Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
American renters are fearful that their home-owning aspirations are increasingly getting out of reach, according to a recent survey by the real-estate platform Redfin, amid an environment of high home prices and elevated mortgage rates.
Almost 40 percent of the renters polled told surveyors they did not believe they would own a home of their own, up from 27 percent in a similar survey Redfin conducted in May and June. Part of the struggle for these Americans is that homes are beyond what they can afford. Securing a down payment can prove elusive, and high mortgage rates may discourage them from acquiring property.
Read more: How to Get a Mortgage in 2024
The Redfin survey sampled about 3,000 U.S. residents in February, and its analysis of renters’ expectations came from a 1,000 renters in the poll.
Mortgage rates in particular have stayed elevated over the past six months. After hitting a peak of 8 percent—the highest level since the turn of the century—mortgage rates declined to the mid-6 percent range at the end of the year and into 2024. In recent weeks, however, the cost of home loans have ticked up to above 7 percent, depressing activity in the mortgage market.
On April 11, the 30-year fixed rate rose to almost 7.4 percent, Mortgage News Daily reported, the highest levels since November 2023. The rise follows news that suggests borrowing costs may stay elevated for longer than economists initially anticipated.
High mortgage rates now mean that first-time buyers must earn about $76,000 to afford what the industry describes as a starter home, which is an 8 percent increase from a year ago and almost 100 percent higher than it was before the pandemic, Redfin said. It added that home prices have soared more than 40 percent since 2019, as buyers took advantage of low borrowing costs during the pandemic to acquire houses, increasing demand, escalating competition and pushing up prices.
Read more: Compare Top Mortgage Lenders
“Buying a home has become increasingly out of reach for many Americans due to the one-two punch of high home prices and high mortgage rates,” Redfin wrote.
Renters being unable to buy homes has in turn contributed to increased competition and price jumps in the rental market. The median asking rent is at $2,000 in the U.S., close to the record high it reached in 2022, Redfin said. Still, despite the elevated cost of rent, renting may be a more affordable option than homeownership.
“Housing costs are high across the board, but renting is a more affordable and realistic option for many Americans right now—especially those who have never owned a home and aren’t able to tap into equity from a previous sale,” said Daryl Fairweather, Redfin’s chief economist. “While owning a home is usually a sound long-term investment, the barriers to entry and upfront costs of buying are higher than renting.”
To purchase a house, a buyer would need about $60,000 as a down payment for a home loan, an amount that is out of reach for many Americans.
Fairweather added, “The sheer expense of purchasing a home is causing the American Dream of homeownership to lose some of its shine.”
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Explore how to protect yourself from identity fraud, understand its emotional toll and learn fraud recovery steps.
How can you protect yourself from identity theft and fraud?
What steps should you take if you become a victim of financial fraud?
Hosts Sean Pyles and Sara Rathner delve into the unsettling world of identity theft and fraud prevention to help listeners safeguard their finances and wellbeing. They begin with a discussion on the various facets of identity theft, with tips and tricks on identifying fraudulent activity, enhancing personal banking security and dealing with the aftermath of having your identity compromised. Then, they discuss the differences between identity fraud and scams, the importance of good cyber hygiene, and the steps to take immediately if your personal information is breached.
Sean also speaks with John Breyault, Vice President of Public Policy, Telecommunications and Fraud at the National Consumers League, about the current trends in identity theft and the forms of fraud that are on the rise in 2024. They cover topics such as new account fraud, the impact of zero-day vulnerabilities on personal data security and the necessity for consumers to stay vigilant with software updates and report incidents promptly.
They also explore how victims can navigate the process of recovering from fraud, including freezing credit reports, changing passwords, and engaging with financial institutions and law enforcement to document the crime and seek restitution.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
So there you are just going along with your life, running errands, finishing work projects, walking the dog, making lunch, paying bills, and then you realize, something is very, very wrong. Someone has gotten into your accounts and stolen your money.
Charlene MacNeil:
August 28th was a normal day. I took my cat to the vet, went and got groceries. That morning, I checked my online banking just to make sure I had enough money to do everything. It just seemed like a normal day and then everything changed that evening when I got that email.
Sean Pyles:
Welcome to NerdWallet’s Smart Money podcast. I’m Sean Pyles.
Sara Rathner:
And I’m Sara Rathner.
Sean Pyles:
We’re back with our Nerdy deep dive into identity theft, fraud, and scams, and their potentially devastating effects on your finances if you become a victim. As we said last episode, and we’ll continue to reiterate over and over, these crimes do not discriminate. Absolutely anyone can find themselves in deep water with their money situation because these financial criminals have so very many tools and options at their disposal.
Sara Rathner:
Yeah. And, Sean, I think we also want to repeat the message that this doesn’t just happen to you because you’re ignorant or careless. It happens because as our guest last week said, “We have to be 100% right all the time.” We have to be watching our accounts and changing our passwords, realizing we’re talking to someone who’s pretending to be from a bank, etc., etc. And the criminal only has to be right once to get what they’re after. So if they catch you in a moment where you’re tired or hangry, they might just do that.
Sean Pyles:
So the last thing that you should feel is embarrassed or ashamed if you do become a victim of ID theft or a scam. Angry and upset, yes, ashamed, no. The more we all talk about it, the more educated we become and the harder we make it for the thieves and scammers.
Sara Rathner:
Yes. Let’s take our power back.
Sean Pyles:
Yes. So last week we talked about identity theft, how it happens, what to be on the lookout for, and how to protect yourself as much as possible. Today we’re going to look at the next step in that process, which is the identity fraud that happens after the theft.
Sara Rathner:
It’s the credit card opened in your name. It’s the tax return that isn’t really yours. It’s the healthcare account that also isn’t yours that gets the thief medical care on your dime. Listener, we’re going to help you understand what it looks like, how to avoid it, and what to do if it happens to you.
Sean Pyles:
All right, well, we want to hear what you think too, listeners. Tell us your stories of identity theft or share how you’re working to fight it or recover from it. Leave us a voicemail or text the Nerd hotline at (901) 730-6373. That’s (901) 730-NERD, or email a voice memo to [email protected].
Sara Rathner:
So, Sean, where do we start today?
Sean Pyles:
Well, we’re going to start today with a real world tale of identity fraud. We’re hearing from Charlene MacNeil, a mom from Alberta, Canada. She’s got a story about what happened when someone was able to get into her account at BMO Bank, a subsidiary of the Bank of Montreal. Then after Charlene, we’re going to talk with an expert in ID fraud, who’s seen it all in his capacity at the National Consumers Union. Charlene MacNeil, welcome to Smart Money.
Charlene MacNeil:
Hello. Thanks for having me.
Sean Pyles:
Charlene, you experienced a form of bank account fraud. When did you first realize that something was wrong?
Charlene MacNeil:
On August 28th, I had just put my kids to bed and I got an email pop up on my cell phone saying that I had a credit limit alert from BMO and it told me that I had $33 left in my account.
Sean Pyles:
And so that was an indication that you didn’t have sufficient funds or maybe your credit was run up. What were you thinking when you first saw that?
Charlene MacNeil:
I panicked when I saw the $33. It just didn’t make sense. So I immediately went onto my online banking and noticed that my line of credit was maxed to the $15,000 mark.
Sean Pyles:
And what steps did you take once you realized that something was very wrong with your account?
Charlene MacNeil:
I immediately called BMO and just told them the email that I got and she told me that she would cancel my card right away and my account and to go to the branch immediately the next day to file a report of what had happened.
Sean Pyles:
So the next day, did you go in and talk with them about that?
Charlene MacNeil:
Yeah, I went in the next morning and I told her what had happened and she had told me that there was a text message that was sent to me like a one-time passcode, and I tried to think back to the day before because I do get text messages or calls from scammers sometimes, but that summer I felt like I had gotten quite a few, but I just kind of always ignored them, so I didn’t really think much of it. And then when she was looking at my account, she asked me if I knew the company Wise, because she noticed that’s where the money had been sent and I Googled Wise right away because I didn’t know what she was talking about.
And when I Googled it, it said international money sending. So she was, “Oh, that’s a red flag. That’s crazy.” She made me feel like we should be able to get the money back, that she would fill out this report and send it off and it should be okay. What had happened was they took my line of credit money, transferred it to my checking account, and they set up a bill payment to the company Wise, and then they sent out the money that way through a bill payment.
Sean Pyles:
So a slightly convoluted way to get the money that you had from your line of credit over to them essentially?
Charlene MacNeil:
Yes, exactly.
Sean Pyles:
And so it seems like things are maybe going, okay, this was a frustrating experience, but you thought you were going to be able to get your money back?
Charlene MacNeil:
Yeah, I went back to work and I felt relieved. “Okay, that’s done. It should be fine.”
Sean Pyles:
But that’s not what ended up happening.
