Economists have their favorite indices to measure the health of the economy. GDP, if men are buying underwear, CPI, RV shipments, GDP, plastic surgery appointments, PCE, hemlines… tomorrow on The Mortgage Collaborative’s Rundown Skylar Olsen, the Chief Economist of Zillow, will discuss some of this, and more, for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Meanwhile, lenders are shifting the focus from things they can’t change to things they can: changing regional managers comp plans to incorporate profits instead of volume. Or honing marketing systems now, not when rates drop further and opening up refi opportunities. Or shifting to paying less for a refi and putting the difference into rate sheet pricing. And who’s buying the properties we’re lending on? Women. Okay, that was a bold generalization, but still… (Today’s Commentary podcast can be found here and this week’s is sponsored by Vesta, the new, modern Loan Origination System (LOS) which helps lenders reduce their costs to originate and improve their ability to integrate with new technologies in the ecosystem. Hear an interview with Ally Home’s Glenn Brunker on what’s happening in the housing market and what to expect going into spring homebuying season.)
Lender and Broker Software, Products, and Services
Matic, a digital home insurance platform built for the mortgage industry, recently announced an exclusive partnership with PRMG to extend their marketplace of over 40 A-Rated carriers into PRMG customer offerings. PRMG joins over 100 mortgage lenders, servicers and banks, representing 20 percent of home loans processed in the U.S., that partner with Matic to integrate the insurance shopping experience into the homeownership lifecycle. Now more than ever, mortgage leaders are turning to Matic to help them offer value to customers, generate revenue, and reduce costs in a tough housing market. Mortgage leaders, don’t miss out: book a demo with Matic to discover how to add an ancillary revenue stream that removes friction from the insurance process and keeps customers within your existing systems. And if you’re attending MBA’s Servicing Solutions Conference in two weeks, stop by booth 806 to learn more! Book a demo with Matic.
Only 60 days since launch and already 150+ mortgage originators have signed up to receive daily mandatory bids from MAXEX on bulk pools of Agency-eligible non-owner occupied (NOO) and second home loans. Moreover, we’re currently winning more than 10 percent of the loans bid! Why? Because our unique loan exchange model provides access to competitive pricing from five leading institutional buyers, allows you to underwrite to agency guidelines, and helps you avoid costly Agency LLPAs—all within a single contract and through a single, standardized clearinghouse. This seamlessly integrates with your existing bulk trading process. Visit here to learn more.
We live in a world of autopay, Apple Pay, Venmo, Uber Eats… the list goes on. If borrowers can pay for a pizza online, why are we still asking them to share their credit card info over the phone? Get with the times and collect upfront fees via text with Fee Chaser by LenderLogix.
TPO Products for Broker and Correspondent
“Button Finance is a leading home equity lender specializing in HELOCs and Closed-End Seconds, offering lucrative opportunities for our partners. Correspondent partners can earn 7.85 percent of the loan balance, while brokers can make 5 percent. Additionally, we offer an attractive 3.5 percent Lender Paid Compensation on Texas 50a6 loans. Our services extend to lending against investment properties for brokers, ensuring a broad spectrum of lending solutions. With competitive 8 percent note rates on Closed-End Seconds and no appraisals up to a $250k loan balance, Button Finance is your go-to partner for all home equity lending needs. Email us for more information.”
Eighty percent of homeowners have first mortgage rates less than 4 percent. However, they are sitting on over $10 trillion of tappable equity. HELOC originations provide an outstanding opportunity for lenders and their LOs. Every homeowner receives HELOC solicitations. If it’s not from YOU, then WHO? Depending on YOUR borrowers, this may be the ideal time for them to make home improvements or pay off credit card debt. Or it may be the right time for that dream vacation. NFTYDoor, a division of Homebridge, is a proprietary digital HELOC platform that provides on-demand access to YOUR borrower’s equity. Customers want an experience that is simple and fast, and through NFTYDoor, HELOCs can close in a few days, not weeks or months. Embrace the “Customer for Life” strategy with NFTYDoor’s platform that is 100 percent branded to you. Stay in front of your customers and recapture future business. Contact NFTYDoor today.
STRATMOR and Operations
Forecasters are predicting modest growth in new and existing home sales in 2024, which means we can all look ahead with cautious optimism. Now’s the time to review your operations and prepare for this modest shift back toward normalcy. Senior Operations Executives: STRATMOR Group is hosting its virtual Operations Workshop next week, February 14-16, to help you do just that. Interact with STRATMOR advisors and your peer lenders to discuss improving operational efficiency, overcoming recent challenges and pain points, and current trends in mortgage operations. Contact STRATMOR Group to learn more and sign up.
Conventional Conforming News
The Federal Housing Finance Agency’s 2024 scorecard for the government-sponsored enterprises included a new provision for representations and warranties. “Explore opportunities to harmonize the enterprises’ processes supporting the single-family selling representations and warranties framework, including defect identification, remedies and repurchase alternatives,” the scorecard states.
Fannie Mae’s (FNMA/OTCQB) December 2023 Monthly Summary is now available and contains information about Fannie Mae’s monthly and year-to-date activities for our gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, and serious delinquency rates. There’s also Fannie’s Home Purchase Sentiment Index® (HPSI) which increased to its highest level since March 2022, due primarily to increased consumer confidence in job security and another significant jump in the share of consumers expecting mortgage rates to decrease. An all-time survey-high 36 percent of respondents indicated that they expect mortgage rates to go down in the next 12 months, while 28 percent expect them to go up, and 35 percent expect rates to remain the same. (Seems pretty even to me.)
Fannie Mae is updating the Uniform Loan Delivery Dataset (ULDD) to provide further guidance on implementation and mandate dates associated with the data enhancements included in the ULDD Phase 5 specification published on Sept. 12, 2023. Review the announcement for an overview on the implementation and mandate dates associated with business-critical and UAD 3.6 alignment data enhancements for the Phase 5 data requirements.
Pennymac is aligning with Freddie Mac Bulletin 2023-19, announcing updates to their rental income requirements. The updates are effective with loan deliveries on or after 03/15/2024. Details are available in Pennymac Correspondent Announcement 24-06.
National MI announced updates to the TrueGuide which include the following changes and clarifications: AUS Loans Automated Tools have been updated as follows: Fannie Mae Appraisal Waiver has been updated to reflect the name change to “Value Acceptance.” Fannie Mae Income Calculator for self-employment income has been added as an approved income and asset tool. Non-AUS Loans have been updated as follows: Jumbo and Medical Professional Program loan limit increases. Verbal Verification of Employment updated to align with the GSEs’ requirements. Underwriting Guidelines detailing these changes and clarifications will be posted to nationalmi.com in the near future.
AmeriHome Mortgage Announcement 20240111-CL summarizes previously published changes made during January, additional changes made with this announcement, and recent Agency and regulatory news.
Citizens Correspondent National Bulletin 2024-02 includes information on Value Acceptance + Property Data – DU (Delegated Transactions only). Effective February 1st, Conventional Conforming Updates and Disaster Tax Filing Relief. See the bulletin for additional information and all lock, delivery, and purchase by dates, if required.
Capital Markets
Need a crash course in Assignment of Trade (AOT) executions? In this blog post, Assignment of Trade Executions 101, MCT experts delve into the process of AOT executions, the impact of bid tape AOT on to-be-announced (TBA) positions, and how automation is moving the industry forward. The blog also reviews the cost savings associated with bid tape AOT executions and the MCT Marketplace technology used to complete these transactions. To learn more about MCT Marketplace, view the recent video with MCT’s CEO & President, Curtis Richins. In the video, Mr. Richins reviews key features of MCT Marketplace, opportunities within the platform for buyers and sellers, and a roadmap for the future.
Even with all the selling in the bond markets last Friday after January’s payrolls data came in much stronger than expected, yields have merely moved back to where they had been for most of the year so far. Most security prices are determined by supply and demand, and yesterday witnessed a strong sale of 10-year Treasuries at the record $42 billion 10-year Treasury auction.
But bonds barely budged! Sentiment was dominated by fears surrounding NY Community Bank. Do you remember when the spreads between Treasury securities and MBS “blew out” last March with the banks having to sell MBS? We may see that again with the NYCB possibly selling part or all of Flagstar’s billions in mortgage holdings. In news of interest to loan originators, FNMA’s Home Purchase Sentiment Index recorded another impressive gain for the second straight month to post the highest level since March 2022.
Today’s calendar kicked off with weekly jobless claims (218k, about as expected, 1.871 million continuing claims… the job market continues to be strong). Later are wholesale inventories and sales for December, several Treasury auctions that will be headlined by $25 billion 30-year bonds, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Richmond Fed President Barkin. We begin the day with Agency MBS prices about .125-.250 worse, the 10-year yielding 4.13 after closing yesterday at 4.15 percent, and the 2-year is at 4.44.
Jobs and Transitions
“Direct nationwide lender Kwik Mortgage, based out of Parsippany NJ, is hiring Distributed Retail Sales. We have outstanding support, and our platform is built for you, featuring Blend, Encompass, HubSpot, Loan Vision and Optimal Blue! We offer a full suite of correspondent buyers inclusive of Fannie Mae and Freddie is on the table for 2024! From FHA and VA to Non-QM we have it all! We have a very flat leadership structure which means customers are not paying for more and getting less! We invest in our people and our process, and we have 27 years of company owned and operated success! We are always competitively priced. Don’t worry about fulfillment execution we owned and operated one of the best loan fulfillment for pay businesses in the country, Equilibrium Mortgage Solutions! Contact Paul Campbell, EVP of Lending, (760-774-7704), Paul Campbell, LinkedIn! We are connected: a Fannie Mae diverse minority advisory board lender, The Mortgage Collaborative lender board member, MBA Policy, Servicing and Compliance committee participant! A Depository DE&I advisory board member! Get Kwik come join us! NY, NJ, PA, CT, MA, RI originators welcome.”
Stronghill Capital, LLC, an Austin, TX-based Wholesale and Correspondent lender, is NOW HIRING across the country! If you’re a relationship-focused Account Executive with experience in Non-QM and Investor Financing, including multi-family and mixed-use properties, we’d love to speak with you! Stronghill’s Account Executives enjoy open territories, multi-channel opportunities to work with clients as correspondents or brokers, and consistent communication and collaboration with the Executive Leadership team. If you’re looking to join a rapidly-growing, dynamic organization with a focused commitment to growth and expansion in Non-QM, reach out to our SVP of Sales, Matt Brammer at 440.382.3183 to learn more.
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Settling into your dream home should be a time of joy, not stress over unexpected appliance or system failures. Whether it’s an air conditioner failing in the heat of summer or a dishwasher flooding your kitchen, these are real challenges homeowners often face.
A home warranty acts as a safeguard against the financial and emotional strain of such breakdowns, covering the repair or replacement costs of major systems and appliances due to wear and tear. More than just a policy, a home warranty serves as a protective friend for your home, preventing unexpected issues from draining your savings.
This guide explores the essentials of home warranties, including coverage details and the benefits of securing one. Whether you’re moving into your first home or aiming to protect your existing one, understanding the importance of a home warranty is key to ensuring peace of mind and financial stability.
How do home warranties work?
