’t want to spend time and money printing coupons, apps are your best resource. You can also try other mobile coupon apps like Grocery Pal and The Coupons App, which have digital coupons for grocery stores like Aldi, Albertsons, Kroger, Food Lion, Safeway, and Publix.

Between paper and digital coupons, you should find savings on some of the products on your weekly shopping list. If you can’t track down a specific coupon, searching online for the product name plus “coupon” is another tactic to try.

Finally, if you subscribe to a Sunday paper or get coupons and ad flyers in the mail, take a few minutes to scan for coupons you need. If you spot an incredible coupon for a product you buy regularly, you can scoop up a few extra newspapers on discount at a dollar store the following day or look online for the same coupon.

Also, don’t forget to check out those coupons they print out at the register after checkout (sometimes called Catalina coupons). Those are typically based on your specific purchases, so there may be something in there you can use. Others may be percent-off discounts on your total sale price if you spend over a certain amount.

You don’t have to go overboard and find duplicates of every coupon for your shopping list. Find as many as you can, and remember to check expiration dates so you shop in time to save.

2. Do Combine Coupons With Cash-Back Rewards Apps

Coupons usually provide a percent discount or certain dollar-off amount to let you save. But if you want to save even more on your weekly grocery haul, you can use cash-back rewards apps to earn rebates for buying certain products.

Just like searching for coupons, you can research rebate opportunities before heading to the store to earn cash back for products you were going to buy anyway. Popular rewards apps you can use include:

  • Ibotta. Earn cash back for buying specific products from Ibotta partners and uploading your receipt to the app for proof of purchase. Ibotta works with over 1,000 brands, and there are always offers on groceries and everyday essentials. You can redeem cash back through PayPal, Venmo, or free gift cards when you reach $20. Read our Ibotta review for more information.
  • Fetch Rewards. If you like Ibotta, Fetch Rewards is another must-download app. With Fetch Rewards, you earn points for buying products from dozens of popular brands. An advantage of Fetch Rewards is that you can redeem many free gift cards once you reach $3, which is possible in a single shopping trip. Read our Fetch Rewards review for more information.
  • Checkout 51. Checkout 51 is similar to Ibotta. Download Checkout 51, select offers to shop for, and upload your receipt to earn rewards. Checkout 51 works at stores like Aldi, Albertsons, Costco, Kroger, Meijer, and Walmart. You get a check when you earn $20 in cash back. Read our Checkout 51 review for more information.

There’s still nothing wrong with using paper coupons or mobile coupon apps if that’s all you have time for. But to save even more, it’s worth trying cash-back rewards apps alongside your couponing efforts.

3. Do Sign Up for Store Savings Cards

Sign up for rewards cards at the stores where you shop. Store rewards cards typically provide shoppers with additional savings in the form of reward points or discounts. Plus, some loyalty programs also send additional coupons in the mail.

Reward cards also help you earn more with Ibotta since you can connect cards from retailers like Meijer, Kroger, and Wegmans to your account. Once you connect a card, Ibotta automatically detects whether your purchase qualifies for cash back and pays you.

4. Do Stay Organized to Maximize Savings

Organize coupons to keep them easily accessible when you shop. The last thing you want is to miss a coupon when checking out or — even worse— forget your coupons at home.

Your organizational system doesn’t have to be complex or expensive. For casual couponers, a coupon wallet on Amazon costs around $10 and comes with dividers to group coupons into different sections, like meat or produce.

If you prefer managing everything from your smartphone, you can also use the free SnipSnap app to transform paper coupons into digital ones. Once you snap a picture of a paper coupon, Snip Snap uploads it to its database so you can use it while on the go. The app also tracks expiration dates and sends reminders about expiring coupons.

