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- The Federal Reserve’s recent interest-rate hikes may be affecting your wallet more than you think.
- The Fed funds rate influences mortgage, credit-card, and auto-loan rates.
- This means when the bank hikes rates, it becomes pricier to get a car loan or pay off credit cards.
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A new survey from TD Bank revealed that a large percentage of recent home buyers needed mortgage insurance to get the deal done.
The bank surveyed 2,000 Americans who purchased a home over the past 10 years and found that 37% financed their homes with the help of mortgage insurance.
If we consider just the past two years, the number was even greater, with 43% relying on MI to close their loan.
In other words, nearly half of recent borrowers are unable or unwilling to put down 20% when purchasing a home, which makes the cost of homeownership a lot costlier.
Are Home Prices Too High?
It’s kind of a testament to how expensive homes are these days, despite mortgage rates and corresponding monthly mortgage payments being somewhat affordable to many.
While the Fed has been able to drive down interest rates via efforts such as QE3, they haven’t been able to make the issue of large down payments magically disappear.
Yes, there are options for those with little cash set aside, such as FHA loans, which only require a 3.5% down payment, and conventional loans, which only require five percent down.
There is even 100% financing still floating around, thanks to the Rural Housing Service’s popular USDA loan.
But the down payment continues to be an issue for most Americans looking to buy a home, mainly because we have a tough time saving money. No wonder the typical renter needs an FHA loan in order to buy a house.
Unfortunately, we can’t turn back now because things have only really gotten better thanks to recovering home prices that are reaching new all-time highs in many areas nationwide.
This has allowed millions of homeowners to get their heads above water again, which is great.
However, it has also burdened future would-be home buyers, who must now contend with even higher home prices, and not necessarily any more income to come to the table with. Nor any more savings.
TD Bank Is Pitching Their No-MI Loan
Now it should be noted that TD Bank is making both an argument against FHA loans because most require mortgage insurance for the life of the loan now (and it’s expensive), and PMI, simply because it’s another monthly cost to worry about.
And they’re doing it because they recently launched their Right Step mortgage program, which only requires a 3% down payment without MI.
It’s a big deal because Fannie Mae just reduced their max loan-to-value to 95% from 97%. So they’re really one of the few places where you can get a low down payment loan these days without paying mortgage insurance.
But what some people may not understand is that just because there’s no MI doesn’t mean you’re not paying for it. It’s just built into the interest rate. So instead of getting a 4% rate on your 30-year fixed, you might be stuck with a rate of 4.5% or higher. Same goes for lender-paid MI.
That’s the tradeoff. And the problem with taking a higher interest rate on your loan is that it stays with you until you sell, refinance, or pay off the loan.
On the other hand, PMI can be removed once your LTV reaches 80%, which can happen sooner rather than later if home prices keep rising, or if you pay your mortgage down early.
So whether you “need” MI or not, you’re still paying for it whenever you come in with less than 20% down. You just may not realize it.
(photo: Dan Moyle)
Source: thetruthaboutmortgage.com
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Many components of the capital rules that federal regulators proposed last month last month have elicited questions and concerns from in and around the banking sector, but none more than the treatment of single-family mortgages.
Trade groups representing banks and various parts of the mortgage industry have come out against the rules, as have housing affordability advocates. These groups say the impact of the proposed rule changes would be felt by the housing sector more so than the banks themselves.
“In the housing sector, which has just been in a sort of boxing ring getting punched, one after another, and getting exhausted from all that’s coming at them, this one is pretty incredible,” said David Stevens, a long-time mortgage executive who now heads Mountain Lake Consulting in Virginia. “We thought the current Basel rule made sense, but this one’s going to have downstream effects that are going to be very broad in the housing system.”
The change is expected to have at least a moderate impact on banks’ willingness to originate. While banks have been steadily ceding market share to independent mortgage banks and other nonbank lenders since the subprime mortgage crisis, they still play a key role in the so-called jumbo mortgage market, which consists of loans too large to be securitized and sold to the government sponsored enterprises Fannie Mae and Freddie Mac.
“The big, traditional mortgage lending banks have largely exited the field and that’s been going on for some time. This is the next nail in the coffin,” said Edward Pinto, director of the AEI Housing Center at the American Enterprise Institute. “This nail will make it harder for banks to compete with Fannie and Freddie, generally, and then take the one market they’ve had left to themselves, the jumbo market, and make it harder to originate because of the capital requirements.”
Some policy experts say the bigger impacts could come from the second-order effects of the regulation. In particular, they point to the treatment of mortgage servicing assets — the salable right to collect fees for providing day-to-day services to mortgages — as a change that could crimp the flow of credit throughout the housing finance sector and lead to higher costs being passed along to individual households.
“With potential borrowers already facing record high interest rates, steep home prices, and supply-chain issues, increased fees and scarcity of bank lenders could be another brick in the wall stopping Americans from obtaining meaningful homeownership and wealth creation,” said Andy Duane, a lawyer with mortgage-focused law firm Polunsky Beitel Green.
The proposal, put forth by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller on the Currency, notes that the rule change could result in second-order effects on other banks, but it largely focuses on benefits that large banks could enjoy relative to smaller banks as a result of the new rules. It notes that such risks are offset by a requirement that banks adhere to both the new framework and the existing one, to ensure they do not see their regulatory capital levels dip below that of the standardized approach.
Still, the regulators are aware that the change could have unintended consequences on the mortgage industry and housing attainability. Because of this, their proposal includes several questions about the subject.
“We want to ensure that the proposal does not unduly affect mortgage lending, including mortgages to underserved borrowers,” Fed Vice Chair for Supervision Michael Barr said while introducing the proposal in an open meeting last month. He added that housing affordability was one of “several areas that I will pay close attention to and encourage thoughtful comments.”
However, the proposal dismissed the idea that the new risk weights on residential mortgages would have a material impact on bank lending in that space. Citing various policy papers, academic studies and regulatory reports, the agencies assert that the risk-weight changes would lead banks adjusting their portfolios “only by a few percentage points.”
Stevens — who served as an assistant secretary in the Department of Housing and Urban Development in the Obama administration, a commissioner for the Federal Housing Administration and president of the Mortgage Bankers Association — said he is not convinced regulators have done sufficient analysis to rule out the type of sweeping, negative implications that he and others fear. He noted that the 1,087-page proposal includes fewer than 20 pages of economic analysis.
“I just don’t think they’ve thought through the downstream effects and the lack of analysis, in terms of actual financial estimates of the implications, is really concerning,” He said. “This will be a really big change, and that’s why you see everybody up in arms and the trade groups aligned against this proposal.”
Like other components of the bank regulators’ Basel III endgame proposal, the components related to mortgages would create standardized capital rules for large banks and do away with the ability for large institutions to use internal models. It also extends these requirements to all banks with more than $100 billion of assets, rather than only the largest, global systemically important banks.