Home warranty plans provide a form of protection for homeowners by covering the costs associated with repairing or replacing major appliances and systems within your home, such as heating, cooling, electrical, and plumbing systems, as well as refrigerators, ovens, and washers. These plans are especially beneficial for mitigating unexpected expenses that arise from normal wear and tear.
When you purchase a home warranty, you have the flexibility to tailor your plan to fit your specific needs. This means you can choose to cover just your major appliances, systems, or a combination of both, depending on what you deem most critical to your home’s functionality and comfort.
The cost of your home warranty, known as the premium, will vary based on the scope of coverage you select. Plans that offer more comprehensive coverage for multiple systems and appliances will generally have higher premiums than more basic plans.
In addition to the annual or monthly premium, home warranty plans typically require a service fee or deductible to be paid each time a repair person is dispatched to your home to address a covered issue. This fee is predetermined in your home warranty contract and remains constant, regardless of the actual cost of the repair or replacement, providing a predictable expense for homeowners.
Home Warranty Coverage: What’s Included and What’s Not
When it comes to home warranties, knowing what is covered and what isn’t can save you a lot of time and prevent frustration when you need to use your policy. Home warranties are designed to offer homeowners peace of mind by covering the costs associated with repairing or replacing major systems and appliances due to wear and tear. However, coverage can vary significantly from one plan to another, making it crucial to understand the specifics of your policy.
What does a home warranty cover?
Most home warranty plans offer coverage for a core set of systems and appliances that are essential for daily living. This usually includes:
Heating and cooling systems: Central air conditioning and heating systems, including furnaces, are often covered because they’re crucial for maintaining a comfortable home environment.
Kitchen appliances: Built-in microwaves, dishwashers, refrigerators, ranges, and ovens are usually covered. These appliances are considered essential for food storage and preparation.
Electrical and plumbing systems: Comprehensive coverage typically extends to the guts of your home – the electrical wiring and plumbing systems that make modern living possible.
Water heaters: Given their importance in providing hot water for bathing, cleaning, and cooking, water heaters are commonly included in home warranty plans.
What’s Often Excluded
While home warranties cover many systems and appliances, certain items and scenarios are typically not covered:
Pre-existing conditions: Issues that were present before the start of the warranty period are usually not covered.
Improper installation or maintenance: Appliances or systems that haven’t been installed correctly, or that have been neglected, might not be eligible for coverage.
Cosmetic damage: Aesthetic issues that don’t affect the functionality of an appliance or system are generally excluded.
Structural components: Items like your home’s foundation, walls, and roof are not covered by a standard home warranty and are typically addressed by homeowners insurance policies.
Unusual Coverage Options
Some home warranty providers offer unique coverage options that can be added to your plan for an additional fee. These might include:
Pool and spa equipment: Coverage for pool pumps and heaters can be added, perfect for homeowners who enjoy their backyard oasis.
Second refrigerator or wine cooler: For those with multiple refrigerators or specialized cooling appliances, additional coverage is available.
Septic systems and well pumps: Homes with these features can often add specific coverage to address repairs or replacements.
Making Sense of Your Coverage
To truly understand what your home warranty covers, take the time to read your policy’s fine print. Look for a clear breakdown of covered items, and pay attention to any limits on coverage amounts or the number of claims you can file within a certain period. If your policy includes a comparison chart or sidebar summarizing coverage, use it to quickly reference what’s included and what’s not.
Remember, the goal of a home warranty is to protect you from unexpected repair costs for essential home systems and appliances. By thoroughly understanding your coverage, you can make informed decisions about your home maintenance and prepare for any issues that might arise.
Evaluating the Cost of Home Warranties
When considering a home warranty, it’s essential to weigh the cost against the potential savings and peace of mind it offers. A home warranty isn’t just another expense; it’s a strategic investment in protecting your home and budget from unexpected repair or replacement costs. Let’s break down the cost of home warranties and compare it to the potential out-of-pocket expenses without one.
The Annual Cost of Home Warranties
The price of a home warranty can vary widely depending on several factors, including the coverage scope, your home’s size, and its location. On average, homeowners can expect to pay between $300 and $600 per year for a home warranty plan. This fee can be paid upfront annually or in monthly installments, making it a flexible addition to your financial planning.
Potential Savings with a Home Warranty
To truly appreciate the value of a home warranty, consider the cost of repairing or replacing major systems and appliances without one. Here are a few examples:
Air conditioning system repair/replacement: Without a warranty, fixing or replacing an AC unit can cost anywhere from $150 for minor repairs to over $5,000 for a full replacement.
Refrigerator repair/replacement: Repairing a fridge can cost between $200 to $400, while buying a new one can set you back $1,000 or more.
Plumbing issues: Addressing plumbing problems can easily cost hundreds to thousands of dollars, depending on the severity.
In contrast, with a home warranty, you would typically only be responsible for a service call fee ranging from $75 to $125 each time you report an issue, regardless of the actual cost of the repair or replacement.
Variability in Cost
The cost of a home warranty is influenced by several factors:
Home size: Larger homes may have higher warranty costs due to the greater number and size of systems and appliances.
Location: Pricing can vary by state or region, reflecting the local cost of living and the availability of service technicians.
Age of home: Older homes might incur higher home warranty costs due to the increased likelihood of systems and appliances failing.
Making an Informed Decision
When evaluating whether a home warranty is worth the investment for you, consider your financial ability to handle unexpected repairs or replacements. If a single significant repair could strain your budget, a home warranty could offer valuable protection and peace of mind.
Additionally, think about the age and condition of your home’s systems and appliances. Newer homes with newer appliances might not benefit immediately from a home warranty, but as systems begin to age, the potential for savings increases.
Ultimately, a home warranty can be a wise investment, offering significant savings and convenience compared to the potential high costs of repairs and replacements. By carefully considering your home’s specific needs and circumstances, you can decide if a home warranty is the right financial safety net for you.
How to Choose the Right Home Warranty Company
Selecting the ideal home warranty company requires careful consideration of several key factors to ensure you get the best protection for your home. Here’s what to evaluate to make an informed choice:
Assess the Claims Process
The efficiency and ease of the claims process are crucial. Inquire about how to initiate a claim with the home warranty company and the average time it takes to get a response. A reliable provider should offer 24/7 support to assist you whenever issues arise. Ensure the company has a reputation for a straightforward claims process, minimizing stress and inconvenience during urgent situations.
Examine Coverage and Exclusions
Understanding what is covered by the home warranty plan is vital. Check if the home warranty provider covers all essential home systems and appliances, or if you’ll need additional coverage for comprehensive protection. Be wary of exclusions that could affect key components of your home, and ask about options for supplemental coverage if necessary.
Compare Costs and Fees
Evaluate the affordability of the home warranty plan by comparing the cost of premiums and service fees with other providers. A competitive monthly or annual premium, along with reasonable service call fees, indicates a good value proposition. However, the lowest price isn’t always the best choice; balance cost-effectiveness with the extent of coverage and service quality.
Research the Provider’s Reputation
The credibility and reliability of the home warranty company are paramount. Look for accreditation by the Better Business Bureau (BBB) and review their ratings and customer feedback.
Checking with your state’s insurance commissioner can provide additional insights into the provider’s standing and history. Avoid companies with a track record of evasive behavior or those known for disappearing when a claim is filed.
Read the Fine Print
Before making your final decision, thoroughly review the contract. Confirm that the plan’s terms, including coverage details and limitations, match what was advertised or quoted. Understanding the fine print can save you from surprises down the line.
How to File a Home Warranty Claim
To ensure your home warranty claim is processed efficiently, follow these steps:
Review your coverage: Check your home warranty contract to confirm the issue is covered, noting any exclusions or limitations.
Initiate the claim: Contact your home warranty provider as soon as possible using their provided channels, such as online portals, email, or phone.
Provide details: Offer clear information about the problem, including model numbers and a description of the issue, to expedite the repair process.
Schedule the service: The company will arrange for a technician to assess and address the issue. Communicate any scheduling preferences you have.
Prepare for the visit: Ensure the area around the appliance or system is accessible for the technician.
Understand the outcome: After evaluation, the technician will repair or, if necessary, recommend replacement based on your warranty’s terms.
Tips for a Smooth Claims Process
Keep all warranty documents and maintenance records for reference.
Follow up with the company if updates on your claim are delayed.
Be aware of the service fee required for each claim to avoid surprises.
Bottom Line
A home warranty, combined with regular upkeep, represents a smart investment for safeguarding your home and budget. It offers peace of mind by covering repair or replacement costs of major home systems and appliances, potentially saving you substantial amounts in the face of unforeseen breakdowns.
While it requires an upfront cost, the long-term savings and convenience can far outweigh initial expenses, making it a worthwhile consideration for homeowners looking to minimize financial surprises.
Frequently Asked Questions
How long does a home warranty last?
When you choose home warranty coverage, it will come with a service contract for a set period of time. In most cases, it lasts for one year. You’ll then be able to renew your plan annually to keep your coverage intact. Cancellation policies will vary depending on which home warranty company you choose to work with.
Is a home warranty the same as home insurance?
No, they serve different purposes. Home insurance covers damage to your property from unforeseen events, while a home warranty covers repairs and replacements of major systems and appliances due to normal wear and tear.
How do I purchase a home warranty?
Research and compare different home warranty providers to find one that suits your needs. Reputable home warranty companies include Choice Home Warranty and Advanced Home Warranty. You can view a comprehensive list of top home warranty companies here.
Once you’ve chosen a provider, apply for coverage and pay the fee once your application is approved. Coverage typically lasts for one year and can be renewed annually.
Do home warranties cover all repair costs?
Home warranties usually require you to pay a service fee for each repair visit, but this fee is often significantly lower than the full cost of repairs. The warranty covers the rest, up to your contract’s limits.
Isn’t it cheaper to just use homeowners insurance?
Not necessarily. Your homeowners insurance policy covers damages from events like natural disasters, theft, and fire, but it doesn’t cover the cost of repairing or replacing appliances and systems due to wear and tear. That’s where a home warranty comes in, covering those gaps.
Is a home warranty part of closing costs?
A home warranty can be included in your closing costs if you choose to purchase one when buying a home. Sometimes, the seller or your real estate agent can negotiate a one-year home warranty into the deal.
Can I buy a home warranty after closing?
Yes, you can purchase a home warranty at any time, not just when buying a home. However, pre-existing conditions may not be covered, so it’s advantageous to get a warranty as soon as possible.
Are home warranties transferable?
Yes, most home warranty plans can be transferred to new homeowners if you sell your home, making your property more attractive to potential buyers.
What should I do if my claim is denied?
If your home warranty claim is denied, review the reason for denial and check your contract for coverage details. You can often appeal the decision by providing additional information or clarification about the issue.
How often can I use my home warranty?
There’s generally no limit to how many times you can use your home warranty within the contract period, but there may be limits on the amount covered for certain items or systems. Check your contract for details.
Can I choose my own repair technician?
Most home warranty companies require you to use their network of approved service providers. However, some plans may allow you to choose your own technician, subject to approval and reimbursement policies.
What happens if a covered item can’t be repaired?
If a covered item cannot be repaired, your home warranty plan typically covers its replacement. The specifics, such as whether you’ll receive a new model or the depreciated value in cash, depend on your contract’s terms.