5. Do Know Your Store’s Coupon Policy

Does your grocer double coupons, price-match, accept competitor coupons, or give rain checks if sale goods are out of stock? If you don’t know, research coupon policies online. Grocery stores and general retailers like Walmart and Target outline coupon rules on their websites. To find a policy, use a browser to search for the name of your store of choice plus “coupon policy” (for example, “Kroger coupon policy”) or look for a frequently asked questions section on the website. These policies help you save even more money, and they aren’t always prominently advertised. Things to stay informed about include:

  • Price Matching. Stores don’t like losing a potential sale because a competitor has a slightly lower price tag, so many are willing to price match. Price matching is when a store adjusts its price to match a sale at another local store.
  • Competitor Coupons. Your store may accept competitors’ coupons, but you should clarify who their competitors are. For example, Publix accepts coupons for competitors’ private-label products, whereas Meijer doesn’t take competitor coupons at all. But some stores are more specific than Publix. Lowes Foods accepts competitor coupons only from select competitors, like Aldi, Food Lion, Target, and Walmart.
  • Rain Checks. When you want to buy an out-of-stock product, some stores issue rain checks, which guarantee the current price when it’s back in stock. But many stores have specific rules for rain checks. For example, Publix only issues one rain check per household per day (in addition to other, sometimes product-specific restrictions).

6. Do Know Local Stores’ Best Deals & Sale Patterns

You can get the most out of any coupon when you shop at the stores with the best deals for that product type, such as canned goods or toiletries.

That requires paying attention as you shop around. Over time, you learn each local store’s pricing quirks and sale patterns. For example, perhaps your local Walmart’s bakery section regularly puts bread and bagels on sale during certain days of the week. Or maybe your town’s Kroger has better prices and more frequent discounts on frozen meals than your local Publix.

As you learn this type of information, you can be more selective about where you shop for individual products. You don’t have to waste time and gas shopping at multiple stores for a single grocery trip, but for specific products, it can make sense to coupon at stores that are more likely to have deals or just better prices on that product category.

7. Do Start Slowly

When you first start couponing, it feels intimidating if you’re redeeming dozens of coupons and have a lot of numbers to crunch.

For your first few shopping trips, focus on the highest-value coupons, the ones you know are worth using. That might look like bringing three 50%-off coupons or your highest-dollar-value-off coupons.

You can even try using coupons on sale products, but don’t get too creative until you’re comfortable calculating whether things are good deals and handing over coupons at the register.

8. Do Try Stacking Coupons

Combining a coupon with a store sale is a simple way to stack savings. But you don’t have to limit yourself to just stacking coupons with sale prices. Stores like Dollar General, Meijer, and Target let you stack a manufacturer’s coupon and store coupons to save even more.

For example, if Target has Planters peanuts on sale for $2, you can use a $1 Target coupon for Planters products and a $1 Planters manufacturer’s coupon to score a free can of peanuts. You can find store coupons online or in your favorite store’s weekly flyers.

If you can’t get something for free, try stacking coupons with store sales and apps like Ibotta to maximize savings.

For example, there’s a 50%-off clearance sale on a $3.99 Red Baron pepperoni pizza, bringing the price down to $2. If you have a $1 manufacturer coupon, the price is just $1. But since Ibotta has a $0.75 rebate on Red Baron pepperoni pizza, you just scored an entire pizza for only $0.25.

To top it all off, shop with a cash-back credit card to earn even more. The goal of couponing is to find deals whenever possible and get creative to stretch the value of every dollar you spend.

9. Do Use the Overage

When your coupons exceed the sale price of a product, it produces an overage. While that doesn’t invalidate the coupons, most often, that means you get the product for $0.

However, certain retailers apply overages toward other products in your shopping cart. For example, say you get an overage of $0.50 on a box of Betty Crocker chocolate cake mix by using a manufacturer coupon and sale price. Overage-allowing retailers apply the $0.50 overage to another product in your cart.

Walmart and Kroger are two major retailers that apply overages to your cart. And Walmart is one of the few retailers that pays cash back for overages (except on purchases made using government benefits, so save coupons for purchases you make when you’re not using your SNAP and WIC benefits). Kroger issues overages on a merchandise return card (essentially, a Kroger gift card). If you’re in doubt, look up your store’s coupon policy online to learn about overage rules.

10. Do Present Coupons in the Right Order

You can maximize your savings by handing the cashier your coupons in a specific order. For example, if you have a store coupon for $5 off a $20 purchase, use that coupon first. Otherwise, your other coupons might negate the $5 coupon by discounting the total amount of the sale to less than $20.

Some stores automatically apply your coupons correctly, so the order doesn’t always matter. But to be safe, give the cashier the price-minimum coupon before you use any other coupons.

11. Do Get in & Get Out

Know what you plan to buy before you go to the store, and stick to your shopping list.

If you stay in the store too long, you become susceptible to their marketing ploys, and you may end up spending more money. Get in, get the deals, and then get out.