Charlene MacNeil:
No. Two days later, the teller that had helped me, she called me and started the conversation with, “I have some very unfortunate news. They will not refund that money to your line of credit.” And my heart fell because I was just, “What do you mean?”
Sean Pyles:
And this was $15,000 they said they weren’t going to refund?
Charlene MacNeil:
I had a balance on there before. So really they just took whatever I had left in my line of credit and sent it out, so it was like $9,700.
Sean Pyles:
And what reason did they give you for why you wouldn’t be able to get this money back?
Charlene MacNeil:
They had told me that they tried reaching out to Wise, but the money had already been transferred. So whoever the bill was made out to through the company, they had the money and that’s it. They couldn’t get the money back, but she did say, “If you want, we could escalate this and see if there’s something else that they could do.”
Sean Pyles:
Because there have to be some kind of protections. This was an instance of fraud. You didn’t authorize this transfer of money?
Charlene MacNeil:
No, but as this continued on, they kept saying that I had gotten this one time passcode sent to me August 28th at 4:20 p.m., but I don’t recall entering this six digit code that they’re telling me that I entered. But from their records, it shows I entered the code and that it was all good.
Sean Pyles:
It’s also possible that someone could have somehow gained access to your phone number or gotten that code themselves. Correct?
Charlene MacNeil:
That’s what I am trying to explain to them. I just know that I didn’t enter this code.
Sean Pyles:
So did you end up escalating this then?
Charlene MacNeil:
I did. I escalated it three times and then I finally got a final response just saying that it’s really unfortunate, but we can’t get that money back. And they just kept telling me it’s the one-time passcode and that’s the reason why the money was sent out that I pretty much authorized it to be sent out.
Sean Pyles:
I’m really sorry to hear that. Do you know how the people were able to get into your account?
Charlene MacNeil:
I don’t know. I just have a lot of people just giving me different ideas of how maybe it could have happened. I had a conference in Vegas at the beginning of August and it was on the news that Vegas was having issues with scammers.
Sean Pyles:
Was it an issue with people getting on public Wi-Fi and logging into their bank accounts?
Charlene MacNeil:
That or people also told me that maybe somebody walked by my purse and scanned my purse, but people have told me that too, thinking it’s because of the Wi-Fi.
Sean Pyles:
So I’m wondering, Charlene, how has this experience made you feel about the safety of your money? Have you thought about switching banks, anything like that?
Charlene MacNeil:
I’m very nervous because it blows my mind to think that somebody can get onto your online banking and then move money like that without a signature or maybe voice recognition or something. I shut down my line of credit now and I’m kind of waiting to hear what’s going to happen, but I am really considering moving banks. I wish this almost happened on a credit card because I feel like credit card companies have your back more than the bank.
Sean Pyles:
Yeah. Your story brings me back to a theme which is that fraud, scams, anyone can experience these things and it’s not like you followed a typical playbook of seeing a text message come through on your phone or clicking a link in email and entering your login credentials. You don’t know how someone got your information. It just exemplifies that you could be doing everything right and somehow people could still get your information and still get into your bank.
Charlene MacNeil:
Yeah, exactly. August 28th was a normal day. I took my cat to the vet, went and got groceries. That morning, I checked my online banking just to make sure I had enough money to do everything. It just seemed like a normal day and then everything changed that evening when I got that email.
Sean Pyles:
What do you think your next steps will be?
Charlene MacNeil:
I’m not very hopeful, to be honest. It’s something that I just have to accept. And I mean, I’ve done better the last couple months, but in the beginning it was very difficult. I lost lots of sleep, missed some work. It was very stressful. And you feel like you’re the one that did something wrong.
Sean Pyles:
Well, I’m sorry that you experienced this. I’m wondering if there’s anything that you would like listeners to keep in mind as they try to protect themselves and their finances online?
Charlene MacNeil:
Yeah, I mean it’s so important to be checking your banking probably daily just to make sure everything is going as you think. Be very careful, I guess, on public Wi-Fi. I was actually just on a trip with my family to Mexico and so many people use public Wi-Fi. And I did in Vegas just to load my boarding passes.
I did not check my online banking. I know a lot of people when they hear me say that I was on public Wi-Fi in Vegas. I did not check my online banking, but I was on public Wi-Fi and I guess people can be sitting in that room and gain all of your information. So I don’t know. I don’t want people to be paranoid, but I kind of feel paranoid.
Sean Pyles:
It might not be a bad idea in the year 2024 when if you’re on a public Wi-Fi network, someone who’s also on that can get into your device very easily. That’s the truth of where we are right now.
Charlene MacNeil:
Yes, and I heard once they’re in, then they can be in there for a while. If I would’ve checked my online banking a day or two later, they could have seen me enter my codes. Yeah, it’s very invasive.
Sean Pyles:
Well, Charlene, thank you for sharing your story with us today.
Charlene MacNeil:
Well, thank you for hearing me.
Sara Rathner:
Sean, this just makes me so sad and angry that anybody has to deal with this because it’s just not fair. It’s not a fair fight against these really savvy identity thieves.
Sean Pyles:
It’s really not. And what’s so worrisome to me about Charlene’s story is that she still can’t pinpoint exactly how these criminals got into her account. Again, it just shows that this kind of fraud can happen to anyone, but as tempting as it might be to just throw up your hands and yell, “I give up,” that just feeds the beast and doesn’t do us any good.
Sara Rathner:
Well, I’m looking forward to some advice on how to avoid all of this and anything that we could do to keep it from happening to us, to me, to my loved ones, and of course to our listeners.
Sean Pyles:
Well, our next guest will walk us through some of what happens when you’re the victim of identity fraud and give advice on how to avoid it and recover from it if it does happen to you. John Breyault is Vice President of Public Policy Telecommunications and Fraud at the National Consumers League. That’s coming up. Stay with us.
John, thanks so much for joining us on Smart Money.
John Breyault:
Hey, thanks for having me on the show. I really appreciate it.
Sean Pyles:
So last week we spent some time explaining identity theft and the various ways that bad actors can steal our IDs from us. And today, we’re going to explore what they do with all that information once they’ve got it. So I’d like to start by asking you to explain maybe the difference between ID fraud and scams. We’re going to talk about scams in our next episode, but what differentiates the two?
John Breyault:
Both scams and ID theft, we call fraud, right? It’s a crime where it involves typically a scammer trying to acquire information or funds that they can use for their own purposes. So identity fraud is definitely a subset of fraud overall, but it is certainly one of the biggest subsets.
So we know that, for example, the Federal Trade Commission every year puts out their Consumer Sentinel Data Book. It’s a compilation of millions of fraud complaints that they get from agencies and organizations like mine all over the country. And in 2022, which is their most recent data, they received 5.2 million fraud reports and the number one category that they heard about was identity theft. And so clearly this continues to be a major problem that the biggest enforcement agency out there is hearing about. Definitely identity theft is one of the biggest types of fraud, and one I think we continue to see consumers of every age level, every education level, every demographic be victimized by.
Sean Pyles:
And when you think about specific ways that ID fraud and scams can manifest, what makes them distinct?
John Breyault:
I think what makes each scam distinct is often, number one, what is the entry point for the scammer? Is it one where they have to interact with the victim, say by sending them a link that the consumer clicks on and then provides the data to the identity for the scammer that’s then used to commit fraud? Or is this something where the scammers can commit identity fraud really with no interaction with the victim at all?
We know, for example, that due to data breaches, that’s practically limitless information about almost every American out there on criminal forums on the dark web that can be used to basically commit identity theft as a service. With a few hundred dollars in Bitcoin, you too can hire an identity thief to do things like start bogus credit card accounts in your name or try and get healthcare benefits or unemployment insurance. These are all very common types of identity theft that’s out there, and that doesn’t require any of us to do anything.
Sean Pyles:
So you touched on this a little bit, but John, can you give us a sense of what you’re seeing out there right now? What are some of the most prevalent forms of identity fraud in 2024?
John Breyault:
Yeah, I would say some of the fastest growing types of identity theft is new account fraud. It’s not necessarily a new type of identity theft. We’ve seen scammers using information to create new credit card accounts for decades at this point, but certainly it is returning to its previous position as one of the top types of identity fraud. And it’s happening because the resources that identity thieves were devoting to government benefits fraud is going down. As those pandemic relief programs start to wind down, there’s less money for the identity thieves to steal. And so they’ve gone back to some of the tried and true types of identity fraud.
Sean Pyles:
Is there anything that’s relatively new that consumers should know about that maybe they haven’t really heard about?
John Breyault:
What we have seen over the past year has been a staggering increase in the number of data breaches attributable to what are called zero-day vulnerabilities. And if you’ve never heard of a zero-day vulnerability, that’s okay. Basically what it means is it’s a vulnerability that nobody else has identified. Think of it as having a key to a vault that nobody else has, and until the people who own that vault figure out that you have that key, they have no reason to try and solve the problem or change the lock.