The key provision in the package of proposed rules is the use of loan-to-value, or LTV, ratios to determine risk-weights for residential mortgage exposure.
The change could allow banks to hold less capital against lower LTV mortgages, though there is some skepticism about much of a reduction in capital that change will ultimately entail, especially for GSIBs that previously relied on internal models, said Pete Mills, senior vice president of residential policy for the Mortgage Bankers Association.
“Those risk weights aren’t published, so we don’t know what they are, but they are probably lower than 50% for low-LTV products,” Mills said.
The Basel Committee’s latest regulatory accord, which was finalized in December 2017, envisions LTV ratios as a means of assigning risk weights. But Mills said many in the mortgage banking space were caught off guard by how much further U.S. regulators went beyond their global counterparts. The joint proposal from the Fed, FDIC and OCC calls for a 20 percentage point increase across all LTV bands, meaning while mortgages with LTVs below 50% are assigned a 20% risk-weight under the Basel rule, the U.S. proposal calls for a 40% risk-weight. Similarly, where the Basel framework maxes out at a 70% risk-weight for mortgages with LTVs of 100% or more, the U.S. version has a top weight of 90%.
Under the current rules, most mortgages in the U.S. are assigned a 50% risk weight, so loans with LTVs between 61% and 80% would see their capital treatment stay the same, and any mortgages with LTVs of 60% or lower would see a lower capital requirement. Loans with an LTV of 80% or higher, meanwhile, would likely see a higher capital requirement.
“For GSIBs, that’s probably an increase in capital throughout the LTV rank,” Mills said. “For the rest, it’s a higher risk weight for higher-LTV mortgages and maybe slightly lower in other bands, but, in aggregate, that’s not good for the mortgage market. It’s a higher risk weighting for most mortgages.”
Approximately 25% of first-lien mortgages held by large banks began with an LTV of 80% or higher, according to data compiled by the Federal Reserve Bank of Philadelphia. Roughly 10% have an LTV of 90% or higher, while half were 70% or lower.
Mark Calabria, former head of the Federal Housing Finance Agency, said he is not surprised by the proposed treatment of mortgages, calling it a “natural evolution” of where regulators have been moving. He added that some elements of the proposal resemble changes he oversaw at Fannie Mae and Freddie Mac in 2020.
Calabria said mortgage risk is an issue in the financial system in need of regulatory reform, but he questions the methods being considered by bank regulators.
“I worry that they’re making the problem in the system worse by driving this risk off the balance sheets of depositories, which is probably actually where it should be in the first place,” he said. “I’m not opposed to them tinkering in this space they just need to be more holistic about it.”
The proposal also notes that the new treatment of residential mortgages is aimed at preventing large banks from having an unfair advantage over smaller competitors.
“Without the adjustment relative to Basel III risk weights in this proposal, marginal funding costs on residential real estate and retail credit exposures for many large banking organizations could have been substantially lower than for smaller organizations not subject to the proposal,” the document notes. “Though the larger organizations would have still been subject to higher overall capital requirements, the lower marginal funding costs could have created a competitive disadvantage for smaller firms.”
Yet, while regulators say the proposed rules promote a level playing field, some see it giving an unfair advantage to government-backed lenders.
Pinto sees the proposal as a continuation of a decades-long trend of federal regulators putting private lenders at a disadvantage to the governmental and quasi-governmental entities. He noted that if securities from Fannie and Freddie and loans backed by the FHA and Department of Veterans Affairs, which tend to have very high LTVs, are not given the same capital treatment as private-label mortgages, the net result will be the government playing an even larger role in the mortgage market that it already plays.
Pinto said despite these government programs targeting improved affordability, their provision of easy credit only drives up the cost of housing even further. He added that he hopes regulators reverse course on their treatment of mortgages in their final rule.
“They should just back off on this entirely. It’s inappropriate,” Pinto said. “They need to look at the overall impact they’re having on the mortgage market, and the housing and the finance market, and the role of the federal government, and the fact that the federal government is getting larger and larger in its role, which is inappropriate.”
The other concern is a lower cap on mortgage servicing assets that can be reflected in a bank’s regulatory capital. The proposal would see the cap changed from 25% of Common Equity Tier 1 capital to 10%.
Mills said the capital charge for mortgage servicing rights is already “punitive” at a risk weight of 250%. By lowering the cap, he said, banks will be forced to hold an additional dollar of capital for every dollar of exposure beyond that cap. He noted that regulators had raised the cap to 25% five years ago for banks with between $100 billion and $250 billion of assets to provide some relief to large regional banks interested in that market.
If the cap is lowered, Mills said banks will be inclined to shed assets and shy away from mortgage servicing assets. Such moves would force pricing on servicing rights broadly, a trend that would ultimately lead to higher costs for borrowers.
“MSRs are going to be sold into a less liquid, less deep market, and there are consumer impacts here because MSR premiums are embedded in every mortgage note interest rate,” Mills said. “If MSR values are impacted by this significantly, that rolls downhill through the system. An opportunistic buyer might be able to buy rights at a depressed value, but that depressed value flows through to the consumer in the form of a higher interest rate.”
The proposal will be open to public comment through the end of November, after which regulators will review the input and incorporate elements of it into a final rule. Between the questions raised in the proposal, the acknowledgement by Fed and FDIC officials that the changes could hurt housing affordability, and the strong negative response to the proposal, there is optimism that the ultimate treatment of residential mortgages will be less impactful.
“Nobody seems to be pushing for this, and nobody other than the Fed seems to like it,” Calabria said. “If I was a betting man, it’s hard for me to believe that this is finalized the way it is now in terms of mortgages.”
Source: nationalmortgagenews.com
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We’ve had to use words like “effectively” or “nearly” in the past few weeks to refer to mortgage rates’ proximity to the highest levels since November 2022. As of today, it’s official. The average lender is quoting top tier 30yr fixed scenarios at the highest rates since November 7th.
In both cases, borrowers would be seeing quotes around 7.25% since rates tend to be offered in increments of 0.125%. The only time they were higher in recent memory was the 7.375% range seen on October 20th, 2022. Before that, you’d have to go back more than 20 years to see anything higher.
Is this the end of the world? Not really. It’s certainly not as fun or easy for prospective borrowers as rates in the 5% range, but 7%+ rates are definitely not “new” anymore. Those who need to buy or refi can either swing the payment or they can’t. Past precedent suggests a near certainty of good opportunities to refinance to lower rates in the future. The only uncertainty is how long you’d have to wait.
