In the scenic seaside neighborhood of Corona del Mar in Newport Beach, a newly listed coastal home will make you rethink your house goals.
Dubbed ‘The Island House’, the dreamy property sits on three homesites that have been combined to create what is now one of the most expensive homes in the already-exclusive community.
Properties in the Orange County riviera are notoriously expensive, with the median listing price in the area averaging $4.8 million, according to Realtor.com.
Even so, the 7-bedroom Island House gives the rest of Corona del Mar’s pricy listings a run for their money – pun intended.
Priced at $29.5 million, the property is one of the most expensive homes for sale in the area. A Brighton Road home that’s set about 2 miles away currently claims the #1 spot with a $35 million price tag.
On a county level, the property ranks in the top 12 most expensive homes in Orange County, with a newly built Newport Coast mansion (known as Palais du Cristal) leading the rankings with its whopping $69.8 million ask.
But there are a few aspects that are completely unique to the Island House — from its past presidential ties to the three lots it sits on.
The previous owners bought the property back in 1999 with plans to rebuild it into their dream home. To do that, they also purchased two adjacent lots and combined them into one homesite that has no direct neighbors.
According to our sources, back in the day, Ronald Reagan and his family used to frequent the original residence that stood on the property.
But there’s not much left of the presidential favorite. The previous owners embarked on an extensive renovation (carried on by the current seller), which transformed it into a magnificent residence that combines traditional and contemporary design.
With sweeping ocean views from nearly every room — directly overlooking Newport Harbor, the Balboa Peninsula, Catalina Island, Palos Verdes and popular surf spot, The Wedge — the exclusive home offers seven bedrooms and ten bathrooms, spread across 7,168 square feet of living space.
Designed for entertaining, working and relaxing at home, The Island House features a long list of private amenities.
An elegant office with glass and steel-framed walls opens to a patio and three-hole putting green. The lower entertainer’s level boasts a 650-bottle wine room with a tasting area and a 15-seat home theater with a 120” screen and surround sound.
On its own level at the third floor is an additional game room with a full bath, 32-bottle wine fridge, Fleetwood doors, patio and sunbathing area.
While it’s hard to pin down all the noteworthy features of the $29.5 million home, some of its standout features include Fleetwood windows and doors, an open-plan great room, expansive pool and spa, BBQ kitchen/bar, and outdoor entertaining area that can fit roughly 100 guests.
Outside, the three- to six-foot deep pool, heated spa and multi-colored ambient lighting, and pool terrace with ample space provide the perfect spot for shaded or sun-drenched lounging.
Dancing water features add a picture-worthy setting with the ocean as a backdrop.
The Island House is listed with Mauricio Umansky, Phillip Caruso, Michael Caruso, Roxy Gonzalez of The Agency.
More stories you might like
A $25M Corona Del Mar Home is Being Marketed With the Help of NBC’s Dance Stars Oceanfront Home on Dana Point’s ‘The Strand’ Sells for $21.25M A Contemporary $56 Million Malibu Mansion Towers Above the Ocean
Options sweeps are large options trades executed by well-capitalized, typically institutional investors, quickly and across the best available order prices. When an option sweep is placed, the executing broker will hit all available counterparties, by order of best outstanding prices, until the investor-specified order size is filled.
The typical retail investor typically will not execute options sweep trades, given the massive amount of funding and leverage they entail. Instead, options sweep trades can serve as an indicator of underlying interest around a certain security. As they typically reflect institutional investor actions, option sweep trades are indicators of what the “smart money” is doing.
What an options sweep implies is up to interpretation and depends on the order size, type of option, and average price at which the options sweep was executed. We cover how options sweeps work and how retail investors should interpret them.
How Do Options Sweeps Work?
When options sweeps are executed, the trade will be visible to market participants. The details around the trade, namely its size, the type of option traded, and the approximate price of the trade, are viewable by traders with the capability to scan for them. However, the specific entity entering the trade and the order type (whether it’s a buy or sell) will not be disclosed.
Option sweeps aren’t really considered one of the strategies for trading options. But given the massive amount of capital needed to properly transact an options sweep, and the fact that these are typically entered as block trades, entities that use option sweeps are likely to be well-capitalized institutional investors.
Consequently, options sweeps are viewed as indicators of aggressive bets made by “smart money,” and can stir up investor interest due to the perceived informational advantage that professional money managers have over retail investors learning to trade options.
Under the right circumstances, they can provide useful insight into implied short-term price swings that large institutional investors might be hedging against. This makes it a popular tool for short-term traders.
How to Interpret Options Sweeps
Options sweeps serve as indicators of unusual options activity surrounding the underlying investment.
Options trades may imply aggressive actions by institutional investors, and traders who detect options sweeps may use them to inform their actions.
How an options sweep should be interpreted depends on the type of option being traded, its expiration date (American- and European-style options are different), and the price near where the options sweep was executed.
Regardless of what an options sweep may suggest, investors should bear in mind that institutional investors are fallible like retail investors. In other words, sometimes the “smart money” isn’t so smart. Despite the informational asymmetry, option sweeps should be interpreted with a grain of salt. Make sure to conduct your own due diligence before trading, looking at bearish or bullish stock indicators and so on.
Option Type
When a trader buys to open a call option, this generally implies a bullish bet on the price of a security, as call options offer upside potential beyond the stated strike price.
Conversely, when a trader buys to open a put option, this implies a bearish bet on the direction of the underlying security, as put options offer downside protection beyond the stated strike price.
Price
While it’s evident that a trade was made when an options sweep occurs, the trade won’t explicitly disclose whether the options were bought or sold by the institutional investor.
To gauge whether or not an options sweep was a buy or sell order, and to better understand options pricing, traders can contextualize based on whether the average execution price was traded “near the bid,” or “near the ask.”
Trades made near the bid are typically sell orders, while near the ask trades are typically buy orders. This follows the traditional trading logic of “sell at the bid” and “buy at the ask.”
Combination Trades
Not all option trades are simply buy calls or buy puts. Combination trade strategies using multiple options are very common. It might be very difficult to interpret the strategy of the option sweep investor, and even more difficult to determine if your own investing strategy aligns.
Finally, user-friendly options trading is here.*
Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.
How to Detect Options Sweeps
Options sweeps are difficult to detect without the aid of dedicated trade scanners that monitor options flow activity.
Many third-parties and brokerage accounts that offer advanced trading capabilities may include this as part of a subscription fee, or as a part of their trading suite.
If you don’t have access to these paid programs, there are still ways to detect unusual options activity on stocks you follow.
First, options are useful hedging tools for institutional investors and are therefore typically used during times of heightened market volatility.
You can watch for open options interest on calls and puts, expiring close to earnings reports or dividend announcements. Beyond company-specific announcements, traders can often gauge options interest close to market-moving events, economic reports, or even Federal Reserve statements.
While this won’t necessarily inform the direction of an upcoming trade, it will certainly shed some light on where volatility is likely to occur as the expiration date on the options approach.
Who Uses Options Sweeps
Options sweeps are used almost exclusively by large well-capitalized institutional traders.
Due to the large amount of capital needed to execute an options sweep, and the massive risk profile that this entails, it’s unlikely that anyone without a substantially large bankroll would be able to conduct an options sweep trade.