Sean Pyles:
So this could be something like a weakness in our phones’ operating systems that allows a bad actor to get into our phones.
John Breyault:
Yes, exactly. It’s operating systems like Windows. It is browsers that can be hacked. It could be Microsoft Office. Really any software program can have a zero-day vulnerability. And so what’s concerning to us is just the increase in breaches that were attributable to zero days. It’s gone up. I believe the number that the ITRC cited was by more than 100% over the past 12 months.
Sean Pyles:
Do we know why this might be? Is it that software developers are maybe pushing out code a bit faster than they should and they aren’t combing through for vulnerabilities? Or is it that hackers are really zeroing in on these vulnerabilities and trying to exploit them?
John Breyault:
Well, I think that’s the $64,000 question, as they say. We have theories on how that is. One of the more worrying ones is that the scammers have learned how to automate their search for zero-day vulnerabilities using artificial intelligence. And if they’re able to search for these zero days at scale, a very low cost, that is scary because I think AI has revolutionized so many other facets of our economy and businesses and government over the past several years.
It definitely has the potential to do the same thing when it comes to fraud. I think many of us who work on fraud and identity theft on a daily basis, we are thinking of the potential of this as the same kind of potential for supercharging fraud and scams that we saw when the internet sort of became a technology that everybody was using. That’s the kind of scale of the threat that’s out there.
Sean Pyles:
And so when people get notifications on their phone saying, “Oh, you have a new software update to patch a security vulnerability,” this might be something that is being addressed. Correct? And it’s important for people to actually update their phones regularly so that they are having the most secure software possible?
John Breyault:
Yes. Cyber hygiene is definitely one of the lowest cost and easiest ways for consumers to reduce their risk of falling victim to identity fraud because once they are detected, the operating systems and browser makers are usually pretty quick to plug the hole. But that is often dependent on consumers paying attention to those little pop-up boxes that say, “Do you want to update your browser? Do you want to update windows?” And actually taking action. Definitely don’t wait to update. Make sure you do that because it really is one of the easiest ways to reduce your risk.
Sean Pyles:
So, John, walk us through some of the ways that listeners can protect themselves from identity fraud. We heard last week about protections from identity theft. So let’s assume that the theft has already happened and now we have to react to prevent the fraud. What are some first steps here?
John Breyault:
Well, number one, I would say act quickly. We know that identity theft is a crime that often relies on consumers doing nothing. If you know that your information has been compromised, take steps to reduce your risk. For many people, that’s going to start with freezing their credit report. All of the major credit reporting bureaus offer consumers the ability to freeze credit.
Number two, I would say try and limit the damage to the extent you can. For example, particularly if your primary email address has been compromised, that can be the entry point for scammers to take over lots of other accounts, your bank accounts, your social media accounts. So definitely change the password on your primary email account right away and turn on two-factor authentication as well to add an additional layer that the scammers have to get through. They’re going to try and use that entry point.
I would do the same for any financial accounts that you may have linked to that email account. In addition, call the banks and let them know what’s going on so that they can place fraud alerts on your accounts. And then finally, make sure and get a police report. Identity theft is a crime in all 50 states, but consumers, I think particularly if you start to see activity related to identity theft, having that report is often documentation that will be needed to get the kind of help from not just law enforcement, but also from banks and other entities that you’ll need.
I think, unfortunately, we know that local police departments aren’t always super excited to create those reports, so you may have to be persistent to do that, but definitely local police departments is the place I would start. And then work your way up to the State Attorney General and ultimately the Federal Trade Commission.
Sean Pyles:
Related to what you were just discussing, let’s go a step further. So let’s say someone took your information and then fraud happened before you could get to it. Who should you really go to for help? Let’s talk about reporting it and starting to deal with the fallout of fraud.
John Breyault:
Yeah. Once fraud has occurred, typically you still have rights. For example, an identity thief created a credit card in your name and started running a bunch of charges. You aren’t liable for that, but you’re going to need to take steps like have that identity theft affidavit and a police report ready to show to creditors who may wonder why you haven’t been paying your credit card bill that you just opened weeks ago. So definitely I would say getting those reports is going to be one key piece of information to have.
Also, call and talk to the entities who the identity thief is using in your name. Let them know who you are, what’s been going on, and see what you can do to address the fraud. Most of us don’t spend all day every day recovering from identity theft, but most of the financial institutions do have people who are devoted to helping you through that journey. But you’ve gotta keep records of that. Grab a notebook, create a little Word document on your computer, and start logging every communication that you have with those entities so that you can create a paper trail because you can’t just depend on them to know where you are in the process and to ensure that in one place they’re going to quickly try and use that information to commit identity theft in other places as well.
Sean Pyles:
Earlier in this episode, I spoke with a woman who experienced a form of bank fraud. A fraudster got access to her line of credit, and her bank didn’t offer much in the way of resolving the issue. She didn’t get her money back. And I’ve heard other similar stories before. What sort of recourse do people in that situation have to try to recoup their losses?
John Breyault:
Generally, if the consumer victim is not the one who is actually hitting send on the money transfer, whether it’s through a payment app or through a wire transfer from your bank, then you have protections under federal law as well as many state laws. So I think it’s important that if in a case like that where it sounds like the scammer got in because they were able to hack this woman’s credentials that she should have rights. Certainly if the bank seems unwilling to work with her, I would say your next stop should be the State Attorney General as well as groups like the Identity Theft Resource Center, which have great resources and help coach victims through recovering from these identity theft schemes.
Sean Pyles:
Yeah. And your advice just there brings up the idea of jurisdiction. The woman that I spoke with was based in Canada, where they have different rules and regulations than we do in the U.S. So I think it’s important for anyone to be familiar with what laws protect them where they’re living, whether it’s in a different country or a specific state.
John Breyault:
Yeah, absolutely. And I would say a great place to start that journey of learning what your rights are and what laws may apply is the FTC has a great website at identitytheft.gov where you can start to go through their checklist and create an identity theft recovery plan.
Sean Pyles:
Well, one final question. I’m asking this of all the experts that we’re talking with for this series, so I’ll ask you too. Have you ever fallen victim to a scam or identity theft or fraud?
John Breyault:
I definitely have. Fortunately for me, it wasn’t sort of life altering, but what got me interested in working on fraud was a trip I took to Jamaica on vacation where I was in a bar, which probably tells you the first thing that I wasn’t thinking very clearly, but one of the locals came up to me and said, “Hey, if you give me $20, I can get you cheaper drinks at the bar.” And I said, “Great.” And so I gave him the $20 and he turned around, bought some beers for him and his friends and just ignored me.
And I wasn’t about to start a fight with a bunch of guys in a bar in Jamaica. So I just said, “Okay, lesson learned.” Don’t always take what people say to you at face value and listen to your gut before you hand over your money. Unfortunately, in this country we have, when it comes to identity theft and being a victim of fraud, we often have this tendency to blame the victim.
And there’s a real stigma attached to being a victim of fraud. And we often use terms like, “You fell for a scam.” Or people say, “I can’t believe I was so stupid.” Or we use terms like, “pig butchering scams,” which suggest that somehow the victim is the one who’s culpable. I think that that is wrong. If I could have one additional message for listeners of this podcast, it’s show a little compassion the next time somebody tells you their fraud story and recognize that these are people who are victims of organized, multinational, very savvy criminals, and help them work through sort of this crime they’ve been a victim of and encourage them to report it.
Sean Pyles:
Well, John, thank you again for talking with us.
John Breyault:
I appreciate it, Sean.
Sean Pyles:
Sara, one thing that I really want listeners to remember is that the cost of experiencing identity fraud can go well beyond the money loss, which of course can be significant. People who are victimized in this way often suffer mental health consequences. Many feel ashamed or like they brought this upon themselves. So like John said, if you’ve experienced a loss like this, get help. Yes, contact the FTC and your local police, but also think about talking with a loved one or a therapist who can help you process your emotions around this.
Sara Rathner:
Yeah, know that you are not alone. You probably know people who have gone through something like this and you could commiserate with each other. The important thing is to receive nonjudgmental help from people who are on your side and will help you wrap your head around everything that’s happened to you, and you can come out the other side stronger and more determined to protect yourself in the future. Okay, Sean, tell us what’s coming up in Episode 3 of this series. I assume there are more horrors on the way.
Sean Pyles:
Unfortunately, yes. Next week we’re going to walk into the lion’s den of the scammiest people on earth. Imposter scams, romance scams, phishing, vishing, all in the name of parting you from your money.
Speaker 5:
That’s what these scammers try to do. They try to rush you into making a decision by telling you something’s urgent or an emergency like the family emergency scam, where they’ll say, “Oh, this is your grandchild and I’m overseas, and I need you to wire money fast because I’m jail or in the hospital.”
