Even though mortgage rates have fallen quite a bit from their highs seen a year ago, they remain quite elevated relative to much of the past decade.
Sure, a 6% 30-year fixed is better than an 8% 30-year fixed, but it’s still a far cry from a 3 or 4% 30-year fixed.
This might explain why prospective home buyers haven’t exactly rushed back into the housing market in recent months.
And now we’re being told this is as good as it’s going to get for mortgage rates. That remains to be seen, but what’s interesting is I’ve seen quotes down into the high-4s for mortgage rates recently too.
So how are lenders able to advertise rates that low if the Freddie Macs of the world are telling us rates are still above 6%?
Well, the secret is a little thing called mortgage discount points.
Mortgage Rates Are Lower When You Pay Points
After mortgage rates surged since beginning in early 2022, the secondary market where investors buy and sell mortgage-backed securities (MBS) got all out of whack.
Basically, uncertainty and volatility surged while volume plummeted. Long story short, MBS investors wanted more assurances, which generally meant borrowers had to pay points upfront.
This ensured a profit even if the mortgage was short-lived and paid off in a short period of time.
It also allowed lenders to keep mortgage rates from going even higher, completely decimating lending volume in the process.
Conditions have since improved, and it’s again possible to get a home loan today without paying points.
But you’re still seeing lenders offer rates with points attached. And the reason why is because you can offer a lower rate!
Obviously, it looks a lot better if you’re able to advertise a rate starting with a 5 instead of a 6, or a 4 instead of a 5.
And that’s exactly what some lenders do, at least the ones that lead on price as opposed to service or brand name.
Interestingly, I discovered over the weekend that this isn’t a new phenomenon. Back in the 1980s and 1990s this was also common.
Homeowners Paid Over Two Points on Average from 1981 to 1991
Remember those super high mortgage rates in the 1980s? Well if you don’t, the 30-year fixed climbed as high as 18.45% in late 1981, per Freddie Mac.
Despite the rate being astronomically high, the average amount of discount points required at that time was a whopping 2.3.
In other words, on a $250,000 loan amount, you’d be talking about $5,750 in fees just to obtain that ridiculously high rate.
Did that mean a borrower who only paid one point would have been subject to a 20% rate? Perhaps, I don’t know, but that’s generally how it works.
If you opt to pay less or nothing upfront, your mortgage rate will be higher, all else equal.
This average amount of points paid by homeowners hit its peak in 1984 and 1985, when the average amount paid was 2.5 points.
So for every $100,000 borrowed, a home buyer would have to fork over $2,500. And again, to wind up with a mortgage rate around 12 or 14% (they came down a bit after peaking in 1981).
Are Mortgage Rates That Require Upfront Points Legit?
Now that brings me to modern day, where lenders still charge multiple points for the lowest rates.
While not obligatory, as I mentioned, you do typically have the option to pay points at closing.
The tradeoff being a lower interest rate if you do. This is essentially what home builders have been doing to draw in business with their permanent and temporary rate buydowns.
They’re buying the rates down to lure in home buyers, which allows them to keep their asking prices steady (or even rising).
Those who comparison shop mortgage rates may also find that some lenders are offering “below-market rates” versus what they see in the mortgage rate surveys.
The way lenders accomplish this is by asking you to pay points upfront, which are a form of prepaid interest.
So the rate offered might be 6% with no points or for a no cost refinance. But 5.25% if you’re willing to pay a point (or more than a point) at closing.
These are entirely legit rates, they just cost money to obtain them. And that cost is essentially an investment in the mortgage that you’ll only realize if you hold it long enough.
Paying Points at Closing Might Not Be the Best Move
While the promise of a lower mortgage rate, especially something that starts with a 4 is enticing, it might not be worth it.
Let’s consider a quick example where you pay two points to get a rate of 4.875% versus a rate of say 5.75% with no points.
On a $500,000 loan amount that would set you back $10,000 at closing.
The monthly payment would be $2,646.04 versus $2,917.86, or roughly $272 per month.
While that’s a decent amount of savings, it would take about three years to breakeven on the upfront cost.
Now imagine then 30-year fixed falls to the mid-4s or even lower during that span. Or if you want to sell your home and move.
You’ve already paid for the lower rate and might not get the full benefit. This is not to say it’s a bad decision, since you, me, and everyone else doesn’t know what the future holds.
But you’re making a conscious choice when paying points and there are no refunds.
If we look back at those folks who paid 2.5 points back in 1984 for a 14% rate, only to see rates fall to sub-10% by 1986, it makes you wonder.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Block trades are big under-the-radar trades, generally carried out in private. Because of their size, block trades have the potential to move the markets. For that reason they’re conducted by special groups known as block houses. And while they’re considered legal, block trades are not regulated by the SEC.
As a retail investor, you likely won’t have anything to do with block trades, but it’s a good idea to know what they are, how they work, and how they can affect the overall market.
Key Points
• Block trades are large-volume purchases or sales of financial assets, often conducted by institutional investors.
• Block trades can move the market for a security and are executed through block trade facilities, dark pools, or block houses.
• Block trades are used to avoid market disruption and can be broken down into smaller trades to conceal their size.
• Retail investors may find it difficult to detect block trades, but they can provide insights into short-term market movements and sentiment.
• Block trades are legal and not regulated by the SEC, but they can be perceived as unfair by retail investors.
What Are Block Trades?
A block trade is a single purchase or sale of a large volume of financial assets. A block, as defined by the New York Stock Exchange’s Rule 127.10, is a minimum of 10,000 shares of stock. For bonds, a block trade usually involves at least $200,000 worth of a given fixed-income security.
Though 10,000 shares is the operative figure, the number of shares involved in most block trades is far higher. Individuals typically don’t execute block trades. Rather, they most often come from institutional investors, such as mutual funds, hedge funds, or other large-scale investors.
Why Do Block Trades Exist?
Block trades are often so large that they can move the market for a given security. If a pension fund manager, for example, plans to sell one million shares of a particular stock without sparking a broader market selloff, selling all those shares on a public market will take some time.
During that process, the value of the shares the manager is selling will likely go down — the market sees a drop in demand, and values decrease accordingly. Sometimes, the manager will sell even more slowly. But that creates the risk that other traders will identify the institution or the fund behind the sale. Then, those investors might short the stock to take advantage.
Those same risks exist for a fund manager who is buying large blocks of a given security on a public market. The purchase itself can drive up the price, again, as the market sees an increase in demand. And if the trade attracts attention, other traders may front-run the manager’s purchases.
How Block Trades Are Executed
Many large institutions conduct their block trades through block trade facilities, dark pools, or block houses, in an effort to avoid influencing the market. Most of those institutions typically have expertise in both initiating and executing very large trades, without having a major — and costly — effect on the price of a given security.
Every one of these non-public exchange services operates according to its own rules when it comes to block trades, but what they have in common is relationships with hedge funds and others that can buy and sell large blocks of securities. By connecting these large buyers and sellers, blockhouses and dark pools offer the ability to make often enormous trades without roiling the markets.
Investment banks and large brokerages often have a division known as a block house. These block houses run dark pools, which are called such because the public can’t see the trades they’re making until at least a day after they’ve been executed.
Dark pools have been growing in popularity. In 2020, there were more than 50 dark pools registered with the Securities and Exchange Commission (SEC) in the United States. At the end of 2023, dark pools executed about 15% of all U.S. equity trades.
Smaller Trades Are Used to Hide Block Trades
To help institutional traders conceal their block trades and keep the market from shifting, blockhouses may use a series of maneuvers to conceal the size of the trade being executed. At their most basic, these strategies involve breaking up the block into smaller trades. But they can be quite sophisticated, such as “iceberg orders,” in which the block house will break block orders into a large number of limit orders.
By using an automated program to make the smaller limit orders, they can hide the actual number of orders at any given time. That’s where the “iceberg” in the name comes from — the limit orders that other traders can see are just the tip of the iceberg.
Taken together, these networks of traders who make block trades are often referred to as the Upstairs Market, because their trades occur off the trading floor.
Pros and Cons of Block Trades
As with most things in the investment field and markets, block trades have their pros and cons. Read on to see a rundown of each.
Pros of Block Trades
The most obvious advantage of block trades is that they allow for large trades to commence without warping the market. Again, since large trades can have an effect on market values, block trades, done under the radar, can avoid causing undue volatility.
Block trades can be used to conceal information, too, which can also be a “pro” in the eyes of the involved parties. If Company A stock is moving in a block trade for a specific reason, traders outside of the block trade wouldn’t know about it.
Block trades are also not regulated by the SEC, meaning there are fewer hoops to jump through.
Cons of Block Trades
While masking a large, market-changing trade may be a good thing for those involved with the trade, it isn’t necessarily a positive thing for everyone else in the market. As such, block trades can veil market movements which may be perceived as unfair by retail investors, who are trading none the wiser.
Block trades can be hard to detect, too, as mentioned. Since they’re designed to be obscure to the greater market, it can be difficult to tell when a block trade is actually occuring.
Block trades are also not regulated by the SEC — it’s a pro, and a con. The SEC doesn’t regulate them, but rather the individual stock exchanges. That may not sit well with some investors.
Block Trade Example
An example of a block trade could be as follows: A large investment bank wants to sell one million shares of Company A stock. If they were to do so all at once, Company A’s stock would drop — if they do it somewhat slowly, the rest of the market may see what’s going on, and sell their shares in Company A, too. That would cause the value of Company A stock to fall before the investment bank is able to sell all of its shares.
To avoid that, the investment bank uses a block house, which breaks the large trade up into smaller trades, which are then traded through different brokerages. The single large trade now appears to be many smaller ones, masking its original origin.
Are Block Trades Legal?