Are home warranties tax-deductible?
No, home warranties are generally not tax-deductible for your primary residence. However, if you use part of your home for business, like a home office, or if you rent out a portion, you may be able to deduct a fraction of the home warranty cost. This fraction corresponds to the percentage of your home used for business purposes.
Looking for the Best Home Warranty Company?
Check out our reviews of the top home warranty companies.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
If you’re planning to buy a house in the near future, you may be paying extra attention to your credit. While good credit can help you qualify for the best terms and interest rates, bad credit can stand in the way of your dream home.
If your credit could use a little TLC, continue reading to learn more about credit repair for first-time home buyers and discover helpful tips to improve your credit.
Table of contents:
1. Pay your bills on time
2. Look for errors on your credit report
3. Dispute any inaccuracies
4. Lower your credit utilization
5. Consider consolidating your debt
6. Leave old credit accounts open
7. Avoid opening new credit accounts
8. Get help from a credit repair company
1. Pay your bills on time
Since payment history is the number one factor that affects your credit score, the first step in repairing your credit is getting current with your bills. Late payments, especially those over 30 days past due, can cause your credit to take a significant hit. Not to mention late payments can stay on your credit report for seven years and continue to negatively impact your credit, although the effect lessens over time.
If you’ve missed payments in the past, it’s important to get back on track with making your payments on time. Consider creating a budget, making a list of all your bills, noting their due dates and setting reminders so you don’t forget to pay them. Set up automated payments wherever possible.
Pro tip: Build an emergency fund so you’re still able to pay your bills even if you get hit with an unexpected expense.
2. Look for errors on your credit report
Errors on your credit report could negatively impact your ability to secure a mortgage. In fact, a recent study by Consumer Reports found that 34 percent of participants had at least one error on their credit report.
According to the Consumer Financial Protection Bureau, common errors to look for include:
Identity errors: These include inaccuracies regarding your personal information. For instance, your name, address or phone number may be incorrect or misspelled. Make sure to look for accounts that don’t belong to you and could be the result of identity theft.
Reporting errors: These are errors regarding the state of your accounts. For example, accounts you previously closed that are inaccurately reported as open.
Data errors: These could be duplicate accounts or incorrect information that had previously been corrected.
Balance errors: These include wrong balances or credit limits.
While not all errors affect your credit score, incorrect payment dates or account statuses can have a significant adverse effect, so it’s important to review your credit report before buying a house.
Pro tip: You can get a copy of your credit report from each of the three credit bureaus for free at AnnualCreditReport.com.
3. Dispute any inaccuracies
If you identify any errors on your credit report, you will want to get the inaccurate information removed if you can. File a dispute with the credit bureau via their website, mail or phone.
Regardless of the method you choose, make sure to clearly state what items you’re challenging and why the information is wrong. Consider including a copy of your credit report and highlighting or circling the errors.
Once you file a dispute, the credit bureau has 90 days to complete an investigation into your claim. If the bureau confirms that the error is inaccurate, they will remove it from your credit report. You should see the correction reflected in your score within a few weeks.
Pro tip: Use the Federal Trade Commission’s sample letter as a guide when writing your letter.
4. Lower your credit utilization
Credit utilization is another factor that influences your credit. Your credit utilization ratio is the amount of credit you’re using in relation to the amount of credit available to you.
Keeping your credit utilization low shows mortgage lenders that you aren’t too reliant on credit. Meanwhile, a high credit utilization ratio could indicate that you may struggle to pay your mortgage.
Here are a few strategies to lower your credit utilization ratio:
Pay off large purchases immediately: If you make a large purchase on your credit card, consider paying it off the same day if possible.
Make multiple payments each month: Get in the habit of paying your balance multiple times each month so the credit bureaus are more likely to see a lower number when your credit card issuer reports your statement balance.
Request a credit limit increase: Contact your credit card issuer to see if you qualify for a credit limit increase. Keep in mind that this may result in a hard inquiry, which could temporarily lower your score.
Lower your spending: Consider switching to cash or a debit card to decrease the amount of money you charge to your credit card each month.
Pro tip: Generally, experts recommend keeping your credit utilization below 30 percent. For example, if you only have one credit card and the limit is $10,000, you should aim to spend less than $3,000 each month.
5. Consider consolidating your debt
If you struggle to keep track of your different credit accounts and their due dates, consider consolidating your debt into a single monthly payment. This strategy can help you pay off debt quicker and avoid late payments. However, in order for debt consolidation to make sense, you should aim to get a lower interest rate.
There are a few different ways to consolidate your debt, including:
Zero-percent APR balance transfer credit card: Transfer your credit card debt to a new card, specifically during the 0 percent APR introductory period. Aim to pay down your debt before the introductory period ends—typically between 12 and 21 months.
Debt consolidation loan: Get a debt consolidation loan from a bank, credit union or online lender. Compare options to find the lowest interest rate.
Home equity loan: A home equity loan involves using the equity in your home as collateral to borrow money. While home equity loans typically have lower interest rates, you could end up losing your home if you fail to make payments.
401(k) loan: If you have a retirement account, you can borrow money from your savings. Keep in mind that taking out a 401(k) loan can hurt your retirement savings since you cannot continue to invest until you pay back the loan.
Pro tip: Weigh the benefits and drawbacks to find the best debt consolidation option for your financial situation.
6. Leave old credit accounts open
You may consider closing old credit accounts that you don’t use anymore, but that can actually hurt your credit. FICO® takes into account your length of credit history when calculating your score.
A long credit history signals to mortgage lenders that you have experience using credit and provides a more thorough track record of your credit history.
You should leave old credit accounts open unless you have another reason for closing them, such as an annual fee.
Pro tip: If your oldest account charges an annual fee, consider calling the credit card issuer to see if you can get it waived.
7. Avoid opening new credit accounts
Opening too many credit accounts in a short time frame can be a red flag to lenders. They may come to the conclusion that you’re financially unstable and are relying on credit to get by. As a result, they may consider you more likely to fall behind on payments.
Additionally, too many hard inquiries can hurt your credit. While a single hard inquiry typically only lowers your score a small amount, multiple hard inquiries may cause a noticeable drop in your score.
Pro tip: Try to wait six months between credit card applications.
8. Get help from a credit repair company
If you need help repairing your credit in preparation for buying a house, consider looking into credit repair services. A credit repair company can closely examine your credit report and help you identify negative items that might be wrongfully hurting your credit. The company will then challenge the inaccuracies on your behalf so they might no longer impact you.
Pro tip: Research each company and read reviews to avoid running into credit repair scams.
Why is credit important when buying a home?
Credit is important when buying a home if you plan to take out a mortgage. A good credit score will boost your likelihood of qualifying for a mortgage with a lower interest rate and better terms. This can end up saving you thousands of dollars over the course of your mortgage.
What does your credit score need to be to buy a house for the first time?
The credit score needed to buy a house varies depending on the type of loan you want. For most conventional mortgages, borrowers need a credit score of 620 or higher to qualify. Meanwhile, an FHA loan requires a minimum credit score of 500. Generally, the higher your credit score, the more favorable interest rates and terms you’ll be approved for.
Need help repairing your credit before buying a home? Lexington Law Firm could help you identify and address inaccurate negative items that may be damaging your score. Sign up for a free credit assessment to establish your starting point and see what services may be right for you.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Brittany Sifontes
Attorney
Prior to joining Lexington, Brittany practiced a mix of criminal law and family law.
Brittany began her legal career at the Maricopa County Public Defender’s Office, and then moved into private practice. Brittany represented clients with charges ranging from drug sales, to sexual related offenses, to homicides. Brittany appeared in several hundred criminal court hearings, including felony and misdemeanor trials, evidentiary hearings, and pretrial hearings. In addition to criminal cases, Brittany also represented persons and families in a variety of family court matters including dissolution of marriage, legal separation, child support, paternity, parenting time, legal decision-making (formerly “custody”), spousal maintenance, modifications and enforcement of existing orders, relocation, and orders of protection. As a result, Brittany has extensive courtroom experience. Brittany attended the University of Colorado at Boulder for her undergraduate degree and attended Arizona Summit Law School for her law degree. At Arizona Summit Law school, Brittany graduated Summa Cum Laude and ranked 11th in her graduating class.
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors’ opinions or evaluations. Please view our full advertiser disclosure policy.
Today’s home equity line of credit (HELOC) rates, if you borrow $100,000, are 9.11% with a 60% loan-to-value (LTV) ratio, 9.26% with 80% and 9.95% with 90%.
Today’s HELOC rates
*Data accurate as of February 2, 2024, the latest data available.
Current HELOC rate trends
Here is the average annual percentage rate (APR) for a $100,000 HELOC at different LTV ratios — 60%, 80% and 90%.
HELOC rates: 60% LTV ratio
The HELOC rate today for a borrower with an LTV ratio of 60% sits at 9.11%. This means it’s the same as last week, according to data from Curinos. Last month, the rate was at 9.13%.
HELOC rates: 80% LTV ratio
The average HELOC rate if you have an LTV ratio of 80% stayed the same as last week at 9.26%, according to data from Curinos. This is down from last month’s 9.28%.
HELOC rates: 90% LTV ratio
Today’s average HELOC rate is 9.95% with a 90% LTV ratio which is the same as last week, according to data from Curinos. This is about the same as last month’s 9.95%.
Before you borrow, compare the best HELOC lenders.
Frequently asked questions (FAQs)
During the COVID-19 pandemic, many banks stopped offering HELOCs due to uncertainty surrounding the economy. However, numerous banks have resumed offering HELOCs to customers today.
There are many reasons why you might not qualify for a HELOC. For example, a lender could deny your application if:
Your LTV ratio is too high.
Your DTI ratio is too high.
Your credit score is too low.
You don’t have a history of on-time payments.
You don’t have a stable source of income.
If you can’t qualify for a HELOC because of any of the above reasons, your best option is likely to work on paying down debt along with building more equity in your home.
There are also some alternatives to consider if you’re disqualified. For example, a home equity loan or personal loan could be a good option. Unlike HELOCs, both of these alternatives generally come with fixed interest rates, giving you predictable payments over the life of the loan. However, you might end up with a higher interest rate than you would with a HELOC.
Additionally, home equity loans and personal loans are paid out in lump sums — meaning you’ll need to know exactly how much you need to borrow before applying.
Explore the difference: HELOC vs. home equity loan
Repayment terms for HELOCs typically range from five to 30 years. This generally comprises a draw period of up to 10 years and then up to 20 years to repay what you’ve borrowed.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
Jamie Young is Lead Editor of loans and mortgages at USA TODAY Blueprint. She has been writing and editing professionally for 12 years. Previously, she worked for Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has also appeared on some of the best-known media outlets including Yahoo, Fox Business, Time, CBS News, AOL, MSN, and more. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to game, play with her two crazy cats (Detective Snoop and his girl Friday), and try to keep up with her ever-growing plant collection.
Ashley is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Borrowers saw mortgage rates drop dramatically late last year, and experts have been calling for rates to go down this year as well. But a key economic indicator suggests the path to lower rates could be somewhat rocky.
On Friday, the Bureau of Labor Statistics released January’s jobs report, which showed that the US economy added many more jobs than expected last month.