Some forecasters see rates beginning to move lower before the end of 2023, while the more pessimistic crowd thinks we could be stuck in a similar range through most of next year. One thing’s for sure, rates almost never stay that flat for that long. We’ll continue a discussion throughout the week of the sorts of things we’d need to see in order for rates to improve.
Source: mortgagenewsdaily.com
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[CORRECTION: The story has been updated from an earlier version. The MBA announced $3.39 trillion in mortgage originations, and not $3.9 trillion.]
The Mortgage Bankers Association on Tuesday released revised estimates for the third and fourth quarter of 2020 and predicted record purchase volume for 2021. Although the MBA expects decreased refinancings in 2021 and a decline in overall origination to around $2.56 trillion, that would still be the second-highest origination total in the last 15 years.
The rebounding economy is likely to mean higher mortgage rates, with the MBA forecasting 2.9% by the end of 2020, rising to 3.3% by Q4 2021.
The MBA is forecasting a rise in purchase originations to $1.59 trillion, which would break the previous record of $1.51 trillion set in 2005. However, the MBA sees refinances decreasing to $971 billion.
“The housing market has seen a meaningful rebound since the onset of the pandemic,” said Mike Fratantoni, MBA chief economist. “Record-low mortgage rates have led to a surge in borrower demand for refinances and home purchases.”
For 2020, the MBA is estimating $3.39 trillion in mortgage originations – the highest since 2003 and a 50% increase from 2019.
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That includes an expected 91.5% jump in refinance originations to $1.97 trillion – also the highest since 2003 – and a forecasted 16% rise in purchase originations to $1.42 trillion, the highest since 2005.
Back in October, the MBA estimated total mortgage originations of $3.175 for 2020.
The median price of new homes in 3Q20 was reported at $330,600. That is expected to rise to $339,000 in 4Q20. However, existing-home price averages are expected to drop again in 4Q20, from $297,200 to $294,900. This continues the downward trend from 2Q20, when existing home price averages were at $309,200.
Other 2021 expectations from MBA include a growth rate of 3%, an unemployment rate of 5% by the end of the year, and an increasing 10-year treasury yield to 1.4% by Q4.
Source: housingwire.com
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If you’re like most people, credit card interest and taxes are two things you don’t want to pay. Luckily, paying one may help you pay less for the other. Credit card interest and fees are tax-deductible in some cases. That means every dollar you pay in credit card interest might reduce a dollar of your taxable income.
If that sounds too good to be true, there is a catch — credit card interest and fees are typically only considered tax-deductible if they are legitimate business expenses. If you don’t run a business, or the interest and fees were not incurred in the operation of a business, you generally won’t be able to deduct them on your tax return.
How Credit Card Interest Works
When you make a purchase with a credit card, you don’t have to pay for it right away. Instead, you are borrowing the money for the duration of your statement (usually one month). At the end of your statement balance, you must make at least a minimum payment. But if you don’t pay the full statement amount, you will be charged credit card interest on any outstanding balance. Charging this interest is one way that issuers fund credit card perks and benefits like credit card rewards.
💡 Quick Tip: When choosing a credit card, look for one that aligns with your existing spending habits. For example, some cards offer rewards on airline purchases for frequent travelers, while others, like the SoFi Credit Card, offer cash-back rewards on all purchases.
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Is Credit Card Interest Tax Deductible?
Whether or not credit card purchase interest charges are tax-deductible depends mostly on whether it is personal or business credit card interest.
Business Credit Card Interest
Business credit card interest may be tax-deductible in certain situations. Generally speaking, in order to deduct any expenses, they must be incurred in the regular operation of the business. The IRS does not have requirements about what type of credit card is used, as long as the interest is incurred on business expenses.
You may be able to deduct credit card interest on a personal credit card used for business purchases. However, most credit card agreements prohibit the use of personal credit cards for business purposes on a regular basis.
Not surprisingly, you cannot typically deduct credit card interest on personal expenses charged to a business credit card. And if you pay for personal and business expenses with the same credit card, you may not be able to deduct the full amount of interest. Consult with your accountant or tax advisor if you have questions about what can and cannot be deducted.
Personal Credit Card Interest
Personal credit card interest is not tax-deductible under any circumstances. You cannot deduct interest that you pay for personal expenses on a credit card. That’s one more reason to always pay your credit card statement in full, each and every month. That way you aren’t charged any credit card interest.
Recommended: How to Do Taxes as a Freelancer
Are Credit Card Fees Tax Deductible?
Just like credit card interest, the deductibility of credit card fees largely depends on whether they are for business expenses.
Business Credit Card Fees
Credit card fees that are incurred as business expenses are generally considered deductible. This includes credit card annual fees, overdraft fees, foreign transaction fees, late fees, and balance transfer fees. As long as the credit card is used for business purposes, any fees charged by the credit card issuer will be tax-deductible.
💡 Quick Tip: When using your credit card, make sure you’re spending within your means. Ideally, you won’t charge more to your card in any given month than you can afford to pay off that month.
Personal Credit Card Fees
In contrast, personal credit card fees are not generally considered deductible. Any fees that you are charged by your credit card issuer that are not business expenses cannot be deducted from your taxable income.
Recommended: Can You Use a Personal Checking Account for Business?
Avoiding Interest and Fees vs Tax Deductions
While it’s important to understand that you may be able to deduct credit card interest and fees if they are business expenses, avoiding credit card interest may be the more prudent thing to do. If you are in a 30% tax bracket, that means deducting one dollar of interest will save you 30 cents. But if you pay your balance in full, you won’t be charged any interest and save the full dollar.
The Takeaway
Some credit card fees and interest is deductible on your annual tax return. Generally speaking, you cannot deduct personal credit card interest or fees. You may be able to deduct them if they are legitimate business expenses. Keeping your business and personal expenses separate can help you determine which fees and interest you may be able to deduct.
Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.
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Take advantage of this offer by applying for a SoFi credit card today.
FAQ
Can you deduct credit card interest as business expense?
As credit card interest rates rise, the amount of interest that you’re charged each month on any unpaid balances also rises. So you may be wondering if you can deduct credit card interest from your taxable income. The good news is that as long as the interest is a legitimate business expense, you can generally deduct the interest.
Are credit card fees tax deductible?
It’s important to understand how different credit card-related items affect your taxes. Credit card rewards are generally not considered taxable, while some credit card fees may be tax-deductible. You may be able to deduct most credit card fees as long as they are considered legitimate business expenses. Personal credit card fees are not generally considered deductible.
Can you write off personal credit card annual fees?
No, in nearly all cases, you cannot take a tax deduction for personal credit card fees. Only credit card fees that are legitimate business expenses are tax-deductible. However, it’s important to understand that the IRS does not make any distinction between what might be marketed as a “personal” card or a “business” credit card.