Virtually all retail investors would be excluded from the list of candidates capable of executing options sweeps.
The Takeaway
While options sweeps are not usually executable by everyday investors, their existence still serves as a useful indicator of institutional activity.
Unusual options activity has historically been a popular short-term metric for gauging the direction of stocks. While there’s no guarantee as to the accuracy of the implied price moves, they’re nonetheless another useful tool in the arsenal for short-term options traders.
If you’re ready to try your hand at options trading, You can set up an Active Invest account and trade options online from the SoFi mobile app or through the web platform.
And if you have any questions, SoFi offers educational resources about options to learn more. SoFi doesn’t charge commissions, and members have access to complimentary financial advice from a professional.
With SoFi, user-friendly options trading is finally here.
FAQ
Are call sweeps considered bullish?
Call option sweeps are large purchases or sales of call options that can be considered either bullish or bearish, depending on the price where the trade completes.
All options trades have both a bid and an ask price; the bid price indicates the price you’d receive for selling to open the option while the ask price indicates the price you’d pay to buy to open the option.
If a call sweep is shown executing near the bid price, that means that an institutional trader likely sold a large number of call options at the bid price, which may imply a bearish signal.
Conversely, if a call sweep is shown executing near the ask price, that indicates that an institutional trader likely purchased a large number of call options at the ask price, which could imply a bullish signal.
How can you find options sweeps?
Finding options sweeps isn’t as simple as searching for trade ideas. Detecting option sweeps requires scanning software that can sleuth through public trade data for unusual options activity.
There are a number of options activity scanners available on the web and through third-party information services; in most cases, these require paid subscriptions.
Many popular online brokerage accounts also sometimes offer their own activity scanners as part of their suite of advanced trading platforms.
What does it mean for a sweep to be near the ask?
If a sweep is near the ask, this means a large sweep order was made to trade securities near the ask price.
This may be interpreted as a “bullish” signal that the stock price may rise in the short term.
Photo credit: iStock/Drazen Zigic
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. SOIN0322023
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Swiping your magnetic-stripe credit card will soon become a thing of the past.
In the wake of widespread consumer data breaches like those at Target and Home Depot – plus increasing rates of counterfeit fraud – credit card companies nationwide are issuing new smart chip-enabled cards to improve payment security and provide consumers with greater protection against fraud.
Have you received your new chip-equipped credit cards in the mail yet? If not, you will soon: October 2015 is the “liability shift” deadline between banks and merchants. If a business doesn’t offer chip-enabled transactions after October, the liability for any resulting credit card fraud will fall to the business-owner and no longer the bank.
Here’s the scoop on what you need to know about chip-enabled cards, or as they are more formally known, EMV cards:
What’s EMV?
EMV cards – named after its original developers Europay, MasterCard, and Visa – are nearly identical to the typical American credit card, but they are encrypted with a small computer chip rather than a magnetic stripe. You will notice a small gold or silver metallic square on the front of your card. While this square contains the same information as magnetic stripe cards, such as name, card number, and expiration date, each transaction generates unique, dynamic data. This is the game changing technology that makes it difficult for anyone but the rightful owner to use the card, and it protects against the creation of counterfeit cards.
EMV cards have been the standard around the world for decades, but America is finally catching up: half of the world’s credit card fraud occurs in the US!
How Do EMV Cards Work?
Instead of swiping your card, you’ll insert your card into a terminal slot. This action is called “dipping”! The data then flows between the card chip and the issuing financial institution to verify the card’s legitimacy. Because these cards are read in this new, different way, you should know that the transaction is not as quick as a basic swipe; expect a slightly longer time at the point of sale. Though most of the world operates on a “chip and pin” system, Americans will still sign credit card receipts for the time being.
Keep in mind, your card will still have an magnetic stripe, too. Not all businesses will support “dipping” by October. In fact, a recent Intuit survey found that 42% of small businesses haven’t heard about the deadline yet!
Can I Still be a Victim of Fraud?
Though this new technology should give you greater peace of mind, smart-chips do not entirely eliminate credit card fraud. You will still need to monitor your credit card accounts and credit score diligently – at least once a month. That’s the best way to detect fraud in the early stages and keep your identify safe.
– Vera Gibbons,Mint Contributor and Personal Finance expert
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This is another guest post from JoeTaxpayer. On my blog, I’ve shared several articles that discussed the Roth IRA conversion event of 2010 in great length and detail. While this is can be a great opportunity for many, there are several instances that a conversion does not. I looked to JoeTaxpayer to share some pros and cons of the Roth IRA conversion and for unforeseen consequences that could result.
There’s been much hype regarding the ability for anyone to convert their retire money to Roth regardless of their income. Many professional planners and writers of financial blogs have offered compelling reasons why one should convert. Today, I’d like to share some scenarios where you might regret that decision.
You don’t have a crystal ball
All signs point to higher marginal rates, this is one factor that prompts the advice to convert, but who exactly would that impact, and by how much? Let’s look at the first risk of regret. You are single, and an above average wage earner, just barely in the 28% bracket. (This simply means your taxable income is above $82,400 but less than $171,850, quite a range). Any conversion you make now is taxed at 28%, by definition. You get married, and start a family quickly, your spouse staying home. That same income can easily drop you into the 15% bracket as you now have three exemptions, and instead of a standard deduction, you have a mortgage, property tax and state tax which all put you into Schedule A territory and a taxable income of less than $68,000. Now is when you should use the conversion or Roth deposits to take advantage of that 15% bracket, before your spouse returns to work and you find yourself in the 25 or 28% bracket again. It’s then that you should convert enough (or use Roth in lieu of traditional IRA) to ‘top off’ your current bracket.
Life isn’t linear
It’s human nature to expect the next years to be very similar to the past few. Yet, life doesn’t work quite that way. The person who makes more money year on year, from their first job right through retirement is the exception. For more people, there are layoffs, company closings, major changes in family status, disability, and even death. Except for permanent disability or death, the other situations can be considered opportunities to take advantage of a full or partial Roth conversion. If one should become disabled, the ability to withdraw that pretax money at the lowest rates is certainly preferable to having paid tax on it all at your marginal rate.
Transferring your 401(k)
The Roth conversion is available for holders of 401(k) (and other) retirement accounts as well as holders of traditional IRA accounts. Back in October 07, I cautioned my readers on a somewhat obscure topic they need to be aware of when considering a transfer from the 401(k) to their IRA and the same caution exists for conversion to a Roth. Net Unrealized Appreciation refers to the gains on company stock held within your 401(k). The rules surrounding this allow you to take the stock from the 401(k) and transfer it to a regular brokerage account. Taxes are due only on the cost of that stock, not the current market value. The difference up to the market value at time of sale (thus the term Net Unrealized Appreciation) is treated as a long term capital gain. Current tax law offers a top LT Cap Gain rate of 15%. A loss of 10% or more if you are in the 25% bracket or higher and convert that company stock to a Roth.