In January, 30-year mortgage rates averaged around 6.34%, which is just nine basis points down from the previous month’s average, according to Zillow data.
Mortgage rates are expected to fall this year once the Federal Reserve starts lowering the federal funds rate. The Fed first started aggressively raising rates in 2022 to combat record high inflation. Inflation has since come down substantially, and Fed officials have indicated they’re ready to consider cutting rates this year.
But this latest labor market data could push back the Fed’s timeline for lowering its benchmark rate. Since the economy is doing so well in spite of the Fed’s hikes, officials may decide to wait longer before they start cutting.
The longer the Fed waits to start cutting rates, the longer borrowers will likely have to wait for lower mortgage rates. We’ll need to see some more data, including the latest Consumer Price Index numbers, to get a better idea of when a Fed cut might come.
Today’s mortgage rates
Mortgage type
Average rate today
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mortgage rates on Zillow
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Today’s refinance rates
Mortgage type
Average rate today
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mortgage rates on Zillow
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Mortgage Calculator
Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.
Mortgage Rate Projection for 2024
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023.
But many forecasts expect rates to fall this year now that inflation has been coming down. In the last 12 months, the Consumer Price Index rose by 3.4%, a significant slowdown compared when it peaked at 9.1% in 2022.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
When Will House Prices Come Down?
We aren’t likely to see home prices drop this year. In fact, they’ll probably rise.
Fannie Mae researchers expect prices to increase 3.20% in 2024 and 0.30% in 2025, while the Mortgage Bankers Association expects a 4.10% increase in 2024 and a 3.30% increase in 2024.
Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates have since eased, removing some of that pressure. The current supply of homes is also historically low, which will likely push prices up.
What Happens to House Prices in a Recession?
House prices usually drop during a recession, but not always. When it does happen, it’s generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices.
How Much Mortgage Can I Afford?
A mortgage calculator can help you determine how much house you can afford. Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget.
Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn’t exceed 28% of your pre-tax monthly income.
The lower your rate, the more you’ll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle.
Looking for the best fun jobs that pay well? Many people dream of having a job they love that also pays well. I completely get it – you don’t want to hate working a job that you’ll be at 40 hours a week! I’m very grateful to have a job that I love. I don’t…
Looking for the best fun jobs that pay well?
Many people dream of having a job they love that also pays well. I completely get it – you don’t want to hate working a job that you’ll be at 40 hours a week!
I’m very grateful to have a job that I love. I don’t dread any day of the week, and I genuinely love what I do. Due to that, I hope everyone gets to feel the same about their job as well.
Thankfully, it’s easy to find a job that lets you do what you enjoy and still pays you a good paycheck. Whether you love working online or driving fast cars, there are many job options that let you have fun while also making good money.
Whether you want to make extra income or find a full-time job, there are many fun jobs that pay well that may interest you.
Fun Jobs That Pay Well
When you’re looking for a job, it’s great to find one that you find fun and that also pays well. Here are some top choices to start with:
Bloggers work from anywhere and write about topics such as family, recipes, personal finance, travel, and more. This is what I do, and I think it’s a ton of fun. Plus, it pays very well!
Art therapists use creativity to help others. They draw or paint as a way to support people’s emotional health. This job requires a master’s degree, but it combines art with helping people, which can be very rewarding.
A Ferrari driving instructor teaches others how to drive a luxury sports car. It’s not just exciting; it can also pay between $90,000 and $120,000 a year.
If you like spotting mistakes in content, then finding a proofreading job may be perfect for you. Proofreaders act like an extra set of eyes to read articles, papers, books, ads, and other written content.
Below are over 40 other fun jobs that pay well that I recommend learning more about.
1. Blogger
If you want to find a fun job that pays well, my favorite way is to start a blog. That’s exactly what I do for a living!
A blog is content written on a website. It usually includes articles like what you’re reading here.
You can blog about something you’re passionate about or something you know a lot about. Or even a topic you want to learn more about (people love following others’ firsthand journeys!).
I began Making Sense of Cents in 2011, and since then, my blog has earned me over $5,000,000 over the years.
I started my blog on a whim to share my own money journey. At first, I didn’t even know people could earn money from blogs or how to make a successful one. And now, it’s my full-time job!
There are many ways to make money blogging such as:
Advertising revenue (banner ads that you see in blog posts)
Sponsored blog posts (when a blogger partners with a company to promote a specific item or company)
Affiliate marketing (when a blogger receives income for referring readers to a product)
Selling digital products or services (such as courses, clothing, books, and more)
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Printables designer
Making and selling printables can be a fun way to earn money. When you create printables on Etsy, you only need to make one digital file for each product. After that, you can sell it many times to make more money.
Printables are things you can find online and print at home.
These can be things like a planner, coloring pages, wall art prints, greeting cards, gift tags, and so much more.
I buy printables frequently, and so do others all the time. Recently, I bought a printable for my daughter and it was a useful tool to help teach her the alphabet. I love that I can easily search what I’m looking for and get exactly what I want – plus I can print it right at home quickly!
Recommended reading: How I Make Money Selling Printables On Etsy
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
3. Voice actor
A voice-over actor is someone you hear but don’t usually see in things like videos on YouTube, documentaries, radio ads, TV ads, corporate talks, online courses, audiobooks, video games, movies, and cartoons.
Voice actors don’t necessarily need experience for this job (although it can be helpful later on). What’s important is having a voice that matches what the company is searching for.
Recommended reading: How To Become A Voice Over Actor
4. Photographer
As a photographer, you get a special chance to capture moments and tell stories with your camera. Photography has many different areas where you can focus, and they can be both satisfying and financially rewarding.
Here are some examples:
Photojournalist – You document events for media outlets, such as National Geographic.
Wedding Photographer – Your role would be capturing wedding moments in couples’ lives.
Stock photo photographer – Photographers can sell their pictures on stock image sites, which are really popular. These sites let customers purchase pictures for things like websites, TV shows, books, and social media.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
5. Buy and sell flipper
Being a buy-and-sell flipper means you’re into flipping items for profit.
This includes getting undervalued things from flea markets, garage sales, or online places and then selling them for more money.
This could be things like clothing, electronics, furniture, cars, and so much more. Basically, anything and everything!
Your success depends on how good you are at finding good deals, knowing the values in the market, and selling things again for a profit.
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
6. Proofreader
As a proofreader, your careful attention to detail can become a rewarding career. Proofreading means going through texts to fix grammar, spelling, and punctuation mistakes before they get published. This job is important to make sure written content is clear and doesn’t have errors.
Many people, like authors, website owners, and students often hire proofreaders to make their work better. There’s a big need for proofreaders, and you can find jobs on various platforms.
Even the best writers can make mistakes in grammar, punctuation, and spelling. That’s why getting a proofreader can be really helpful for almost everyone.
In fact, although I have written over 2,000 articles, I have a proofreader who will have proofread this very blog post.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year)
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
7. Freelance writer
Freelance writers create content for clients, like blog posts and advertising. Freelance writing usually involves working independently. Clients give you a topic, you write about it, and then you might receive feedback, like suggestions to improve or add paragraphs.
You can write about any topic that you want to – such as travel, money, home, and so on.
How much you make as a freelance writer depends on your experience and the topics you write about. When you start, you might earn around $50 to $75 for a 500-word article. As you get better, you can charge more. For a 1,000-word article, you could make between $100 and $150. If you do well over time, you can ask for even higher rates.
I was a freelance writer for many years before transitioning to full-time writing here on Making Sense of Cents. It’s a great career where you can mostly work from home on your own.
Recommended reading: 14 Places To Find Freelance Writing Jobs
8. Graphic designer
A graphic designer is someone who makes designs for people and businesses. As a digital designer, you might create images, social media graphics, printables, T-shirt designs, business cards, stickers, logos, and more.
As a graphic designer, your main job is to communicate through visuals. You use a mix of typography, images, color, and layout to convey messages and brand identities. This field gives you the freedom to express your creativity in different ways, whether it’s through digital designs or print materials.
Recommended reading: How To Make Money As A Digital Designer
9. Social media manager
Being a social media manager is an exciting career choice and your main job is to take care of how a company or person appears online on different platforms. Your tasks include interacting with followers, selecting content, and planning social media posts.
Here are the key areas you typically need to focus on:
Content creation – Create fresh, original posts tailored to each platform.
Engagement – Interact with the audience by responding to comments and direct messages.
Strategy planning – Use data analytics to drive social media strategies, aiming for increased engagement and reach.
The salary can vary, and you can choose to do this job either part-time or full-time.
10. Social media influencer
Related to the above, you can make money with your own social media accounts as well.
Have you ever followed someone on Instagram or TikTok and thought to yourself that it would be fun if you could do something similar?
Social media influencers use different online platforms to create, share, and connect with content that their audience likes. Your success depends on growing a big group of followers and establishing yourself as a trusted voice in your specific area.
As an influencer, you’ll create your brand by sharing your interests, pictures, and opinions on social media platforms such as Instagram, TikTok, Facebook, and others.
You can earn money through sponsored posts (when brands pay you to promote their products or services in your Instagram posts), affiliate marketing (earning commissions from sales through your referral links), and by creating digital products like ebooks or online courses.
I’ve been a social media influencer for years, monetizing my Instagram and Facebook accounts. It’s a great experience as I get to collaborate with companies I love and promote products I already use.
11. Veterinarian
If you have a passion for animals, then becoming a veterinarian may be a great fit for you.
Veterinarians have a skilled and fulfilling role dedicated to animal health and welfare. The main responsibility is to provide medical care to animals, diagnose health problems, and perform surgeries.
Vets work in private clinics, animal hospitals, research facilities, zoos, and more.
The veterinarian career path is rewarding as it lets you blend a love for animals with the chance to make a positive impact on their lives.
To become a veterinarian, you must complete a Doctor of Veterinary Medicine (DVM) program and obtain a state license to practice. This usually involves:
A bachelor’s degree
A four-year veterinary program
The national average salary for veterinarians is around $100,000 per year.
12. Marine biologist
One job that I dreamed of as a kid was to become a marine biologist. It always sounded like so much fun to work with water and sea animals.
Marine biologists study marine organisms and how they behave and interact with the environment. Your work might take you from coastal wetlands to the deepest parts of the ocean.
Here are some of the things they do:
Conduct research on marine wildlife and ecosystems
Monitor the health of marine habitats
Develop conservation plans
Educate the public and policymakers
Marine biologists are important for understanding marine life and contributing to ocean conservation efforts.
13. Mystery shopper
Retailers, restaurants, and financial institutions need mystery shoppers for detailed feedback to improve their customer service and products.
This might not be a full-time job, but it can provide you with some extra money each month.
I remember when I first learned about mystery shoppers. I was working at a clothing store, and we would have mystery shoppers come in to see how we were doing. We never knew who the mystery shopper was, but we would get to read their report afterward and see what they thought of us.
After learning about mystery shopping, I found a website where I could become one as well. It sounded like fun to get paid to shop.
I would make about $150 to $200 per month through mystery shopping, and I also got free items and services, like $100 to spend at restaurants (where I had to provide feedback while I was there), makeup, and more.
Recommended reading: How To Become A Mystery Shopper
14. Architect
Architects have a special mix of creativity and technical skills, allowing them to design buildings that are not just attractive but also functional and safe.