Photo credit: iStock/Cameron Prins
The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1
1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com
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Washington, DC
CNN
—
US mortgage rates moved higher this week following the Federal Reserve’s rate hike, after dropping last week.
The 30-year fixed-rate mortgage averaged 6.81% in the week ending July 27, up from 6.78% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.30%.
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.
“Mortgage rates inched up slightly after a significant decline last week,” said Sam Khater, Freddie Mac’s chief economist.
Higher interest rates continue to dampen activity in the interest-rate sensitive sector of housing, he said. Existing home sales and sales of newly constructed homes were down in June as higher rates have been keeping inventory low, prices higher and hurting affordability.
“However, overall US consumer confidence is unwavering, surging to a two-year high in the Conference Board’s Consumer Confidence Index for July,” Khater said. “Rising consumer confidence often leads to greater spending, which could drive more consumers into the housing market.”
Inflation still above target level
The Fed raised its benchmark lending rate by a quarter point Wednesday, lifting interest rates to their highest level in 22 years in an ongoing battle to cool the economy and bring down inflation.
While the Fed does not set the interest rates that borrowers pay on mortgages directly, its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
“The most recent inflation and employment data showed slowing price growth and more moderate hiring, but still-robust consumer spending kept inflation elevated above the 2% target,” said Hannah Jones, economic data analyst at Realtor.com.
“The committee’s statement asserts their continued commitment to bringing down inflation while acknowledging that the full impact of the rate hikes and credit tightening has not yet been realized,” said Jones.
“[Fed Chair Jerome] Powell emphasized a data-informed approach to future rate hikes, citing that restoring price stability will likely ‘require a period of below-trend growth and some softening of labor market conditions,’” she said.
Home prices remain elevated
While the median list price for a home fell in June compared to a year ago, the cost of financing a median-priced US home, assuming a 20% down payment, rose 12.4% in the same time frame, according to Realtor.com.
“Many shoppers have adjusted to elevated mortgage rates, which have been in the 6% to 7% range for almost a year, and are willing to participate in today’s market,” said Jones. “However, seller activity remains sluggish as homeowners are hesitant to list their home for sale and buy into the new, higher mortgage rate environment.”
Fewer homeowners have listed their home for sale during the past 54 weeks than did the previous year. And the overall number of homes on market has recently fallen below last year’s levels, according to Realtor.com.
“As a result, some markets are seeing high levels of competition as eager buyers compete for the relatively few homes on the market,” said Jones. “Home prices have not fallen significantly nationally, as limited for-sale inventory creates a more competitive environment.”
Source: cnn.com
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Living in Pennsylvania gives you access to vibrant, historic cities and beautiful wildernesses in equal measure. It was one of the original 13 colonies that eventually formed the United States, and many of its founding tenets helped inspire the U.S. Constitution and the Declaration of Independence.
Full of historic sites like Independence Hall, Pennsylvania’s cities and towns are now modern hubs for industry, art, culture, sports and dining. Throughout the state, forested mountain ranges like the Appalachians are the perfect playground for hiking, camping and outdoor recreation.
Home to giant cities like Philadelphia and smaller communities, you’ll find different standards of living all over Pennsylvania. Each comes with its own different cost of living. You’ll find there’s a city or town to fit all sorts of budgets. Some are more expensive than the national average, while others are at or below the national average.
In general, housing, transportation and utilities are the priciest categories for the cost of living in Pennsylvania. By seeing how the cost of living in Pennsylvania breaks down in different cities and towns around the state, you’ll find the right place for you.
Pennsylvania housing prices
Ranging from well below the national average to slightly above, the cost of living in Pennsylvania for housing is all over the place. That means you have many different options to choose from. Unsurprisingly, major cities like Philadelphia and Allentown have the highest housing prices. But, if you look in smaller cities and towns around the state, you’ll find some more budget-friendly accommodations.
Let’s take a closer look at average rents and home buying costs in some of Pennsylvania’s top cities.
Allentown
Located in eastern Pennsylvania’s Lehigh Valley, Allentown is one of Pennsylvania’s fastest-growing cities. New residents like the city’s abundance of beautiful parks, welcoming community and growing cultural offerings. It’s quickly becoming one of the best places to live in Pennsylvania.
This rapid growth has fueled big increases in housing costs here. Allentown’s housing is 9.6 percent above the national average, making it the most expensive of our highlighted Pennsylvania cities. One-bedroom apartments have jumped in cost 40 percent from last year to $2,035 a month. Two-bedroom units are up 29 percent to $2,054.
Allentown’s housing market has also gone up 14.9 percent from the previous year. Prospective homebuyers in the area are looking at median sales prices of $200,000.
Erie
Located on the shores of Lake Erie, the charming city of Erie is a great place to call home in Pennsylvania. Not only does it have a low cost of living, but its lakeside location gives residents near-instant access to boating, fishing, kayaking and more. Safe, clean and with lively art and cultural scenes, Erie is popular among young adults and families.
But, you can’t beat its low housing costs, falling 36.4 percent below the national average. One-bedroom apartments cost an average of $1,175 a month, which is down 1 percent from last year. Two-bedroom apartments are down 2 percent to $1,387 per month.
Data about the home buying market isn’t readily available for Erie. But if its low rent prices are any indicator, the median sale price for homes around Erie must also be on the affordable side.
Philadelphia
Philadelphia needs almost no introduction. Pennsylvania’s biggest city is home to iconic attractions and landmarks from the early history of the United States, like the Liberty Bell and Independence Hall. Nowadays, this exciting city has active sports, dining, fun neighborhoods and arts scenes. The city’s overall cost of living is pretty reasonable, as well.
Less exciting are Philadelphia’s high housing costs. The price of housing here is 1.2 percent above the national average, and affordable apartments are hard to find. One-bedroom apartments go for an average of $2,185 per month. This number has jumped 32 percent from last year. Two-bedroom units are actually slightly cheaper at $2,081. That rate is up only 3 percent from last year.
Philadelphia also has one of Pennsylvania’s pricier housing markets. Home prices here are up 5.6 percent from the year before, with the median sale price of $285,000.
Pittsburgh
Pittsburgh is Pennsylvania’s second-most-populous city, with a scenic location at the confluence of the Allegheny and Monongahela Rivers. Dubbed both Steel City and the City of Bridges for its 446 bridges, the city’s past as a hub for the steel industry has morphed into a contemporary center for higher education, tech and higher education. There’s so much to love about living in Pittsburgh, from cheering on local sports teams like the Steelers to visiting esteemed art museums like the Andy Warhol Museum.
As one of Pennsylvania’s biggest and most popular cities, the price of housing here is higher. Housing costs in Pittsburgh are 9.3 percent lower than the national average. That may sound good at first glance, but a look at average rents tells a different story. Expect to pay around $1,597 per month for a one-bedroom apartment and $1,959 for a two-bedroom. Those rates are up 12 and 8 percent, respectively, from last year.