Block trades are legal, but within stock market history they exist in something of a gray area. As mentioned, “blocks” are defined by rules from the New York Stock Exchange. But regulators like the SEC have not issued a legal definition of their own.
Further, while they can move markets, block trades are not considered market manipulation. They’re simply a method used by large investors to adjust their asset allocation with the least market disruption and stock volatility possible.
How Block Trades Impact Individual Investors
Institutional investors wouldn’t go to such lengths to conceal their block trades unless the information offered by a block trade was valuable. A block trade can offer clues about the short-term future movement and liquidity of a given security. Or it can indicate that market sentiment is shifting.
For retail (aka individual) investors, it can also be hard to know what a block trade indicates. A large trade that looks like the turning of the tide for a popular stock may just be a giant mutual fund making a minor adjustment.
But it is possible for retail investors to find information about block trades. There are a host of digital tools, some offered by mainstream online brokerages, that function like block trade indicators. This might be useful for trading stocks online.
Many of these tools use Nasdaq Quotation Dissemination Service (NQDS), Level 2 data. This subscription service offers investors access to the NASDAQ order book in real time. Its data feed includes price quotes from the market makers who are registered to trade every NASDAQ and OTC Bulletin Board security, and is popular among investors who trade using market depth and market momentum.
Even access to tools like that doesn’t mean it’ll be easy to find block trades, though. Some blockhouses design their strategies, such as the aforementioned “iceberg orders,” to make them hard to detect on Level 2. But when combined with software filters, investors have a better chance of glimpsing these major trades before they show up later on the consolidated tape, which records all trades through blockhouses and dark pools — though often well after those trades have been fully executed.
These software tools vary widely in both sophistication and cost, but may be worth considering, depending on how serious of a trader you are. At the very least, using software to scan for block trades is a way to keep track of what large institutional investors and fund managers are buying and selling. Active traders may use the information to spot new trends.
The Takeaway
Block trades are large movements of securities, typically done under-the-radar, involving 10,000 or so shares, and around $200,000 in value. It can be difficult for individual investors to detect block trades — which, again, are giant position shifts by institutional investors — on their own.
But these trades have some benefits for individual investors. The mutual funds and exchange-traded funds (ETFs) that most investors have in their brokerage accounts, IRAs, 401(k)s and 529 plans may take advantage of the lower trading costs and volatility-dampening benefits of block trades, and pass along those savings to their shareholders.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
Photo credit: iStock/marchmeena29
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
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.
Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
Well, it’s been over a week since the Fed cut rates and mortgage rates went up.
While this may have come as a surprise to some, seasoned mortgage industry peeps didn’t bat an eye.
It’s pretty common for the Fed to do one thing and mortgage rates to do another.
Without getting too convoluted, the Fed adjusts short-term rates while mortgages are long-term rates, aka the 30-year fixed.
In other words, the cut (and future cuts too) were already priced in to mortgage rates. So much so that they actually increased over the past week in a sort of “sell the news” correction.
Are Mortgage Rates Still Dropping?
Fitch Ratings recently came out and said the 50-basis point Fed rate cut was already priced in to both the 10-year Treasury yield and 30-year fixed mortgage rates.
In addition, they argued that the 10-year yield, which tracks mortgage rates historically, has “less room to decline” because of that.
It basically already came down in anticipation and might be difficult to drop much lower. In fact, we’ve seen it rise since the Fed cut last week.
The 10-year yield was as low as 3.61% and now sits around 3.77%, putting some mild upward pressure on mortgage rates since then.
Rates actually looked destined for the high-5% range before pulling back and inching their way back toward 6.25%.
And with little economic data out this week, there’s been no reason for them to rally.
But next week we get the employment report, which could help rates resume their downward path if it comes in soft.
Maybe Low 5% Mortgage Rates By 2026
If the 10-year yield isn’t expected to get much better from here, mortgage rates will only be able to move lower with better spreads.
Currently, mortgage spreads are wide because of high prepayment risk, volatility, and general uncertainty.
Investors demand a premium to buy mortgage-backed securities (MBS) versus government bonds and recently they’ve asked for a lot more than usual.
Fitch puts the typical spread at about 1.80%, while I’ve long said it’s about 170 basis points. Either way, it’s markedly higher today.
It was nearly 300 bps at its worst in 2022. It has since shrunk to about 240 basis points, meaning it’s about halfway back to normal.
So if bond yields do indeed stay sticky where they’re at, you’ll need some spread normalization to get mortgage rates to move lower.
It’s certainly possible, and as I wrote a couple weeks ago, could result in mortgage rates falling about .50% from current levels.
That would put the 30-year fixed in the high-5% range, and even lower if a borrower is willing to pay discount points.
Mortgage Rates Unlikely to Fall Below 5% Before 2027
The rating agency also proclaimed that mortgage rates are unlikely to fall below the big 5% threshold before the year 2027.
That means at least another two years of “high rates” before mortgage rates are no longer a concern.
Again, that’s because the 10-year yield is expected to stay mostly level and only drop to around 3.50% by the end of 2026.
If the spreads are back to mostly normal by then, you can do the math and come up with a rate of around 5.30% (3.5+1.8).
Of course, this is all just a forecast and many of these forecasts have been wrong in the past. In fact, they’re rarely right. Most were wrong on the way down to 3% and the way up to 8%!
So who is to say they’ll be right this time around either?
I’m a bit more optimistic on mortgage rates because I think there are a lot of Fed rate cuts projected over the next 12 months, which haven’t all been baked in.
Similar to the ride up for mortgage rates, from sub-3% to 8%, the market was caught off-guard. This could happen on the way down too.
I can envision a 10-year yield dropping to the lower 3% range next year, when combined with some spread compression puts the 30-year fixed in the mid-5% range potentially.
And once you factor in points, lots of rate quotes in the high 4% range. For most home buyers, that would be acceptable.
But I’ve long argued rates are no longer the main sticking point. We’ve got home prices that are perhaps too expensive in many markets, along with sticker shock on insurance, taxes, and everyday goods.
Without a little home price easing, it’ll still be a tough sell for those looking to buy into the market, especially if the wider economy deteriorates.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Do you want to learn how to start a book blog? Starting a blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my writing would lead to me being able to earn a full-time income doing what I love. Starting…
Do you want to learn how to start a book blog?
Starting a blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my writing would lead to me being able to earn a full-time income doing what I love.
Starting a book blog can be a great online business for you as well. By starting your own book blog, you can create a space to share book reviews, recommendations, and connect with a community.
The great thing is, starting your own book blog is more attainable than you might think. You don’t need to be a tech expert or have any special skills. With a little guidance from today’s article, you can set up your blog, choose your niche, and start creating content that reflects your unique voice as a reader.
Quick note: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.
My background with blogging
More than 10 years ago, I decided to start my blog, Making Sense of Cents, on a whim. I had come across an article about a blog, and it sparked an idea to share my own experiences. In the beginning, blogging was just something I did for fun.
At the time, I had no clue that blogging could actually bring in money. About six months in, a fellow blogger introduced me to an advertiser, and that was when I earned my first $100.
At that point, I realized how much I loved blogging, and it felt amazing that I could actually make money blogging.
Since then, the blog has grown in ways I never imagined, and I’ve made over $5,000,000 through blogging. It completely changed my life, giving me financial freedom and the chance to work from anywhere.And today, I want to help you start your own successful book blog.
What is a book blog?
A book blog is a website where people share their thoughts about books. Book lovers read books and then write reviews about them on their blogs. They also talk about book-related topics, like author interviews or upcoming releases.
A book blog can focus on a single genre, like mystery or romance, or cover a wide range of genres. You can choose what you want to write about based on your interests and passions.
Some examples of topics that a book blog may cover include:
Book reviews – In-depth reviews of the latest books or classic favorites
Book lists – Listing book recommendations such as “Best Money Books of the Year” or “Top 10 Mystery Novels”
Author interviews – Conversations with authors about their writing process, inspiration, and upcoming projects
Book vs. movie comparisons – Reviews of how well a book was adapted into a film or series
Reading challenges – Hosting or participating in challenges like “Read 50 Books in a Year”
Upcoming releases – Highlighting new or upcoming book releases that readers should look out for
Book club discussions – Starting or participating in discussions for book clubs, with questions and analyses on books
Book merchandise – Reviewing or sharing book-related merchandise, such as bookshelves, bookmarks, book-themed clothing, posters, stickers, and tote bags
Recommended reading: What Is A Blog, How Do Blogs Make Money, & More
Why should you start a book blog?
Starting a book blog is a great idea for many reasons.
You can share your love for reading and connect with others who enjoy books too. This can lead to new friendships and interesting discussions about your favorite stories.
Other positives of starting a book blog include:
Make money – If your book blog becomes popular, there are ways to make money. You can earn through ads, sponsored posts, or affiliate links. Some bloggers even get paid to review books!
Creative outlet – Your book blog is a space to express yourself. You can write reviews, share reading challenges, and even post creative content like fan fiction or author interviews.
Helps authors – By reviewing and promoting books, you support authors and help them reach a wider audience. Your review might be what convinces someone to pick up a book they otherwise wouldn’t have read.
For me, I am so happy that I started my blog as it has led to so many good things in my life!
How To Start a Book Blog
Below is how to start a book blog and make money, step by step!
1. Choose your book blog niche
The first step in learning how to start a book blog is to decide what you want to write about.
Picking a niche for your book blog will help you stand out and attract readers. It’s important to find a specific area of focus that you are passionate about.
Choosing a niche helps narrow down your audience. Instead of trying to please everyone, you can focus on a specific group of readers who share your interests.
A niche also makes it easier to create content. When you know your focus, ideas for blog posts come naturally.
Plus, specializing in a niche can establish you as an expert. Readers will trust your opinions and keep coming back.