Their role includes making detailed plans, and considering factors like sustainability, budget, and client needs.
To become an architect, you typically need a bachelor’s or master’s degree in architecture and you’ll need state licensure, which is obtained by passing the Architect Registration Examination (ARE).
15. Stunt person
A stunt person is a cool job where you use your physical skills to create exciting action scenes for movies, TV, and live shows. It’s a big part of making the action look real and thrilling.
To do this job, you might need lots of training in things like martial arts, gymnastics, or extreme sports. You also have to be good at handling pressure and follow safety rules closely.
16. Professional video gamer
Yes, if you like video games, you may actually be able to make money as a professional video gamer.
While the amount of money you can make will definitely vary, top gamers have the potential to earn from tournament prizes, sponsorships, and streaming content for fans:
Tournaments: Prize pools can be large, reaching into the millions for top-ranking competitions.
Streaming: Platforms like Twitch and YouTube pay through ads, subscriptions, and donations.
Sponsorships: Companies may endorse you and pay you with sponsorships or free items.
You could maybe even find a job working for a video game designer, testing out video games so that companies can improve their video game design.
Recommended reading: How Much Do Twitch Streamers Make?
17. Chocolatier
Many people at some point in their lives want to become the person who makes chocolate and candy – sounds amazing after all, right?
A chocolatier is someone who uses cooking and art skills to make chocolates. It’s a job that needs creativity, precision, and a good sense of taste.
You might work for yourself, making chocolates, or you may even work for a large chocolate company. I know people who do both!
18. Personal trainer
If you want to find a job that you’ll love, becoming a personal trainer may be it.
Personal trainers play an active role by combining fitness with motivational skills to help people reach their health and fitness goals. This job includes:
Assessing clients’ fitness levels and health conditions
Developing personalized workout and nutrition plans
Demonstrating exercises and routines to clients
Tracking clients’ progress and adjusting plans as needed
How much you earn as a personal trainer can change a lot based on where you work, your qualifications, and the clients you get. Personal trainers usually make an average of $40,000 to $70,000 per year.
19. Supercar driving instructor
Supercar driving instructors have an exciting job where they help people learn how to drive fast cars on racetracks.
The role includes teaching safety and giving an exciting experience as well as explaining how to handle the vehicles, follow track rules, and use advanced driving techniques.
You can usually earn a high income doing this, plus you get to drive some of the world’s most exotic supercars.
20. Toy designer
Being a toy designer is probably most children’s dream career. After all, who hasn’t loved toys at one point in their life?
The toy industry is always looking for creative designers to make new toys that will grab kids’ attention and imagination.
Toy designers have a cool job where they mix creativity with making things work well. The main aim is to create toys that are fun and help kids learn and grow. This special job combines artistic skills with knowing about how children think and learn.
21. Restaurant critic
Restaurant critics evaluate dining establishments and share their experiences through written reviews. Their main responsibility is to provide an unbiased review of the food quality, service, ambiance, and overall dining experience.
To gain experience and get started, begin by developing your taste buds and learning about different cuisines. This can involve:
Going to cooking workshops
Exploring different food places when you travel
Creating your own blog or starting an Instagram dedicated to food
22. Brewmaster
If you love craft beers and enjoy understanding how fermentation works, becoming a brewmaster could be a fun and rewarding career.
Brewmasters manage the brewing process, such as creating recipes, choosing ingredients, and making sure the quality is top-notch during production.
To start, you might need formal education, such as a degree in brewing science or a related field. However, some brewmasters climb the ladder from roles like brewing assistants, gaining experience through on-the-job learning.
23. Fashion designer
Fashion designers make clothing, accessories, and shoes, and they draw designs, pick fabrics and patterns, and guide how the products designed should be made.
Fashion designing can be a fulfilling career if you love fashion and enjoy creating. It gives you a chance to express yourself personally and can even lead to getting noticed in the industry.
24. Food stylist
Food stylists combine culinary art with aesthetics, making sure that dishes not only taste good but also look delicious and perfect for photographs.
Their duties include choosing ingredients thoughtfully, preparing the food, and presenting it in a way that’s visually attractive. This is important for different media like advertising, packaging, cookbooks, and film.
25. Event planner
Event planners organize events, from big corporate conferences to small weddings. Their main job is to make sure every part of the event matches the client’s vision, fits the budget, and meets the goals.
According to Glassdoor, the average pay for an event planner is around $50,000 per year. Your salary can change based on things like your experience, where you work, and the size and type of events you handle.
26. Animator
If you’re looking for fun jobs that pay well, then becoming an animator may be it!
Animators make visual creations, and their main focus is on designing characters, environments, and entire worlds in 2D or 3D formats.
Here’s what you may work on:
Character design: Create and develop characters for various media.
Story development: Collaborate on storyboards to plan out visual narratives.
Animation: Work with digital tools to animate drawings and models.
The animation industry values creativity and technical skills and also pays competitive salaries with the opportunity to contribute to exciting storytelling processes. Whether you’re involved in creating animated TV shows, movies, or video games, being an animator can be both enjoyable and financially rewarding.
27. Real estate agent
Real estate agents are professionals who help people buy and sell properties, such as houses and commercial buildings.
I know a few real estate agents, and they all seem to love their jobs. They get to see beautiful new homes and properties and help their clients find their dream property.
Plus, they usually set their own schedule, which can help you create a better work-life balance.
28. Private investigator
Private investigators conduct investigations on various matters, including legal, financial, and personal issues.
This may include doing things like surveilling someone to get information, interviewing people to get details, researching public and legal documents, as well as gathering evidence for cases.
Here are some steps to becoming a private investigator:
Have a high school diploma or equivalent. Perhaps even get a degree or certification in criminal justice or a related field.
Gain experience in a related field such as law enforcement or the military.
Acquire a private investigator license, as required by your state.
29. Romance novelist
Starting a career as a romance novelist can bring both fulfillment and income. If you love storytelling and especially romance, this can be a fun one to think about.
Recommended reading: How to Make Money Self-Publishing Short Romance Novels
30. Interior designer
Interior designers mix creativity with practicality to decorate the insides of properties. Their job is to design and put in place the aesthetic and functional aspects of residential or commercial spaces.
Your job would be to create an environment that looks good and is comfortable for your clients.
31. Airline pilot
Airline pilots have a career that is both exciting and has the potential to make a lot of money. Their main job is to pilot commercial aircraft, flying from one place to another, and making sure everyone on board, including passengers and crew, stays safe.
Some of their daily duties include:
Conduct pre-flight inspections
Navigate the aircraft
Communicate with air traffic control
Monitor weather conditions and aircraft systems
Lead the crew and manage any in-flight issues
32. Drone pilot
Drones have gained popularity lately, not just for recreational use but also for jobs requiring aerial photos and videos. This creates a growing opportunity for individuals to start small businesses and make money with their drones.
Your job as a drone pilot may be to:
Take high-quality images and videos from unique perspectives, such as for real estate, construction, or events.
Perform inspections, surveys, and mapping for various industries like mining or agriculture.
Analyze data and images to give insights to clients.
Recommended reading: How To Make Money With A Drone
33. Sommelier
Sommeliers have a lot of knowledge of wine and can share it in a fun way.
This job is usually found in upscale restaurants, and this role involves suggesting wines that go well with customers’ meals, conducting wine tastings, managing wine service, and taking care of the wine cellar.
34. Chef
Chefs, of course, play an extremely important role in a restaurant kitchen, crafting menus and overlooking meal execution. Their primary responsibilities include tasks like:
Menu Design: They create food menus for a restaurant.
Food Preparation: They oversee and sometimes partake in the detailed preparation of ingredients.
Cooking: They cook the restaurant meals and oversee other cooks in the kitchen.
35. Cruise director
Cruise directors make sure passengers have an unforgettable experience aboard a cruise ship. This job requires a fun personality and excellent skills in managing both entertainment programs and a team of staff members.
Their responsibilities include planning and supervising all onboard entertainment, such as shows, events, and activities.
We went on an around the world cruise recently and had an amazing cruise director. It looked like such a fun job, and they got to travel everywhere that we did (of course!).
Recommended reading: How To Get Paid To Travel The World (18 Realistic Ideas!)
36. Astronomer
Astronomy is a field that combines the excitement of exploring the cosmos with the satisfaction of solving complex problems. As an astronomer, you enter a world dedicated to understanding celestial phenomena and the principles of the universe.
Usually, a Ph.D. in astronomy or a closely related field is needed to conduct independent research or work at a university. However, with a bachelor’s or master’s degree, you might find opportunities at planetariums, observatories, or assisting with research.
37. Netflix tagger
If you’re seeking a fun yet rewarding job, becoming a Netflix tagger could be an interesting option. In this job, you watch Netflix content and assign specific labels to shows and movies, influencing the platform’s recommendation algorithm.
To get started, you will need to apply through the Netflix jobs portal, where available positions are listed. Experience in film and media studies, while not mandatory, can give you an advantage.
Recommended reading: 7 Best Ways To Get Paid To Watch Netflix
37. Geologist
Geologists explore and study the earth’s composition, processes, and history.
Their job can lead to finding valuable resources like minerals, oil, and gas, and they also have an important part in environmental conservation and predicting natural disasters.
38. Dog walker
If you love pets, then this is the fun paying job for you!
Dog walkers do exactly that – walk dogs while their owners are busy, such as at work or on vacation. If you like dogs, then this can be a fun way to spend time with animals and get paid for it.
To become a sought-after dog walker, you should be reliable, good with animals, and you should have excellent customer service skills to build connections with clients. Dog walking allows you to enjoy the fresh air, bond with different dogs, and make money doing something you love.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
39. Ethical hacker
Ethical hackers think and operate like malicious hackers but with a specific goal: identifying and fixing security vulnerabilities before they can be exploited.
They act as safeguards, testing and securing systems to prevent potential breaches for companies.
This job involves a lot of problem-solving skills, as you are looking for possible security problems.
40. Travel agent
If you like planning trips, then becoming a travel agent may be a great way to have a fun high-paying job.
Travel agents craft and sell travel experiences. They help advise clients on different travel destinations and arrange transportation, hotels, tours, and more. It’s a job that not only pays well but allows you to help others travel.
You may help people plan their honeymoon, a trip to Disney World, an around-the-world cruise, and so much more. There are travel planners for every kind of trip that you can think of.
Your knowledge and skill in handling the challenges of travel planning make you a very important help to travelers who want their experiences to be stress free.
The average annual salary can vary by a lot, and this can be either a part-time or full-time job. There is a lot of job growth too, as more and more people are going on vacations!
41. Personal shopper
Personal shoppers give a shopping service for clients who either lack the time or the style to select their own stuff. As a personal shopper, your job may range from picking clothing to finding the perfect gift.
You may work at a high-end retail store, or you may be a freelance personal shopper – there are many jobs in this field!
42. Park ranger
Have you ever been to a beautiful place like Yosemite National Park and wondered what it would be like to work there?
Park rangers work in places like beautiful national parks and get to enjoy the scenery every single day. Their responsibilities include protecting and managing parks, wildlife, and historical sites and making sure that both the natural resources and the visitors exploring them are safe.
To become a park ranger, you usually need a combination of education in fields related to conservation, environmental science, or wildlife management, and relevant work experience.