Taking Money At Retirement
Given the low saving rate of the past decades, all projections point to fewer than the top 10% of retirees coming close to ‘retiring in a higher bracket.’ Consider how much taxable income it would take to be at the top of the 15% bracket in 2010. For a couple, the taxable income needs to exceed $68,000. Add to this two exemptions, $3,650 ea, and an $11,400 standard deduction. This totals $86,700. Using a 4% withdrawal rate, it would take $2,167,500 in pretax money to generate this annual withdrawal. What a shame it would be to pay tax at 25% to convert only to find yourself with a mix of pre and post-tax money that puts you toward the bottom of that bracket. Whose marginal rates do you believe will rise? Couples making less than $70,000? I doubt it. What’s the risk? That you should be in the 25% bracket at retirement? That’s still break even in the worst scenario.
What About Your Beneficiaries
While a tax-free inheritance might be great for the kids, a properly inherited, properly titled Beneficiary IRA can provide them a lifetime of income. Consider, if you leave a portion of your traditional IRA to your grandchild, a 13 year old, his first year RMD (required minimum distribution) will only be about 1.43% of the account balance. For a $100,000 account left to him, this RMD falls shy of the current $1900/yr limit before he is subject to the kiddie tax. To insure that he doesn’t withdraw the full remaining amount at 18 or 21, consult a trust attorney to set up the right account for this purpose. If left to your own adult children, the advantage can go either way depending on their income and savings level.
Are You a Philanthropist?
If you don’t have individual heirs you wish to leave your assets to, the ultimate poke at Uncle Sam is to leave your money to charity. No taxes at all are due. Leaving Roth money to charity just means that our government already got its piece of the pie.
Avoiding Roth IRA Conversion Regrets
Today, I’ve shared with you some scenarios that are cause for regretting a conversion. As I always caution my readers, your situation may differ from anything I addressed here, and your unique needs are all that matters. If you have any questions on when or if a conversion makes sense for you, post a comment and we’ll be happy to discuss.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Please see a tax professional before implementing any sort of IRA conversion. Joe TaxPayer is not affiliate or endorse by LPL Financial.
More than 30% of the food supply in the United States ends up as waste, according to the U.S. Department of Agriculture. The value of that wasted food was around $161 billion in 2010 and has surely risen since then.
Did your grocery budget just curl up and scream? Mine did. It pains me to think of the loss of all that food, not to mention the resources needed to produce it: tractor fuel, fertilizer, pesticide, packaging, gasoline for transport.
Time to think outside the box — or, rather, outside the garbage can — and get creative about food so we waste less of it.
At least some of the following ideas should work for almost everyone. You’ll offset your carbon footprint and stretch food dollars to boot.
1. Boil down leavings
My partner and I keep a bag in the freezer for vegetable and fruit scraps — such as carrot and radish tops, pea pods, onion skins, apple cores, sweet-potato peelings — plus chicken and pork chop bones.
Next to it is a container that holds the liquid used to boil potatoes or other vegetables.
When the bag is full, we throw its contents plus the veggie cooking water and some salt into the slow cooker and leave it on low overnight. The next morning we strain the liquid and use it as a soup base.
The stock tastes different every time because what went into it varies so widely. But it always makes a great pot of soup.
2. Cook up some garbage soup
Do tonight’s leftovers consist of just a spoonful or two of mashed potatoes, a quarter-cup of gravy and a few shreds of chicken or roast beef?
Don’t send it down the garbage disposal! Instead, store it in a bag or container in the freezer. Once the bag is full, you have the makings of a fast dinner.
Put some stock — from your own boiling bag or from a can or carton — into a big pan with seasonings plus a can of tomatoes, if you like. Simmer for at least 20 minutes, then add the contents of the freezer bag.
Stir now and then as it thaws and adjust the seasoning if necessary. You can add more vegetables if you like, or rice or pasta, or maybe nothing at all — maybe your potage de garbage will taste perfect the first time.
3. Get free tops at the farmers market
Look at all those lovely fresh turnips and beets for sale at your local farmers market. If you don’t see the tops elsewhere on the table, politely ask the farmer what happened to them. Could be they were lopped off five minutes ago.
If so, you can walk away with a nice batch of healthy, delicious greens for free. Try sauteing them in olive oil with garlic or adding them to a stir-fry. If they’re really young and tender, make them part of a salad. Freeze or dehydrate what you can’t use right away for soups or quiche later on.
Return to the market 15 minutes before closing and check to see if the vendors are packing up most of their wares but setting aside nearly overripe tomatoes, misshapen root vegetables or slightly wilted spinach. Ask politely if you can have them.
The tomatoes will make fine salsa or spaghetti sauce, the oddball veggies just need a little persistence in peeling and cutting, and the greens can go into soup (or the boiling bag).
Some of the vendors would rather give this stuff away than dispose of it. Even if they ask for some money, it could be less than you’d pay in the supermarket.
4. When dairy goes bad
Milk a few days past its sell-by date isn’t automatically bad. And even if it is, don’t throw it out! Sour milk makes great pancakes and waffles and can also be used in cake, cookie or quick bread recipes that call for milk. Or do a search for “sour milk recipes,” and you’ll get an eyeful.
I make my own yogurt, saving a cup of each batch as starter for the next one. Every few months, those active cultures will be colonized by wild yeasts, and the yogurt starts to smell a little beer-y. Time for a new starter. Meanwhile, I use the weird yogurt in two ways:
Smoothies. All the fruit that I add drowns out the weird yogurt flavor.
Baked goods. I freeze any weird yogurt until I want to bake my mom’s famous Sour Cream Chocolate Cake. (Well, it was famous in our family, anyway.) Remember, back in the day, “sour cream” was cream that had gone bad rather than the cultured sour cream variety we buy now. The effect is the same though.
5. Grab leftovers after the potluck
If your workplace pitch-ins are anything like the ones I used to attend, there’s always uneaten food at the end. Often the folks who brought it don’t want to take it home.
Leverage those leftovers! First, offer to help clean up. Then, state matter-of-factly that it bugs you to see food being thrown out so you plan to take some of it home.
Remember to share. If you take what’s left of the turkey, leave the ham bone. Don’t hog all the freshly cut pineapple or the best cakes and pies.
When you get home, cut any remaining meat off the turkey for a second-day dinner. Chop up odd bits for turkey salad, turkey tetrazzini, turkey a la king or any other dish that stretches small amounts of meat. Finally, boil the bones for soup stock.
Ditto with a ham bone: Dice up any remaining meat for a Western omelet or make a cream gravy and some biscuits for a hammy version of “‘stuff’ on a shingle.” The bone makes a great pot of bean soup.
Freeze leftover rolls and cookies. Load up on fruits and veggies if no one else wants them.
6. Liquid assets
Our fridge and freezer are full of odds and ends of liquids that still have some work to do. For example, once we finish a jar of pickles, we save the brine until we have a nearly empty bottle of mustard. Shaken together, the two become a tangy condiment that’s delicious on cooked lentils or in any soup that needs a bit of zing.
The liquid from pickled jalapenos is a great marinade for sliced carrots or fresh green beans. An “empty” salsa jar or ketchup bottle gets shaken with a bit of water, then poured into the veggie cooking water mentioned in the “Boil down leavings” tip.
No doubt you can find your own ways to avoid throwing out these frugal liquid assets.
7. Look for ‘manager’s specials’
Supermarkets regularly discount meats, breads, fruits, dairy and deli items with short shelf lives. If they aren’t sold quickly, they’ll turn into garbage. But not if you get there first! You can save 50% or more by buying from the “manager’s special” sections or other clearance-food areas of your store.