There are many popular niches in book blogging, these include:
Young adult fiction
Mystery and thriller novels
Romance novels
Fantasy
Science fiction
Historical fiction
Children’s books
Biographies
Books that have been turned into movies
And more!
I recommend starting a self-hosted WordPress blog through Bluehost.
2. Start a self-hosted WordPress blog
To start your book blog, I recommend that you use a self-hosted WordPress site for your blogging platform. This means you will own your blog and its content, unlike free platforms.
WordPress is where you write and manage your blog posts. Think of it as your blog’s home base. You can log in, create new posts, add pictures and links, and publish them for your readers. It’s a simple tool that helps you control everything, from writing to how your blog looks.
WordPress is great because you don’t need to know how to code to build your blog or website. It’s easy to use and has lots of options to customize your site.
I use WordPress for my blog, Making Sense of Cents, too!
Here are the steps to start a self-hosted WordPress blog:
Get a web hosting service. A popular choice for new bloggers is Bluehost.
Install WordPress. Most web hosts offer a one-click installation. It’s quick and easy.
You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions if you want more detail and/or want to see screenshots of the exact things you should click on.
Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name!
3. Pick a blog name and buy the domain
Choosing a name for your book blog can feel tough. Don’t let this stop you from starting, though.
Here are some tips for figuring out your book blog name:
Keep it simple. Make sure your blog name is easy to spell and remember. Avoid long or complicated words. You want people to find your blog with no trouble.
Think about your blog’s content. What will you write about? Who will read it? Write down words that describe your blog’s focus. This brainstorm can help you come up with a good name.
If you find it hard to think of names, use a thesaurus. This can give you new ideas and similar words that might work better.
To make your blog name stand out, try something catchy. Use humor, rhymes, or alliteration. A memorable name can help attract readers.
If you’re still stuck, consider using your own name. It’s easy and many bloggers do it successfully.
I highly recommend using “.com” for your domain and not any of the others. This is simply because most people are used to typing in “.com,” so it is easier to remember.
Once you have a blog name, you need to buy the domain. A domain is the web address people will use to find your blog.
By the way, your domain name (or blog name) is free when you sign up for Bluehost! Just click here to get your free domain name.
4. Design your blog layout
After you pay for your blog, the next thing you’ll want to do is design your site. Your site design is what readers see when they read your blog posts, and it is important.
You have three things you can do when it comes to designing your book blog:
Designing your book blog yourself (this can be hard to learn but is definitely doable as there are free WordPress themes).
Paying a web designer for a custom design (this can be expensive, though).
Getting a premade blog layout – this is what I recommend new bloggers do!
My favorite option is getting a premade design.
They are more affordable than a custom design and look great. The premade blog design site that I recommend is Restored 316. Going the premade blog design route saves you a TON of time and lets you move on to the next step of making money blogging, which I highly recommend.
Lastly, make sure your blog is mobile-friendly (the blog designs sold on Restored 316 are usually mobile-friendly!). Many readers will visit your site from their phones, so test your layout on different devices.
Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).
Here’s what my About page looks like.
5. Make important pages for your blog
To make your book blog successful, start by setting up your important pages.
These pages are important because they help your readers navigate your site easily and find the content they’re looking for.
Your key pages should include:
Homepage – Your homepage is the first impression visitors get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about and gets them to explore your blog further. This should be welcoming and easy to navigate. Make it clear that your blog focuses on books, and include links to your main sections, such as book reviews, recommendations, or author interviews.
About page – This is where you tell your story. Share information about yourself, why you started your book blog, your favorite genres, and what your readers can read on your blog. This helps build a personal connection with your audience.
Contact page – Make it easy for readers to reach you by listing your email address. This allows readers, authors, and potential partners to contact you.
Privacy Policy page – Explain how you use data on your site. This is important for building trust and complying with legal requirements. For legal templates, you can search for these online or buy a premade privacy policy here.
Disclosurepage – If you earn money through affiliate links, book promotions, or sponsored posts, let your readers know. This keeps your blog transparent and trustworthy.
6. Start social media accounts for your book blog
Creating social media accounts can help your book blog grow by making it easier for more people to find your book reviews and recommendations.
The social media platforms you can start with include:
Facebook
Pinterest
Instagram
Twitter
TikTok
You don’t need to be active on all of these platforms, but it’s a good idea to claim your blog name on each so no one else can use your name on them.
Once your social media accounts are set up, add the links to your blog’s homepage so your readers can easily follow you and stay updated on your latest book reviews, recommendations, and bookish content.
7. Create a blog post plan
A blog content plan is a way to organize and plan what you’ll write and publish on your blog. It helps you stay on track and makes sure your posts support your goals, like getting more readers.
A good content plan usually has a list of topics, post titles, when you’ll publish each post, and the purpose of each post (like promoting something or solving a problem for your readers).
It can also include SEO keywords, image ideas, and how you’ll promote the posts.
Overall, it’s like a road map to keep your blog organized and productive.
You don’t need to make your blog content plan complicated. It can be as simple as a list of blog posts you want to write – it’s really up to how organized you want to be. For example, you can just write down the blog post ideas you have, like this:
10 Must-Read Books for Summer
How To Start a Reading Habit and Stick To It
My Top 5 Favorite Fictional Characters of All Time
Beginner’s Guide To Starting a Book Club
How To Read More Books on a Busy Schedule
10 Books That Changed My Life
Book Review: [Insert Book Title]
How To Organize Your Bookshelf Like a Pro
Top 5 Audiobooks for Long Road Trips
How To Get Free Books: A Guide to Book Swaps and Libraries
10 Underrated Books You Need To Read
Books vs. Movies: Which Is Better?
8. Write your first blog post
Your first blog post is important. It’s your chance to introduce yourself and set the tone for your blog.
You can start with a catchy title. Something like, “Welcome to My Book Blog” or “Why I Love Reading” can work well.
Next, tell readers a bit about yourself. Share why you love books and why you started this blog. This helps readers connect with you.
Then, outline what your blog will cover. Will you review books? Share reading tips? Let readers know what to expect.
Wrap up your post with a call to action, such as by encouraging your readers to leave a comment or follow your blog.
9. Find ways to make money with your book blog
You can make money from your book blog by displaying ads, promoting affiliate products, writing book reviews, and selling your own products.
Each method can help you earn extra income (or even a full-time income one day!) while sharing your love for books.
Here’s more information on each way to make money with a book blog:
Display advertising – One way to make money is by placing display ads on your blog. You can sign up with ad networks like Google AdSense to place ads on your site. You get paid when visitors see or click on these ads. The more visitors you have, the more you can earn.
Affiliate marketing – Another way to earn is through affiliate marketing. You can sign up for programs like Amazon Associates. When you mention a book, you can use a referral link. If someone buys through that link, you get a commission. It’s a good way to earn by recommending books you love. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.
Book reviews – Writing book reviews can also bring in money. Authors and publishers may pay you to review their books. You can learn about the best places to get paid to write book reviews at 16 Best Ways To Get Paid To Read Books.
Selling products – You can also create and sell your own products. Think about items that book lovers would enjoy. You could sell bookmarks, book-themed mugs, or even your own writing.
Recommended reading: 13 Ways To Get Free Books Online and Sent to You
10. How to grow a book blog
To get readers to your book blog, you need to share it so that people can find it.
Below are some ways to grow your pageviews:
Share your book reviews and blog posts on social media platforms like Facebook, Pinterest, and Instagram. For example, I make a pin image for Pinterest for every single one of my blog posts, and it’s a great way to get new readers to my blog.
Write guest posts for other book blogs or websites. This can introduce you to new readers who are interested in books.
Email marketing is another great option. I recommend that you find ways to persuade your readers to subscribe to your newsletter and send them updates with new book reviews and recommendations. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
Respond to comments and emails from your readers. Building a relationship with them can encourage them to share your blog with others. I always respond to emails and comments because I know that I would like it if my comments/emails were replied to as well.
Use search engine optimization (SEO) techniques to help your blog appear in search results when people look for book reviews or related book topics.
My favorite guide that goes over many different strategies to grow a blog is 21 Strategies I Used to Increase My Monthly Page Views from 17k to 400k+ in 10 Months. This guide by my friend Lena is full of great information on how to increase your blog’s pageviews. If you are feeling stuck or if you are a new blogger, check out this resource! Lena went from 17,000 monthly pageviews to 400,000 and shares all of her best tips in this resource.
Frequently Asked Questions
Starting a book blog can be fun and rewarding. Below are some common questions people have about becoming a book blogger.
Do book blogs make money?
Yes, book bloggers can make money. You can earn through ads, affiliate links, and sponsored posts. Some bloggers also sell their own books or services like editing and consulting.
How to make a book blog for free?
You can start a book blog for free using platforms like WordPress.com, Blogger, or Wix. These platforms have free templates and hosting. You only need to sign up and start writing. But, if you want to make money with your book blog, I highly recommend that you do not use a free platform – I recommend that you use self-hosted WordPress.
What are some book blog examples?
Examples of book blogs include That Artsy Reader Girl, Pretty Little Memoirs, She Reads Romance Books, The Uncorked Librarian, Traveling Book Junkie, and Everyday Reading.
What’s the best way to use Instagram for sharing my book blog posts?
Instagram is a great place to share your book blog posts. You can do this by sharing pictures of books, reading nooks, or book quotes. Also, using popular hashtags like #Bookstagram to reach a wider audience can help a lot. You can also engage with other book lovers through comments and likes.
What makes a book blog interesting and how do I set mine up that way?
An interesting book blog has a unique voice and perspective. They typically share personal stories or insights about the books they’ve read, and they also engage with their readers by asking questions.
Is it worth starting a book blog?
Yes, it is worth it to start a book blog if you love books and want to share your thoughts on your favorite books. It can be a creative outlet and connect you with a community of fellow book lovers.