Sara Rathner:
Yikes. Well, for now at least, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at (901) 730-6373. That’s (901) 730-NERD. You could also email us at [email protected]. Also visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast.
Sean Pyles:
This episode was produced by Tess Vigeland. I helped with editing, Kevin Berry helped with fact checking, Sara Brink mixed our audio.
Sara Rathner:
And here’s our brief disclaimer. We’re not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Source: nerdwallet.com
Oregon offers an array of natural beauty, from the rugged coastline of the Pacific Ocean to the snow-capped peaks of the Cascade Range. Its cities, like Portland with its eclectic vibe and Eugene as a hub for arts and outdoor enthusiasts, provide distinctive living environments. Yet, living in Oregon presents its own set of considerations. In this ApartmentGuide article, we’ll examine the pros and cons of living in Oregon, offering valuable insights to help you navigate what life is like in the “Beaver Sate.”
Oregon’s diverse landscape offers an abundance of outdoor activities, from hiking in the Cascade Mountains to exploring the scenic coastline. Whether you’re into mountain biking through the lush forests of Mount Hood, kayaking along pristine rivers, or simply enjoying a leisurely picnic surrounded by breathtaking scenery, Oregon offers endless opportunities.
Oregon’s weather can be quite variable, with the western part of the state experiencing a lot of rainfall, leading to damp conditions for much of the year. This can affect outdoor plans and sometimes lead to seasonal affective disorder among residents. Additionally, the eastern part of the state tends to be drier, offering a stark contrast to the coastal regions and providing opportunities for different outdoor activities and landscapes to explore.
Oregon is known for its commitment to sustainability and environmental protection. Cities like Portland are at the forefront of green living, with extensive recycling programs, eco-friendly public transportation options, and a high number of LEED-certified buildings. For example, Portland’s MAX Light Rail system not only reduces carbon emissions but also provides convenient access to various parts of the city without the need for a car.
Oregon has one of the highest state income tax rates in the country. This can significantly affect the take-home pay of residents, making it a challenging aspect of financial planning for those living and working in the state. For instance, Oregon’s progressive income tax system imposes higher rates on higher income brackets, with the top marginal rate exceeding 9%.
The state boasts a rich cultural scene, with a thriving arts community, numerous music festivals, and a strong craft beer and coffee culture. Cities like Portland and Eugene host a variety of cultural events that celebrate Oregon’s diverse heritage and innovative spirit. If you’re in the area be sure to check out Portland Pizza Week where you can find $2 slices around downtown.
Oregon is located in the Pacific Ring of Fire, making it susceptible to earthquakes. While the state has made strides in preparing for such events, the potential for significant seismic activity remains a concern for residents.
In Oregon, an active lifestyle is ingrained in the culture, with residents embracing outdoor recreation as a way of life. From hiking in the Cascade Mountains to surfing along the coast, there are endless opportunities to stay active and explore nature’s wonders.
Oregon’s seasonal allergies can be a downside to living in the state, particularly for those sensitive to pollen and other allergens. During certain times of the year, such as spring and early summer, pollen levels can be high in cities like Salem, leading to discomfort for allergy sufferers.
Oregon’s culinary scene is celebrated for its diversity, with a focus on farm-to-table dining, seafood sourced directly from the Pacific Ocean, and a vibrant array of international cuisines. For example, Portland’s food carts offer a taste of global flavors, from authentic Mexican street tacos to Japanese ramen bowls.
In urban areas, particularly Portland, traffic congestion can be a significant issue. The city’s infrastructure struggles to keep up with the growing population, leading to longer commute times and frustration among drivers.
Oregon’s lack of sales tax is a significant perk for residents, allowing them to stretch their dollars further when making purchases. This absence of sales tax means that the price displayed is the final price, simplifying budgeting and reducing unexpected expenses for consumers.
Oregon’s job market can be competitive and limited, particularly in certain industries and regions of the state. This scarcity of job opportunities may require residents to search extensively or consider relocation for employment prospects, especially in fields outside of the state’s dominant sectors like technology and healthcare.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Source: apartmentguide.com
You likely agree that saving money is a good idea. Putting extra cash aside every month can help you reach your financial goals, whether that’s building an emergency fund, going on vacation, or putting a down payment on a car or home.
But wanting to save money and actually doing it are two very different things. It’s easy to get caught up in day-to-day needs (and wants), and never gain any traction on savings. But don’t give up. We’ve got 33 tricks and tips that can make saving simple and pain-free. The best part — you can get started as soon as today.
While spending less and saving more admittedly sounds painful, it doesn’t have to be that hard. You don’t have to go to the extremes like never shopping or having fun. Just making a few small changes in your day-to-day spending habits can actually add up to a big difference in how much you save each month.
Getting better with money is like any type of behavior modification — the key to lasting change is to make small, incremental changes that stick.
💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.
What follows are 33 simple money-saving tips you can start working on right now.
One of the best ways to spend less and save more is to take a close look at where your money is currently going. You can track your spending by scanning your checking account and credit card statements over the last few months. But a simpler way is to use a budgeting app that syncs with your accounts and keeps track of what you spend in different categories in real time.
Once you have a big-picture idea of your cash flow, you can make adjustments. Spending a lot more on takeout than you thought? Commit to cooking one or two more nights per week. Is keeping up with fashion killing your budget? You may want to focus on spending less on clothing.
An simple way to earn some extra cash is to periodically sell gently used items you no longer want or need. You might organize a yard sale or resell your items piecemeal via online marketplaces like OfferUp, Facebook Marketplace, or eBay. If you have extra clothes, shoes, or accessories in good condition, consider listing them on Poshmark or thredUP. Selling your unwanted stuff is essentially getting paid for clearing out clutter.
Watching influencers take luxury vacations and promote their favorite products can prompt you to spend more and live beyond your means. In fact, recent research finds that social media can significantly impact your finances — and not in a good way.
Putting a time limit on daily phone scrolling, on the other hand, can automatically lead to less spending and more saving. It also frees up time for activities that can truly enhance your life, like reading, exercising, seeing (real) friends, even taking up side hustle (and earning more money).
When we do things with focus, intention, and a clear goal in mind, we usually have an easier time making it happen. Instead of saving for the sake of saving, consider setting specific savings goals with target dates and amounts. For instance, maybe you want to save $5,000 for a summer vacation or $2,000 for a new computer.
By setting a target date, you can work backward and figure out exactly how much you need to set aside regularly. For example, if you want a new laptop in eight months, and it will cost you about $2,000, you’ll need to save $250 a month or about $60 a week.
Generic brands typically have the same ingredients and offer comparable quality to name brands but for a fraction of the price. For example, generic drugs usually cost 80% to 85% less than their brand-name counterparts. During your next supermarket or drugstore visit, try to go generic whenever it’s offered. Chances are, the only difference you’ll notice is less money draining out of your checking account.
Spending a bit of extra time comparison shopping can help you scoop up the best deals and avoid paying full price. You can do it on your phone while you shop in-store. For online shopping, consider installing a browser extension that helps you find the lowest prices and automatically applies coupons and cash-back options at checkout. Many of these tools will also alert you when the price of an item you intend to purchase drops.
Rather than transfer money to your savings account whenever you think of it, consider putting your savings on autopilot. Simply set up a recurring transfer from your checking account to your savings account for the same day each month (perhaps right after you get paid). It’s fine to start small. Even $50 can add up to a sizable sum over time, since the transfer happens every month without fail.
While it’s not directly putting money into your bank account, making on-time, consistent payments on your debt means you’ll pay it off quicker. Once your debt is paid off, the money you are currently spending on principal/interest can go towards savings. In addition to your monthly minimum payments, try to put extra payments towards high-interest debt each month. You’ll whittle those balances down faster and save on interest.
If you see something you want to buy but don’t actually need, consider putting off the purchase for at least one week (or ideally 30 days). Tell yourself that if you still want the item and can afford it after the waiting period, you can go ahead and buy it. Chances are good that once that waiting period is over, you’ll no longer have a burning need to purchase the item and simply move on.
If it’s 6pm, you’re tired from a full day of work, and have no food in the house, you’ll probably seek out the path of least resistance — getting takeout or eating out. Your best defense against overspending on food is to sit down every Sunday to scan recipes and come up with a meal plan for the week (including breakfast, lunch, dinner, and snacks). You can then make a shopping list and hit the store.
Recommended: Examining the Price of Eating at Home Versus Eating Out
While it’s fine to occasionally splurge on a fancy coffee, getting your daily coffee out can add up, especially if you sometimes throw in a tempting pastry at the last minute. Even cutting back your coffee shop visits to just two or three times a week and brewing at home the other days can help you save a lot on coffee.
While it is easier to replace items than fix them, the latter approach is better for both your wallet and the environment. Depending on the item, a repair could end up costing significantly less expensive than a replacement. Call around for quotes or ask for help from a tech-savvy or handy friend. Also see if there are “repair cafes” in your community. These are volunteer-run events where you can get items mended or fixed for free.
