Roughly 24 hours after filing an objection to the U.S. government’s motion to stop the gathering of evidence in a case against Ginnie Mae, Texas Capital Bank (TCB) responded to the government’s attempt to dismiss the entirety of the bank’s complaint.
The case stems from Ginnie Mae’s extinguishment of Reverse Mortgage Funding (RMF) from its reverse mortgage-backed securities program.
TCB claims that it dealt with Ginnie Mae in good faith, having lent “millions of dollars in much-needed financing to help the collapsing [RMF] continue making payments to senior citizens as part of a mortgage program critical to the federal government.”
TCB’s “protection for those loans was a lien on certain collateral,” its attorneys state, and “Ginnie Mae — up to and including Ginnie Mae President Alanna McCargo — assured TCB that the collateral would be a source for repayment.”
‘Impermissible and wrong’
In its filing, TCB recognizes that Ginnie Mae was within its rights to “extinguish RMF’s mortgage servicing rights” but claims that Ginnie Mae did not specify the impact such a move would have on the liens that the bank had a vested interest in, its attorneys said.
“But months later, Ginnie Mae took the radical step of announcing that its extinguishment of RMF’s servicing rights had also purportedly extinguished TCB’s lien — a striking collateral grab unsupported by the statute and contrary to Ginnie Mae’s prior dealings with TCB, basic fairness, and common sense,” the filing reads.
TCB also claims that the FHA Commissioner “has stated that Ginnie Mae’s brazen action is impermissible and wrong.” As stated in their original complaint, they allege that Ginnie Mae’s actions are in violation of the Administrative Procedures Act (APA), “creates liability for promissory estoppel given the agency’s stark breach of its word” and also “constitutes tortious interference with property rights.”
The bank’s attorneys go on to claim that the government’s motion to entirely dismiss the complaint “does not come close” to establishing that TCB’s claims “fail on the face of the complaint,” and that “the Government’s motion focuses almost entirely on Ginnie Mae’s authority to extinguish RMF’s interests in the mortgage-servicing rights pursuant to a contract between Ginnie Mae and RMF.”
Alleged promises by Ginnie Mae
That contention, however, does “nothing to undermine TCB’s claim that Ginnie Mae lacked statutory authority to extinguish TCB’s interest in its collateral, which was not only separate from the servicing rights but also subject to no contract between TCB and Ginnie Mae,” the filing reads.
In other words, the government motion only addresses Ginnie Mae’s authority to act against a participant in its reverse mortgage securities program, and not against the separate interest that the bank maintained over the lender’s collateral.
The bank also claims that the government’s motion does not adequately address promises made by Ginnie Mae officials and the impact those promises had on the operations of the bank, attorneys said.
“At minimum, factual disputes on critical questions, from the nature of TCB’s property interest to the commitments exchanged by the parties, preclude dismissal on the pleadings alone,” the filing reads. “The Government’s motion should accordingly be denied.”
Recounting history
TCB began its relationship with RMF in 2015 by “financing […] to enable RMF to fund and operate its business — including funding for RMF’s operations involving tails,” the filing states.
“Ginnie Mae was involved in and expressly consented to various transactions between TCB and RMF,” and “also contracted with other RMF lenders, including Leadenhall Life Insurance Linked Investments Fund PLC (“LCP”). But Ginnie Mae has never sought to contract with TCB itself regarding TCB’s transactions with RMF.”
Shortly after RMF declared bankruptcy in November 2022, the lender failed to make required payments to its borrowers, resulting in Ginnie Mae reaching out to TCB, the filing reads.
“Ginnie Mae was deeply concerned about the impact of these non-payments on senior-citizen borrowers,” TCB attorneys stated. “Ginnie Mae accordingly implored TCB to lend money to RMF. But TCB was hesitant to lend money to a bankrupt company. Specifically, TCB was concerned that if Ginnie Mae seized RMF’s [mortgage servicing rights], TCB would face delays in being repaid.”