Obviously, these items should be used promptly or put into the freezer. Half-price ground beef is not a bargain if it makes you sick because you neglected to cook it quickly enough.
Nearly overripe fruit is good for smoothies and quick breads; just freeze it for later use. Cook up ground beef or turkey and freeze it for quick meals later on. Milk approaching its use-by date can be frozen or used right away to make frugal puddings or homemade yogurt.
8. Make friends with the butcher
If your grocery store or meat market sells boneless chicken breasts, where did the bones and skin go? Ask if you can have them, then turn them into soup stock.
A blogger named Penny collects these chicken bits in order to render her own chicken fat for cooking. If the butcher isn’t sure that’s OK, Penny suggests asking the store manager. “Doing that afforded me an easy, ‘Sure, no problem,’” she writes.
Don’t want to do it? Try this instead: When you cook chicken or turkey, don’t skim off the fat and throw it into the garbage can. Freeze it and use it later to saute vegetables.
9. Check the Freecycle Network/Buy Nothing Facebook groups
But aren’t those groups for things like bikes and couches? Sure, but I’ve seen food products on there as well, including canned goods, frozen dinners, garden surplus, and tree fruit. If no one takes it, what do you want to bet it gets thrown into the garbage?
And as I noted in “Need Something? Buy Nothing,” we’ve gotten lots of food from our local Buy Nothing Facebook group. Some of it was unopened, but not all; for example, we scored a nearly full 50-pound bag of Costco bread flour.
Other things we’ve gotten include baking powder, dough enhancer, powdered milk, salt, dried beans, yeast, canned soup, lentils, pasta, split peas, Spam, canned vegetables, fruits, fish and an institutional-sized box of parchment paper for baking.
10. Glean from gardens and nature
Gardeners and homeowners who find themselves with too much of a good thing usually love to give some of it away. Help them out! A handful of websites maintain databases of free produce. Read more about this in “Stop Paying for Your Food!”
Keep your eyes peeled, too. Frugality blogger and writer Erin Huffstetler regularly harvests weeds that are edible and healthy, including dandelions, red clover, purslane and cattails. She and her family also collect wild-growing pecans, chestnuts, blackberries, mulberries and black walnuts.
11. Try some dumpster diving
You just knew I’d bring that up, didn’t you? “Freeganism” is potentially illegal, depending on where you live and maybe even dangerous. Do it right, however, and you may wind up with food that’s perfectly safe to consume.
When I managed an apartment building in Seattle, I noticed that a departing tenant had placed a box of canned goods in the recycle bin. I pulled the box out because unopened cans can’t be recycled — and, yes, I kept them, because they were undented and nowhere close to their sell-by dates.
So while I can’t in good conscience recommend that everyone run to the nearest dumpster with a shopping bag, I suggest being alert to your surroundings.
One of the most exquisite private homes in the entire San Diego area is now up for grabs.
Those of you who have a passion for architecture will have probably heard the name Richard Requa before. His firm, Requa and Jackson, was arguably the busiest architecture company in the 1920s in San Diego.
Whenever you see a charming, classic Spanish Revival property as you’re driving or walking around the city, chances are it was designed by Requa.
The architect was heavily influenced and inspired by the Andalusia area of Spain, and his works tend to reflect this. Requa even developed a signature style, known today as ‘Southern California Architecture.
The Old Globe Theater in Balboa Park, the D. E. Mann House at 1045 Loma Avenue in Coronado, the Del Mar Castle – these are some of Requa’s most well-known works, and they all showcase his unique, laid-back, Spanish-inspired Californian style.
Another one of Richard Requa’s iconic projects is the William A. Gunn House, located at 1127 F Avenue in Coronado.
It was designed by Requa and Jackson, with Milton P. Sessions serving as landscape architect, and completed in 1925 for Michigan furniture maker W.A. Gunn.
It’s one of the most beautiful examples of Requa’s Southern California Architecture, and it’s now looking for a new owner whose pockets run $39 million deep.
How Coronado Castle’s current owner Brian Mariotti took Requa’s design into the 21st Century
The jaw dropping mansion at 1127 F Avenue is also known as the Coronado Castle, and for good reason.
The property is reportedly roughly four times the size of an average Coronado lot, totaling 26,000 square feet and offering a lot of privacy and outdoor space.
Coronado Castle is an architectural gem protected by the Mills Act — a status that serves to significantly lower property taxes for the property. While lower property taxes are definitely nice to have, this property offers a lot – and we mean A LOT – more than that.
The current owner of the Requa-designed Coronado mansion is Brian Mariotti, the CEO of Funko, the toy company best known for its licensed vinyl figurines and bobbleheads.
Marriotti bought the 6,000-square foot property in 2017 for $12.2 million, and then purchased the lot right next to it, thus significantly expanding the site at 1127 F Ave.
The owner also invested heavily in upgrades at the Gunn house, but was careful to also preserve the building’s historical heritage.
The result is a stunning mix of 1920s Spanish Revival architecture and modern, laid-back California touches. Everything that was added to the home had to blend in with Requa’s original vision.
Paul Schatz, the owner of Interior Design Imports, who worked on the house with the Mariottis, told the Wall Street Journal that ‘the goal was to make everything new look as old as possible.’
Mixing business with pleasure – from home office to Star Wars-themed home theater, this property has it all
There are many highlights to this incredible property, but this is definitely our favorite: a 26-seat home theater featuring life-size Star Wars memorabilia, such as statues, weapons, and helmets.
Just imagine hosting a Star Wars movie marathon with family and friends, watching the original trilogy on a 20-foot screen powered by state-of-the-art 4k Max laser projector. Not too shabby, right?
The 7,000-square-foot Star Wars-themed basement also features an indoor golf room with a simulator, a tennis area, and it houses Mariotti’s impressive collection of toy figurines.
But the most impressive feat is the basement itself, which was not part of Requa’s original design.
The 15-foot-deep basement took six months to complete and required a 4-foot concrete foundation; the entire thing had to basically be ‘shoved underneath the existing house,’ as Jim Papenhausen of Papenhausen Construction told the WSJ.
In the end, Mariotti and his team were able to complete the project without damaging the historic structure in any way.
While a Star Wars-themed home theater and a massive toy collection exhibit area might not sound like the most practical amenities, the house does not disappoint when it comes to functionality, either.
The Mariottis understood the requirements of modern life, and turned the house next door into a four-car garage, and used the extra land to build a new family room wing and expand the outdoor area.
New owners will be able to enjoy a six-hole putting green, an outdoor living room area, a swimming pool, an outdoor kitchen, all bounded by century-old trees.
The house also incorporates four bedrooms, six full bathrooms, three-and-a-half bathrooms, a 14,142-square-foot guest house, a 1,300-square-foot home gym, and a spa with a massage table and a sauna.
For digital nomads, there is also a home office situated on the third floor at the top of the mansion’s castle-like tower. This area offers stunning views of San Diego and also includes an outdoor patio with a bar and a fireplace.
If you’re still not convinced that this is a one-of-a-kind property, a Spanish-influenced castle in the heart of California, then feel free to take a virtual home tour below, and find more details about this architecturally distinct house here.
Chris Clements, Jan Clements, and Lennie Clements of Compass are handling the listing.
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The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on a seasonally adjusted basis during the week ended May 19 and was 5 percent lower than the previous week on an unadjusted basis. It was the second consecutive weekly decline.