While credit cards are convenient, they make it all too easy to spend money. When you tap or swipe to make a purchase, you don’t really have a sense that you are giving up physical money. Switching to cash-only, even for just a month or so, can help you become more mindful about your spending. You might even try the envelope system. This involves labeling envelopes for each spending category, dividing your available cash for the month into the envelopes, and then only spending what’s in each envelope.
When it comes to cell service, you don’t have to stick with the big names. Mobile virtual network operators (such as Mint Mobile, Consumer Cellular or Republic Wireless) typically offer the same quality of service at a much lower price tag. It’s also a good idea to look at your last cell phone bill to see how much data you actually use. You may be able to get a smaller plan to save even more.
Before you hire someone for a home repair or improvement job, like painting a room, re-caulking your tub or shower, or installing a water filter under your sink, consider whether or not you could do it yourself. Often, the cost of materials and a simple YouTube search will lead to significant savings.
*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
There are two major types of coupons: Store coupons, which are issued by a specific retailer and can only be used at those locations (you can find these in the paper and through a retailer’s app or mailer); and manufacturer’s coupons, which are found on manufacturer’s and coupon sites. By stacking them, you get an even deeper discount. Stacking coupons for an item that is on sale is a triple whammy that can bring you back to pre-inflation prices.
Dropping subscriptions that you hardly use or are redundant is a simple money-saving move with a potentially big payoff, since these debits occur monthly. It’s worth scanning your checking account and credit card statements for recurring charges to see if there are any items you can cut. If you primarily watch one streaming service but pay for four, for example, canceling three can save you significant cash.
While keeping bottled water (and seltzers or sodas) on hand is convenient, the cost can add up, especially if you have a family. A simple way to spend less at the grocery store each week is to give each person in your household their own reusable water bottle. You can then take bottled drinks off your shopping list. This will not only save money but also reduce plastic waste.
You might be surprised at how many things you can actually get for free. For example, your library can grant you access to movies, books, activities, and in some cases, passes to state parks and other nearby attractions. You might also join a Buy Nothing group. These are hyper-local virtual communities where neighbors can give and receive essentially anything for free.
If you’re becoming a stranger to your gym, consider canceling your membership. Even if you got a great deal, gyms debit money out of your bank account every month, whether you go or not. You might look for alternative, low-cost ways to get physically fit, such as walking/jogging/biking around your neighborhood, lifting free weights at home, and taking hikes.
A nickel here and a quarter there might not seem like much, but if you start dropping all your spare change into a jar every day, you’ll be surprised at how much you’ll accumulate. If you rarely carry or pay in cash, consider collecting digital change. Many money-saving apps automatically round up your purchase to the nearest dollar, then transfer the difference into your savings account.
💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.
Ordering a cocktail or a glass of wine (or three) when out to dinner can significantly inflate your bill. Consider getting water or a non-alcoholic beverage instead, then perhaps having a glass of wine when you get home. If you must drink, local beer, “house wine” options, and happy hour cocktails are usually the cheapest options.
Taking the family to concerts, movies, and immersive art exhibits can add up quickly. Instead, look for free or low-cost community activities. These offerings typically spike during the summer months and around holidays. To stay abreast of upcoming goings-on, you can sign up for newsletters or follow social media accounts of your local community, recreation centers, and libraries.
A simple way to save (potentially hundreds) is to do a no-spend month. This involves spending money only on essentials for 30 days. Before you begin, it’s a good idea to set parameters for what you will and won’t spend money on and then commit to the plan. It’s only a month! By the end of the challenge, you may realize there were certain things you didn’t really miss and rethink your approach to spending.
You may be able to significantly lower your utility bills with just a few tweaks to your habits and home. Try taking shorter showers, fixing any drippy faucets or constantly running toilets, turning off lights whenever you leave a room, and washing your clothes in cold water. Once you see a difference in your monthly bills, you’ll be encouraged to carry on and find more ways to cut energy use.
If you typically get a refund after doing your taxes, you’re essentially giving the government an interest-free loan. That’s money that could be working for you by earning interest in a high-yield savings account. Revisit your withholdings and put that extra money into your own bank account.
It may sound boring, but you’d be surprised how much a staycation can feel like a fun and luxurious getaway. The key is to take a complete break from your daily routine, change up the scenery, and spend time doing things you truly enjoy. This can provide the respite you’ve been longing for — minus the headaches of travel — and for a fraction of the price.
If you focus too hard on saving and never on fun, you might end up feeling deprived and give up on the whole project. Instead, allow yourself to celebrate small money wins and life events on the cheap. For instance, for every X amount you’ve put away into your emergency fund, you might reward yourself with a fancy coffee, a $5 “spree” at the dollar store, or getting a treat at your favorite ice cream shop.
Overdraft fees, ATM fees, and monthly maintenance fees can make your bank account balance move in the wrong direction — down instead of up. To ditch costly overdraft fees, keep regular tabs on your checking account to make sure you have enough to cover your debits and checks. To eliminate other fees, you may want to look for a bank account that doesn’t charge monthly maintenance fees and ATM fees.
Negotiating prices isn’t just for buying cars or houses. You can haggle for just about any product or service — your cable and cell phone bills, things you buy in stores, and even your rent. The key to success is to come to the negotiation prepared (do all the research you may need in advance), speak with confidence, and start off the conversation with the question, “What flexibility do you have?”
Recommended: 15 Creative Ways to Save Money
It can be tempting to go hog wild and spend your windfalls. But next time you get a work bonus, cash gift, or tax refund (which you actually want to avoid, see tip #26), consider spending a small percentage of it on something frivolous and fun, then putting the rest into your savings account. This can help you reach your savings goals significantly faster.
Recommended: The Fastest Ways to Get a Tax Refund
If you want to buy something that you don’t need right away, it’s worth researching the best times of the year for deals and sales. For example, you can often find great deals on cars in May, October, November and December; clothes are typically cheapest at the end of any season; and the end and the very beginning of the year are generally the best times to buy appliances.
If your extra cash is sitting in a traditional savings account, you’re missing out on a free source of extra cash. A high-yield savings account is a type of savings that you can open at many banks and credit unions. But it differs from a traditional savings account in that it offers an annual percentage yield (APY) that’s 10 to 20 times higher. If, for example, you put $25,000 into a savings account with a 4.60% APY, you’ll earn an extra $177.78 by the end of the year — just for letting the money sit in the bank.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.
Saving money enables you to build an emergency fund that protects you against the unexpected. It also allows you to work towards — and achieve — future goals, such as buying a car or home, sending your kids to college, and being able to one day retire.
To find the motivation to save money, it helps to set specific goals. Think about the things you want to buy or do in the next year or two and how much these things will cost. You can then determine how much you need to set aside each month to reach your goals. Watching your savings account balance go up can also help keep you motivated.
When you don’t have a cushion of savings, any bump in the road (such as a car or home repair, trip to the ER, or loss of income) can force you to run up credit card debt. This can lead to a debt spiral that can take months, if not years, to recover from. Not saving also means you won’t make any progress towards your financial goals and simply continue living paycheck to paycheck.
Photo credit: iStock/Chaninan Boongate
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Source: sofi.com
Artit_Wongpradu/Getty Images; Illustration by Issiah Davis/Bankrate
If you’d rather build a home than buy one, an FHA construction loan could help pay for the project. Like a regular FHA loan, this type of financing is insured by the Federal Housing Administration (FHA) and offered by FHA-approved mortgage lenders. Here’s how to get one.
An FHA construction loan is a type of FHA loan used to build a home. It works like a conventional construction loan by providing short-term financing for a range of construction costs, from the architect’s fee to the certificate of occupancy. Often, borrowers convert these loans to long-term mortgages once the house is built.
Unlike conventional construction loans, however, FHA construction loans are insured by the FHA. That means if you have a down payment of at least 3.5 percent, you could qualify for the loan with a credit score as low as 580.
Construction loans aren’t like regular mortgages. They typically last for one year, during which time the lender releases payments, usually directly to your contractor. The lender enlists an inspector to evaluate the project at various stages, and releases more funds once everything checks out. Once construction is finished, the loan either converts to a traditional mortgage or the borrower obtains a mortgage to pay it off.
The qualifying requirements for an FHA construction loan are similar to those for standard FHA loans, but with a few additions.
To qualify for any FHA loan, you’ll need to meet the following criteria, at minimum:
On top of these requirements, FHA construction loans require satisfactory documentation detailing the construction or renovation project, including information about the contractor you plan to work with. For a standard 203(k) loan, you’ll be assigned a 203(k) consultant to estimate the remodeling or repair costs.
Whether you get a construction-to-permanent or rehab loan, the work will also be subject to inspection as the project progresses.