In the end, “the most senior representatives of Ginnie Mae and FHA provided commitments to TCB that the Government would provide TCB with adequate support to ensure TCB was repaid if the Government seized RMF’s MSRs.” The defendants restated assurances given by Ginnie Mae President Alanna McCargo, FHA Commissioner Julia Gordon and Ginnie Mae chief operating officer Sam Valverde, which are supported by a sworn declaration from the bank’s president of mortgage finance.
In March 2023, months after Ginnie Mae had seized control of RMF’s servicing portfolio, the company “suddenly and without warning expressed the startling position that its seizure of RMF’s servicing rights in certain mortgages months earlier had, unbeknownst to anyone at the time, resulted in the extinguishment of TCB’s security interest in the tails,” TCB attorneys state.
“TCB repeatedly reached out to the Government in an effort to resolve the foregoing issues without the need for litigation, but the Government summarily rejected all of those efforts and refused even to schedule a meeting to discuss them. TCB was thus left with no alternative but to file this action,” the bank concluded.
Ginnie Mae’s position
In its January filing responding to the TCB complaint, government attorneys claimed that by Ginnie Mae exercising its authority to extinguish RMF’s interest, the company “necessarily eliminated TCB’s interest as well,” attorneys for the government explained in its court filing. “By law, the mortgages were the ‘absolute property’ of GNMA.”
Government attorneys went on to say that TCB “ignores that each of the relevant authorities” underpinning the core elements of the dispute corroborate that Ginnie Mae “had a right in the event of default to extinguish the issuer’s interest in the mortgages and related interests,” including Ginnie Mae’s charter statute, implementing regulations, RMF’s contracts with both Ginnie Mae and TCB, and bankruptcy court orders.
A magistrate judge overseeing the case has set a series of pretrial deadlines that extend into 2025. Because of that, it is possible that government officials currently in leadership positions at Ginnie Mae and the U.S. Department of Housing and Urban Development (HUD) may not be in office should the suit progress to trial sometime next year.
November’s presidential election could bring a new administration in January 2025, and thus new decision-makers at these agencies by the time the deadlines arrive.
We often think of homebuyers as younger, but retirees and senior citizens have plenty of reasons to make a purchase, too. Although the current housing market isn’t the best for buyers, waiting for it to change isn’t an option for some older house hunters. Here’s what to know about getting a mortgage as a senior.
Key statistics on seniors and mortgages
Roughly two-thirds of adults who own a home have a mortgage, according to 2022 data from the U.S. Federal Reserve.
The median mortgage in 2022 was $1,400 per month, based on data from the U.S. Federal Reserve
Baby boomers carry an average of $190,441 in mortgage debt — the second-lowest balance, behind the Silent Generation, according to 2023 data from Experian.
At 52 percent, baby boomers account for the largest generation of home sellers, according to the National Association of Realtors. They also account for the biggest cohort of homebuyers, at 39 percent.
More than forty percent of people report that paying for housing negatively impacts their mental health, according to a Bankrate survey.
Iowa is the No. 1 best state to retire to in 2023, according to a Bankrate study. Delaware, West Virginia, Missouri and Mississippi also rank highly. The worst states to retire include Alaska, California and New York.
Can you get a mortgage as a senior?
Yes, lenders offer mortgages for seniors. When it comes to getting a home loan, mortgage lenders look at many factors to decide whether a borrower is qualified — but age isn’t one of them. It’s one of the protected categories specified by the Equal Credit Opportunity Act, which makes it unlawful to discriminate against a credit applicant because of age (along with race, religion, national origin, sex and marital status).
Still, lenders can ask your age on mortgage applications, but only for the purpose of gathering demographic data, as specified by the Home Mortgage Disclosure Act (HMDA). The information is supposed to be confidential and not used as a criterion to approve or deny the applicant.
“The same underwriting guidelines apply to retirees and seniors as does to everyone else,” says Michael Becker, branch manager and loan originator at Sierra Pacific Mortgage in Lutherville, Maryland. “They must have the capacity to repay the loan — that is, have the income and assets to qualify.