Pittsburgh’s home buying market has also grown 12.3 percent from the previous year. If you want to buy a home here, you’re looking at a median sales price of $253,900.
Scranton
Most people hear Scranton, and instantly think of it as being the location for the beloved comedy series “The Office.” But this historic city in northeast Pennsylvania is much more than a backdrop for the office antics at Dunder Mifflin. Forming part of the larger Scranton-Wilkes-Barre metro area, Scranton is Pennsylvania’s sixth-largest city. It’s noted for its industrial past, museums and family-friendly activities.
Housing costs here are 20.6 percent lower than the national average. For renters, prices for some unit types have decreased over the past year. The average monthly rent for a one-bedroom apartment decreased 24 percent from the previous year to $1,000. Two-bedroom apartments have climbed 4 percent to $1,362.
Scranton’s housing market has seen a huge amount of growth over the past year. The median sales price is $171,000, which is up 52.7 percent from last year. But compared to the national median sales price of $430,695, house prices here are a steal.
Pennsylvania food prices
Another cost of living in Pennsylvania is food. Pennsylvania’s culinary offerings are one of the most unique things about the state. It’s the birthplace of delicious dishes like Philly cheesesteaks and tomato pie. It also is America’s biggest pretzel supplier. Food costs here are higher than the national average by 9.3 percent. But Pennsylvania is among the bottom states for monthly food spending. The average Pennsylvanian spends between $200 and $233 on food each month. This comes out to between $2,400 and $2,800 annually.
Let’s take a look at grocery costs in these Pennsylvania cities compared to the national average:
- Allentown is 2.7 percent below the national average
- Erie is 1 percent above the national average
- Scranton is 5 percent above the national average
- Pittsburgh is 5 percent above the national average
- Philadelphia is 18.4 percent above the national average
Philadelphia has the highest food prices of the five cities. For example, a dozen eggs cost $1.99 in Philly compared to $1.57 in Pittsburgh. A half-gallon of milk in Philly has a price tag of $2.41. The cheapest cities to buy that same half-gallon of milk at Scranton and Pittsburgh at $2.22. But for a city that loves beef and steak so much, the cost of steak in Philadelphia is not the highest. The highest price tag for steak is in Pittsburgh at $18.25 compared to $15.99 in Philly.
Dining out in a big city compared to a smaller one will also be more expensive. The bill for a three-course meal for two at a nice restaurant in Philly comes out to $60. Pittsburgh is slightly cheaper at $57.50. In Scranton, you’ll save more by paying only $45 for a fancy date night dinner.
Pennsylvania utility prices
Overall, the cost of living in Pennsylvania for utilities is higher than the national average. Historically, Pennsylvania has been one of the biggest and most important coal-mining states in the nation. Today, much of the state’s electricity still comes from coal, natural gas and petroleum-fired power plants. But renewable energy sources like wind and hydropower are starting to become more prevalent.
A high electric bill can take a decent chunk out of a monthly budget. Here’s how much more locals in these Pennsylvania cities are paying for utilities compared to the national average:
- Erie is 3.8 percent above the national average
- Scranton is 4.1 percent above the national average
- Allentown is 4.1 percent above the national average
- Philadelphia is 12.2 percent above the national average
- Pittsburgh is 26 percent above the national average
Pittsburgh is the most expensive city for utilities. With total energy costs running at $251.31 per month, it must hurt opening up that utility bill. Although Erie’s utility costs are the lowest above the national average, energy bills are cheaper in other cities. In Allentown and Scranton, the monthly energy bill comes out to around $184.29 compared to $193.07 in Erie.
On top of that, Pennsylvania residents can expect to pay around $30 for water and $59.99 for the internet.
Pennsylvania transportation prices
In an effort to provide reliable public transportation to all parts of the state, the Pennsylvania Department of Transportation invests $1.5 billion annually for mass transit. Thanks to all that support, public transportation services are available in every county. That’s a nice cushion to your cost of living in Pennsylvania.
Some cities and areas, like Philadelphia, have larger and more extensive systems. But all counties have access to at least some form of mass transit. This primarily takes the form of bus routes. Not only does this prove access for those living in rural areas, but in larger cities, it helps reduce traffic and commuting times and saves money on gas.
Transportation costs in Pennsylvania are higher than the national average. The exact amount varies around the state:
- Scranton is 1.4 percent below the national average
- Allentown is 2.4 percent above the national average
- Erie is 3 percent above the national average
- Pittsburgh is 8.7 percent above the national average
- Philadelphia is 13 percent above the national average
Average transportation costs in Scranton actually fall below the national average. Locals get around Scranton and surrounding Lackawanna County using the COLTS buses, or County of Lackawanna Transit System. A one-way ticket costs $1.75, with transfers adding an extra 75 cents. A 31-day pass costs $60.
Erie natives get their public transit from the Erie Metropolitan Transit Authority, which operates fixed bus routes throughout the city and metro area. Fares start at $1.65 for bus routes. The provider also runs a vintage-style trolley through the downtown area.
Let’s take a closer look at the public transportation systems servicing some of Pennsylvania’s biggest cities.
Pittsburgh Regional Transit in Pittsburgh
Consisting of bus, paratransit and light rail transit, Pittsburgh Regional Transit is the second-biggest public transportation system in the state. Their service area covers the city of Pittsburgh and surrounding areas.
Allegheny County, with over 7,000 bus stops and 27 light rail stations. Fares start at $2.75 for a three-hour window with unlimited transfers for both bus and light rail. Day passes cost $7 and a 31-day pass is $97.50. Riders can pay in cash or use the system’s Connect Card. If you use the system enough, you can even get an annual pass for $1,072.50.
The Pittsburgh Regional Transit also runs the two different inclines or funicular railways in the city. Although these steep railways are popular tourist attractions, they’re still used and operated as public transportation to get up and down some of the city’s steep slopes. A one-way ticket costs $2.75. Connect Cards do work on the inclines, as well.
Pittsburgh doesn’t have any toll roads within the town. But, if you leave town frequently for work or fun, you’ll likely travel along the Pennsylvania Turnpike. This 360-mile-long road runs from Pennsylvania’s western to eastern border, connecting Harrisburg, Philadelphia and Pittsburgh. Fees vary depending on how long you use the turnpike. Unfortunately, it has a nasty reputation for being the most expensive tollway system in the world. If you have an E-ZPass, passenger vehicles pay $1.70 per toll. If you don’t have E-ZPass, rates increase to $4.10
Between the funicular railways, buses and light rail, Pittsburgh boasts a high 61 score for its mass transit. This compact city is also very walk- and bike-friendly, with a walk score of 69 and a bike score of 58.