You can get an FHA construction loan from an FHA-approved lender, though not every FHA lender offers this type of financing. If you’re not sure where to start, search the U.S. Department of Housing and Urban Development’s list of lenders by state or county. You can filter for 203(k) lenders, too, if that’s the type of loan you’re after.
From there, the process involves connecting with a contractor and getting preapproved for financing. Here’s an overview:
An FHA construction loan is just one type of construction financing. While it can help you build or renovate a home, you can’t use it for an investment property or vacation home, and you’ll have to pay mortgage insurance premiums, which add to your costs. Here are alternatives to consider:
If you’re making a down payment of 3.5 percent, the minimum credit score for an FHA construction loan is 580. If you have at least 10 percent to put down, you could qualify with a score as low as 500.
Source: bankrate.com
Atlanta, GA, is a vibrant Southern city renowned for its rich history, dynamic culture, and booming culinary scene. Home to approximately 498,000 residents, Atlanta has iconic landmarks such as the Georgia Aquarium, the Martin Luther King Jr. National Historic Site, and the Atlanta Botanical Garden. In Atlanta, the average rent for a studio apartment is $1,614, while a one-bedroom unit averages $1,750.
Whether you’re new to Atlanta or in search of more budget-friendly areas, ApartmentGuide is here to help. We’ve compiled a list of the most affordable neighborhoods in Atlanta to rent this year.
Atlanta is home to an array of neighborhoods, each adding its own unique flavor to the city’s vibrant culture. From Loring Heights to Summerhill, Atlanta’s neighborhoods cater to various budgets. Let’s see what areas made the list.
1. Southside
2. Mechanicsville
3. Loring Heights
4. Pittsburgh
5. East Lake
6. Pine Hills
7. Summerhill
8. Brookwood
9. Northwest Atlanta
10. Underwood Hills
Read on to see what each neighborhood has to offer its residents.
Average studio rent: $1,430
Average 1-bedroom rent: $1,200
Apartments for rent in Southside
Southside is the most affordable neighborhood in Atlanta, as the average rent for a one-bedroom unit is $1,200. There are many reasons to love living in Southside, from attractions like the Southside Park and Zoo to venues like Lakewood Amphitheatre. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore, showcasing Atlanta’s food scene.
Average studio rent: $1,595
Average 1-bedroom rent: $1,265
Apartments for rent in Mechanicsville
Mechanicsville is a bustling area just south of downtown Atlanta. This affordable neighborhood has many attractions, such as Believe Music Hall and Rosa Burney Park. It’s also significantly less expensive than Downtown Atlanta, but you’re still close enough to explore the area and check out sites like the Fairlie-Poplar District and the Georgia Capitol Museum.
Average studio rent: $1,077
Average 1-bedroom rent: $1,323
Apartments for rent in Loring Heights
With an average one-bedroom rent of $1,323, Loring Heights is the third-most affordable neighborhood in Atlanta. This neighborhood is an awesome option and is near attractions like Loring Heights Park and Tanyard Creek Greenspace. There are also picturesque views of the cityscape, so this area is great for exploring and enjoying Atlanta.
Average studio rent: $1,477
Average 1-bedroom rent: $1,333
Apartments for rent in Pittsburgh
Pittsburgh is the fourth-most affordable neighborhood in Atlanta, just south of Mechanicsville. This neighborhood is a great option if you’re looking to rent in a more residential area. You can find parks like Pittman Park and access to the Beltline, a popular trail.
Average studio rent: $1,250
Average 1-bedroom rent: $1,447
Apartments for rent in East Lake
Just about 5 miles from downtown, East Lake is a stellar neighborhood if you want to live outside of the downtown corridor. There are some great parks nearby, like East Lake Park and East Lake Golf Club. There are also a few bus routes in the area, particularly along Hosea L. Williams Drive, where you can also find some charming cafes.
Average studio rent: $1,175
Average 1-bedroom rent: $1,492
Apartments for rent in Pine Hills
Next up is Pine Hills, the sixth-most affordable neighborhood in Atlanta. Pine Hills is full of history and charm, with tree-lined streets and parks. Make sure to enjoy the outdoors at Pine Hills Park or grab a meal at one of the neighborhood restaurants. You can also check out the nearby Peachtree Park Nature Trail or explore the Peachtree Highlands Historic District. There’s something for everyone living in Pine Hills.
Average studio rent: $1,593
Average 1-bedroom rent: $1,500
Apartments for rent in Summerhill
East of downtown, Summerhill is the seventh-most affordable neighborhood in Atlanta. Summerhill has a friendly atmosphere and community feeling, with plenty of local cafes and restaurants along Georgia Avenue, such as Wood’s Chapel BBQ and Maepole. You can also check out some of Summerhill’s green spaces, like Phoenix II Park, or watch a Georgia State University game at Center Parc Stadium.
Learn more about the Summerhill neighborhood in Atlanta.
Average studio rent: $1,259
Average 1-bedroom rent: $1,519
Apartments for rent in Brookwood
Brookwood takes the eighth spot on our list of most affordable neighborhoods in Atlanta. The average rent for a one-bedroom unit is roughly $1,519, making Brookwood a great option to consider. It’s north of downtown and is primarily a residential area. It’s also near several freeways and the Atlanta Peachtree Station, so getting around the city is easy. You can also catch the Northside Trail, a popular walking and cycling trail in the neighborhood.
Average studio rent: $1,425
Average 1-bedroom rent: $1,610
Apartments for rent in Northwest Atlanta
Northwest Atlanta is the next area on our list. A well-known Atlanta neighborhood, Northwest Atlanta is home to Westside Park, Terminal West, and the Trap Music Museum, meaning there’s plenty to do throughout the week. You’ll find countless historic buildings in Northwest Atlanta, so make sure to explore the area’s charm. If you need to commute to work, there are many nearby bus routes.
Average studio rent: $1,412
Average 1-bedroom rent: $1,622
Apartments for rent in Underwood Hills
Underwood Hills is the final affordable neighborhood in Atlanta to make our list. This area has a vibrant feeling with its local breweries and restaurants. You can find parks like Underwood Hills Park, which is perfect for enjoying a sunny day in Atlanta. Underwood Hills is also close to I-75 freeway, making it easy to commute into Downtown Atlanta.
Methodology: Affordability based on whether a neighborhood has average studio and 1-bedroom rent prices under the city’s average. Average rental data from Rent.com in March 2024.
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Here in the Hill Country near Austin, Texas, there’s an active market of sellers and buyers of real estate. It is a safe bet that most use agents; around 90 percent of buyers use them, and Clever released data on average real estate commission rates in the U.S. as they stand now. Clever found that on the median-priced home of $431,000, the average U.S. home seller pays real estate commission fees of about $23,662. In a survey of 630 partner agents, the average real estate commission rate in the U.S. is 5.49 percent, divided between the listing agent (2.83 percent) and the buyer’s agent (2.66 percent). The average commission rate rose from 5.37 percent in 2023. Most real estate agents typically work within a range of 2.5 percent to 3 percent. Several key factors influence this, such as property value, client relationship & circumstances, sale complexity, services provided, and market conditions. Hawaii is home to the lowest average real estate commission rate (4.78 percent), while West Virginia has the highest (6.67 percent). (Found here after 8:30AM ET, this week’s podcasts are sponsored by PHH Mortgage. From subservicing to correspondent lending, MSR/co-issue transactions, portfolio retention, reverse mortgages, and commercial servicing, PHH has solutions for the entire mortgage lifecycle. Hear an interview with Cross Country Mortgage’s Nicole Perrone on ways lenders are expanding production and capturing market share.)
Lender and Broker Products, Software, and Services
ICE Mortgage Technology® customers are experiencing exciting benefits from the integration between Simplifile® and The Closing Exchange, a leading provider of notary services and order management technology. This integration supports settlement agents and lenders who wish to conduct remote online notary (RON) transactions but may not have the necessary staff or infrastructure in place to facilitate such closings. By leveraging The Closing Exchange’s extensive network of notaries, and their expertise in performing signings, customers can now drive a better borrower closing experience by seamlessly leveraging a RON notary who is already set up in Simplifile® eSign Events™. Click here to learn more.
Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.7 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Now choose your own title company (including on refinances). Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.
Understanding what you’re up against in this economy is paramount for every originator. You need to find opportunity, and we want to help you do just that. Join us Thursday, April 25 at 2 p.m. Eastern for a roundtable discussion featuring MAXEX President, COO and Co-founder Bill Decker, South Street Securities Managing Director Buck Thompson and AmeriVet Securities Head of U.S. Rates Greg Faranello. We’ll dive into the current headwinds, where customers are finding success and how you can break away from the traditional business as usual to build a more resilient foundation for the future. Register today to join the discussion.