How To Start a Book Blog – Summary
I hope you enjoyed this article on how to start a book blog and make money.
I’ve been running this blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.
Starting a book blog is a great way to share your love of reading with others and connect with a community of fellow book lovers. With just a bit of guidance, you can create your own book blog, share reviews, and build a platform that reflects your unique voice as a reader.
Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.
I know, I know, mortgage shopping is the worst. It’s not a fun thing to do.
It’s not like shopping for a new car or a new TV, or even a new house. But it’s a necessary evil unless you’ve got a boatload of cash.
The reason it’s not fun is because there’s lot of math, paperwork, and high-pressure salespeople involved.
Not to mention lots of mortgage lingo that will likely go over your head.
But there’s a silver lining to putting in all that time to shop; you’ll learn a lot about mortgages.
I Get It, Mortgages Aren’t Fun
Look, I’ll be the first person to tell you that mortgages are boring af. I’ve been writing about them for nearly 20 years now.
And before that, I was working on the frontlines with mortgage brokers and loan processors and underwriters.
None of it was fun, and it’s probably even less fun when you’re new to it and simply trying to get through it.
Conversely, you might have a blast shopping for a new car and doing test drives while checking out all the cool features.
The same goes for new clothes, a new TV, computer, etc. They call it retail therapy for a reason.
I’ve never heard anyone say mortgage shopping is therapeutic. In fact, it’s usually the exact opposite.
Typically, people say they’d rather go to the dentist than go through the mortgage process.
Okay, so what’s the point here? Well, as mentioned, you can learn a lot if you do shop around.
Learn About Mortgages as You Shop Your Rate
Most people don’t shop around for their home loan. They either just go with the lender their real estate recommended, or the first quote they come across.
Again, this is because mortgages are not at all fun. And not getting any funner.
Not only does this cost people (since studies prove multiple quotes leads to lower rates), it also means you won’t learn a whole lot.
Again, I understand. Most people are literally just trying to get through it so they can move into their new home. Or enjoy a new low rate on their existing mortgage in the case of a refinance.
But aside from potentially paying more, you’ll also learn less. And when you know less about something, the probability of a bad decision increases.
For example, you might pick the wrong mortgage product for your individual situation.
Or you might be told to pay discount points at closing, only to sell your home or refinance before the breakeven period.
You might even refinance even when it doesn’t make sense to do so. Or buy too much house and become house poor because the numbers were only presented to you one way.
Bringing it full circle, you might also get ripped off because you’ll be a novice and more easily taken advantage of.
If you actually make a few phone calls and speak to multiple loan officers, mortgage brokers, etc., you’ll learn more about the ins and outs of it all.
Each time you talk to someone new you’ll have a little bit more knowledge than the prior call.
And this will help you avoid the typical gotchas and perhaps allow you to come off more confident. That can lead to better mortgage rate negotiating and ultimately better odds of a lower rate.
Here Are Some Mortgage Shopping Tips to Make It Less Awful
If you’re stressed about it your credit scores, keep in mind that while mortgage inquiries can lower your credit score, it’s often not by much.
You also don’t need to let everyone run your credit. And FICO now combines multiple mortgage inquiries into one when made within a 14- to 45-day window.
Those who have heard of those annoying trigger leads can employ a strategy I laid out years ago.
Use a temporary phone number like Google Voice for free. Share that number with all the lenders, brokers, etc.
Then ditch it once you’ve found your match and carry on with your real number. Or just keep using the temporary one!
Even if you use a mortgage broker, take the time to compare mortgage brokers too. Because many of them just send all their business to one lender. So it’s not really shopping around.
In addition, they have varying compensation structures, meaning if you compare more than one you might land on the broker who earns less per loan and saves you money.
For example, one broker might earn 2% on each loan, while another is satisfied with just 1% loan origination fee in exchange for more volume. The broker earning less will likely have the lower rate and closing costs.
Lastly, if you already have average or poor credit, know that mortgage rates can vary even more, so shopping around is even more important!
Simply put, rates are priced in a tighter range for those with really high FICO scores. But even those folks should also gather more than one quote!
Read on: How to shop for a mortgage.
(photo: Alan Levine)
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
I know, I know, mortgage shopping is the worst. It’s not a fun thing to do.
It’s not like shopping for a new car or a new TV, or even a new house. But it’s a necessary evil unless you’ve got a boatload of cash.
The reason it’s not fun is because there’s lot of math, paperwork, and high-pressure salespeople involved.
Not to mention lots of mortgage lingo that will likely go over your head.
But there’s a silver lining to putting in all that time to shop; you’ll learn a lot about mortgages.
I Get It, Mortgages Aren’t Fun
Look, I’ll be the first person to tell you that mortgages are boring af. I’ve been writing about them for nearly 20 years now.
And before that, I was working on the frontlines with mortgage brokers and loan processors and underwriters.
None of it was fun, and it’s probably even less fun when you’re new to it and simply trying to get through it.
Conversely, you might have a blast shopping for a new car and doing test drives while checking out all the cool features.
The same goes for new clothes, a new TV, computer, etc. They call it retail therapy for a reason.
I’ve never heard anyone say mortgage shopping is therapeutic. In fact, it’s usually the exact opposite.
Typically, people say they’d rather go to the dentist than go through the mortgage process.
Okay, so what’s the point here? Well, as mentioned, you can learn a lot if you do shop around.
Learn About Mortgages as You Shop Your Rate
Most people don’t shop around for their home loan. They either just go with the lender their real estate recommended, or the first quote they come across.
Again, this is because mortgages are not at all fun. And not getting any funner.
Not only does this cost people (since studies prove multiple quotes leads to lower rates), it also means you won’t learn a whole lot.
Again, I understand. Most people are literally just trying to get through it so they can move into their new home. Or enjoy a new low rate on their existing mortgage in the case of a refinance.
But aside from potentially paying more, you’ll also learn less. And when you know less about something, the probability of a bad decision increases.
For example, you might pick the wrong mortgage product for your individual situation.
Or you might be told to pay discount points at closing, only to sell your home or refinance before the breakeven period.
You might even refinance even when it doesn’t make sense to do so. Or buy too much house and become house poor because the numbers were only presented to you one way.
Bringing it full circle, you might also get ripped off because you’ll be a novice and more easily taken advantage of.
If you actually make a few phone calls and speak to multiple loan officers, mortgage brokers, etc., you’ll learn more about the ins and outs of it all.
Each time you talk to someone new you’ll have a little bit more knowledge than the prior call.
And this will help you avoid the typical gotchas and perhaps allow you to come off more confident. That can lead to better mortgage rate negotiating and ultimately better odds of a lower rate.
Here Are Some Mortgage Shopping Tips to Make It Less Awful
If you’re stressed about it your credit scores, keep in mind that while mortgage inquiries can lower your credit score, it’s often not by much.
You also don’t need to let everyone run your credit. And FICO now combines multiple mortgage inquiries into one when made within a 14- to 45-day window.
Those who have heard of those annoying trigger leads can employ a strategy I laid out years ago.
Use a temporary phone number like Google Voice for free. Share that number with all the lenders, brokers, etc.
Then ditch it once you’ve found your match and carry on with your real number. Or just keep using the temporary one!
Even if you use a mortgage broker, take the time to compare mortgage brokers too. Because many of them just send all their business to one lender. So it’s not really shopping around.
In addition, they have varying compensation structures, meaning if you compare more than one you might land on the broker who earns less per loan and saves you money.
For example, one broker might earn 2% on each loan, while another is satisfied with just 1% loan origination fee in exchange for more volume. The broker earning less will likely have the lower rate and closing costs.
Lastly, if you already have average or poor credit, know that mortgage rates can vary even more, so shopping around is even more important!
Simply put, rates are priced in a tighter range for those with really high FICO scores. But even those folks should also gather more than one quote!
Read on: How to shop for a mortgage.
(photo: Alan Levine)
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Businesses that need cash quickly but don’t have strong credit will sometimes turn to an alternative type of funding called a merchant cash advance (MCA). With an MCA, a financing company gives you an upfront sum of cash that you repay using a percentage of your debit and credit card sales, plus a fee.
An MCA can be helpful for covering cash flow shortages or short-term expenses, but if you end up taking out more than one merchant cash advance, you can end up paying different (and potentially high) interest rates and fees for each. Plus, you have to deal with different payment schedules for each MCA.
A merchant cash advance consolidation is an option that lets you roll up all of those advance payments into one. Ideally, an MCA consolidation has the potential to reduce what you’re paying in interest and fees. Here’s what you need to know about this type of consolidation loan.
What Is a Merchant Cash Advance?
Not every business qualifies for a traditional bank loan. Perhaps it hasn’t been in business long enough to be eligible, or maybe it doesn’t meet the credit requirements for a small business loan. That’s when a merchant cash advance may be useful.
An merchant cash advance is not a loan, but rather an advance on future sales. To determine eligibility, MCA providers may not rely heavily on criteria like time in business and/or credit scores, but instead focus on revenues. That can make it easier to get than other types of financing.
How MCAs Work
When you get an MCA, you receive a lump sum payment. Typically, MCAs express the interest they charge as a factor rate (often ranging from 1.1 to 1.5) rather than as a percentage. The factor rate does not include any additional fees the merchant cash advance company may charge you, such as administrative or underwriting fees.
How MCA Repayment Works
The repayment on an MCA works differently than other types of business loans. Typically, the MCA provider automatically deducts a daily (or weekly) percentage of your debit and credit card sales until the advance is repaid in full. Repayment periods can range anywhere from three to 18 months. Generally, the more you make in credit card sales, the faster you’ll repay the advance.
The downside is that MCAs tend to have much higher fees and interest rates than traditional small business loans, making them a costly financing option.