Recommended reading: 15 Outdoor Jobs For People Who Love Being Outside
43. Tour guide
Being a tour guide gives you a chance to share your love for travel or history with others, all while making a living. You’ll get to be in different places like historical sites, museums, or outdoor adventures.
This can be a low-stress job with a big fun factor – as you get to explore places that you probably already love and are an expert at.
Recommended reading: How to Make Money as an Airbnb Experience Host
44. Yacht crew
Working on a yacht can be a thrilling job that mixes travel, adventure, and the chance to meet new people, along with the possibility of earning good money.
If you work on a yacht, your job could be as a captain, mechanic, server, cleaner, chef, and more. If you’re on a smaller boat, you might even handle all these tasks.
Jobs on a yacht or big sailing boat are usually hard work, but the perk is that you get to travel with most expenses covered, while also earning a high income.
45. Flight attendant
Being a flight attendant is important for making sure passengers are comfortable and safe. You’re like the friendly face of the airline during flights, taking care of different needs and keeping service standards high.
Plus, you get to enjoy the unique perk of discounted or free travel, which is a big perk of becoming a flight attendant.
Flight attendants can earn a good income, and the benefits are excellent. They usually make between $50,000 to over $100,000 a year. The training to become a flight attendant usually takes around 1 to 2 months.
Recommended reading: How To Become A Flight Attendant And Make $61,640 Each Year
46. Art therapist
Art therapists combine the creative process with psychological healing to provide a unique kind of mental health therapy. They conduct one-on-one or group therapy sessions, and being an art therapist can be very fulfilling as you help people discover their voice and heal through art.
Art therapists work at schools, psychiatric hospitals, veterans associations, and more. Usually, you need a master’s degree to enter this field.
They use art therapy to assist people in expressing their emotions, dealing with complex feelings, and enhancing self-awareness. Their job isn’t just about being artistic; it’s deeply connected to therapeutic practices that help a variety of clients.
Another job similar to this is becoming a music therapist.
Frequently Asked Questions
Below are answers to common questions about how to find fun jobs that pay well.
What is the most high-paying fun job?
The most high-paying fun job can vary based on your skills and interests. Some high-paying fun jobs include being a blogger, pilot, stunt person, and romance book author.
What are random jobs that pay well?
There are many unique jobs, such as a private island caretaker, yacht captain, or a voice-over artist.
Which is the most exciting and highest paying job in this world?
This will depend on who you ask! Maybe it’s being a pilot, a stunt person, an actor, or something else.
What are some fun jobs that pay six figures?
Some fun jobs that pay over $100,000 may include becoming a blogger, selling printables, photographer, architect, and more.
What are some low-stress fun jobs that pay well?
Jobs like a yoga instructor or a massage therapist can be low stress and fun, and they provide a good income, especially when experienced or working in more affluent areas.
What are some fun jobs that pay well without a degree?
You can pursue jobs such as a social media influencer, a real estate agent, or a personal trainer, which can pay well and be rewarding without requiring a traditional four-year degree.
Best Fun Jobs That Pay Well – Summary
I hope you enjoyed this article on the best fun jobs that pay well.
There are many fun careers that pay a part-time or full-time income.
Careers like voice acting, managing social media, and ethical hacking not only pay well but also let you have a good balance between work and life. The key is to know your talents and find the right fit in these exciting jobs.
I have been working a fun job for many years now, and I really really love it. It makes each day enjoyable and I actually look forward to work. I hope that you get to one day say the same as well.
What do you think are the best fun jobs that pay well?
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Veterans United is currently the largest lender of VA loans, and it earned “best overall” in our guide to the best VA mortgage lenders. It’s a good option for several types of mortgages — though VA loans are its strongest products. It also offers free credit counseling for those who don’t yet meet its credit requirements, making it a good lender for borrowers with poor credit scores.
Veterans United Home Loans
Insider’s Rating
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4.75/5
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Perks
Offers free assistance to borrowers with poor credit scores
Recommended Credit
620
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, refinance
Pros
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Can apply online or at a branch
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Isn’t limited to just VA mortgages
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Free credit counseling
Cons
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No home equity loan, HELOC, reverse mortgage, or construction loan
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Can’t see customized interest rates online
Insider’s Take
Veterans United is currently the largest lender of VA loans, and it earned “best overall” in our guide to the best VA mortgage lenders. It’s a good option for several types of mortgages — though VA loans are its strongest products.
Product Details
Offers mortgages in all 50 US states and Washington, DC
Branches in 18 US states
Refinancing options for VA, conforming, and jumbo mortgages
Minimum credit score listed is for VA mortgages, which usually do not require a down payment
Veterans United Home Loans: Overall Lender Rating
Veterans United Home Loans: Pros and Cons
Veterans United Home Loans Mortgage Rates and Fees
You can see sample VA mortgage rates for different credit score ranges on the Veterans United website. But you’ll need to fill out a form or contact customer support to see rates for other types of mortgages, or to get a personalized rate.
Veterans United rates are competitive with what other VA loan lenders offer. It may charge origination, application, processing, or underwriting fees — but it depends on your specific circumstance.
How Veterans United Home Loans Compare
Veterans United vs. Navy Federal Credit Union mortgages
You’ll want to choose Veterans United for an FHA or USDA mortgage, because Navy Federal doesn’t have these types of loans.
Navy Federal offers a variety of mortgage types specifically for military members and veterans, though. Its Military Choice and Homebuyers Choice programs offer 0% down mortgages for those who have exhausted their VA loan benefit or borrowers who don’t qualify for a VA loan.
Veterans United vs. USAA mortgages
USAA only offers VA mortgages, and you can get either a regular VA loan or a jumbo VA loan with this lender. USAA earned a high score in J.D. Power’s 2023 Mortgage Origination Satisfaction Study, though it didn’t rank because it doesn’t meet study criteria.
If you have a rocky credit history, Veterans United would likely be the better option, since it offers free assistance to borrowers looking to improve their scores so they can obtain preapproval.
How Veterans United Home Loans work
Veterans United specializes in VA mortgages, but it also offers:
It can be hard to find information for non-VA loans on the website, but you can read about all its other options here.
If you want to refinance a VA mortgage, you can choose between a VA IRRRL refinance or cash-out refinance. You can also refinance your conforming, jumbo, FHA, or USDA mortgage.
The company doesn’t have home equity loans, HELOCs, reverse mortgages, or construction loans.
You can apply for a mortgage through Veterans United online from anywhere in the US. It also has branches in the following 18 states:
Alabama
Alaska
California
Colorado
Florida
Georgia
Hawaii
Idaho
Illinois
Kentucky
Nebraska
North Carolina
Oklahoma
South Carolina
Tennessee
Texas
Virginia
Washington
You can email customer support or talk to someone over the phone 24/7.
Is Veterans United Home Loans Trustworthy?
The Better Business Bureau gives Veterans United an A+ rating. A strong BBB score indicates a company responds effectively to customer complaints, advertises honestly, and is transparent about business practices.
Veterans United doesn’t have any recent public scandals.
Veterans United has a high score in the J.D. Power 2023 Primary Mortgage Origination Satisfaction Survey. Veterans United actually doesn’t qualify to rank because it doesn’t meet certain criteria, but J.D. Power notes that the lender would rank highly if it was eligible.
This lender also has a lot of positive online customer reviews. On its Zillow lender profile, it earned a 4.78 out of 5 stars based on over 5,000 customer reviews. On TrustPilot, it has a 4.9 out of 5 star rating based on over 10,000 customer reviews.
Veterans United Home Loans FAQs
The lender is a good option for several types of mortgages, especially VA mortgages. It’s also worth considering if you have a low credit score, or none at all. Veterans United may let you apply with alternative credit data, such as proof that you pay bills on time.
Veterans United may charge lender fees, such as an application or origination fee — not all lenders charge these types of fees. However, your closing costs depend on various factors, including where you live, how much the home costs, and which type of mortgage you get.
Yes, Veterans United is a direct lender. This means it originates its own loans, as opposed to a mortgage broker, which connects borrowers with multiple lenders to find the best match.
Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
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Lifestyle funds are investment funds that base their asset allocation on someone’s age, risk tolerance, and investing goals. Individuals who want to build wealth over the long term in a relatively hands-off way might consider lifestyle investings.
There are different types of lifestyle funds investors may choose from, based on their appetite for risk, the level of risk needed to achieve their goals, and their investing time horizon. Lifestyle assets often also appear inside different types of retirement accounts, including employer-sponsored retirement plans and individual retirement accounts (IRAs). Whether becoming a lifestyle investor makes sense for you can depend on what you hope to achieve with your portfolio, how much risk you’re comfortable taking, and your overall time horizon for investing.
What are Lifestyle Funds?
A lifestyle fund or lifestyle investment holds a mix of investments that reflect an investor’s goals and risk tolerance. These investment funds tailor their investment mix to a specific investor’s needs and age to provide a simplified solution for reaching their goals.
Lifestyle funds may invest in both equities (i.e. stocks) and fixed-income securities, such as bonds and notes. These funds may require fewer decisions by the asset owner, since they adjust automatically through changing lifestyle needs until you reach retirement. With lifestyle assets, as with other types of funds, it’s important to consider the balance between risk and reward.
Lifestyle funds that carry a higher degree of risk may offer higher returns to investors, while those that are more conservative in terms of risk may yield lower returns. 💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.
How Do Lifestyle Funds Work?
Typically purchased through a retirement account or a brokerage account, lifestyle funds work by creating a diversified portfolio to meet an investor where they are, while also taking into account where they’d like to be 10, 20 or 30 years from now.
An investor can choose from an initial lifestyle fund allocation, then adjust the risk level up or down based on their preferences. A fund manager reviews the asset allocation for the fund and rebalances periodically to help an investor stay on track with their goals.
The level of risk an investor takes may correlate to the average age of retirement, which for most people is around 65. So someone who’s 25 years old now has 40 years to invest for the future, meaning they can afford to take more risk to achieve their goals. As they get older, their tolerance for risk may decrease which could mean moving away from stocks and toward fixed-income investments.
Unlike target-date funds, the level of risk in lifestyle funds doesn’t change significantly over time. So if you were to choose an aggressive lifestyle fund at 25, the asset allocation of that fund would more or less be the same at age 65. That’s important to understand for choosing the lifestyle fund that’s appropriate for your risk tolerance and goals.
Recommended: Explaining Asset Allocation by Age
Two Stages of Lifestyle Funds
Lifestyle investing can work in different stages, depending on where you are in your investing journey. Lifestyle funds accommodate these different stages by adjusting their asset allocation.
This is something the fund manager can do to ensure that you’re working toward your goals without overexposing yourself to risk along the way. The two stages of lifestyle funds are the growth stage and the retirement target date stage.
1. Growth Stage
The growth stage represents the period in which a lifestyle investor is actively saving and investing. During the growth stage, the emphasis is on diversifying investments to achieve the appropriate balance between risk and reward. This phase represents the bulk of working years for most people as they move from starting their careers to reaching their peak earnings.
In the growth stage, lifestyle funds hold an asset allocation that reflects the investor’s goals and appetite for risk. Again, whether this is more conservative, aggressive or somewhere in-between depends on the individual investor. At this time, the investor is typically concerned with funding retirement accounts, rather than withdrawing from them.