“I once did a 30-year mortgage for a 97-year-old woman,” says Becker. “She was lucid, understood what she was doing and just wanted to help out a family member [by taking] some cash out of her home, and had the income to qualify and the equity in the home — she owned it free and clear. So she was approved.”
Is qualifying for a mortgage harder for seniors?
Despite laws prohibiting lending discrimination on the basis of age, it can still be challenging for seniors to qualify for home financing. In fact, a 2023 working paper out of the Federal Reserve Bank of Philadelphia found a link between the rejection rate on mortgage applications and the age of the borrower.
This could be for a number of reasons, including qualifying factors like assets and debt. If you’re managing a lot of debt already, you might not be able to take on a mortgage (or another mortgage), especially if you now have less income in retirement. No matter your age, you’ll still need to meet the lender’s criteria for approval.
How to qualify for a mortgage in retirement
When seniors apply for a mortgage, lenders look at the same financial criteria as they do for any other borrower, including credit history and score, debt-to-income (DTI) ratio, income and other assets.
Credit score
Here are the minimum credit scores needed based on loan type:
Loan type
Minimum credit score
Conventional loans
620
FHA loans
580 with 3.5% down payment, 500 with 10% down payment
VA loans
No minimum requirement, but generally 620
USDA loans
No minimum requirement, but generally 640
Bear in mind that minimum scores can allow you to qualify for a loan in general, but you won’t get the best interest rates the lender has to offer. For a conventional loan, for example, you’d need a score of 740 or higher to nab a more competitive rate.
You can check your credit score for free each week by visiting AnnualCreditReport.com.
DTI ratio
Calculate your DTI ratio using this formula:
Mortgage Calculator
DTI = Monthly debt payments (including mortgage or rent) / monthly gross income x 100
Some lenders allow a DTI ratio as high as 50 percent, but most prefer to see you spend less than 45 percent of your monthly income on debt payments, including your mortgage.
Income verification
Besides what’s required to prove your identity, you’ll need to supply documentation about your income. If you’re still working — and many are, according to a recent Bankrate survey — that includes paystubs, W-2s and tax returns. If you’re retired, it might include:
Income source
Documents
Social Security
Copies of benefit verification, proof of income or proof of award letter, statements and/or tax returns
Pension
Copies of retirement award or benefit letter statements and/or tax returns
401(k), IRA and Keogh distributions
Copies of statements and/or tax returns
Interest and dividends income
Copies of statements, 1099s and/or tax returns
Annuities
Copies of statements and/or tax returns
Rental property income
Copies of tax returns and/or current lease agreement
Disability
Copies of disability policy and/or benefits statement
“Generally, two months’ of bank statements are needed to show those payments being deposited into the retiree’s account,” says Becker. “Since there is no paycheck, the bank statements serve the same purpose. The deposits have to match what the forms show.”
Investment income — capital gains, dividends, distributions and interest — is reported on your tax return. For the income to be used to qualify you for the loan, you’ll need to provide two years’ worth of returns.
“If the retiree has retirement income that is nontaxable, like Social Security income or tax-exempt interest, that income can be ‘grossed up,’ or increased 15 to 25 percent, depending on the loan product, to help qualify for the loan,” says Becker.
Should you get a mortgage in retirement?
In general, it’s best to avoid taking on more debt in retirement, when your income might not be as predictable as it once was. Using your retirement savings to pay down your mortgage can make it difficult to enjoy a comfortable retirement lifestyle and cover costs like medical bills.
“Even if one owns a property with no further mortgage payments due, property taxes and upkeep will be a consideration,” says Mark Hamrick, senior economic analyst and Washington bureau chief for Bankrate. “As with people of all ages, having a budget, limiting expenses and accurately accounting for income expectations are key.”
Then again, working hard to pay off your mortgage debt prior to retirement might not be the best strategy either. It could leave you financially vulnerable and unable to pay for emergencies.
However, taking out a senior mortgage can be a smart play for retirees who can afford to make a substantial down payment on a home. Along with a smaller loan, consider a shorter loan — say, a 15-year mortgage instead of the benchmark 30-year. Yes, your monthly payments will be higher, but your interest rate will be lower. You can also ask your lender about senior citizen mortgage assistance programs that are available in your state.