If you shop during less busy grocery shopping hours, like during the week or at night, your trips will also be faster than battling weekend shopping crowds.

12. Do Stock Up

If you spot an incredible couponing opportunity on nonperishable goods or products you use frequently, it’s generally a smart move to stock up. It ensures you benefit from the deal as much as possible and lets you use more coupons before they expire. It’s an excellent way to set up long-term emergency food and supply storage.

Stacking coupons and store sales lets you score the lowest price possible when stocking up. For example, if Green Giant canned corn is on sale for $0.99 per can and you have several BOGO coupons or manufacturer coupons for $0.50 off per can, you can stock up on as many cans as possible to build your food storage for less than half the regular price.

Some stores limit the number of sale products you can purchase at once. If a store puts a limit on something and you need more of it, visit other store locations to create your stockpile.

Stocking up also lets you be pickier about when you use coupons. For example, if you run out of toilet paper, shop your emergency pantry first. You can replace your emergency supplies when you’re able to stack a sale and a coupon rather than buying full-price TP without a coupon.

That’s especially important for edible pantry goods. Canned and dried foods last a long time, but even they eventually go bad. This method ensures your emergency supplies are always safe to eat. If you have to throw them away, you won’t save any money (and may be in trouble if you need them during a bona fide emergency).

But before you come home with 30 cans of creamed corn, make sure you have a place to store it. You can convert a small area of your home, like a guest room closet or second bathroom linen closet, into your emergency pantry.

13. Do Donate the Excess

When couponing, you sometimes encounter scenarios where you can get so much of a free or cheap product that you can’t even use it all before it expires. It’s still a better deal than purchasing without a coupon, but the thought of letting all that product go bad doesn’t sit well with most people.

Instead of turning down an incredible deal, look into ways to donate excess couponing successes to people in need. Charities like homeless shelters, food banks, and women’s shelters make excellent candidates for donations. You can also reach out to local churches and community outreach programs to see if they need certain supplies.

You may even be able to take a charitable contribution tax deduction.


Couponing Don’ts

If you ever watched shows like TLC’s “Extreme Couponing,” successful couponing looks like hours of dumpster diving for coupon flyers, endless clipping, and (in some cases) being way too frugal.

But couponing doesn’t have to become your full-time job. You don’t need to make things overly complex either. As long as you follow couponing best practices and avoid some common couponing mistakes, your savings can benefit without transforming your living room into a coupon-clipping factory.

1. Don’t Shop Without a Meal Plan

Shopping with a meal plan is an often overlooked couponing tip, but it’s crucial to saving money. If you don’t have a plan to use the products you’re buying each week, you’re more likely to waste food.

Additionally, shopping without a menu makes you more likely to buy convenience food: frozen pizzas, hot dogs, and other fast meals. While these are delicious, they’re not conducive to eating healthy on a budget.

When building your shopping list, plan dishes that line up with products you have coupons for. For example, you find a $1-off coupon for two bags of Sargento cheese, a $0.25 coupon for Classico pasta sauce, and a coupon for $1 off two boxes of Mueller’s pasta. You can plan to make lasagna for dinner one night that week and macaroni and cheese as a side for another meal.

Or perhaps you find a coupon for an ingredient that’s central to many dishes, like chicken or ground beef, that also happens to be on sale. You can plan to make several recipes that use that ingredient, then stack the sale and coupon for even more savings.

If that sounds intimidating, affordable meal-planning services like $5 Meal Plan provide a month’s worth of dinner recipes and various breakfast and lunch ideas for only $5 per month.

2. Don’t Use a Coupon on a Full-Price Product

If you use a $1-off coupon on a full-price two-pack of SlimFast protein drinks for $5.68, you still pay $2.34 per beverage. But if you wait until SlimFast is on sale, you can save even more money. For example, if SlimFast goes on sale for 20% off, you can buy two drinks for $4.54, use your coupon, and pay $3.54, or $1.77 each, saving nearly 40% on your purchase.

That’s why operating with an emergency pantry is such a good idea. If you need to restock on an ingredient or product that day, you have to use coupons even if you miss a sale (or worse, pay full price without a coupon). But if you can afford to wait, you can save money in the long run by shopping during sale periods and with coupons more often.

3. Don’t Buy Something Just Because It’s on Sale

Don’t let sale prices trick you into buying something you don’t typically use just because it looks like a deal. If you use coupons without thinking, you inevitably buy things that are a waste of money or products that expire before you have a chance to use them.