2. Retirement Target Date
The retirement target date stage marks the beginning of the countdown to retirement for an investor. During this stage, the focus shifts to preparing the investor to begin drawing an income from their portfolio, rather than making new contributions or investments.
At this point, a lifestyle investor may have to decide whether they want to maintain their existing asset allocation, shift some or all of their assets into other investments (such as an annuity), or begin drawing them down in cash. For example, an investor in their mid-50s may decide to move from an aggressive lifestyle fund to a moderate or conservative lifestyle fund, depending on their needs, anticipated retirement date, and how much risk they’re comfortable taking.
Different Types of Lifestyle Funds
Lifestyle funds aren’t all alike and there are different options investors may choose from. There are different ways lifestyle funds can be structured, including:
• Income-focused funds. These lifestyle funds aim to produce income for investors, though capital appreciation may be a secondary goal. Fixed-income securities typically make up the bulk of lifestyle income funds, though they may still include some equity holdings.
• Growth-focused funds. Lifestyle growth funds are the opposite of lifestyle income funds. These funds aim to provide investors with long-term capital appreciation and place less emphasis on current income.
• Conservative asset allocation funds. Conservative lifestyle funds may have a long-term goal of achieving a set total return through both capital appreciation and current income. These funds tend to carry lower levels of risk than other lifestyle funds.
• Moderate asset allocation funds. Moderate lifestyle funds often take a middle ground approach in terms of risk and reward. These funds may use a “fund of funds” strategy, which primarily involves investing other mutual funds.
• Aggressive asset allocation funds. Aggressive lifestyle funds may also use a “fund of funds” approach, though with a slightly different focus. These funds take on more risk, though rewards may be greater as they seek long-term capital appreciation.
Lifestyle Investment Risks
Investing for retirement with lifestyle assets has some risks, so it’s important to make sure that the fund you choose matches your risk tolerance. Risk tolerance refers to the amount of risk an investor is comfortable taking in their portfolio. Risk capacity is the amount of risk needed to achieve investment goals.
Typically, younger investors can afford to take more risk in the early years of their investment career as they have more time to recover from market declines. But if that investor has a low risk tolerance, they may still choose to stick with more conservative investments. If their risk tolerance doesn’t match up with the amount of risk they need to take to achieve their investment goals, they could fall far short of them.
When considering lifestyle funds, it’s important to consider your risk mix and risk level. While lifestyle funds can simplify investing in that you don’t necessarily need to make day-to-day trading decisions, it’s still important to consider how your risk tolerance and risk capacity may evolve over time.
As you move from the growth stage to the retirement target date stage, for instance, you may need to make some adjustments to your lifestyle fund choices in order to keep pace with your desired goals. 💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.
Advantages of Lifestyle Funds
In addition to their risks, lifestyle funds offer numerous advantages to investors, starting with simplicity. When you invest in a lifestyle fund, you know more or less what to expect in terms of asset allocation, based on the risk tolerance that you specify. These funds don’t require you to be an active investor in order to realize returns.
Some funds also automatically rebalance on behalf of investors, so there’s very little you need to do, other than be mindful of how the fund’s risk mix reflects your risk tolerance at any given time.
A lifestyle fund can offer broad diversification, allowing you to gain exposure to a variety of assets without having to purchase individual stocks, bonds or other securities.
Compared to other types of mutual funds or exchange-traded funds (ETFs), lifestyle funds may carry lower expense ratios. That can allow you to retain more of your investment returns over time.
Finally, lifestyle funds encourage investors to stay invested through market ups and downs. That can help you to even out losses through dollar-cost averaging.
Lifestyle Funds vs Target Date Funds
If you have a 401(k), then you’re likely familiar with target date funds as they’re commonly offered in workplace retirement plans. A target date fund, or lifecycle fund, is a mutual fund that adjusts its asset allocation automatically, based on the investor’s target retirement date. These funds are distinguishable from lifestyle funds because they typically have a year in their name.
So a Target Date 2050 fund, for example, would attract investors who plan to retire in the year 2050. Target date funds also take a diversified approach to investing, with asset allocations that include both stocks and fixed-income securities.
The difference between target date funds and lifestyle funds is that target date funds follow a specific glide path. As the investor gets closer to their target retirement date, the fund’s asset allocation adjusts to become more conservative. Lifestyle funds don’t do that; instead, the asset allocation remains the same.
Recommended: Target-date Funds vs. Index Funds: Key Differences
The Takeaway
Whether you choose to invest with lifestyle funds, target date funds, or something else, the most important thing is to get started saving for retirement. The longer your time horizon until retirement, the more time your money has to grow through the power of compounding interest.
If you feel like incorporating lifestyle funds into your investing strategy may help you reach your financial goals, be sure to take the pros and cons into consideration. It may also be helpful to consult with a financial professional for guidance.
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.
FAQ
What is a lifestyle pension fund?
A pension fund is a type of defined benefit plan, in which employees receive retirement benefits based on their earnings and years of service. A lifestyle pension fund is a pension fund that allocates assets using a lifestyle strategy in order to meet an investor’s goals and needs.
What is a lifestyle strategy?
In investing, a lifestyle strategy is an approach that chooses investments that can help an investor to reach specific milestones or goals while keeping their age and risk tolerance in mind. With lifestyle funds, the asset allocation doesn’t change substantially over time.
What is a lifestyle profile?
A lifestyle profile is a tool that investors use to help them select the most appropriate lifestyle funds based on their age, risk tolerance goals.
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Participating in a 401(k) through your employer can be a good way to contribute to and save for your retirement. One important thing to know is that there are limits on how much you can contribute each year and the amount typically changes, as per guidelines from the IRS.
Read on to find out about the 401(k) contribution limit for 2023 and 2024.
Overview of 401(k) Contribution Limits
The IRS reviews and often adjusts annual 401(k) contribution limits. The amount you can contribute to your 401(k) is increasing in 2024.
Changes in Contribution Limits for 2024
In 2024, you can contribute up to $23,000 in your 401(k). If you’re age 50 or older, you can contribute an additional $7,500 to your 401(k) plan for a grand total of $30,500 in annual contributions for 2024.
Yearly Contribution Limits Explained
The IRS reviews the annual contribution limits for 401(k)s, typically in the fall of each year, and adjusts them when necessary to account for inflation. The IRS changed the yearly 401(k) contribution limits (also known as elective deferral limits) for 2023 and 2024.
2023 Contribution Limits
For 2023, you can contribute up to $22,500 to your 401(k). Those age 50 and up may contribute additional catch-up contributions of $7,500 — for a total contribution limit of $30,000.
2024 Contribution Limits
For 2024, the IRS is raising the 401(k) contribution limit once again. You may contribute up to $23,000 to your 401(k) in 2024. However, the catch-up contribution limit for older employees is not changing in 2024; instead it will remain at the 2023 level. That means those age 50 and up may contribute an additional $7,500 to their 401(k) for 2024, for a total of $30,500. 💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
Employer Contributions and Catch-Up Provisions
One of the factors that makes a 401(k) a good vehicle for saving for retirement is that an employer may also contribute to the plan on your behalf.
And for older employees, the opportunity to make catch-up contributions to help save for retirement can be especially helpful.
Understanding Employer Match Limits
Your employer can make matching contributions to your 401(k) in addition to the funds you contribute. Matching funds may be based on the amount you choose to contribute.
For example, your employer might offer matching funds if you contribute 5% or more of your salary, as an incentive to get you to save. It’s a good idea to save at least the minimum amount to receive an employer’s match. If you don’t, you could be giving up free money.
There is an overall limit on how much you and your employer can contribute to your 401(k) plan each year. The combined limit for employer plus employee contributions in 2023 cannot exceed 100% of your income or is $66,000, whichever is lower. The 2024 combined limit is 100% of your income or $69,000, whichever is lower.
Catch-Up Contributions for Older Investors
If you are over the age of 50, your retirement contribution limit increases. The 401(k) catch-up contribution lets you fill in gaps in your retirement savings as you get closer to retirement. In 2023 and 2024, you can make up to $7,500 in catch-up contributions.
Roth 401(k) vs Traditional 401(k) Limits
In addition to traditional 401(k)s, there are other types of employer-sponsored retirement accounts, such as a Roth 401(k). The main difference between a traditional 401(k) and a Roth 401(k) is that contributions to a Roth 401(k) are made after-tax, while contributions to a traditional 401(k) are made with pre-tax dollars. Money grows inside a Roth 401(k) account tax-free and is not subject to income tax when you withdraw it.
Like a traditional 401(k), a Roth 401(k) has contribution limits.
Understanding Roth 401(k) Limits
Employee contribution limits for Roth 401(k)s are $22,500 for 2023, and $23,000 for 2024, the same as traditional 401(k)s. Roth 401(k) catch-up contribution limits for those 50 and up are $7,500 in 2022 and 2023 — also the same as catch-up contribution limits for traditional 401(k)s.
Comparing Traditional 401(k) Limits
Here’s a side-by-side comparison of traditional 401(k) contribution limits for 2023 and 2024.
Traditional 401(k)
2023
2024
Employee contribution limit
$22,500
$23,000
Catch-up contribution limit
$7,500
$7,500
Combined employee and employer contribution limit
$66,000
$69,000
Managing Multiple 401(k) Plans
You may have multiple 401(k) plans, including some with previous employers. In that case, the same yearly contribution limits still apply.
Contribution Limits with Multiple Employers
Even if you have 401(k) plans with multiple employers, you must abide by the same annual contribution limits across all your plans. So, for 2023, the maximum you can contribute to all your 401(k) plans is $22,500, and for 2024, the maximum amount you can contribute is $23,000. You can split these total amounts across the different plans, or contribute them to just one plan.
After-Tax 401(k) Contribution Rules
Some 401(k) plans allow for after-tax contributions. What this means is that as long as you haven’t reached the maximum combined limit of your plan — which is $66,000 in 2023 — you can make after-tax contributions up to the maximum combined limit.
For instance, if you contribute $22,500 to your 401(k) in 2023, and your employer contributes $5,000 through an employer match, you can contribute an additional $38,500 in after-tax dollars, if your plan allows it, to reach the $66,000 maximum. 💡 Quick Tip: Did you know that a traditional Individual Retirement Account, or IRA, is a tax-deferred account? That means you don’t pay taxes on the money you put in it (up to an annual limit) or the gains you earn, until you retire and start making withdrawals.
Excess Contributions and Their Implications
Figuring out how much you want to contribute to your 401(k) can be tricky. And you’re not allowed to go over the contribution limits or you may face penalties.
Handling Over-Contribution
If you contribute too much to your 401(k), you could be charged a 10% fine. You might also owe income tax on the excess amount.
Fortunately, many 401(k) plans have automatic cut-offs in place to help you avoid excess contributions. However, if you change jobs or you have more than one 401(k) plan, you might accidentally contribute too much. If you realize you’ve done this, you have until April 15 to request that the excess contributions be returned to you, along with any earnings those contributions made while they were in your 401(k). You can report excess contributions when you file your taxes using form 1099-R.
Strategies to Avoid Excess Contributions
To avoid making excess 401(k) contributions:
• Check the maximum contribution limits each year.