Be sure to consider your spouse or partner when deciding to get a mortgage. What would happen if one of you were to die, and how would that affect the survivor’s ability to repay the loan? If your surviving spouse or partner would not be able to take over the loan, getting a mortgage during retirement may not be a smart financial decision.
7 mortgage options for seniors
There are plenty of home loan options available to retirees or seniors — mostly the same as for anyone, with one exception. Here are seven to consider:
Conventional loan: You can find conventional mortgages from virtually every type of lender, in terms ranging from eight to 30 years. If you’re not making a down payment or don’t have an equity level of at least 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums.
FHA, VA or USDA loan: These government-insured loans might be easier to qualify for than a conventional mortgage. You can only get a VA loan if you or your spouse has served in the military, however, or a USDA loan only if you’re buying in a USDA-approved area.
Cash-out refinance: With a cash-out refi, you’ll get a brand-new mortgage and cash out some of your home’s equity in a lump sum.
Home equity loan: A home equity loan is a lump-sum loan, usually with a fixed rate, fixed monthly payments and a term between five and 30 years. You’ll typically need at least 20 percent equity to qualify.
Home equity line of credit (HELOC): – A HELOC is a variable-rate product that works similarly to a credit card — you’re given a line of credit to draw on as needed. You’ll have a certain number of years to draw the money, and then a certain amount of time to repay the loan.
Reverse mortgage: A reverse mortgage is a loan taken out against your current home, in which a lender pays you monthly installments; these must be repaid, or the home surrendered to the lender, when you die or move out. To qualify, you must be at least 62 years old, own your home outright (or close to it) and live in the home as your primary residence. You’ll also have to pay for the property taxes, homeowners insurance, HOA fees (if applicable) and other upkeep on the home.
No-document mortgage: A no-doc mortgage doesn’t require income verification. It’s an uncommon product, but it can be an option for borrowers who have irregular income.
Bottom line
Seniors with good credit, sufficient retirement income and assets and not a lot of debt can get a mortgage or home loan. The keys are knowing your long-term plans, exploring loan options and providing documentation to support your application. It’s also worth speaking to a financial advisor or retirement planner to prepare your finances for the new loan. If you’re acquiring or unloading property, you’ll want to revisit your estate plan, as well.
Frequently asked questions
Lenders consider employment wages, Social Security payments, freelance income, part-time income, tips, pension and retirement income as income for loan qualification. They also count alimony and child support payments, unemployment benefits, investment income and disability leave.
It’s possible to get a mortgage with Social Security as your only income, depending on how high your payments are. But like any borrower with a low income, you might not qualify for a large mortgage, and you may have to put down a sizable down payment to get approved. If you’re looking for mortgages for seniors on Social Security, ask lenders about their specific eligibility requirements before applying.
A personal trainer earns an average of $67,012 a year, according to the latest data from Salary.com. However, salaries typically fall somewhere between $48,347 and $82,320.
How much you can make as a personal trainer depends on several factors, including where you live, who you work for, your training experience, and your areas of expertise. Let’s unpack this.
What Are Personal Trainers?
A personal trainer develops customized exercise programs for clients based on individual skill levels, health goals, physical limitations, and other considerations. These professionals work with clients of all ages and skill levels to improve strength, flexibility, and endurance; complete workouts safely and without injury; support them on their weight loss journey; and more.
Trainers are often paid hourly, but they may earn a yearly salary if they work for a gym or high-end client. How much money a personal trainer makes depends on the range of services and level of attention they provide — in general, the more, the better.
It also helps if you have good people skills, as you’ll be working closely with clients. (Not much of a people person? You may want to look into jobs for introverts instead.) 💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.
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Track your credit score for free. Sign up and get $10.*
How Much Do Starting Personal Trainers Make an Hour?
The average entry-level wage for a personal trainer in the United States is $29 per hour, or $61,104 a year, according to ZipRecruiter. But depending on a host of factors, personal trainers can earn anywhere from $11.06 to $51.92 an hour.