The Refinance Index was down 5 percent and was 44 percent lower than the same week one year ago. The refinance share of applications was unchanged at 27.4 percent.
The seasonally adjusted Purchase Index fell 4 percent. The unadjusted version was 5 percent lower week-over-week and 30 percent lower on an annual basis.
“Mortgage applications declined almost five percent last week as borrowers remained sensitive to higher rates. The 30-year fixed rate increased to 6.69 percent, the highest level since March,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity remains limited, with the refinance index falling to its lowest level in two months and more than 40 percent below last year’s pace.”
Kan added, “Investors remained attuned to the uncertainty around the U.S. debt ceiling and communication from several Federal Reserve officials last week, which sent Treasury yields higher, along with mortgage rates. Economic data released over the past week have also pointed to a still-resilient economy. The housing market received positive data on new residential construction – which is seen as a key solution to the lack of housing inventory.”
Other Highlights from MBA’s Weekly Mortgage Applications Survey
Loan sizes grew by around $2000 compared to the prior week. Purchase loans averaged $442,000 and the overall average was $393,600.
The FHA share of total applications increased to 12.5 percent from 12.0 percent and the VA share ticked up to 12.5 percent from 12.2 percent. USDA applications accounted for 0.5 percent of the total.
The average 6.69 percent contract interest rate for conforming 30-year fixed-rate mortgages (FRM) was 12 basis points higher than the previous week. Points increased to 0.66 from 0.61.
The rate for jumbo 30-year FRM rose to 6.57 percent from 6.46 percent,with points increasing to 0.57 from 0.38.
FHA-backed 30-year FRM had an average rate of 6.56 percent with 1.24 points. The prior week the rate was 6.39 percent,with 0.97 point.
The rate for 15-year FRM increased by 19 basis points to 6.15 percent. Points averaged 0.72, up from 0.68.
The average contract interest rate for 5/1 adjustable-rate mortgages (ARMs) was 2 basis points higher at 5.73 percent,with points increasing to 1.19 from 1.10.
The ARM share of activity increased to 6.7 percent from 6.5 percent.
Here at GRS, we’ve briefly covered different daily tasks that are cheaper to do yourself, but sometimes the frugal-minded want some dollars and cents to tie to these decisions.
Today, I’m going to take a look inside the heart of the frugal home, the kitchen, and at a few delicious staples for the average foodie. I’m going to compare prices for making food yourself versus buying it in the store. Unless otherwise noted, these average prices were retrieved from the website of Vons, a West-Coast grocery chain, so prices may vary in your part of the world!
Which is Cheaper: Homemade or Store Bought Bread?
For those of us raised on peanut butter and jelly sandwiches made of thin, white, butter bread, discovering the world of thick, crusty baguettes and pungent ryes might have been something of a life-changing experience.
Since there are literally hundreds of different types of bread, both to buy and to make, our recipe is for your average simple yeasted white bread. It also does not take into account extra purchases like bread-making machines that might lessen the time burden but increase the base cost.
The Common Shopper: Store Bought Loaf Safeway Butter Top Wheat Bread 22 Oz – $1.99 Natures Own 12 Whole Grain Bread 24 Oz – $4.99 Open Nature 100% Whole Wheat Bread 24 Oz – $1.99
The Alternative: Homemade Bread Milk 2 Oz — $.16 Butter 2 Oz — $.48 Sugar 1 Oz — $.07 Flour 24oz — $1.44 Salt ½ Oz – $.02 Dry Yeast – $2.19
Total cost approximate 28oz – $4.36
Which is Cheaper? Winner: Store Bought! Though as you can see, the price ranges on bread are wild. Your bakery might have better specials, so price it for yourself and gauge the final cost according to how much free time you like spending in the kitchen. If you have a few hours and some yeast on hand, make yourself some delicious cheap bread. I guarantee it will improve your sandwiches!
Which is Cheaper: Homemade or Store Bought Yogurt
Yogurt is an incredibly versatile food that is palate pleasing for breakfast, a snack, and —in a pinch—a creamy sour cream replacement that can do wonders on tacos and in mashed potatoes in its unsweetened plain form.
So imagine how exciting it would be to be able to make gallons of it at a time that, in its cultured state, will last for weeks in the fridge. Yum!
The Common Shopper: Store Bought Yogurt Dannon Light N Fit Vanilla Yogurt 32 Oz – $4.99 Chobani Greek Yogurt Plain 2% Fat 32 Oz – $5.99 Mountain High Plain Yogurt 32 Oz – $4.19
The Alternative: Homemade Yogurt Milk 32 Oz — $2.49 Starter Yogurt 6 Oz – $.80
Total cost 32 Oz – $3.29
Which is Cheaper? Winner: Homemade Yogurt, especially if you consider the ease at which you can double or quadruple your recipe without an extensive cost increase. If yogurt is a snack or breakfast staple, you can greatly reduce your costs by preparing it at home by the gallon. Find a recipe that works for you and get cookin’!
Which is Cheaper: Scratch Cake or Store Bought Cake
Queen of birthday parties and weddings, the traditional cake might not be a daily or weekly treat, but for the sake of your emotional happiness you might want to incorporate one into your diet at least quarterly.
For the purpose of keeping it simple, our homemade scratch cake is a simple white cake with white icing.
The Common Shopper: Store Bought Bakery Cake 8 Inch, 2 Layer White Cake – $15.99 8 Inch, 2 Layer Carrot Cake – $9.99
The Alternative: Homemade Scratch Cake The Cake: Sugar 8 Oz – $.56 Butter 4 Oz – $.96 Eggs 2 – $.55 Vanilla Extract ½ Oz —$1.43 Flour 12 Oz — $.72 Baking Powder ¼ Oz — $.06 Milk 4 Oz – $.32
Which is Cheaper? Winner: Scratch cake! But even without doing the math, I think we all know the cheapest method of all: boxed cake mix. That said, if you like control of the ingredients and want to get a lot of compliments, making a cake from scratch might be the way to go.
Which is Cheaper: Homemade or Store Bought Granola
The basics of granola are simple, but the magic that happens when combined in a bowl with milk or yogurt is far from ordinary. So, you’d think that lightly-sweetened baked oats plus combination of fruit or nuts would be the cheapest thing around, right? Read on!
The Common Shopper: Store Bought Granola Bear Naked Fruit And Nut All Natural Granola 12 Oz – $3.99 Open Nature Granola Cranberry Nut Goodness 12 Oz – $3.00 Cascadian Farm Organic Granola Fruit And Nut 13.5 Oz- $3.99
The Alternative: Homemade Granola Honey 2 Oz – $.41 Coconut Oil 1 Oz – $.74 Vanilla Extract ¼ Oz – $.72 Dried Apricot (Fruit) 2 Oz – $1.26 Butter 1 Oz – $.24 Quaker Oatmeal 10 Oz – $1.30
Total cost 13 Oz – $4.67
Which is Cheaper? As you can see, a batch of homemade granola falls right within the range of purchasing it in the stores. But much like yogurt, it is easy to exponentially increase the prepared granola, especially if you have a simple homemade granola recipe to follow. This one is a coin-toss.