Servicing Products
How does Servbank maintain such low delinquency rates? Because Servbank identifies and addresses delinquency risk before it has a chance to grow. They utilize their leading-edge technology to drive precise customer outreach and combine it with caring specialists, who work in partnership with customers to achieve positive resolutions. Together, this combination of people and tech, allows Servbank to stay ahead of the DQ curve, not to mention the rest of the market. And when delinquencies are kept low, everybody wins: It’s good for homeowners, the communities they live in, and you, the lender, by reducing your servicing advances, resulting in more monthly cash flow for you. Servbank blends the best of human – and tech-powered service to create excellence with superior performance. Learn more here.
DOWN TO THE ROOTS OF DARA CLAIMS. Dara by Sagent is a unified platform that includes a complete suite of tools for default servicing, and this is where Dara Claims makes a positive impact. It’s the first-of-its-kind tool designed to improve recoverability while reducing risk and cost. Integrating automation and real-time data to simplify the claims process helps reduce manual data entry for servicers, opening up the opportunity to focus on nurturing stronger relationships with homeowners. For a deep dive into all things Dara Claims, read our blog here.
Fannie and Freddie Updates
Given that the lion’s share of mortgages is underwritten to Freddie & Fannie’s guidelines, or are processed to their guidelines, or are sold to them either directly or via a correspondent investor, the changes they make are closely followed.
Fannie Mae posted the March Appraiser Quality Monitoring (AQM) list.
Fannie Mae is taking a phased approach to Uniform Loan Delivery Dataset (ULDD) Phase 5 implementation to allow lenders time to begin providing new and updated values prior to the July 28, 2025, mandate. Refer to its new implementation guide for important transition information.
Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2024-4 announced updates pertaining to Manufactured Home certification requirements as well as other updates that can impact your business and our borrowers.
On April 5, Fannie Mae updated its Selling & Servicing Guide pages to improve the user experience, with enhancements to content navigation and search functionality. These enhancements do not impact the Selling & Servicing Guide content or layout. While the Guide URLs and redirects will remain active until January 2025, bookmarks should be updated as soon as possible after April 5. View Fannie Mae’s Enhancements to Your Selling & Servicing Guide Experience.
Fannie Mae and Freddie Mac (the GSEs) announced the timeline and scope for the Uniform Closing Dataset (UCD) v2.0 Specification updates, and postponed UCD critical edits Phase 4 and 3B requirements.
Capital Markets
Bond yields hit 2024 highs to open the week with inflation in focus as investors continue to walk back interest rate cut expectations in the wake of Friday’s robust March NFP data. As a reminder, March’s jobs report was yet another this year that exceeded economists’ expectations and saw the prior two months of data revised upward. Monthly job gains in the first quarter of 2024 averaged 276,333 compared to last year’s 251,083 monthly average. The continued strength in the labor markets means policy makers at the Federal Reserve have little incentive to lower the target for the fed funds rate.
The robust March payrolls report continues to weigh on bond markets as it means that any change to Fed policy will be likely pushed back to later in the year. The front-end of the yield curve was more reactive to changing rate cut expectations yesterday than the long-end, though rate cut expectations will be a moving target the next couple of days with the release of the March Consumer Price Index on Wednesday and March Producer Price Index on Thursday. CPI will be the most closely watched, and the headline number is expected to tick slightly higher to a 3.4 percent annualized rate compared to the previous report’s 3.2 percent. This would be the highest rate of inflation since December. The core is expected to come in at a 3.7 percent clip, down from 3.8 percent in February.
“Fed speak” lately has been hawkish, and the sentiment for rate cuts seems to be fading fast. Minneapolis Fed President Kashkari last week raised the possibility of rate hikes if inflation doesn’t continue to work its way lower, while Fed Governor Bowman declaring that progress on inflation “has stalled,” and Dallas president Logan added to the malaise when she declared it “much too soon” to think about rate cuts. Gasoline prices rose again in March as OPEC+ producers extended supply cuts, the Middle East conflict threatened to broaden, Ukraine attacked Russian refineries, and U.S. crude production leveled off near a record high. Nothing here points to a near-term rate cut, and investors have decreased their forecasts of Fed rate cuts this year to two as the most likely outcome, their most pessimistic outlook since late October. June fed funds futures now see slightly less than a 50-50 chance of a cut.
Today’s calendar began before the open with the NFIB Small Business Optimism Index for March. Later today brings Redbook same store sales for the week ending April 6, and Treasury auctions that will be headlined by $59 billion 3-year notes. We begin the day with Agency MBS prices better by about .125 and the 10-year yielding 4.39 after closing yesterday at 4.42 percent; the yield curve inversion continues with the 2-year at 4.77.
Employment
Be The Key at Movement! Movement Mortgage’s new Be the Key program empowers loan officers and realtors to serve the Black community. Collectively we are unlocking the doors to homeownership, equity, and generational wealth across the country. Be the Key is part of Movement’s over-arching Grab the Key program, which also includes Grab the Key, Jr. These programs offer consumers and young students educational classes, community events and practical mortgage resources. For more information on these programs and how Movement’s diversity lending initiatives equip loan officers in a unique way, contact Montell Watson or visit grabthekey.com. Be a part of the change. Be the key.
Banner Bank, a top performing and globally recognized financial institution, has a unique opportunity for a VP, Mortgage Servicing Director in Southeast Washington. This part of the country offers breathtaking views of the panoramic wine country, a temperate climate, and some of the best outdoor opportunities in the West. Banner is seeking a visionary expert in Mortgage Loan Servicing with superior knowledge of the technical landscape and outstanding leadership experience. The role is relocation approved. To apply visit, Banner Careers. Resumes should be submitted there, but any questions should be directed to Ken Larsen, EVP & Mortgage Banking Director.
Canopy Mortgage is making waves nationally, with a rapid influx of high-performing loan officers, averaging one every other day. What’s the draw? It’s their streamlined corporate structure, integrated proprietary technology, unique profit and loss model, and empowering ethos highlighted by Forbes. This growth is fueled by strong relationships and referrals, establishing Canopy as a leader in mortgage lending innovation. Haven’t heard of Canopy yet? Ask around or reach out to Josh Neumarker at 888-696-9076 for a Tech Demo or consultation.
NAN (Nationwide Appraisal Network) is pleased to announce the appointment of William “Bill” Waltenbaugh, SRA, AI-RRS, as its new Chief Appraiser. With a distinguished career spanning over three decades in the property valuation industry, Bill brings a wealth of expertise and leadership to his new role. Bill is eager to collaborate with the NAN team and like-minded professionals to drive innovation and elevate industry standards. His leadership will be invaluable as NAN continues to enhance their services and drive growth. Bill will leverage his extensive experience and deep industry knowledge to advance NAN’s commitment to technology, communication, and accountability. He is deeply passionate about the evolution of the valuation industry, with a keen focus on product development and modernization. His appointment as Chief Appraiser underscores NAN’s commitment to excellence and innovation in the property valuation industry. NAN looks forward to continued success and growth under his leadership.
Download our mobile app to get alerts for Rob Chrisman’s Commentary.
Source: mortgagenewsdaily.com
Have you ever come across a gorgeous piece of furniture in an image on social media, dug around the original poster’s page to find the exact product link, only to find out it costs several times more than you’d ever dream of paying? This happens to me a lot. So much so that I began wondering if I was simply cursed with extremely expensive taste when it comes to home furnishings. However, instead of resigning myself to overpaying for everything I buy for my home, I learned a trick that has helped me find dupes for those expensive pieces I love for way cheaper prices. This hack has saved me literally hundreds of dollars on home decor and furniture, and now, I’m ready to break my silence. Keep reading to learn how I use reverse Google image search to find high-end home decor on a budget.
While a typical Google search involves typing a word or phrase into the search bar to pull up results, a reverse image search means you’re searching the image itself. So, if you find a photo of a room you love, you can search within the image to find products similar to those pictured. This works thanks to a handy little tool called Google Lens. According to Google, the Lens feature uses image recognition technology to identify items within the photo and search for similar products. When shopping for furniture and decor, you can easily search for the exact shape, color, material, or style you’re looking for without having to manually type it into your search bar. This is especially useful if you have a look you love but you’re not sure how to describe it in words.
To use Google Lens, you’ll need to be using Google Chrome as your browser. When you find an image you want to search—whether that’s a product image from a website or a beautifully styled photo on Pinterest—simply right-click on the photo (on mobile, press and hold to right-click), then hit “Search Image with Google.” This will pull up the Google Lens search function. From there, you can adjust which area of the image you want to search, then scroll through the results to find items with a similar look. You might just come across a dupe for a fraction of the price!
And if you find an image you want to search while scrolling Instagram, good news: This hack also works with screenshots. Just pull up the main Google homepage and click the little icon that looks like a camera on the far right of the search bar. Then select the screenshot from your photo library (or drag and drop it in from your desktop) to search it with Google Lens.