• If you get a raise, reassess your contribution amount to make sure you’re not exceeding it.
• If you have more than one 401(k) plan, review your contributions across all of your plans to make sure you’re not exceeding the maximum contribution limits.
Maximizing Your 401(k) Contributions
When you have a 401(k), you’ll want to get the most out of it to help you save for retirement. Here’s how.
Ideal Contribution Strategies
To maximize your 401(k):
• Start contributing to the plan as soon as you can. The earlier you start saving, the more time your money has to grow.
• Contribute at least enough to get the employer match on your 401(k). If you don’t, you are essentially passing up free money.
• Keep track of all your 401(k) plans to make sure you don‘t exceed the annual contribution limits. And if you have a 401(k) from a previous employer, you might want to do a 401(k) rollover to potentially get more out of the plan.
Balancing 401(k) with Other Retirement Plans
Along with your 401(k), you can open other types of retirement accounts to help you save for your golden years. For instance, consider a traditional IRA or a Roth IRA, which are both tax-advantaged plans. You can save up to $6,500 in 2023 (and $7,000 in 2024) in a traditional or Roth IRA, plus an extra $1,000 each year if you are over age 50 — and that’s in addition to what you can save in your 401(k).
Having more than one type of retirement plan could potentially help you reach your financial goals faster. Not only can you put away more money for your retirement, an IRA typically gives you more investing options that a 401(k) does, making it more flexible. It can also assist you with diversifying your portfolio to help manage risk and potentially help grow your retirement savings.
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).
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FAQ
What is the maximum 401(k) contribution for 2023?
The maximum 401(k) contribution limit for 2023 is $22,500. Those aged 50 and up may contribute an additional $7,500 in 2023.
Are 401(k) contribution limits changing in 2024?
Yes, 401(k) contribution limits are changing in 2024. The 401(k) contribution limit in 2024 is $23,000. Individuals who are 50 and older can contribute an additional $7,500 to their 401(k) in 2024.
Can I contribute 100% of my salary to a 401(k)?
If you make less than $23,000 annually, you may be able to contribute 100% of your salary to a 401(k). However, your specific 401(k) plan may limit the amount you can contribute.
You should also note that there is an overall limit on how much you and your employer can contribute to your 401(k) plan each year. The combined limit for employer plus employee contribution in 2023 cannot exceed 100% of your income or is $66,000, whichever is lower. The 2024 combined limit is 100% of your income or $69,000, whichever is lower.
Is there a salary cap for 401(k) contributions?
Yes, there are income limit rules for 401(k) contributions. The amount of compensation eligible for 401(k) contributions in 2023 is $330,000. Anything above that amount of compensation is not eligible for contribution. What this means is that while you can contribute up to the maximum employee contribution, which is $22,500 in 2023, your employer can only match up to the income limit.
What happens if I exceed the 401(k) max?
If you contribute too much to your 401(k), you could be charged a 10% penalty. You might also owe income tax on the excess amount. If you realize you’ve exceeded the 401(k) maximum, you have until April 15 to request that the excess contributions be returned to you, along with any earnings the contributions made while they were in your 401(k). You can report excess contributions on form 1099-R when you file your taxes.
How much can I contribute to a 401(k) if I’m 50 years of age or older?
If you are 50 or older, you can contribute up to $30,000 in your 401(k) in 2023, and up to $30,500 in 2024. This includes an additional $7,500 each year in catch-up contributions.
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Embark on a quest for the perfect home decor accessory that aligns with your unique style and elevates your living spaces. The market is teeming with options, but navigating this realm requires thoughtful consideration. Whether you desire a vibrant splash for your living room or a warm embrace for your bedroom, the possibilities are vast. Drowning in choices is inevitable, yet the transformative potential of the right decor piece is unparalleled. From nuanced accent pillows to captivating wall art, each accessory holds the key to reshaping your home into a haven of style and comfort. Immerse yourself in the realm of home decor accessories for a curated transformation.
SEEKO Short Round Ball Cactus in Ceramic Pot
Envision a desert oasis within your home or office, courtesy of the SEEKO Natural Looking Fake Cactus Plant. Standing at 11″ in a ceramic pot, this artificial cactus effortlessly infuses Southwest charm into your space. Perfect for cubicles or shelf accents, its realistic appearance captivates. Beyond its visual appeal, this generously sized faux plant is remarkably easy to care for and budget-friendly. A must-have for those seeking to effortlessly incorporate a touch of desert allure into their surroundings.
Rated 9.9 based on 10
Natural looking, Can be accent in any decor, Versatile use
Somewhat pricey
Sullivans Ceramic Vase Set Distressed White
Enhance your home decor with the Sullivans Vase Set, an ideal addition to any space. This farmhouse-inspired set boasts a generous size, making it a captivating centerpiece for tables or shelves. The distressed finish exudes rustic charm, creating an aesthetic that elevates every room. Beyond their visual appeal, these white vases offer easy cleaning and maintenance. Versatile enough for the kitchen, bedroom, office, living room, or bathroom, this set is a must-have for any home. With its affordable price, the Sullivans Vase Set delivers exceptional value and style for your investment.
Rated 9.7 based on 10
Versatile for different rooms, Boho & farmhouse aesthetic, High quality centerpiece and accessories
Actual size is smaller than anticipated
Ceramic Vase for Minimalist Decor (2pcs)
Introducing the White Ceramic Vase – a minimalist gem with remarkable versatility. Its hollow, round form and matte finish infuse a modern aesthetic into any space, offering ample space for pampas flowers or other greenery. From weddings to everyday use, this vase exudes a boho chic vibe on dinner tables and shelves. The set includes two pieces, delivering exceptional value at an affordable price. Elevate your home with sophistication through the understated charm of the White Ceramic Vase.
Rated 9.5 based on 10
Modern minimalist design, Made from high quality ceramics, Create beautiful dining table centerpie
Not suitable for large spaces
Putihac White Ceramic Vases Set of 2
Embark on a minimalist journey with the White Ceramic Vases, perfect for displaying pampas grass and flowers in a chic and stylish way. The round matte donut design adds a touch of elegance to any room, making it an ideal choice for home decor enthusiasts. This set of two vases is generously sized and surprisingly easy to maintain, ensuring long-lasting durability. With its affordable price point, this product offers great value for money and is a must-have for anyone looking to elevate their home decor game.
Step into modern home elegance with Carrot’s Den Donut Vase, a minimalist Nordic-style ceramic masterpiece. Affordability meets design in this hollow marvel, facilitating effortless floral arrangements. Ideal for tables, living rooms, bookshelves, or offices, the set of two provides exceptional value. Whether you seek a boho or wedding vibe, the Carrot’s Den Donut Vase effortlessly injects a touch of elegance into any space, making it the perfect addition for those who appreciate both style and budget considerations.
Rated 9.1 based on 10
Minimalist Nordic Style, Versatile for various settings, Perfectly handy size
May not best for bigger space
Levvohd Ceramic Vase Set of 2
Elevate your home décor with the Levvohd Ceramic Vase Set, seamlessly blending Nordic minimalism with modern design. Perfect for showcasing your favorite flowers, these eye-catching vases boast a unique donut shape. Whether adorning your living room, entryway, or coffee table, their generous size and easy cleaning enhance their value. Priced affordably, this set combines beauty and practicality, ensuring your space receives compliments for its stylish transformation. Dive into the world of Levvohd, where elegance meets affordability in perfect harmony.
Rated 8.8 based on 10
Made of high quality ceramics, Versatile for various decor styles, Hollow design adds visual interest
Size is smaller than expected
COTYNI White Ceramic Vase Set of 2
Delve into the realm of modern home decor with this exquisite pair of ceramic vases. The round matte donut design adds a touch of neutral boho Nordic minimalism, suitable for various occasions from living room to wedding table party. Generously sized to showcase your favorite flowers or pampas grass, these vases embody elegance effortlessly. Surprisingly easy to maintain and budget-friendly, this minimalist set is a standout addition for those seeking a touch of sophistication in their office or bedroom. Elevate your space with this essential vase set, where style meets practicality.
Rated 8.7 based on 10
Extreme craftmanship, Versatile use, Durable material
May be too small
Marycele Book Vase for Flowers
Explore the world within the pages of books with the Marycele Book Vase, a seamless blend of functionality and aesthetics. Ideal for book lovers, this surprisingly easy-to-use vase effortlessly complements your decor. Generously sized, it accommodates your favorite flowers, infusing a touch of nature into your living space. Beyond being a mere vase, it serves as a captivating addition to your home, fostering a closer connection to nature. Best of all, it’s an affordable transformation for your space, making it an excellent Thanksgiving gift or a self-indulgent addition to elevate your home decor.
Rated 8.5 based on 10
Unique book vase design, Economical price, Versatile room decor piece
Need extra care to avoid scartches
FAQ
Q: Where can I find affordable home decor accessories?
A: Navigate the realm of budget-friendly home decor accessories through curated online platforms like Etsy, where unique and economical options abound. Explore the offerings of Wayfair for a diverse selection at reasonable prices. Local thrift stores and flea markets often hide affordable gems, while discount retailers and clearance sections unveil stylish accessories without compromising your budget.
Q: How do I choose the right home decor accessories for my space?
A: Selecting the ideal home decor accessories involves assessing your space’s aesthetic, considering your style preferences, and focusing on functionality. Harmonize elements by choosing accessories that complement your existing decor. Opt for items that resonate with your personal taste and contribute to the overall ambiance. Experiment with diverse textures, colors, and sizes to curate a cohesive and visually appealing arrangement that elevates your living space.
Q: Can I find affordable yet high-quality home decor accessories?
A: Certainly! Unearth top-notch yet budget-friendly home decor treasures through online marketplaces, thrift store gems, and savvy brand selections. Delve into the realm of cost-effective options, where quality and affordability converge seamlessly. Transform your space without breaking the bank by exploring accessible avenues for stylish and well-crafted home decor accessories.
Q: Are there eco-friendly options for home decor accessories?
A: Absolutely! Dive into sustainable home decor choices with eco-friendly materials like recycled glass, reclaimed wood, and organic fabrics. Numerous brands prioritize environmentally conscious practices, ensuring your decor doesn’t compromise the planet. Look for certifications like FSC or GreenGuard, and explore the growing array of stylish, sustainable options to adorn your space with guilt-free, planet-friendly flair.
Q: How often should I update my home decor accessories?
A: Refreshing your home decor accessories is subjective but consider adapting with changing trends or personal tastes every 3-5 years. It’s not just about following trends; it’s ensuring your space stays vibrant and resonates with your evolving style. Stay attuned to your preferences, and update strategically for a fresh, welcoming atmosphere that suits your current aesthetic.
Conclusions
Navigating the landscape of home decor accessories led us to a standout choice: white ceramic vases. A product of comprehensive reviews, these vases emerged as a favored selection for minimalist, boho, and modern decor enthusiasts. The diversity in shapes, sizes, and designs renders them adaptable to living rooms, bedrooms, offices, and even wedding settings. Offering a seamless infusion of elegance and sophistication, these vases boast a neutral palette that effortlessly complements any color scheme or theme. For those seeking to transcend the ordinary in home decor, the white ceramic vase proves to be an impactful and versatile option worthy of consideration.