Jumping on every great deal out there significantly lightens your wallet and defeats the whole purpose of couponing. That said, if you find a fantastic deal on something you can donate, there’s nothing wrong with couponing for charity.

4. Don’t Be Brand-Loyal

Prego or Ragu spaghetti sauce? Skippy peanut butter or Jif? Which brand should you buy? The answer: whichever one you can get the cheapest using your coupons.

Many people start couponing because of a major life event, like job loss, pregnancy, or too much debt. Those aren’t the times to be brand-loyal. You need to save money, and you can’t do that if you pass on deals because you prefer specific brands.

And sometimes, the cheapest bet is to go with the store brand, even if it means passing up on a coupon or sale for another brand.

For example, at Walmart, the Great Value line is extensive, covering a range of affordable grocery products and everyday essentials. If your coupons can’t beat Great Value, it’s probably best to save them for another time.

Plus, many retailers give coupons for their own brands through register coupons and coupon mailers, so you can still find ways to save on already affordable store brands.

5. Don’t Use Every Coupon

Some coupons don’t represent real savings. For example, a coupon for $0.50 off two boxes of brand-name cereal doesn’t result in much savings. That’s only $0.25 off each box. Even during a good sale, the coupon may not take the total price down to a better deal than the store brand. Wait for a better coupon and another sale.

Sometimes, you also have good coupons nearing their expiration dates but no sales on the goods you need. Let them expire. You don’t have to use the coupons, especially if you have to buy a brand name at full price to do so.

Couponing is about saving money, not getting good deals on brand-name products.

If you really need something, buy one or two of them now and wait for a sale to buy in bulk.

6. Don’t Waste Time

It’s easy to fall into the couponing trap of spending so much time searching for deals and preparing to shop that you’re turning couponing into a part-time job (there are better side gigs to make extra money).

Start by asking yourself how much time you want to dedicate to couponing. The answer could be 15 minutes on Sunday to look through coupon apps or a couple of hours every week to do more thorough research.

With a time commitment in mind, you should also work efficiently. Some tips to save time when couponing include:

  • Only clipping paper coupons you know you’re going to use
  • Turning clipping into a family activity (don’t forget safety scissors for the younger ones)
  • Linking store loyalty cards with apps like Ibotta to avoid preselecting rebates before shopping

You can also order groceries online and use coupons to save both time and money. Online grocery shopping gives you plenty of time to scout deals and coupons and do the math without feeling pressured. It also saves you from clever marketing tactics that induce impulse buys. They try to do the same things online, but you have more time to talk yourself out of it. And you can typically use the same or similar coupons online you do in stores.

For example, at Kroger, you can load digital coupons onto your Kroger Plus card and have them automatically apply to your online grocery order. And if you pick up the order, you can also use paper coupons (Kroger only accepts their own digital coupons for delivery). Just make sure you hit any free pickup minimums to ensure you’re really saving.

As long as couponing is enjoyable and effective, you’re on the right track. Plus, as you gain experience, you’ll find certain coupon apps or websites work best for your shopping habits and become even more efficient at growing your coupon supply.

7. Don’t Print Coupons You Don’t Use

Online printable coupons from websites like Coupons.com can save money. But you still use computer paper and ink to print the coupons, which costs money and wastes paper.

Many people print every online coupon available and then throw most of them away. Print online coupons as you need them. Save any you’re interested in but don’t need as a PDF or browser bookmark.


Final Word

In many ways, learning to coupon is a series of stages. At first, you use a few tips that are convenient to save, like buying products you have coupons for. As you become more comfortable, you start to mix in tricks like coupon stacking and simply using more coupons per shopping trip. If you start loving the process, you eventually graduate to extreme couponing, where it’s possible to score entire grocery hauls for almost pennies on the dollar if you get it right.

Whatever stage you’re in, the goal of couponing is to save more of your money. How much time you spend on it is up to you.

Source: moneycrashers.com

Understanding Single-Family Home HOAs

Before you buy a home in an HOA-governed community, make sure you review the rules thoroughly.

What does HOA mean?

HOA means homeowners association. It can also be referred to as HOD or Home Owners Dues. HOAs can exist in planned housing developments, town homes, and condos. It is generally billed on a monthly basis.