When you convert factor rates plus fees into an annual percentage rate (APR), the APRs on merchant cash advances can run as high as 350%, depending on the lender, size of the advance, fees, business revenue, and how long it takes to repay the advance.
What Is Merchant Cash Advance Consolidation?
A small business owner might take out a merchant cash advance to see their way through a slow period. Then, when they struggle with repayments, they may apply for another MCA to help repay the first. This is a process known as loan stacking. The company could then end up with multiple repayment schedules and paying different factor rates and different amounts for each advance.
A merchant cash advance consolidation rolls multiple MCAs into a single new loan. The consolidation loan typically pays off your existing MCAs and allows you to make one payment, often monthly, to the consolidation lender. Ideally, the consolidation loan will have a lower interest rate than the average of the multiple advances.
Recommended: Loans for Sole Proprietors
Signs You Need Consolidation
Signs you need a merchant cash consolidation include:
• Multiple MCA loans: If your business has taken out many MCAs, a consolidation loan can help you streamline your payments and possibly save money on interest.
• High interest rates: MCAs often come with steep fees, so consolidating into a lower-rate loan could reduce overall costs.
• Falling behind on payments: Missing or struggling with payments is a strong indicator consolidation is necessary.
However, there are a few things to consider before you jump into MCA consolidation. One is whether or not your existing MCA lenders will charge you a prepayment penalty fee if you pay off your advances early. You’ll also want to find out if there are any upfront fees you have to pay for the new consolidation loan, since this can eat into your savings.
If, after running all the numbers, it looks like you can save money and streamline repayment, it may be a good time to consider a merchant cash advance consolidation.
Recommended: How Does Debt Consolidation Work?
What to Consider Before Applying
Before applying for a consolidation loan, you’ll want to look at what you’re currently paying in interest and what you’d qualify for with a new loan. Also, consider any fees for the new loan and any payoff penalties you’ll owe your current lenders. If, once you crunch the numbers, your total debt hardly goes down, there’s probably no sense in taking on a new consolidation loan.
When deciding whether it makes sense to do an MCA consolidation, you also want to look at the repayment period and what your payments with the new loan will be. A shorter repayment period can mean larger payments that you might not be able to afford. And, while a longer repayment period can mean smaller payments, it will likely mean paying more in total interest.
Examining the options can help you find the best path forward for your business.
Potential Drawbacks and Risks
Merchant cash advance (MCA) consolidation loans can provide relief, but they come with potential drawbacks and risks, including:
• Extending the repayment period, which potentially increases the overall interest costs.
• Paying high fees, which could negate the benefits of combining advances.
Additionally, if you’re consolidating to manage cash flow, it could be a sign of deeper financial issues, and relying on more debt may worsen the situation.
Refinancing vs Consolidation
If you’ve heard of business loan refinancing, you may think it’s the same as merchant cash advance consolidation, but these aren’t exactly the same.
It’s true that both can potentially lower your interest rate and/or change your payment term. However, when you refinance, you’re replacing one MCA with a new one or with a small business term loan. When you opt for an MCA consolidation, you’re rolling multiple MCAs into a new MCA or other type of business loan.
Recommended: Refinancing Your Student Loans While Starting a Business
Types of Consolidation Loans
Lenders may have different approaches to help you with consolidating your loans. Some will buy out the loan and pay it off directly, while others will lend you the money, after which it’s your responsibility to pay off your existing MCAs.The following types of loans can be used to consolidate your MCAs:
Merchant Cash Advance
If you’ve taken out multiple MCAs, it’s likely because your business doesn’t have great credit and may not qualify for other types of loans. If that’s the case, you might consider a new, larger merchant cash advance to consolidate your existing MCAs, ideally with more favorable terms.
Be aware that you will likely have a short repayment period, perhaps between a few months and three years.
Online Lenders
Another consolidation option if you don’t have excellent credit is taking out a consolidation loan with an online lender. Interest rates may be lower than with a merchant cash advance and repayment terms may be longer. A longer repayment term typically means your monthly payment will be lower; however, you’ll pay more in interest overall than with a shorter repayment term.
SBA Loans
SBA loans like the 7(a) program can be used to consolidate business debt that is approved by your lender, if you qualify. Repayment terms can be up to 25 years, and rates on SBA loans are among the lowest of any financing option for businesses.
Traditional Bank Loans
If you’ve been able to build your business or personal credit since taking out the MCAs, you may qualify for a bank loan with lower rates and longer repayment terms. You can then use the proceeds of the loan to pay off your existing MCAs.
The Takeaway
If you feel like you’re drowning because you’re paying too much, too often, for multiple merchant cash advances, consolidating with a new advance or small business loan may be a solution that could help you lower your costs and roll everything up into one monthly payment.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
Get personalized small business financing quotes with SoFi’s marketplace.
FAQ
What is a merchant cash advance consolidation?
A merchant cash advance (MCA) consolidation combines multiple merchant cash advances into a single MCA with more manageable repayment terms. Ideally, you’ll receive better rates and terms with your new merchant cash advance.
What happens if I don’t repay my merchant cash advance?
If you don’t repay your merchant cash advance (MCA), the lender may increase withdrawal amounts, freeze business accounts, or pursue legal action. Your personal and business assets could be at risk, and your credit score could be negatively impacted. This could affect financing options down the line.
Why consolidate your merchant cash advances?
The main reason to consolidate your merchant cash advance (MCA) is to simplify your payments. Rather than making multiple payments each week or month, you’ll only have to make one. Consolidating could also reduce your interest rate, saving you money over the life of the loan.
Photo credit: iStock/ipopba
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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 .
The other day I noticed that mortgage rates were being advertised at some really low levels.
Many quotes in the mortgage rate table on my own site were in the mid-5s.
That got me curious how low rates could be with a really favorable loan scenario, such as a 760+ FICO, 20% down home purchase, owner-occupied, single-family residence.
So I headed over to Zillow’s Mortgage Marketplace to see what I could come up with.
Knowing that VA loan rates are typically the lowest, I threw that in too and lo and behold, saw 30-year fixed rates that began with a “4.”
I threw the screenshot up on Twitter and simply said, “Guys, it’s not a mortgage rate story anymore.”
What Did I Mean?
The tweet got a good amount of traction, likely because of those very low 4.875% 30-year fixed rate quotes in the screenshot.
And some felt it was deceiving to post rates like that, which might not be reflective of the entire borrower universe at the moment.
After all, not everyone has a 760 FICO score or the ability to put down 20%, nor might they be eligible for a VA loan.
I also threw in two discount points, since most of the low rates advertised today require the borrower to pay some money at closing in order to obtain a “below-market” rate.
In reality, you can put nothing down on a VA loan and get the same pricing since there aren’t mortgage pricing adjustments on such loans. The same goes for having a lower FICO score.
So the loan scenario wasn’t as crazy hard to qualify for as it first appeared. And when I re-ran the scenario today you could actually get a rate of 4.75% with just one discount point.
But that wasn’t even the point I was trying to make. It wasn’t about a 4.875% rate vs. 4.75% rate, or a 5.25% rate. Or any specific rate at all.
It was that the high mortgage rate story we’ve been fixated on for the past two hours is over.
The housing market today is no longer being driven by the high rate story. We exhausted it, first being caught off guard by how quickly rates increased in early 2022.
Then wondering how high they might go, if they’d hit a new 21st century high (they didn’t!).
That was followed by pondering when they’d begin to fall again (they peaked last October and have dropped quite a bit since then).
And so it’s not about rates anymore.
If It’s Not Rates, What Is It Now?
That brings me to my point. The housing market is now at a crossroads where high mortgage rates are no longer the focus.
Most prospective home buyers today will see that mortgage rates have come down significantly.
The 30-year fixed was basically averaging 8% just before last Halloween, and today is closer to 6.25%.
As I illustrated with some mortgage rate shopping, it’s also possible to bring down that rate to the high 4% range, or the very low 5s, even for conforming loans backed by Fannie and Freddie.
This means anyone who has been pondering a home purchase during the past couple years is no longer obsessed with rates.
Instead, they’re likely considering other factors, such as home prices, the cost of insurance, their job stability, the wider economy, and even the election.
If they were looking at homes when rates were closer to 8%, they’re surely still looking with rates approaching 5% (they could be there soon without all the perfect FICO scores and discount points).
But if they’re no longer looking to buy, or they’re having doubts, it’s not because of high mortgage rates anymore. Those are no longer to blame.
Perhaps now they’re worried that asking prices are too high and could fall. Maybe they’re concerned that the economy is on shaky ground and a recession is coming.
After all, there’s an expectation that the Fed is going to cut its own fed funds rate 200 basis points over the next year.
That doesn’t exactly exude consumer confidence.
We Finally Get to Find Out!
What I’m most excited about now that high mortgage rates are old news is that we finally get to “find out.”
By that, I mean we get to see how this housing market performs in a period of slowing economic growth, with Fed rate cuts and a possible recession on the table.
Remember, the Fed wouldn’t be cutting rates if they weren’t worried about rising unemployment and a softening economy.
In other words, we’re going to see what this housing market is really made of. As I’ve said many times before, there’s no inverse relationship between mortgage rates and home prices.
One does not go up if the other goes down. And vice versa. We already saw home prices continue to rise as mortgage rates jumped from 3% to 8%.
So is it possible that both mortgage rates and home prices could fall in tandem? Sure. Granted nominal home price declines aren’t common to begin with.
But we’re finally going to put it to the test. And I’m looking forward to it.
(photo: Brittany Stevens)
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
There is no such thing as no-deposit car insurance. All insurers require payment before activating coverage.
You can lower your initial payment by taking advantage of discounts, only purchasing coverage you need and comparing rates to find the cheapest insurance company for you.
Your first car insurance payment can be as low as $29, according to NerdWallet’s August2024 analysis of minimum coverage rates from the country’s largest insurers.