Final Thoughts
You can tweak any recipe to be cheaper or more expensive depending on where you source your ingredients, but if cooking is not a fun recreational experience for you, you might also factor in how much money your time is worth.
Overall, it would appear that store bought food is right on trend with the cost of homemade preparation. But if you take it a step further and take into account production costs, packaging, and advertising, it becomes clear that the cost of the food in the package does not go right into the food itself. Homemade food items have the benefit of being fresher, (usually) more delicious, and full of ingredients you know and love.
The choice is yours in the kitchen: homemade or pre-made, and especially if you use items that are on sale, both appear to be frugal options.
Inside: This guide will teach you about the different factors you need to consider when purchasing a home with a 70k salary.
There are a lot of factors to consider when you’re trying to figure out how much house you can afford. Your income, your debts, your down payment, and the interest rate on your mortgage all play a role in determining how much house you can afford.
Your situation will be different than the person next-door or your co-coworker.
Making 70000 a year is a great salary. You are making the median salary in the United States.
It’s enough to comfortably afford most homes and gives you plenty of room to save money each month.
But how much house can you actually afford?
It depends on several factors, including your down payment, interest rate, income, and credit score.
In this ultimate guide, we’ll walk you through everything you need to know about how much house you can afford making 70000 a year.
how much house can i afford on 70k
In general, you can expect to spend 28-36% of your income on housing.
Generally speaking, if you make $70,000 a year, you can afford a house between $226,000 and $380,000.
How much mortgage on 70k salary?
In general, you should expect to spend no more than 28% of your monthly income on a mortgage payment.
Thus, you can spend approximately$1633-2100 a month on a mortgage.
Just remember this is relative to the interest rate, term length of the loan, down payment, and other factors.
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28/36 Rule
But there’s one factor that trumps all the others: The 28/36 rule.
Also known as the debt-to-income (DTI) ratio.
The 28/36 rule is a guideline that says that your housing costs (mortgage payments, property taxes, homeowners insurance, and HOA fees) should not exceed 28% of your gross monthly income.
And your total debt (housing costs plus any other debts you have, like car payments or credit card bills) should not exceed 36% of your gross monthly income.
You must follow the 28/36 rule.
How to calculate how much mortgage you can afford?
If you’re like most people, you probably don’t know how to calculate how much mortgage you can afford.
This is actually a really important question that you need to ask yourself before beginning the home-buying process.
The answer will help determine the price range of homes you should be looking at. Plus know how much money you’ll need to save for a down payment.
Step #1: Check Interest Rates
Research current mortgage rates to get an accurate estimate. You can also check your credit score and search for average mortgage rates based on your credit score.
Right now, with sky-high inflation, you are unable to afford a bigger house when interest rates are hovering around 6% compared to ultra-low interest rates of 2.5%.
With a 70k salary, this can be the difference between $50-100k on the total mortgage amount you can afford.
Step #2: Use a Mortgage Calculator
Use a mortgage calculator to get an estimate of the home price you can afford based on your income, debt profile, and down payment.
Generally, lenders cap the maximum amount of monthly gross income you can use toward the loan’s principal and interest payment to not more than 28% of your gross monthly income (called the “Front-End” or “Housing Expense” ratio). Then, limit your total allowable debt-to-income ratio (called the “Back-End” ratio) to not more than 36%.
You can use a mortgage calculator to a ballpark range of what house you can afford.
Step #3: Taxes, Insurance, and PMI
When planning for a home purchase, it’s important to factor in all of your monthly expenses, including taxes, insurance, and PMI.
This will ensure that you get an accurate estimate of your home-buying budget based on your household annual income.
Don’t forget to include these payments to get a realistic understanding of your monthly budget.
Step #4: Remember your Living Expenses
When considering how much house you can afford based on your $70,000 salary, you must consider your lifestyle and current expenses.
It is important to factor in other monthly expenses such as cell phone and internet bills, utilities, insurance costs, and other bills.
More than likely, you will be approved for a higher mortgage amount than you would feel comfortable with. This is 100% what lenders will do.
They want to provide you with the most you can afford – not what you should afford.
Step #5: Get prequalified
Prequalifying for a mortgage is an important first step to take when estimating how much house you can afford.
It gives you a more precise figure to work with and helps you make a more informed decision based on your personal situation.
Remember that your final amount will vary depending on a number of factors, especially your interest rate, which will be based on your credit score.
Taking the time to research current mortgage rates helps you secure a better mortgage rate, giving you more buying power.
Home Buying by Down Payment
How much house can you afford?
It’s a common question among home buyers — especially first-time home buyers. Use this table to figure out how much house you can reasonably afford given your salary and other monthly obligations.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 4% interest rate.
Annual Income
Downpayment
Monthly Payment
How Much House Can I Afford?
$70,000
$9,552 (3%)
$1,750
$318,412
$70,000
$16,215 (5%)
$1,750
$324,316
$70,000
$34,058 (10%)
$1,750
$340,581
$70,000
$53,573 (15%)
$1,750
$357,152
$70,000
$75,094 (20%)
$1,750
$375,468
$70,000
$98,933 (25%)
$1,750
$395,731
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Mortgage on 70k Salary Based on Monthly Payment and Interest Rate
How much house can you afford on a $70,000 salary?
This largely depends on the current interest rate of the mortgage loan you’re considering. When interest rates are high, people aren’t actively buying as when interest rates are low.
By understanding these factors, you can better gauge how much house you can afford on a $70,000 salary.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 20% downpayment.
Annual Income
Monthly Payment
Interest Rate
How Much House Can I Afford?
$70,000
$1,750
3.25%
$406,796
$70,000
$1,750
3.5%
$396,231
$70,000
$1,750
3.75%
$386,101
$70,000
$1,750
4%
$375,994
$70,000
$1,750
4.5%
$357,554
$70,000
$1,750
5%
$339,954
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Home Affordability Calculator by Debt-to-Income Ratio
Around here at Money Bliss, we always stress that debt will hold you back.
In the case of buying a house, debt increases your DTI ratio.
Here is a glimpse at what monthly debt can cause your debt-to-income (DTI) ratio to increase. Thus, making the house you want to buy to be more difficult.
Annual Income
Monthly Payment
Monthly Debt
How Much House Can I Afford?
$70,000
$2,100
$0
$440,085
$70,000
$1,900
$200
$404,584
$70,000
$1,800
$300
$382,334
$70,000
$1,600
$500
$337,883
$70,000
$1,350
$750
$282,208
$70,000
$1,100
$1000
$226,582
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Increase your Home Buying Budget
Here are a few ways you can increase your home buying budget when buying a house on a $70k annual income.
By following these steps, you can increase your home buying budget and find a more suitable house for your income.
1. Pick a Cheaper Home
Home prices vary significantly in different parts of the country.
Moving out of a major metropolitan area with notoriously high housing costs can help you find more affordable homes.
There are plenty of ways to find a home that is cheaper than you would normally expect.
Look for homes that are for sale in less desirable neighborhoods.
Find homes that are for sale by owner or have not been listed yet.
Check for homes that are for sale outside of your usual price range and haven’t sold as they may drop their price.
Move to a lower cost of living area.
2. Increase Your Down Payment Savings
A larger down payment can reduce the amount you have to finance, which lowers your monthly payment.
Plus help you get a lower interest rate and avoid paying PMI.