So is it possible to make $100,000 a year or more as a personal trainer? Short answer: yes. A six-figure income may be attainable once you gain enough experience and establish a steady client base. But keep in mind that those things often take time to develop.
Recommended: What Is Competitive Pay?
What Is a Personal Trainer’s Yearly Salary by State?
Location can play a major factor in a personal trainer’s income. A professional who’s established in their career may earn an average of $67,012, but as the chart below shows, take-home pay can vary significantly from state to state.
The Average Personal Trainer Salary by State
State
Median Salary for a Personal Trainer
Alabama
$53,023
Alaska
$59,756
Arizona
$54,514
Arkansas
$45,525
California
$61,037
Colorado
$57,837
Connecticut
$53,361
Delaware
$66,789
Florida
$43,714
Georgia
$49,394
Hawaii
$57,813
Idaho
$58,505
Illinois
$53,350
Indiana
$55,666
Iowa
$53,072
Kansas
$49,804
Kentucky
$47,885
Louisiana
$48,567
Maine
$59,455
Maryland
$64,637
Massachusetts
$60,291
Michigan
$47,929
Minnesota
$55,627
Mississippi
$52,898
Missouri
$51,521
Montana
$53,693
Nebraska
$63,126
Nevada
$56,502
New Hampshire
$57,587
New Jersey
$58,470
New Mexico
$55,489
New York
$64,556
North Carolina
$49,937
North Dakota
$58,914
Ohio
$54,118
Oklahoma
$61,134
Oregon
$58,939
Pennsylvania
$59,132
Rhode Island
$54,591
South Carolina
$50,988
South Dakota
$55,680
Tennessee
$51,669
Texas
$58,217
Utah
$51,630
Vermont
$63,225
Virginia
$65,639
Washington
$71,304
West Virginia
$45,668
Wisconsin
$57,762
Wyoming
$56,523
Source: ZipRecruiter
Recommended: The Highest-Paying Jobs in Every State
Personal Trainer Job Considerations for Pay and Benefits
When you’re just starting out as a personal trainer, there are many factors that may influence the direction of your career. For instance, working at an established commercial gym can offer an opportunity to gain experience, build up a client network, and receive job benefits.
If you’re more of a self-starter and prefer a degree of independence, working as a self-employed personal trainer might be the better fit. You’ll have the ability to set your own hours and hourly rate; however, you’ll also have to pay for health benefits and set money aside for retirement.
Here are some questions to ask yourself when starting a career as a personal trainer:
• How many hours are you willing to work?
• Would you rather work for someone else or be your own boss?
• Do you need health insurance benefits?
• Where do you see yourself in five to 10 years?
• What type of clients do you want (ex. senior citizens, athletes)?
• Are you willing to commute or relocate?
• What additional certifications might you need?
• What are your financial goals?
Establish what you need to earn as a personal trainer in order to cover your expenses and maintain the lifestyle you want. It can help to sit down and create a budget.
As your personal trainer career gets going, you can lean on financial tools like a money tracker app to help you monitor your spending and saving.
Tips to Increase a Personal Trainer’s Salary
Clients can come and go for a number of reasons, but there are some things you can do as a personal trainer to keep the ones you have and attract new ones. Here are some strategies to consider:
• Listen to your clients, and be willing to adapt to their needs.
• Sharpen your motivational skills. Pay attention to other successful trainers and how they inspire their clients.
• Be empathetic. Many clients may struggle during their workouts, both physically and psychologically. Empathy can go a long way in maintaining healthy client relations.
• Go where you’re needed. Investigate niches where your expertise can be of use, be it an elderly care center, health center, or a new neighborhood gym.
• Network and market yourself. Chat up members at your gym and discuss their fitness goals. You can also promote your own fitness journey and methods on social media.
• Earn new certifications. Get certified in CPR, yoga, Pilates, and nutrition. The more you know, the more in-demand you may be.
Pros and Cons of Being a Personal Trainer
As with any job, there are pluses and minuses to working as a personal trainer. Here are some of the benefits and challenges of the field:
Pros:
• Flexible hours. You can often schedule clients when you want to.