A car insurance “deposit” counts toward your total premium. It’s not an additional fee.
Car insurance with no deposit doesn’t exist. Legitimate insurers require some money down before they’ll provide coverage. The good news is that an auto policy’s initial “deposit” isn’t a separate fee, but the first payment you’ll make towards buying and maintaining your coverage.
Most auto insurers will let you either pay in monthly increments or in full for the entire policy period, which is typically six months or a year. If you’re looking for the lowest possible payment to start your auto insurance coverage, the cheapest option will likely be to pay only your first month’s premium payment.
Even though you’ll have to put some money down to get car insurance, your initial payment doesn’t have to be astronomical. Read more to learn how to find cheap car insurance with a low initial payment.
Table of Contents
How to find car insurance with a very cheap “deposit”
Just because a policy requires a payment upfront doesn’t necessarily mean you’re overpaying for your auto insurance coverage. Still, there are ways to make sure you are paying as little as possible in that first transaction.
Here’s how to lower your first car insurance payment.
Shop around. Your “deposit” will likely just be your first premium payment, so look for the lowest possible premium. The best way to do that is to compare car insurance quotes from at least three insurers. Not sure where to start? Take a look at NerdWallet’s list of the cheapest car insurance companies.
Ask about discounts. You may be surprised by the variety of discounts some insurers offer, so be sure to ask your insurer or agent for any discounts you might qualify for. You could get a lower price for making electronic payments, being a good student, insuring multiple vehicles or even driving a low amount of miles.
Only get the coverage you need. Look over your policy and drop any coverage you don’t really need. For example, if you drive an older car that’s not worth much, you likely don’t need comprehensive and collision coverage, which only cover your vehicle up to its current market value, minus your deductible.
Lower your deductible. If you have enough of a cushion in your emergency savings, you can choose a higher car insurance deductible. Although this would require you to pay more out-of-pocket before your insurance pays for a covered claim, your monthly premium would decrease.
Pay month-to-month. Most insurers give the option to pay for coverage in full or monthly installments. If you want to lower the initial cost for your coverage, pay month-to-month.
🤓Nerdy Tip
Keep in mind, paying for the full six or twelve months of coverage can end up being cheaper in the long run if your insurer offers a pay-in-full discount.
How much does a car insurance initial payment cost?
The initial payment for a car insurance policy can be as low as your monthly policy rate, and can vary based on the overall cost of your policy and the payment plan you agree upon with your insurer.
Cheapest car insurance “deposits” for minimum coverage
Below are the five cheapest large insurers for minimum coverage, according to NerdWallet’s August2024 analysis, along with their median annual and monthly rates.
*USAA is only available to military, veterans and their families.
Cheapest car insurance “deposits” for full coverage
Below are the five cheapest large insurers for full coverage, according to NerdWallet’s August2024 analysis, along with their median annual and monthly rates.
*USAA is only available to military, veterans and their families.
Cheap coverage could leave you underinsured
When you’re shopping for a policy with a very low monthly payment, keep in mind that it may offer very limited coverage.
The absolute cheapest policies will provide only the minimum-required coverage in your state, which typically only includes a limited amount of liability insurance. This pays for damage and injuries you may cause to others in an accident, up to your policy limits. But it won’t cover things like damage to your car or for your own injuries if you’re hit by an uninsured or underinsured driver. In most cases, your state’s minimum required limits are probably not enough to protect you financially in the event of a serious accident.
Before you buy the cheapest car insurance you can find, make sure you’re getting enough coverage to protect you financially. Unsure of what the different types of car insurance are? Use our tool below to learn about what each type pays for.
NerdWallet Smart Advice Sweepstakes — Official Rules
NO PURCHASE NECESSARY TO ENTER OR WIN.
A PURCHASE OR PAYMENT WILL NOT INCREASE YOUR CHANCES OF WINNING.
THESE OFFICIAL RULES INCLUDE A MANDATORY ARBITRATION PROVISION AND CLASS ACTION WAIVER THAT GOVERN ANY DISPUTES BETWEEN YOU AND US. PLEASE READ THEM CAREFULLY.
1. Sponsor
These are the Official Rules for the NerdWallet Smart Advice Sweepstakes (the “Sweepstakes”). The sponsor and administrator of this Sweepstakes is NerdWallet, Inc. 55 Hawthorne Street, 10 Floor, San Francisco, CA 94105, U.S.A, (“Sponsor”).
2. Eligibility
The Sweepstakes is open only to legal residents of the 50 states, including the District of Columbia (the “Territory”) who are at least 18 years old, or the age of majority, at the time of entry. Employees of Sponsor, its parent, subsidiaries, affiliates or agencies and suppliers (individually “Entity” and collectively, “Entities”) and the immediate family (i.e. spouse, parents, siblings and children) and household members of each Entity are not eligible. All applicable federal, state, and local laws and regulations apply. Void where prohibited. Participation constitutes the entrant’s full and unconditional agreement to these Official Rules and Sponsor’s decisions, which are final and binding in all matters related to the Sweepstakes.
The Sweepstakes begins on August 5, 2024 at 8:00 am Pacific Standard Time (“PST”) and ends on October 21, 2024, at 11:59 p.m. PST (the “Sweepstakes Period”). Sponsor’s computer is the official time-keeping device for the Sweepstakes.
4. How to Enter: During the Sweepstakes Period, entrant must email their name to [email protected] with the subject line “Advisors” to receive one (1) Sweepstakes entry. Once their entry is received, the Sponsor will email them a link to refer a friend to enter the Sweepstakes (the “Sweepstakes Link”). Entrant will automatically receive a second Sweepstakes entry upon using the Sweepstakes Link to refer a friend.
LIMIT: Limit two (2) Sweepstakes entry per person. Any entry which exceeds this entry limit from the same email address will be disqualified. Any attempt by a person to enter the Sweepstakes more than twice may result in disqualification at the discretion of the Sponsor. Multiple participants are not permitted to share the same email address. Normal Internet access and usage charges imposed by your online service may apply. Sponsor will not accept entries from email addresses Sponsor deems to be potentially harmful to Sponsor’s website. Use of any automated system to participate is prohibited and will result in disqualification. In the event of a dispute as to any registration, the authorized account holder of an email address used will be deemed to be the registrant or player. An “authorized account holder” is the natural person assigned an email address by an Internet access provider, online service provider or other organization responsible for assigning email addresses for the domain associated with the submitted address. Each potential winner may be required to show proof of being the authorized account holder.
5. Drawing and Winner Notification
Sponsor will select one (1) potential Sweepstakes winner in a random drawing of all eligible entries to be held on or about October 22, 2024, at 12:30 p.m. PST.Odds of winning will be determined by the number of eligible entries received. Sponsor is not responsible for and shall not be liable for late, lost, or misdirected entries.
Sponsor will notify the potential winner by email to the address included in the Sweepstakes submission. It is the entrant’s obligation to notify the Sponsor in writing of any change of contact information. The potential winner will be required to respond to the winner notification within forty-eight (48) hours of the time the notification is sent in order to claim his/her prize. If the potential winner cannot be contacted or fails to respond within the required time period or fails to comply with any other term of these Official Rules, that potential winner forfeits the prize. Winning is contingent upon fulfilling all requirements of these Official Rules. In the event a potential winner is disqualified for any reason, Sponsor will award the applicable prize to an alternate winner by random drawing from among all remaining entries from the applicable Entry Period.
The potential winner will receive one (1) Prize. Limit One (1) Prize per person. The Prize is a one (1) year subscription to the NerdWallet+ rewards service and one (1) year subscription to the NerdWallet Advisors investment advising services. The total Prize value is: $399.00
Prizes are non-transferable and no substitution will be made except as provided herein at the Sponsor’s sole discretion. Sponsor reserves the right to substitute a prize for one of equal or greater value if the designated prize should become unavailable for any reason. Winners are responsible for all taxes and fees associated with prize receipt and/or use.
7. Winner Verification
Potential winners of this Sweepstakes are subject to verification by Sponsor. Winners will be required to sign and return a declaration of eligibility and release of liability within the time frame specified by Sponsor. Sponsor’s decisions are final and binding in all matters related to the Sweepstakes. An entrant is not a winner of any Prize unless and until entrant’s eligibility, and/or winner has been verified and entrant has been notified that verification is complete. If selected winner is ineligible or fails to timely return the completed and executed affidavit and release as required by Sponsor, prize may be forfeited and at the sole discretion of Sponsor, and an alternate winner may be selected.
8. Publicity
The acceptance of the Prize by a winner shall constitute and signify winner’s agreement and consent that Sponsor and its designees may use the winner’s full name, city, state, likeness, quotes, photo, submission, entry or prize information (collectively “Submission”) in any manner the Sponsor deems fit including, but not limited to, in connection with Sponsor’s exploitation of the Submission for promotional, advertising or other purposes, worldwide, in any and all media now known or hereafter devised, without limitation and without further payment, notification, permission or other consideration, except where prohibited by law.
9. Release
By participating, entrant agrees to release and hold harmless the Sponsor and its respective subsidiaries, affiliates, suppliers, distributors, advertising/promotion agencies, and prize suppliers, and each of their respective parent companies and each such company’s officers, directors, employees and agents from and against any claim or cause of action, including, but not limited to, personal injury, death, or damage to or loss of property arising out of entrant’s participation in this Sweepstakes or receipt or use or misuse of any prize, as well as or any claim or cause of action based on publicity rights, infringement of intellectual property, defamation, or invasion of privacy arising from any materials entrant has submitted in connection with entrant’s participation in this Sweepstakes.