Putting down at least 10-20 percent of the home sale price can help boost your home buying power. You can also take advantage of down payment assistance programs in your area.
3. Pay Down Your Existing Debt
Paying down your debts such as credit card debts or auto loans can help raise your maximum home loan.
Paying down your debts can help you qualify for a higher loan amount.
This is because when you have lower amounts of debt, your credit score is higher and your debt-to-income ratio is less. This means you are less likely to be rejected for a home loan.
4. Improve Your Credit Score
A higher credit score can lead to lower rates and more affordable payments.
You can improve your credit score by:
Paying your bills on time
Paying down your credit card balances
Avoiding opening new credit before applying for a mortgage
Disputing any errors on your credit report
This is very true! We had an unfortunate debt that wasn’t ours added to our credit report right before closing. While the debt was an error, it still cost us a higher interest rate and forced us to refinance once the credit report was fixed.
5. Increase Your Income
Asking for a raise, seeking a higher-paid position, or starting a side gig can help you increase the amount of home you can afford.
While you need two years of income from a side gig or your own online business to count as income, the extra cash earned helps you to increase the size of your downpayment. Plus it lowers your debt-to-income ratio with the savings you are setting aside.
What factors should you consider when deciding how much you can afford for a mortgage?
How much house can you afford on your current salary and with your current monthly debts?
This is a question that we are often asked, and it’s one that we love to answer.
We’ll walk you through all the different factors that go into this decision so that you can make an informed choice.
1. Loan amount
The loan amount is a key factor that affects the total cost of a mortgage.
If you have no outstanding debt, a 20% down payment, a high credit score, and a 3.5% interest rate from an FHA loan, you could be able to afford up to $508,000.
However, if you have debt, a smaller down payment, or a lower credit score, the loan amount you can qualify for will be lower.
Similarly, if you choose a 15-year fixed-rate loan, your monthly payments will be higher, but you will end up paying less in interest over the life of the loan than with a 30-year fixed-rate loan.
Ultimately, your loan amount will affect the total cost of your mortgage, so it’s important to consider all the factors when making your decision.
2. Mortgage Interest rate
Mortgage interest rates can have a significant impact on the cost of a mortgage. The higher the interest rate, the more expensive the loan will be.
For example, a difference between a 3% and 4% interest rate on a $300,000 mortgage is more than $150 on the monthly payment.
Remember, in the first few years of a mortgage, the majority of the payment goes toward interest rather than trying to reduce the principal amount.
3. Type of Mortgage
The primary difference between a fixed and variable mortgage is the interest rate and the amount of your payment
Fixed-rate mortgages offer the stability of having the same interest rate for the life of the loan.
Adjustable-rate mortgages (ARMs) come with lower interest rates to start, but those rates can change over the life of the loan. ARMs are often a riskier choice, as if the economy falters, the interest rate can go up.
Fixed-rate loans are typically the most popular choice, as the monthly payment amount is more predictable and easier to budget for. The terms of a fixed-rate loan can range from 10 to 30 years, depending on the lender.
Adjustable-rate mortgages (ARMs) have interest rates that can increase or decrease annually based on an index plus a margin. ARMs are typically more attractive to borrowers who plan on staying in the home for a shorter period of time, as the lower initial interest rate can make the payments more manageable.
The Money Bliss recommendation is to choose a 15-year fixed-rate mortgage.
4. Property value
Property value can have a direct effect on how much you can afford for a mortgage.
As the value of the property increases, so does the amount of money you will need to borrow to purchase it. This, in turn, affects the monthly payments and the amount of interest you will pay over the life of the loan.
This is especially important as many people have been priced out of the market with the rising home prices.
Additionally, higher property values can mean higher taxes, which will add to the amount you need to budget for your mortgage payments.
5. Homeowner insurance
Homeowner’s insurance is a requirement when securing a loan and it can vary depending on the value and location of the home.
Additionally, certain areas that are prone to natural disasters or are located in densely populated areas may have higher premiums than other locations and may require additional insurance like flood insurance.
As a result, lenders typically require that you purchase homeowners insurance in order to secure a loan, and may have specific requirements for the type or amount of coverage that you need to purchase.
Before committing to a mortgage, it is important to consider the cost of homeowner’s insurance and make sure it fits into your budget.
This is something you do not want to skimp on as the cost to replace a home is very expensive.
6. Property taxes
Property taxes are calculated based on the value of a home and the tax rate of the city or county where the property resides.
The higher the property taxes, the more you will have to pay in your monthly mortgage payment.
In states with high property taxes, the property tax bill can be a large sum of the mortgage payment.
It is important to consider these costs when comparing different homes and locations to ensure you can afford the home without stretching your budget too thin.
7. Home repairs and maintenance
It’s important to also consider other factors such as the age of the house, since some properties may require renovation and repairs that can cost more than the house price itself.
Beyond the cost of purchasing a home, homeowners will likely have other expenses related to owning and maintaining the property.
Also, many homeowners prefer to do significant upgrades to the home before moving in, which comes at an additional expense.
These can include ordinary expenses such as painting, taking care of a lawn, fixing appliances, and cleaning living spaces, which can add up.
Additionally, it’s advisable to buy a home that falls in the middle of your price range to ensure you have some extra money for unexpected costs, such as repairs and maintenance.
8. HOA or Homeowners Association Maintenance
This is often an overlooked factor by many new homebuyers, but extremely important as some HOAs add $500-800 per month to the total housing budget.
The purpose of a homeowners association (HOA) is to establish a set of rules and regulations for residents to follow as well as maintain the community or building.
These fees are typically used to pay for maintenance, amenities, landscaping, and concierge services.
HOA fees are used to finance community upkeep, including landscaping and joint space development, and can range from $100 to over $1,000 per month, depending on the amenities in the association.
9. Utility bills
When switching from renting to buying a home, you will have to factor in the costs of your monthly utility bills such as electricity, natural gas, water, garbage and recycling, cable TV, internet, and cell phone when calculating how much mortgage you can afford.
In addition, the larger the home, the higher the costs to heat and cool your new home.
Make sure to ask your realtor for previous utility bills on the property you are interested in.
10. Private Mortgage Insurance
The purpose of private mortgage insurance (PMI) is to protect the lender in the event of foreclosure. It is typically required when a borrower is unable to make a 20% down payment on a home purchase.
PMI allows borrowers to purchase a home with less upfront capital, but also comes with additional monthly costs that are added to the mortgage payment. These fees range from 0.5% to 2.5% of the loan’s value annually and are based on the amount of money put down.
PMI can also be canceled or refinanced once the borrower has achieved 20% equity in the home or when the outstanding loan amount reaches 80% of the home’s purchase price.
11. Moving costs
Moving is expensive, but also a pain to do. So, consider the moving costs associated with relocating from one location to another.
Typically fees for packing, transportation, and possibly storage, and can vary depending on the size of the move and the distance the move needs to cover.
Also, consider if by buying a home, you will stop having moving costs associated with moving from rental to rental.
FAQ
When determining how much house you can afford, it’s important to consider several factors.
These include your income, existing debts, interest rates, credit history, credit score, monthly debt, monthly expenses, utilities, groceries, down payment, loan options (such as FHA or VA loans), and location (which affects the interest rate and property tax). Also, think about the costs of maintaining or renovating a home.