Most people think of homeowners associations (HOAs), legally known as Common Interest Developments, as related to attached housing structures like condominiums or town homes. But this is not always the case.

Around the 1980s, developers started building communities of single-family homes that were actually Common Interest Developments. These communities came with their own sets of rules, regulations and HOA fees.

The reason builders starting developing communities in the HOAs structure was to maintain order and the aesthetics of a community. Their rules keep home paint colors and front yards in harmony, restrict building additions that don’t fit into the neighborhood, and stop owners from parking broken-down vehicles in their driveways or front yards. Such regulations assure new and existing owners that a neighbor’s behavior and choices will not diminish property values.

But they also mean that you must follow the rules yourself, and typically contribute monthly fees to manage and run the HOA for the benefit of all owners. When residents violate these rules — which can cause stress for other owners and hurt property values– the HOA will typically step in and enforce them with violation notices, fines and possibly litigation, if the issue gets that far.

The root of the issue

Often, the problem is not the rules, it’s that people don’t read the rules and regulations before they buy into a community, and then they violate the rules. But ignorance is no excuse — those rules are recorded on the property title, and likely given to every buyer to review before they purchase a home in a standard transaction. Owners are still bound by those rules whether they received and read them or not.

If you are buying into an HOA-governed community, be sure to read the rules and regulations before you buy. Once you’ve read them, if you don’t like them, then you should avoid buying a property in that community.

What if you already own in an HOA, and don’t like the rules or how the elected HOA board of directors interprets and enforces them? Luckily, an HOA is a democracy and the owners can vote out the board of directors and change the rules!

Any member-owner can try to get elected to the board and change the regulations. They just have to get enough other community members to support their opinion and vision for the community.

Unfortunately, most community members never go to a board meeting and never get involved. They just complain about the board — who are all volunteers, by the way — and complain about HOA fees, rules, and special assessments, etc.

If you are one of those owners who doesn’t like the rules, then get involved and take the time to campaign in your community, get on the board, and change the regulations.

Do Renters Pay HOA Dues?

“The landlord cannot force you to pay the HOA unless that is what is required in the lease. If it is part of the lease, then you have to pay. If not, you don’t, but the owner may decide to find another tenant when the lease is up.

If the HOA is not doing their job in clearing snow, I would write them a letter and send copy to the landlord. You are not the owner so they may not listen, but it gives you proof of the issue and may prompt the owner to act.”

Related:

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Source: zillow.com

How to refinance a mortgage with bad credit

Refinancing your mortgage with a bad credit score is completely possible, but is a more complicated process than refinancing with a good score. Because your credit score is such a large aspect of any loan application and refinancing process, it is in your best interest to consider all of your options before moving forward.

Refinancing your mortgage could be a great opportunity to gain some payment flexibility or even take advantage of a lower interest rate. To avoid leaving money on the table, explore all of your options for refinancing with bad credit.

How Credit Scores Affect Refinancing

Lenders use your credit score and overall lending history to calculate the risk of lending you money. A lender will view a borrower with a low credit score caused by loan defaults and constant late payments as a high risk. Because the borrower has shown negative borrowing practices in the past the lender will be more reluctant to sign or refinance a loan.

30-Year Mortgage Rates Based on Credit Scores

FICO Score APR
760–850 4.6%
700–759 4.8%
680–699 5.0%
660–679 5.2%
640–659 5.6%
620–639 6.1%

Based on 2018 national averages for a $200,000 fixed loan.
Source: FICO

Putting together a mortgage refinancing package for a borrower with a bad financial history might cause the lender to increase the length of the loan term, increase the total interest rate or even increase the total monthly payments. Unfortunately, when a borrower has a pattern of falling behind on payments, a lender will offer more expensive refinancing packages to make up for the added risk.

Is Refinancing Right for You?

It is important to note that refinancing your mortgage may not always save you money. You might come out with the same financial deal or a worse option than you currently have, especially if you have a low credit score. In fact, looking at the average outcomes of Freddie Mac mortgages that were refinanced between 1994 and 2018 shows that only a small fraction of refinances actually resulted in the borrower saving money.

Graphic: Average Mortgage Refinancing Outcome

Source: Freddie Mac

While refinancing may not be right for everyone, it’s still important to consider the benefits of flexibility and length of terms. If you see yourself falling behind on payments or want to pay off your loan faster, refinancing your mortgage might still offer you some benefits.