10. Limitations of Liability
Sponsor is not responsible for: (1) any incorrect or inaccurate information, whether caused by entrants, printing errors or by any of the equipment or programming associated with or utilized in the Sweepstakes; (2) technical failures of any kind, including, but not limited to malfunctions, interruptions, or disconnections in phone lines or network hardware or software; (3) unauthorized human intervention in any part of the entry process or the Sweepstakes; (4) technical or human error which may occur in the offer or administration of the Sweepstakes, including but not limited to errors in the advertising, Official Rules, selection and announcement of the winners and distribution of the prizes or the processing of entries; (5) any inability of any winner to accept or use any prize for any reason; or (6) any injury or damage to persons or property which may be caused, directly or indirectly, in whole or in part, from entrant’s participation in the Sweepstakes or receipt or use or misuse of any prize. If for any reason an entrant’s entry is confirmed to have been erroneously deleted, lost, or otherwise destroyed or corrupted, entrant’s sole remedy is another entry in the Sweepstakes, provided that, if it is not possible to award another entry due to discontinuance of the Sweepstakes, or any part of it, for any reason, Sponsor, in its sole discretion, may elect to hold a random drawing from among all eligible entries received up to the date of discontinuance for any or all of the prizes offered herein. No more than the stated number of prizes will be awarded. In the event that production, technical, seeding, programming or any other reasons cause more than stated number of prizes as set forth in these Official Rules to be available and/or claimed, Sponsor reserves the right to award only the stated number of prizes by a random drawing among all legitimate, un-awarded, eligible prize claims.
Sponsor reserves the right to cancel, suspend and/or modify the Sweepstakes, or any part of it, if any fraud, technical failures or any other factor beyond Sponsor’s reasonable control impairs the integrity or proper functioning of the Sweepstakes, as determined by Sponsor in its sole discretion. Sponsor reserves the right, in its sole discretion, to disqualify any individual it finds to be tampering with the entry process or the operation of the Sweepstakes or to be acting in violation of these Official Rules or in an unsportsmanlike or disruptive manner. Any attempt by any person to deliberately undermine the legitimate operation of the Sweepstakes may be a violation of criminal and civil law, and, should such an attempt be made, Sponsor reserves the right to seek damages from any such person to the fullest extent permitted by law. Sponsor’s failure to enforce any term of these Official Rules shall not constitute a waiver of that provision
11. Disputes
1. Choice of Law: These Official Rules are governed by the laws of the State of California, without regard to conflict of law principles. Subject to this Section 11, which provides that disputes are to be resolved through binding arbitration or small claims court, to the extent that any lawsuit or court proceeding is permitted hereunder, you and Sponsor agree to submit to the exclusive personal jurisdiction of the state courts and federal courts located within San Francisco County, California, for the purpose of litigating all such disputes.
The parties acknowledge that these Official Rules evidences a transaction involving interstate commerce. Notwithstanding the provision in the preceding paragraph with respect to applicable substantive law, any arbitration conducted pursuant to this Agreement shall be governed by the Federal Arbitration Act (9 U.S.C. Secs. 1-6).
2. DISPUTES RESOLVED BY BINDING ARBITRATION. In the interest of resolving disputes between you and Sponsor in the most expedient and cost-effective manner, you and SPONSOR agree to resolve disputes through binding arbitration or small claims court instead of in courts of general jurisdiction (“Agreement to Arbitrate”).
ARBITRATION AGREEMENT
A) CLAIMS TO BE RESOLVED BY BINDING ARBITRATION. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW SPONSOR AND YOU AGREE TO ARBITRATE ANY AND ALL DISPUTES AND CLAIMS BETWEEN YOU AND Sponsor, AND BETWEEN YOU AND OUR FORMER OR PAST EMPLOYEES, DIRECTORS, OFFICERS AND
CONTRACTORS, IN ALL CASES ARISING OUT OF OR RELATING TO THE TERMS OR THE SERVICES, EXCEPT THAT: (1) EACH PARTY MAY COMMENCE AN ACTION IN A COURT OF PROPER JURISDICTION FOR INJUNCTIVE OR OTHER EQUITABLE RELIEF AS CONTEMPLATED IN SECTION 11(H) BELOW (INJUNCTIVE RELIEF) PENDING A FINAL DECISION
BY THE ARBITRATOR, (2) EITHER PARTY MAY BRING AN INDIVIDUAL ACTION IN SMALL CLAIMS COURT IF THE RULES OF THAT SMALL CLAIMS COURT WILL ALLOW IT. IF EITHER PARTY DOES NOT BRING ITS CLAIM IN
SMALL CLAIMS COURT (OR IF YOU OR WE APPEAL A SMALL CLAIMS COURT JUDGMENT TO A COURT OF GENERAL JURISDICTION), THEN THE CLAIMS MUST BE RESOLVED BY BINDING, INDIVIDUAL ARBITRATION. YOU AGREE THAT, BY AGREEING TO THE TERMS, YOU AND SPONSOR ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR
TO PARTICIPATE IN A CLASS OR REPRESENTATIVE ACTION TO THE MAXIMUM EXTENT PERMITTED BY LAW. THE TERMS EVIDENCE A TRANSACTION IN INTERSTATE COMMERCE, AND THUS THE FAA GOVERNS THE INTERPRETATION AND ENFORCEMENT OF THIS ARBITRATION PROVISION. THIS ARBITRATION PROVISION SHALL SURVIVE TERMINATION OF THE TERMS OR YOUR RELATIONSHIP WITH SPONSOR FOR ANY REASON.
b) ARBITRATOR. ANY ARBITRATION BETWEEN YOU AND SPONSOR WILL BE GOVERNED BY THE COMMERCIAL DISPUTE RESOLUTION PROCEDURES AND THE SUPPLEMENTARY PROCEDURES FOR CONSUMER RELATED DISPUTES (COLLECTIVELY, “AAA RULES”) OF THE AMERICAN ARBITRATION ASSOCIATION (“AAA”), AS MODIFIED BY THESE TERMS, AND WILL BE ADMINISTERED BY THE AAA. THE AAA RULES AND FILING FORMS ARE AVAILABLE ONLINE AT WWW.ADR.ORG, BY CALLING THE AAA AT 1-800-778-7879, OR BY CONTACTING SPONSOR. ALL ISSUES ARE FOR THE ARBITRATOR TO DECIDE, INCLUDING THE SCOPE AND ENFORCEABILITY OF THIS ARBITRATION PROVISION AS WELL AS OTHER TERMS AND CONDITIONS IN THESE TERMS, AND THE ARBITRATOR SHALL HAVE EXCLUSIVE AUTHORITY TO RESOLVE ANY SUCH DISPUTE RELATING TO THE SCOPE AND ENFORCEABILITY OF THIS ARBITRATION PROVISION OR ANY OTHER TERM OF THESE TERMS INCLUDING, BUT NOT LIMITED TO ANY CLAIM THAT ALL OR ANY PART OF THIS ARBITRATION PROVISION OR THESE TERMS IS VOID OR VOIDABLE. HOWEVER IF PUTATIVE CLASS OR REPRESENTATIVE CLAIMS ARE INITIALLY BROUGHT BY EITHER PARTY IN A COURT OF LAW, AND A MOTION TO COMPEL ARBITRATION IS BROUGHT BY ANY PARTY, THEN THE COURT SHALL DECIDE WHETHER THESE TERMS PERMIT CLASS OR REPRESENTATIVE PROCEEDINGS. FOR THE AVOIDANCE OF DOUBT, THE COURT AND ARBITRATOR SHALL BE BOUND BY THESE TERMS, INCLUDING WITH REGARD TO THE CLASS ACTION WAIVER PROVISION BELOW. IN ANY ARBITRATION, THE ARBITRATOR SHALL FOLLOW THE APPLICABLE LAW. THE ARBITRATOR SHALL NOT HAVE THE POWER TO COMMIT MANIFEST ERRORS OF LAW OR LEGAL REASONING, AND ANY AWARD RENDERED BY THE ARBITRATOR THAT EMPLOYS A MANIFEST ERROR OF LAW OR LEGAL REASONING MAY BE VACATED OR CORRECTED BY A COURT OF COMPETENT JURISDICTION FOR ANY
SUCH ERROR. DURING THE ARBITRATION, THE AMOUNT OF ANY SETTLEMENT OFFER MADE BY SPONSOR OR YOU SHALL NOT BE DISCLOSED TO THE ARBITRATOR UNTIL AFTER THE ARBITRATOR DETERMINES THE AMOUNT, IF ANY, TO WHICH YOU OR SPONSOR ARE ENTITLED. IN ARBITRATION, AND TO THE EXTENT OTHERWISE PERMITTED BY LAW, THE PARTIES MAY EXCHANGE “OFFERS OF COMPROMISE” OR STIPULATE TO JUDGMENTS OR AWARDS IN THE SAME WAY THE PARTIES COULD IN COURT, INCLUDING FOR EXAMPLE, UNDER CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 998 FOR ARBITRATIONS TAKING PLACE IN CALIFORNIA. SUCH OFFERS OF
COMPROMISE SHALL HAVE THE SAME FORCE AND EFFECT AS THEY WOULD IN A COURT PROCEEDING. THE ARBITRATION PROCEEDINGS SHALL OTHERWISE REMAIN CONFIDENTIAL, EXCEPT FOR PURPOSES OF
SEEKING COURT INTERVENTION (IF NECESSARY).