Additionally, you should also evaluate your own budget and assess whether now is the right time to purchase a home. Taking all of these factors into account can help you set the maximum limit on what you can realistically afford.
A mortgage calculator can help you determine your home affordability by providing an estimate of the home price you can afford based on your income, debt profile, and down payment.
It works by inputting your annual income and estimated mortgage rate, which then calculates the maximum amount of money you’re able to spend on a house and the expected monthly payment.
Additionally, different methods are available to factor in your debt-to-income ratio or your proposed housing budget, allowing you to get a more accurate estimate of your home buying budget.
The debt-to-income ratio or DTI is used by lenders to assess a borrower’s ability to make mortgage payments.
This ratio is calculated by taking the total of all of a borrower’s monthly recurring debts (including mortgage payments) and dividing it by the borrower’s monthly pre-tax household income.
A high DTI ratio indicates that the borrower’s debt is high relative to income, and could reduce the amount of loan they are qualified to receive.
Generally, lenders prefer a DTI of 36% or less, which allows borrowers to qualify for better interest rates on their mortgages.
To calculate their DTI, borrowers should include debt such as credit card payments, car loans, student and other loans, along with housing expenses. It is important to note that the DTI does not include other monthly expenses such as groceries, gas, or current rent payments.
Closing costs can have an enormous impact on how much home you’re able to afford.
From application fees and down payments to attorney costs and credit report fees, these costs can add up quickly and affect your overall budget. Unfortunately, most of these closing costs are non-negotiable, but you can ask the seller to pay them.
When buying a house, it is important to research the different mortgage options available to you.
You can typically choose between a conventional loan that is guaranteed by a private lender or banking institution, or a government-backed loan. Depending on your monthly payment and down payment availability, you may be able to select between a 15-year or a 30-year loan.
A conventional loan typically offers better interest rates and payment flexibility.
While a government-backed loan may be more lenient with its credit and down payment requirements.
For veterans or first-time home buyers, there may be special mortgage options available to them.
Ultimately, it is important to talk to a lender to see which loan type is best for your personal circumstances.
When it comes to saving for a down payment, it’s important to understand how much you’ll need and how much it will affect your budget.
Generally, you’ll need 20% of the cost of the home for a conventional mortgage and 25% for an investment property. When you put down more money, it gives you more buying power and may help you negotiate a lower interest rate.
For example, if you’re buying a $300,000 house, you’ll need a down payment of $60,000 for a conventional mortgage. On the other hand, if you put down 10%, you can still afford a $395,557 house. But, you will have to pay for private mortgage insurance.
In addition, there are other ways to help you cover these upfront costs. You can look into down payment assistance programs.
Ultimately, the size of your down payment will depend on your budget and financial goals. You should never deplete your savings account just to make a larger down payment. It’s important to factor in emergency funds and other expenses when deciding on the best option.
Eligibility requirements for loan lenders can vary, but in general, lenders are looking for borrowers with a good credit score, a reliable income, and a history of employment or income stability.
For most loan types, borrowers will need to show a history of two consecutive years of employment in order to qualify. However, lenders may be more flexible if the borrower is just beginning their career or if they are self-employed and do not have W2 forms and official pay stubs.
Income verification also needs to be done “on paper”, meaning that cash tips that do not appear on pay stubs or W2s can not be used as income. The lender will look at the household’s average pre-tax income over a two-year period before determining the amount that can be borrowed.
In order to make sure that the borrower is financially secure, lenders will also pull the borrower’s credit report and base their pre-approval on the credit score and debt-to-income ratio. Employment verification may also be done.
For certain government-backed loan types, such as FHA, VA, and USDA loans, there may be additional or different requirements for eligibility. For instance, for FHA loans, the borrower must intend to use the home as a primary residence and live in it within two months after closing. VA loans are more lenient, and may not require a down payment.
The qualifications for VA loans vary based on the period and amount of time the borrower has served. There are many ways to qualify, whether the borrower is a veteran, active duty service member, reservist, or member of the National Guard. For more information on eligibility requirements for VA loans, borrowers can visit the U.S. Department of Veteran Affairs.
A good credit score will mean you have access to more lending options, better interest rates, and more purchasing power.
On the other hand, a poor credit score could mean you are approved for a loan, but at a higher interest rate and with a smaller house.
This means your budget will be more limited and you may not be able to buy as much home as you had hoped for. Additionally, lenders will also look at other factors, such as your debt-to-income ratio, employment history, and loan term, in order to determine your overall affordability.
What House Can I Afford on 70k a year?
As a borrower, you need to consider the interest rate, down payment, credit score, debt-to-income ratio, employment history, and loan term when determining how much house you can afford.
A higher credit score can often mean a lower interest rate, and a larger down payment can bring down the monthly payments.
All of these factors can have an effect on the amount of money you can borrow and the home you can afford.
Ultimately, understanding the impact of different factors can help borrowers make the best decisions when it comes to getting a mortgage.
Now that you know how much house you can afford, it’s time to start saving for a down payment.
The sooner you start saving, the sooner you’ll be able to move into your dream home. But you may have to wait if you are considering a mansion.
By taking into consideration this guide into account, you can make a more informed decision about the cost of a mortgage for your new home.
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Steak and corn are usually what come to mind when someone says Nebraska.
How about wine? Yes, really.
Soaring Wings Vineyard is for sale outside Omaha, NE, for $3.1 million.
“The current owners moved to Nebraska and wanted to find land to start a winery, because they have always been fascinated with wine,” explains listing agent Michael Maley, with BHHS Ambassador Real Estate. “They found their 30 acres, built their house there, and started their winemaking operation.”
What started in a shed has expanded to a building that houses all of the winemaking equipment and oak barrels, situated across about 3o acres.
The vino is bought by area businesses and enjoyed by locals.
“The wine that is produced in the building is sold to grocery stores and is white-labeled in restaurants here in Omaha,” Maley says. “What was just a pet project and a hobby has turned into a really feasible business.”
That small business that started back in 2001 now includes a brewery, tasting room, an amphitheater, and an indoor-outdoor event space with room for 1,000 people to dine.
Everything conveys with the sale.
“Now they have a huge facility for events, weddings, and musical festivals,” Maley says. “They would love for somebody to come in, and see it, and want to take it to the next level.”
According to the winery’s website, the operation produces several kinds of wines with different types of grapes, including Syrah, and has won hundreds of medals at wine competitions.
The owners have lived on the property in a 3,909-square-foot, four-bedroom house. But there are no interior photos. Instead, the vineyard takes center stage for this listing.
Maley notes that the home has an updated kitchen, open spaces, and a phenomenal view.
“Even without the vineyard and the event center, the house on 30 acres is probably worth almost $2 million, so there’s good value in this property as well,” he adds.
Maley says he was surprised when he first saw the operation.
“I just kind of took it all in and was in awe with their whole production facility,” he recalls. “I didn’t know that existed here in Omaha.”
The winemaker is local, and Maley says she would like to stay and work for the new owners.
“The wine operation itself is kind of hands off for the new owner, if they want it to be,” he says. “They’d just have to focus on the events part of it.”
He adds that the property would be ideal for “someone that has entrepreneurial spirit, already owns an event venue, has a fascination with wine, or has grown businesses before. There’s huge growth potential with this business.”