SEPTA in Philadelphia
Standing for the Southeastern Pennsylvania Transportation Authority, SEPTA provides Philly and its five surrounding counties with a mix of bus, rapid transit, light rail, commuter rail and electric trolleybus services. In addition to reducing traffic and providing riders with affordable, reliable mass transit, SEPTA has a strong focus on sustainability. By 2040, they plan to only operate zero-emission buses.
SEPTA accepts both cash and the SEPTA Key card to use the SEPTA system. Starting fare is $2.50, which is the same for all modes of transit. The only exception is the Regional Rail Transit commuter rail, based on distance and what day of the week and time of day you’re traveling.
The lowest fares start at $4. Monthly passes are available starting at $96. Different types of passes are available to include more or less Regional Rail options. Since monthly parking rates in Philly range from $140 to $500, using SEPTA is a great way to cut down on time sitting in traffic and paying for gas and parking.
Similar to Pittsburgh, the only toll road in the Philly area is the Pennsylvania Turnpike. Tolls start at $1.70 for passenger vehicles.
With its many different modes of transit and straightforward fare system, Philadelphia earns a high transit score of 68. With its close-knit neighborhoods and highly walkable city center, Philadelphia is also an ideal city for pedestrians and cyclists. Philly has high scores for both walking and biking, with a walk score of 84 and a bike score of 76.
LANTA in Allentown
The Lehigh and Northampton Transportation Authority, or LANTA, operates bus routes throughout Allentown and the Lehigh Valley. One-way, one-ride tickets are $2 and a full day pass is $4. Transfers cost 25 cents extra. A 31-day pass costs $60.
Allentown is off the Pennsylvania Turnpike route, but it does have a service plaza for toll road travelers. So, the toll road and its toll fees are accessible from Allentown.
While using LANTA buses is a great way to save money, Allentown’s mass transit only has a score of 36. So, a car might still be a necessity. Allentown’s city center is pretty walk- and bike-friendly with scores of 59 and 41.
Pennsylvania healthcare prices
Healthcare is one of Pennsylvania’s cost of living categories that falls below the national average throughout the state. But, it’s important to note that it’s hard to determine average healthcare costs due to the variability of the subject. Healthcare costs vary from person to person depending on their personal health situation. Some people have pre-existing conditions requiring higher levels of specialized care. Others may have expensive prescription drugs. That’s why it’s important to view healthcare costs with a grain of salt.
Overall, Pennsylvania is a healthy state with good healthcare resources and access. Here’s how much a trip to the doctor’s office will cost in different cities around the state:
- Erie: $124
- Scranton: $77
- Pittsburgh: $97.25
- Philadelphia: $137.50
- Allentown: $110.10
You’ll be paying the most for a doctor’s visit in Philly, followed by Erie and then, Allentown. Rates are the cheapest in Scranton. Pittsburgh is a good middle point, and it’s also a great city to live in for quality healthcare. With 68 different universities and colleges in the area, Pittsburgh is home to numerous top-notch medical schools. With such excellent training programs, city hospitals are nationally ranked for the quality of their care. The University of Pittsburgh Medical Center is especially notable. So, while costs aren’t the cheapest in Pittsburgh, the quality of care is top-rate.
Here’s how healthcare costs in these different cities stack up to the national average.
- Scranton is 11.8 percent below the national average
- Pittsburgh is 4.3 percent below the national average
- Philadelphia is 2.8 percent below the national average
- Erie is 1.1 percent below the national average
- Allentown is 0.2 percent below the national average
Average healthcare costs in Scranton are the cheapest. The $77 doctor’s co-pay is evidence of that. But going to the dentist is more expensive in Scranton, costing $107. The lowest rate for a dental check-up is $94 in Philly. This is why healthcare averages don’t always tell the full story.
Pennsylvania goods and services prices
When determining a monthly budget, it’s important to always factor in miscellaneous goods and services in the cost of living in Pennsylvania. This nebulous cost of living category encompasses regular spending on things not related to housing, groceries or other costs of living categories. This includes things like going to get a haircut or seeing a movie.
Let’s see how those goods and services costs stack up to the national average:
- Pittsburgh is 4.5 percent below the national average
- Erie is 2.8 percent below the national average
- Scranton is 0.9 percent below the national average
- Philadelphia is 1.3 percent above the national average
- Allentown is 5.3 percent above the national average
Compared to the national average, Allentown is the most expensive city for miscellaneous goods and services. But individual costs can vary by city. Getting your haircut in Allentown costs $20.50. But in Scranton, it’s $25.75. If you need to go to the dry cleaners, it’s the most expensive in Erie, costing $15.60. But in Philly, it’s $12.70.
With their safe neighborhoods, good schools and fun assortment of family-friendly attractions and activities, Pennsylvania cities and towns are great places to raise a family. If you plan on moving your family to Pennsylvania, you’ll need to consider childcare costs. Allentown comes out on top for the most expensive childcare, with a month of private preschool or kindergarten costing $2,000 per child. Erie and Scranton are the cheapest at $500 and $800.
Taxes in Pennsylvania
Pennsylvania’s statewide sales tax is 6 percent. To put that into perspective, for every $1,000 you spend on Philly cheesesteaks, you’re paying an extra $60 in tax.
Some counties and cities around Pennsylvania levy additional sales tax while others do not.
- Erie has a combined tax of 6 percent
- Scranton has a combined tax of 6 percent
- Pittsburgh has a combined tax of 7 percent
- Philadelphia has a combined tax of 8 percent
- Allentown has a combined tax of 6 percent
Most of our highlighted cities stick to the statewide rate. The city where you’ll be paying the most sales tax is Philadelphia. Instead of $60, you’ll be paying $80 in tax for every $1,000 you spend. That’s a lot towards your cost of living in Pennsylvania.
How much do I need to earn to live in Pennsylvania?
Now that we’ve seen how Pennsylvania’s cost of living breaks down throughout the state, it’s time to figure out if it’s the right fit for you and your budget. It’s recommended that you only spend 30 percent of your gross money income on housing.
The average rent in Pennsylvania is $1,642. That means that you need to earn $5,473 per month or $65,676 annually to adhere to the 30 percent rule. That’s pretty darn close to Pennsylvania’s median household income of $63,627.
This rent calculator can help you crunch some numbers to see which Pennsylvania city or town fits your budget.
Living in Pennsylvania
The overall cost of living in Pennsylvania’s cities and towns is usually cheaper than the national average, if not close to the national average. By being neither too expensive nor too cheap, living here is open and accessible to a variety of renters, homeowners and budgets. Plus, living in Pennsylvania allows you to take full advantage of all the state’s benefits, such as pristine nature and fun sports.