C) NOTICE AND PROCESS. A PARTY WHO INTENDS TO SEEK ARBITRATION MUST FIRST SEND TO THE OTHER, BY CERTIFIED MAIL, A WRITTEN NOTICE OF DISPUTE (“NOTICE”). THE NOTICE TO SPONSOR SHOULD BE ADDRESSED TO: SPONSOR, INC., 55 HAWTHORNE ST, 10TH FLOOR, SAN FRANCISCO, CA 94105 (“NOTICE ADDRESS”) AND MUST BE SIGNED BY YOU PERSONALLY. NOTICE TO YOU FROM SPONSOR MAY BE TO YOU DIRECTLY, OR IF YOU ARE REPRESENTED, TO YOUR LEGAL COUNSEL. THE NOTICE MUST (A) DESCRIBE THE NATURE AND BASIS OF THE CLAIM OR DISPUTE; AND (B) SET FORTH THE SPECIFIC RELIEF SOUGHT (“DEMAND”). IF YOU AND SPONSOR DO NOT REACH AN AGREEMENT TO RESOLVE THE CLAIM WITHIN 30 DAYS AFTER THE NOTICE IS RECEIVED, YOU OR SPONSOR MAY COMMENCE AN ARBITRATION PROCEEDING PURSUANT TO THE TERMS OF THIS ARBITRATION AGREEMENT.
D) FEES. IN THE EVENT THAT YOU COMMENCE ARBITRATION IN ACCORDANCE WITH THESE TERMS, SPONSOR WILL, AT YOUR REQUEST, REIMBURSE YOU FOR YOUR PAYMENT OF THE ARBITRATION FILING FEE, UNLESS YOUR CLAIM IS FOR GREATER THAN $10,000, IN WHICH CASE THE PAYMENT OF ANY FEES SHALL BE DECIDED BY THE AAA RULES. ANY REQUEST FOR PAYMENT OF FEES BY SPONSOR SHOULD BE SUBMITTED BY MAIL TO THE AAA ALONG WITH YOUR DEMAND FOR ARBITRATION AND SPONSOR WILL MAKE ARRANGEMENTS TO PAY ALL NECESSARY FEES DIRECTLY TO THE AAA. IN THE EVENT THE ARBITRATOR DETERMINES THE CLAIM(S) YOU ASSERT IN THE ARBITRATION TO BE FRIVOLOUS OR BROUGHT FOR AN IMPROPER PURPOSE (AS MEASURED BY THE STANDARDS SET FORTH IN FEDERAL RULE OF CIVIL PROCEDURE 11(B) OR ITS SUCCESSOR RULE), YOU AGREE TO REIMBURSE SPONSOR FOR ALL FEES ASSOCIATED WITH THE ARBITRATION PAID BY SPONSOR ON YOUR BEHALF THAT YOU OTHERWISE WOULD BE OBLIGATED TO PAY UNDER THE AAA’S
RULES. IF YOUR CLAIM IS FOR $10,000 OR LESS, YOU MAY CHOOSE WHETHER THE ARBITRATION WILL BE CONDUCTED SOLELY ON THE BASIS OF DOCUMENTS SUBMITTED TO THE ARBITRATOR, THROUGH A NON-
APPEARANCE BASED TELEPHONIC HEARING, OR BY AN IN-PERSON HEARING AS ESTABLISHED BY THE AAA RULES. ANY IN-PERSON ARBITRATION HEARINGS WILL TAKE PLACE AT A LOCATION TO BE AGREED UPON IN SAN FRANCISCO COUNTY, CALIFORNIA. REGARDLESS OF THE MANNER IN WHICH THE ARBITRATION IS CONDUCTED, THE ARBITRATOR SHALL ISSUE A REASONED WRITTEN DECISION SUFFICIENT TO EXPLAIN THE ESSENTIAL FINDINGS AND CONCLUSIONS ON WHICH THE DECISION AND AWARD, IF ANY, ARE BASED. THE ARBITRATOR MAY MAKE RULINGS AND RESOLVE DISPUTES AS TO THE PAYMENT AND REIMBURSEMENT OF FEES OR EXPENSES AT ANY TIME
DURING THE PROCEEDING AND UPON REQUEST FROM EITHER PART MADE WITHIN 14 DAYS OF THE ARBITRATOR’S RULING ON THE MERITS.
E) CLASS ACTION WAIVER. ANY ARBITRATION UNDER THESE TERMS WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ARBITRATIONS AND CLASS ACTIONS ARE NOT PERMITTED. UNLESS BOTH YOU AND SPONSOR AGREE OTHERWISE, THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PERSON’S CLAIMS (EXCEPT AS SET FORTH IN SUBSECTION (F) BELOW), AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING. THE ARBITRATOR MAY AWARD RELIEF (INCLUDING MONETARY, INJUNCTIVE, AND DECLARATORY RELIEF) ONLY IN FAVOR OF THE INDIVIDUAL PARTY SEEKING RELIEF AND ONLY TO THE EXTENT NECESSARY TO PROVIDE RELIEF NECESSITATED BY THAT INDIVIDUAL PARTY’S CLAIM. ANY RELIEF AWARDED CANNOT AFFECT OTHER USERS. IF THIS SPECIFIC SUBPARAGRAPH (E) IS FOUND TO BE UNENFORCEABLE IN ITS
ENTIRETY, THEN THE ENTIRETY OF THIS ARBITRATION PROVISION SHALL BE NULL AND VOID. HOWEVER, IF ONLY A PORTION OF THIS SUBPARAGRAPH (E) IS FOUND TO BE UNENFORCEABLE, THEN THE UNENFORCEABLE PORTION OF THE PROVISION SHALL BE STRICKEN, AND THE REMAINDER OF SUBPARAGRAPH (E) ENFORCED. ANY CLAIMS
OR CAUSES OF ACTION SEEKING RELIEF NOT SUBJECT TO INDIVIDUAL ARBITRATION UNDER APPLICABLE LAW SHALL BE STAYED IN A COURT OF COMPETENT JURISDICTION PENDING COMPLETION OF INDIVIDUAL
ARBITRATION TO THE MAXIMUM EXTENT PERMITTED BY LAW. NOTHING IN SUBSECTION (E) OR (F) BELOW SHALL PREVENT YOU OR SPONSOR FROM PARTICIPATING IN A CLASSWIDE SETTLEMENT OF
CLAIMS. YOU AND SPONSOR AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS
OR REPRESENTATIVE PROCEEDING.
F) MASS, COLLECTIVE, OR BATCH ARBITRATION. YOU AND SPONSOR AGREE THAT ADMINISTRATION OF ANY MASS, COLLECTIVE OR BATCH ARBITRATION SHALL BE GOVERNED BY THE TERMS SET FORTH IN THIS
SUBSECTION (F). You and SPONSOR agree that a “mass, collective, and/or batch arbitration” includes, but is not limited to, instances in which you and others are represented by a law firm or collection of law firms or legal counsel that has filed more than 150 arbitration demands of a substantially similar nature against SPONSOR, alleging similar or identical claims or causes of action, within 180 days of the arbitration demand filed on your or others behalf, and the law firm or collective of legal counsel/law firms seeks to simultaneously or collectively
administer and/or arbitrate all the arbitration demands together. If more than 150 arbitration demands of a substantially similar nature, alleging the similar or identical claims or causes of action, are filed against Sponsor by the same law firm or collection of legal counsel/law firms within 180 days of one another, each
arbitration demand must be filed, administered, arbitrated, and resolved pursuant to this subsection (f).
Specifically, in order to increase the efficiency of resolution for any mass, collective, and/or batch arbitration, in the event 150 or more similar arbitration demands against Sponsor are filed within a 180 day period pursuant to the above, the arbitration provider shall (i) group the arbitration demands into batches of no more than 150 demands per group; and (ii) provide for resolution of each group or batch as a single arbitration with one set of filing and administrative fees and a single arbitrator assigned per group or batch. You and Sponsor agree to cooperate in good faith with the arbitration provider to implement the aforementioned protocol for mass, collective, and/or batch arbitrations with regard to resolution, fees and administration. If subsections (f)(i)
or (f)(ii) are not enforced, or the arbitration provider refuses to follow these specific mass, collective, and/or batch arbitration protocols, then each arbitration demand must be filed, administered, arbitrated, and resolved individually, or the parties agree to seek out a different, mutually agreeable and widely-recognized arbitration organization agreeable to follow subsections (f)(i) or (f)(ii). If any other portion of this subparagraph (f) is found to be unenforceable, then the unenforceable portion of the provision shall be stricken, and the remainder of
subparagraph (f) and this agreement shall be enforced to the maximum extent permitted by law. Mass, collective, and/or batch arbitrations shall otherwise be subject to all other substantive and procedural terms contained within this agreement.
g) Discovery. Discovery and/or the exchange of non-privileged information relevant to the dispute will be governed by the AAA Rules.
h) Injunctive Relief. Notwithstanding the Arbitration Agreement, you acknowledge that money damages are an inadequate remedy for unauthorized access to or use of the Services or your breach of any provisions in the Terms relating to SPONSOR’s intellectual property rights, and any such breach would result in irreparable harm to SPONSOR. Accordingly, in the event of any such actual or threatened breach, SPONSOR may, in addition to any other rights or remedies available to SPONSOR at law or equity, seek specific performance or injunctive
relief without the posting of a bond.
i) Modifications. If SPONSOR makes any future change to this Arbitration Agreement (other than a change to the Notice Address) after your enrollment in a service or program or your use of the Services, you may reject any such change and require SPONSOR to adhere to the language in this arbitration provision as written at the time of your enrollment or purchase if a dispute between us arises, by sending us written notice within 30 days of the change to the Notice Address provided above. You acknowledge and agree that, in the event you reject any
future change, your account with SPONSOR shall be immediately terminated and you will arbitrate any dispute between us in accordance with the language of this provision as written at the time of your enrollment or purchase.
j) Severability and Enforceability. If an arbitrator or court decides that any part of this Section 11 is invalid or unenforceable, the other parts of this Section 12 shall still apply. If the entirety of this Section 12 is found to be unenforceable, then the parties agree that the exclusive jurisdiction and venue described in Section 11 shall govern any action arising out of or related to the Terms, and that the remainder of the Terms will continue to apply.