Refinancing With Your Current Lender

When approaching your current lender about refinancing your mortgage it is first important to assess where you stand as a borrower. If you make payments on time and are in great financial health the lender will most likely want to continue doing business with you. However, if you have been late on payments and are struggling to cover other financial responsibilities the lender might be more reluctant to refinance your mortgage.

1. Shop Around for Low Rates

Before approaching your current lender for refinancing options, it is important to check for other options. To aid with any negotiations you should first check with other banks to see what interests rates are the best. Coming to your current lender after already shopping around for prices will give you more bargaining power to get a lower rate.

2. Show Proof of Savings

If your credit score is low but you have money in the bank a lender may still offer you a competitive rate. Showing proof of income and savings is a good option for new borrowers with short lending historys. For lenders, any proof that a borrower will be able to make payments toward a mortgage or loan will lower the overall lending risk and make a positive impact on the terms of the refinancing agreement.

3. Get a Loan Cosigner

If you have a low credit score and do not have sufficient money in the bank to lower your overall risk, you can use a loan cosigner. A cosigner shows the validity of an agreement and essentially promises to pay any debts that are outstanding if the borrower cannot pay. Depending on your financial situation, it can be difficult to get someone to agree to be your loan cosigner. As such, you should only approach people you’re close with.

4. Show Proof of Income

Even if you do not have a large amount of savings in the bank you can still demonstrate you will make payments on time and carry through with your mortgage agreement by showing proof of income. If you have a well-paying job or have sufficient income coming in, a lender will be more likely to offer a good refinancing option to you. Even without money in the bank or a good credit score, showing proof of income demonstrates that you are financially stable enough to make payments on the loan.

5. Improve Your Credit Score

Before visiting your lender to inquire about mortgage refinancing options you should first look at your credit report for points of action around how you can build your credit score. If your credit report is full of negative items like late payments, hard inquiries and delinquent accounts there could be some places to make up some extra points. Through a series of disputes, letters and phone calls with the major credit agencies you can work toward getting a higher score. There are also companies that offer credit repair solutions that can get your credit removal cases rolling to help improve your score.

Consider Cash-Out Refinancing

Cash-out refinancing is a mortgage refinancing option ideal for people who owe less than their house is worth. It is important to note that a cash-out refinancing option trades your current loan for a cash payment and a larger loan. Lenders can typically refinance a loan for up to 80 percent of the current market value.

Equity is earned on a home when its market value price increases over the price in which you paid for it. Earned equity is normally cashed out with the sale of a home, but it can also be tapped into with cash-out refinancing.

Graphic: 80% have tappable equity on their home

The largest disadvantage to a cash-out refinance is the equity loss of your investment. Although the amount of money between what you currently owe and what your house is valued can be a sizable help for short-term debts, you will still be accountable to pay back the new and larger loan in the long term.

Apply for the Home Affordable Refinance Program

The Home Affordable Refinance Program (HARP) is an initiative created by the Federal Housing Finance Agency following the 2008 economic recession, which caused large mortgage defaults in America. With the sudden drop in housing prices, many Americans were overpaying for their mortgages. HARP has helped refinance over 3 million mortgages so far and represents over 20 percent of all refinances. It is important to note that HARP is not the best solution for everyone, and has five main requirements for eligibility.

  • Your loan is currently owned by the mortgage-backed securities companies Freddie Mac or Fannie Mae.
  • Your mortgage/loan was signed before May 31, 2009.
  • Your current loan-to-value ratio is over 80 percent.
  • You are up to date with your mortgage payments and have not missed a payment in the last six months nor missed more than one payment in the past year.
  • The mortgage was either for your current residence, a second home or a four-unit investment property.

Seek FHA Refinancing

The Federal Housing Administration has a number of refinancing options built to help homeowners with existing FHA secured loans. Unfortunately, the streamlined refinancing is not available for loans that originated outside of any Federal Housing Administration secured lenders. One benefit of refinancing through the FHA is credit or income checks are not part of the process. If your mortgage is secured with the FHA, there are some prerequisites for the refinancing program.

  • You are current on payments and have not missed or been late on a payment for the past year.
  • You have owned the house for over six months.
  • You use an FHA approved lender or an FHA approved bank when refinancing.

If you are still unsure if you qualify the FHA mortgage portal includes a step-by-step guide that can give you an estimate of your best refinancing options available.