I’m not kidding when I tell you I’ve saved an obscene amount of money using this hack. For example, when shopping for bedroom furniture, I fell in love with this mid-century-style dresser from West Elm, but the $1,400 price tag was a little steep for me. With my handy reverse Google image search hack, I found this nearly identical version on Wayfair for less than $500. The darker wood finish that I bought is now unfortunately out of stock, but I couldn’t be happier with how my purchase compares to the West Elm version. Everything from the size to the finish to the hardware design is nearly identical, and I’m so glad I saved that $1,000 to spend elsewhere.
My coffee table is another example. I wanted something similar to this walnut piece from Rejuvenation—minus the $800 price tag. In just a few clicks, I came across this option from Amazon, which cost less than a quarter of the price for the same size, silhouette, and finish.
Even if I’m not necessarily looking for a dupe, reverse Google image search is a great way to identify items within photos. So when I’m scrolling Instagram and need to know where that designer found that table lamp, I can find out even if product sources aren’t listed.
Reverse Google image search is truly my secret weapon when it comes to finding affordable home decor with the exact look I’m going for. So, to the developers at Google, allow me to express my sincere gratitude. My wallet will be forever thankful.
Source: theeverygirl.com
Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff.
With most mortgages, the lender who originates the loan doesn’t actually hold onto it. Instead, it sells the mortgage on the secondary mortgage market, which helps free up capital so it can loan money to more borrowers. There are, however, some exceptions to the rule: loans that don’t wind up being bought and sold. These are called portfolio loans.
A portfolio loan is a kind of mortgage that a lender originates and retains instead of offloading or selling on the secondary mortgage market. A portfolio loan stays in the lender’s portfolio, or “on the books,” for its full term.
Why does that matter? With a portfolio loan, the lender gets to set the standards — what kind of credit score it’ll approve and how much money it’ll offer to the borrower, for example. The lender does not have to adhere to the Federal Housing Finance Agency’s (FHFA) standards used by Freddie Mac and Fannie Mae, the government-sponsored enterprises (GSEs) that back and buy most mortgage loans in the U.S.
A portfolio loan has plenty in common with non-portfolio mortgages. You’re still going to apply to borrow a chunk of money, and a lender will assign you a risk level based on the likelihood that you’ll pay it back. That risk level helps determine the loan interest rate and other terms. If you agree to these terms and take out the mortgage, you’ll receive a lump sum that you agree to repay in monthly installments over a set time.
While the application process is largely the same, portfolio loans can offer faster access to financing, more flexible repayment terms and potentially higher loan amounts than other mortgage types.
It depends somewhat on how you define “traditional mortgage.” Like most mortgages that originate in the U.S., portfolio loans are conventional loans — that is, issued and funded by a private lender. However, they do vary from the most common types of conventional loans. Here’s how portfolio loans differ from other conventional loans:
In the case of portfolio loans, mortgage fees and closing costs are often a little higher than with traditional loans to compensate the lender for their added risk. Here’s what you can expect to pay:
Portfolio loans allow borrowers who don’t meet Fannie and Freddie’s conforming loan requirements the ability to still qualify for a loan. This borrower might be someone who doesn’t have earned income but does have significant assets; a real estate investor; a small business owner or a self-employed worker. Borrowers with high debt-to-income ratios (DTIs) or credit scores below 580 may still be eligible for portfolio loans, and those who have declared bankruptcy might qualify in a shorter time.
For example, North American Savings Bank‘s website features a portfolio loan that requires a 20 percent down payment (vs. 3 to 10 percent for conventional loans), a debt-to-income ratio of 48 percent (vs. the standard 43 percent for conforming/qualified loans), and two years of seasoning after bankruptcy (vs. four years for conventional loans).
There are benefits and drawbacks to portfolio lending to consider, including:
Portfolio loans aren’t advertised outright; you won’t find a lender simply by comparing mortgage rates. Follow these steps to find a portfolio mortgage loan:
Source: bankrate.com
Many travelers have France on their minds, especially with the 2024 Olympic Games coming up in Paris. And what better way to fly to any country than on its namesake airline and flag carrier?
But, is Air France actually good? Here’s our breakdown of what travelers considering flying to France or beyond need to know about Air France.
From booking to boarding, here’s each step of flying on Air France.
Making reservations: If you’re determined to fly Air France, you can head straight to Air France’s website to search and book your flight. However, you’ll usually be better served by searching through a flight aggregator such as Google Flights. After finding a good fit, Google Flights will link you to Air France for booking.
Check-in: Air France’s online check-in opens 30 hours before departure — except for flights from Atlanta or Detroit, for which check-in opens 24 hours before departure. Check-in closes 60 minutes before departure for Air France flights departing the U.S.
Boarding: Air France groups passengers into five zones for boarding. Elite members and premium cabin passengers board in Sky Priority zones 1 and 2, while economy passengers are grouped into zones 3 through 5.
In-flight experience: Air France offers an extensive library of movies and TV shows to help pass long-haul flights, with free headphones provided. Food and drink options will vary based on your service class and flight length. Air France offers Wi-Fi on 90% of its aircraft fleet, with three different speed options available for purchase.
Airlines understandably showcase their best elements in advertisements. So, that’s why it’s important to get advice from independent sources on just how good an airline is — and Air France is generally regarded as one of the best airlines in the world in independent award ratings.
In the Skytrax World Airline Awards for 2023, Air France was voted #7 in the world — placing the airline ahead of stalwarts Cathay Pacific Airways, EVA Air and Korean Air. While it didn’t take top honors in any individual field, Air France scored high marks in the Skytrax 2023 rankings in the following areas:
World’s Best First Class (#2).
Best Airline in Europe (#2).
Best Airline Staff in Europe (#2).
World’s Best Business Class (#7).
World’s Best Premium Economy (#8).
In-Flight Entertainment (#10).
World’s Best Economy Class (#16).
World’s Cleanest Airline (#19).
Best Airport Services (#20).
However, Air France failed to land in the top 20 for Best Airline Cabin Crew Worldwide and finished outside the top 10 in the world’s most family-friendly airlines.
Other independent rating awards won by Air France include Business Traveler USA’s Best First Class in the World and the World Traveler Awards’ Europe Leading Airline 2023.
According to AirlineRatings.com, Air France’s safety rating is 7 out of 7 stars. Air France hasn’t had a fatal crash in the past 10 years.
This is an improvement from recent audits. In a 2022 blog post, AirlineRatings explained that it downgraded Air France’s safety rating after it was revealed that two of the airline’s pilots got into a physical fight midflight. Reportedly, cabin crew had to intervene to ensure the safety of the flight.
This incident came to light just days after the French Bureau of Enquiry and Analysis for Civil Aviation Safety (BEA) released a report indicating that Air France’s pilots weren’t rigorous about following safety procedures.
Air France shares a loyalty program with Netherlands-based KLM Royal Dutch Airlines and smaller airline Transavia. The joint loyalty program is called Flying Blue.
Despite being a European-based loyalty program, Flying Blue partners with most major U.S.-based transferable point programs, including:
Flying Blue used to use a convoluted pricing scheme for award redemptions based on the origin and destination of the flight. However, it recently standardized award rates. While Flying Blue doesn’t publish award rates, travelers have found that Flying Blue award rates between the U.S. and Europe now start at:
20,000 Flying Blue miles in economy.
35,000 Flying Blue miles in premium economy.
50,000 Flying Blue miles in business.
Air France often runs monthly award discount programs that can reduce the cost even more. However, be wary if you see award rates that seem too good to be true. In December 2023, Air France ran a flash sale that discounted business class awards to Europe to just 13,500 Flying Blue miles one-way plus $250 in taxes/fees.
Unfortunately, the Flying Blue director later got cold feet and canceled award fares for most of the 2,500 travelers who took advantage of the deal.
Not every airline is suitable for every traveler. Here are a few examples of what kind of travelers should find another airline to fly:
Travelers who want to visit Australia, New Zealand or parts of Southeast Asia. Air France operates an incredible route network to almost 200 destinations across over 80 countries. However, it doesn’t fly everywhere in the world. Air France’s route map doesn’t extend to Australia, New Zealand or parts of Southeast Asia like Malaysia.
Travelers who want to visit Asia. Particularly for travelers based on the U.S. West Coast, it will be an excruciatingly long journey to Asia via Paris. For example, flying from San Francisco to Seoul takes more than 23 hours. Other airlines can fly you to Asia in almost half of that flying time.
Travelers who are Francophobes. Air France is unabashedly French, from serving French wines to French being the primary language spoken onboard. If you’re not a fan of French culture, it’s best to find another airline that serves your destination.
Air France is generally ranked as one of the best airlines to fly — particularly in first class. Its loyalty program partners with many U.S. point programs and can offer excellent redemption rates, making it an appealing option to fly to Europe.
However, its Flying Blue loyalty program has been known to backtrack on deals that it offers to travelers. Even so, Air France can be a great option when traveling from the U.S. to Europe.
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Source: nerdwallet.com