Related articles
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022. Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com
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When college freshmen step foot on campus, they may go to an activity fair and see members of sororities and fraternities encouraging recruits to join. They might want to know that becoming part of Greek life can have its upsides and downsides.
Whether or not students decide to let their Greek flag fly depends on their personality, their specific situation, and their goals while they are in school. Some may find Greek life incredibly enriching, and others could decide it’s a waste of their time.
Here’s a look at what Greek life is like and pros and cons you may want to consider when deciding if joining a fraternity or sorority is right for you.
What Is Greek Life in College?
Greek life is made up of communities of students who live together, volunteer for different organizations, pursue networking opportunities, and much more. The communities consist of sororities for women and fraternities for men.
Sororities and fraternities may have various objectives, but overall they exist so that students can make meaningful connections with one another, develop leadership skills, and give back.
Roughly 15% of men join fraternities at U.S. colleges, while about 18% of women join sororities.
Students who are interested in becoming members must apply and then go through an initiation process. Once accepted, they will live with their sorority or fraternity, usually in a house on campus, and participate in activities like sports, dances, parties, and community service opportunities.
Sorority and fraternity names consist of two or three Greek letters, like Phi Kappa Theta, Sigma Pi, or Delta Zeta, a nod to the first U.S. Greek letter society, Phi Beta Kappa, founded in 1776 at the College of William and Mary as a literary, debating, and social club.
Many students only know about sororities and fraternities from pop culture references like “Revenge of the Nerds,” “Animal House,” “Legally Blonde,” and “Old School,” which depict a perennial party.
While that is certainly true in some instances — and fraternities have come under fire for their alcohol use and hazing rituals — Greek life can be much more meaningful and beneficial than these portrayals.
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Upsides of Greek Life
Joining a fraternity or sorority comes with a number of advantages. Here’s a look at some of the perks.
Friends
When new students first get to college, they may not know where to turn to make connections. If they become part of a sorority or fraternity, they could make many new friends right away, bond with them through different activities and social events, and remain friends for life.
Networking Opportunities
Students will also have the chance to network with their new peers. When they’re searching for internships or jobs, these connections can prove to be highly valuable.
Plus, if a job hunter lists their sorority or fraternity on a resume and a recruiter is a Greek life alumnus, that could open up a conversation and make a candidate stand out.
Recommended: 3 Summer Jobs Ideas for College Students
Possibly Cheaper Housing
Living in college dorms can be pricey. If students are sharing a house with many members of a sorority or fraternity, they could potentially save money.
They may also save money by having access to a full kitchen, where they can make meals instead of purchasing a meal plan or eating at restaurants all the time.
Recommended: 20 Ways to Save Money in College
Development of Leadership Skills
Sororities and fraternities need leaders who will come up with ideas for activities, pilot volunteering efforts, and recruit members.
If members step up and decide they want to become leaders, then they are taking on new responsibilities and developing crucial skills that will be valuable when they graduate from college and start to look for jobs.
Volunteering Opportunities
Fraternities and sororities are often focused on philanthropy.
Students can participate in different volunteer projects with their fellow Greek life members and contribute to making the world a better place.
Not to mention, this will look good on a resume because it shows that a student is passionate about certain causes and wants to do their part to improve the lives of others.
Recommended: College Freshman Checklist for the Upcoming School Year
Potential Downsides of Greek Life
Like a toga, Greek life isn’t a good look for everyone. Here are some possible cons.
Cost
You typically need to pay membership dues each year you are a member of a fraternity or sorority. The cost varies depending on the school and fraternity/sorority you join but, on average, you can expect to pay around $2,000 to $3,0000 for the first year.
Local and national chapter fees are not always covered in the regular monthly dues.
And if fraternities or sororities get into trouble, members could be fined as well.
Recommended: What Is the Cost of Attendance in College?
Reputation
Fraternities and sororities have gotten a bad rap from movies and TV.
Worse, students have died in hazing accidents throughout the years, leading colleges to take administrative action against fraternities especially.
Some fraternities and sororities do emphasize parties and drinking, which is all fun and games until someone begins to flunk out, becomes addicted, is involved in an assault, or is injured.
It’s best, of course, to socialize responsibly and always make academic studies the priority.
Time Commitment
Because Greek life involves so many events, and members are expected to participate, joining a sorority or fraternity means a huge time commitment.
Spending too much time on Greek life activities and not enough on studying or working at internships could have a negative impact on a student’s future.
Recommended: College Planning Guide for High School Students
Determining Whether or Not to Join Greek Life
Joining a fraternity or a sorority can be a great decision, especially for freshmen who may not know anyone on campus. If they are a part of Greek life, then they will stay busy, make friends, network, and contribute.
On the flipside, if they are in a campus family that is constantly throwing parties and not interested in enriching members’ lives in a meaningful way, then joining might not be a good idea.
If you’re concerned about being able to afford the cost of joining a fraternity or sorority, keep in mind that there are a number of ways to cover the cost of college tuition and living expenses, including grants, scholarships, subsidized and unsubsidized federal student loans, and private student loans.
💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.
The Takeaway
A sorority or fraternity can provide camaraderie and enduring connections, and enhance a call for service and leadership. It can also be time consuming, expensive, and distracting. Greek life isn’t for everyone, but some will find it a life-changing college choice.
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The U.S. has become a nation of side hustlers and freelancers. With an uncertain economy, nearly 50% of Americans engage in side hustles for extra money, and as of this year, 73.3 million freelancers are working in the U.S.
The gig economy, which allows individuals and companies to hire independent workers for short-term projects, is one area of the economy that is still consistently growing.
With gig work on the rise, platforms that seek to connect gig workers and those looking for their services have sprung up. One such platform is the Steady App, which strives to put all gig and flexible work opportunities in one place.
Read on to learn about the Steady App and how to increase your cash flow through Steady gig opportunities.
What is the Steady App?
More than ever, people are looking for flexible ways to make money outside their nine-to-fives, and Steady has sought to fill that demand with its free mobile app.
Launched in 2018 as a fintech startup backed by NBA legend Shaquille O’Neal, the Steady App consolidates gigs and side hustle opportunities in one easy-to-use app. Users can filter their job search by type depending on availability and flexibility and begin browsing opportunities.
In addition to the free app, Steady members can join the optional Steady premium plan for just $1.99 monthly and access additional benefits. These benefits include income comparisons, access to the highest-paying job listings, financial data recording, and more.
Even though the premium plan costs $1.99 a month, the additional features should help you easily earn more in the long run and thus is likely worth it for serious gig workers and side hustlers.
Ways to Earn Through the Steady App
There are three main ways users can earn money through the Steady App, with the primary mode being through completing jobs.
Jobs
Steady App users can filter their search according to five different job types:
- Recently Added
- Work from Home
- Anytime
- Part-Time
- Full-Time
As the name suggests, the Recently Added category is for brand-new gigs and opportunities to the app. Also self-explanatory is the Work from Home category, which includes remote customer service, writing, tutoring, and other similar jobs.