Mortgage Refinancing During the Coronavirus Outbreak

Graphic: Coronavirus Impact on Refinancing Your Mortgage

The coronavirus outbreak has impacted our lives on every front. Loss of jobs and income has lead to uncertainty and has made it difficult for many Americans to make their mortgage payments. Many homeowners have been taking advantage of the mortgage relief that was part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), legislation that was signed in on March 27, 2020. This allows eligible homeowners with FHA-insured mortgages to have their payments due dates pushed back, also known as forbearance.  

Other homeowners are taking this opportunity to refinance their mortgage. According to the Mortgage Bankers Association, refinancing applications are being filed at a rate that’s 168% higher than during the same period in 2019. Though re-financing sounds like an attractive plan-of-action, it may not be right for everyone — there are additional considerations to make if your credit score is less than ideal.

To better understand your options, see some refinancing factors, considerations, challenges and resources below.

Is Refinancing Worth It?

It is worth looking into refinancing but this may not be the right move for you depending on a variety of factors. In a broader sense, this is a great opportunity to save money if the determining factors are on your side — in that case, yes, it could be worth refinancing your mortgage.

Refinancing Factors To Consider

Before you jump on the phone with your mortgage lender, there are some factors that you should consider that can help you determine if you are a good candidate.

  • Your credit score: As mentioned before, a lower score will typically equate to a higher APR. See the table above for an idea of how your FICO credit score correlates with your APR. Refinancing typically doesn’t negatively affect your credit but there are instances where it could, like refinancing too often.
  • Your recent payment record: If you have a recent history of late or missed payments (not tied to the coronavirus pandemic) that could have a negative impact on your results.
  • Occupancy length: How long you’re planning on living at your house is another huge factor that can affect your savings.
  • How old your mortgage is: The amount of years that you have left on your mortgage is a huge factor. If you are close to paying off your mortgage, it’s likely not worth it.
  • Many of the same rules apply: Regardless of coronavirus, there are certain actions that can improve or hurt your chances when refinancing. To recap, those best practices are: 
    • Shopping around for low rates
    • Showing proof of your savings
    • Getting someone to cosign your loan
    • Showing proof of your income
    • Improving your credit score

Current Mortgage Rates

Mortgage rates are historically low right now, the lowest being 3.13% on March 2, 2020. As of April 16, 2020, the average 30-year fixed mortgage rate was 3.780%, according to Bankrate and 3.341% according to NerdWallet. These rates are changing rapidly so it’s important to keep tabs on their movements if you’re considering refinancing. Check out daily rate updates on Mortgage News Daily to stay up-to-date on mortgage rate information.

Challenges and Risks of Refinancing Your Home

There are always risks that come with refinancing your home. One of the biggest challenges that the current climate has created is the time it may take to get your refinancing request through due to the high demand right now. See that challenge and additional ones below:

  • Longer to acquire: Requests are backed up because lenders don’t have the capacity to process all of the requests that are coming in due to demand coupled with staffing shortages.
  • Closing costs: Most refinancing processes require some sort of fee for processing the request. Depending on your situation, that’s something to consider.
  • Savings loss: Just like refinancing at any other time, there is no guarantee of savings and many people end up in the same spot or with a loss in savings due to increased rates or loss of certain benefits.

Questions To Ask Your Mortgage Lender

Before calling or making an appointment with your lender it’s a great idea to use a mortgage refinancing calculator to get a preliminary idea of how refinancing could work out for you. If you see a positive result and decide to call your lender, make sure you have your proper documents handy and have questions ready to ask them. Some of those could include:

  • What is the estimated turnaround time for this process? 
  • What are the new interest rate and APR?
  • Will I be able to lock in my loan rate?
  • What additional costs would I incur (title policies, inspections, credit reports, etc.)?
  • Will the new agreement include prepayment penalties?

H3: COVID-19 Mortgage Resources

Below is a collection of helpful resources to make sure you understand your options and keep up with the ever-changing rates and information that’s being distributed.

Coronavirus-Specific Resources

Additional Mortgage Information

In the end, there is no ‘one size fits all’ answer to whether or not you should attempt to refinance your home. We recommend reaching out to an advisor who can evaluate your individual situation. If you’re worried about your credit score hurting your chances of refinancing, try a free credit consultation to learn more about your score and how credit repair could help your financial situation. 

Source: lexingtonlaw.com