The Anytime category is for those looking for flexible jobs you can work whenever you’re available. When searching this category, you’ll take a quick survey to help narrow down options with questions about your desired hours, location, licenses, certifications, etc.
There are also many full- and part-time options for those looking for steadier work opportunities. Examples include local opportunities in caregiving, hospitality, retail, and much more.
Another neat feature of the app is that it will curate jobs it thinks you may be interested in based on the information you’ve fed the app. Simply click on “Jobs for You” to see your personalized recommendations.
Most hourly jobs listed are in the $15 to $25 per hour range.
Grants
For those experiencing financial hardship, the Steady App offers grant opportunities that you can apply for directly in the app. Of course, filling out an application doesn’t guarantee a grant, but Steady reports on its site that it’s paid out $4 million in emergency cash grants to members thus far.
Income Boosters
Finally, there is an Income Boosters section of the Steady App with recommendations for Steady partners offering sign-up bonuses and other cash incentives for trying products or signing up for services. These include bank accounts, loan products, and various services like DoorDash.
How to Get Started with the Steady App
The Steady App is free for iOS and Android users, and it’s easy to get signed up and search for gigs.
Once you’ve downloaded the app, you’ll need to set up your free account using your name, email, and phone number. Then, choose a password, link your bank account, and you’re all set.
Next, you’ll need to complete your profile by answering several questions. These questions help to curate opportunities to your specifications. Questions include:
- Type of work you want
- Where you want to work
- Your highest level of education
- Your job experience
- Your availability
- Your modes of transportation
Once your profile is complete, you can search for thousands of opportunities within the abovementioned categories. In addition to searching within job categories, users can also filter by location, posted date, industry, and pay.
How to Apply for Gigs on the Steady App
Similar to getting started, applying for jobs on the Steady App is also straightforward. Simply hit apply and follow the link to apply or register with the third party offering the job. Once you’ve applied, communication will come from the third party advertising the job listing, not the Steady App.
How Much Can You Make with the Steady App?
How much you earn with the Steady App will depend on which jobs you qualify for and how much you choose to work. However, the average Steady user makes around $5,500 a year in extra income.
Just note that Steady charges a 10% commission on money made through the app.
Who Should Use Steady?
The Steady App is ideal for anyone looking to earn extra money on the side. The app is an excellent option for students, freelancers, teachers, independent contractors, and similar individuals looking for flexible work.
The app is also great for those looking for regular part or full-time income opportunities.
Steady App Reviews
A common question about apps like Steady is whether or not they are legit. Not only is Steady a legitimate platform, but the app also has very positive reviews.
Steady Pros and Cons
As with any product or platform, there are benefits and drawbacks.
Pros
- It’s free to sign up and use the app
- Quick and easy signup
- Easy to filter and find job opportunities that work for you and your situation
- Curated job opportunities all in one place
- Access to multiple earning opportunities through jobs, income boosts, and grants
- You can easily link your bank account for direct deposit of earnings
- Easy to manage your income using the income tracker tool
Cons
- You will need to continually apply for gigs
- You must pay $1.99 a month to access premium features
- Pay isn’t always listed
- Search filters tend to favor the same types of jobs
- No budgeting features to help users manage expenses and overall budget
Other Options
Steady seeks to put all the best gigs and freelance opportunities in one place, along with opportunities for part and full-time jobs. However, Steady isn’t the only place freelancers and gig workers can find these types of jobs.
Here are a few other apps like Steady and a brief overview of each.
TaskRabbit
TaskRabbit is another platform that connects gig workers with opportunities. Called Taskers, the app connects users looking to earn money with individuals who need help completing various tasks.
These tasks could be as simple as running errands or more complicated, like assembling furniture and home repairs. Other common tasks include driving, moving help, and painting.
Taskers set their rates and get paid when they complete the task.
FlexJobs
If you’re looking for remote, flexible job opportunities, then FlexJobs is a great place to look. In business since 2007, FlexJobs is a low-cost subscription service for those looking for high-quality remote work. The jobs advertised include part-time hours, freelance work, and remote or home opportunities. In addition, they verify and screen all job opportunities to ensure they are legitimate.
Aside from finding viable, high-quality jobs, members of FlexJobs also have access to Q&A sessions, webinars, job fairs, skills tests, mock interviews, and resource articles. In addition, subscribers can also access discounted career coaching and resume reviews to enhance their ability to land quality jobs.
FlexJobs offers the choice of a weekly, monthly, quarterly, or yearly subscription, so there is an option that works for almost any job-seeking situation.
Fiverr and Upwork
Fiverr and Upwork are both online marketplaces for freelancers looking for remote gigs. If you have writing, editing, and graphic design skills or can work as a virtual assistant, these sites are a great place to find freelance work. However, these sites operate differently because clients respond to your advertisements rather than you applying for job postings.
Sign up for free, create a profile, list your services, and set your price so potential clients can begin searching and hire you for their jobs.
DoorDash
DoorDash is yet another option for gig workers looking for a flexible schedule. While DoorDash differs in that it doesn’t have as wide a range of job types, there is quite a bit of flexibility.
DoorDash connects food delivery jobs to those willing to deliver the (Dashers). Now available in 5,500 cities, Dashers can deliver their goods by car, on a bike or scooter, or even by walking if close enough. Signing up is simple, and once approved, Dashers can work when they want and can choose to accept or decline jobs that come through the app.
Instacart
Instacart is similar to DoorDash, except, in this case, you’re shopping for and possibly delivering groceries.
There are two types of Instacart shoppers: full-service and in-store shoppers. Full-service shoppers compile the order in the store and deliver the groceries to the customer’s home. In-store shoppers select the items in the store but do not deliver them to the customer. Thus, anyone can be an in-store shopper.
If you love shopping and want a flexible schedule or a side gig, Instacart may be an excellent option.
Rover
Not into shopping or delivery services? There are still some great options for flexible side gigs, including Rover. Rover is a platform that connects pet sitters or walkers to those who need those services. You can sign up to walk dogs, pet sit for owners out of town, or both. So if you love animals and are looking for a side hustle you can fit into your schedule, Rover is a great option.
Steady App: Final Thoughts
The gig economy has been steadily growing, and the pandemic has only fueled the desire and demand for flexible work.
With free membership and the most extensive collection of freelance and gig jobs, the Steady App is an excellent platform for anyone looking for flexible work. While you’ll see full-time job options on Steady, the platform is ideal for those looking for side hustles and flexibility.
The average member earns an extra $5,500 annually, so sign up today, boost your earning potential, and start putting more money in your pocket.
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Source: financequickfix.com