• Professional control. You’re able to build up your business through marketing and networking, adding clients as you raise your earning goals.
• Staying physically fit. You’ll have to practice what you preach. Staying in shape is a job requirement.
• Personal satisfaction, especially when you help a client meet their goals.
Cons:
• Fluctuating income/job security. There’s no way to predict how many clients you may have month-to-month or year-to-year.
• Lack of benefits. Many personal trainers work for themselves and have to pay for their own health and dental insurance, plus save for retirement.
• Nontraditional work hours. Although you have the ability to make your own schedule, most of your working clients will likely request early morning, evening, or weekend sessions.
• Shorter career lifespan. Even the most in-shape trainer ages, and there may come a day where you struggle to physically keep up with your clients.
💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
A personal trainer’s salary can rise and fall with the ebb and flow of clients, but there is also no limit to the amount of money you can make. Whether you are working with a few dedicated clients or creating your own global fitness brand, being a personal trainer can be a great way to earn a salary while keeping yourself and your finance goals in shape.
With SoFi, you can keep tabs on how your money comes and goes.
FAQ
What is the highest paying personal trainer job?
Personal trainers to wealthy clients and celebrities typically command lucrative salaries. The most popular fitness influencers on TikTok and Instagram, for example, can make over $1 million a year.
Do personal trainers make $100k a year?
A well-established personal trainer can make $100,000 a year with experience, marketing savvy, good time management skills, and a loyal client base.
How much do personal trainers make starting out?
The average starting wage for a personal trainer in the United States is $29 per hour, or $61,104 a year.
Photo credit: iStock/Drazen Zigic
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If you’re a senior who relies on Social Security as your primary source of income, the thought of securing a home loan can be daunting. However, there are home loans for seniors on Social Security specifically designed to meet your unique financial needs. This is particularly relevant for many retirees and seniors interested in purchasing a vacation home, downsizing, or tapping into their home equity.
Fortunately, the market offers a variety of home loan options for seniors on Social Security, and here’s what you need to know.
Check your mortgage options. Start here
In this article (Skip to…)
Can a senior get a home loan?
Yes, seniors can get home loans on Social Security. No age is too old to buy or refinance a house, if you have the means.
The Equal Credit Opportunity Act prohibits lenders from blocking or discouraging anyone from a mortgage based on age. If we’re basing eligibility on age alone, a 36-year-old and a 66-year-old have the same chances of qualifying for a mortgage loan.
Check your mortgage options. Start here
The qualifying criteria remain the same:
Loan-to-value ratio
Income
Assets
Debt-to-income ratio
Credit score
However, it can be tougher for retirees and seniors to meet those retirement criteria, especially regarding income. Seniors on social security should expect stricter scrutiny when applying for a mortgage loan. You’ll likely have to provide extra documentation supporting your various income sources.
What counts as income for a mortgage loan?
When applying for a mortgage loan, lenders typically look at several types of income to determine your ability to repay the loan. Here are some examples of income that may be considered:
Check your home buying options. Start here
Retirement income: If you receive retirement income, including Social Security, 401(k), traditional IRA, Roth IRA, long-term disability, pensions, or annuities, lenders may consider this as part of your overall income
Investment income: If you have investment accounts, such as stocks or bonds, lenders may consider the income you receive from these investments as part of your overall income
Salary or wages: This is the most common type of income and includes the regular pay you receive from your employer
Self-employment income: If you’re self-employed, lenders may look at your business income as part of your overall income
Bonuses and commissions: If you receive bonuses or commissions as part of your job, lenders may consider this as part of your income
Rental income: If you own rental properties, lenders may consider the rental income as part of your overall income
Alimony and child support: If you receive alimony or child support payments, lenders may consider this as part of your income
It’s important to note that lenders may have specific requirements for each type of income, and some may be considered more reliable than others. For example, lenders may require documentation of self-employment or rental income, and they may look at the stability and consistency of your income sources.
Can seniors on Social Security get a mortgage?
Yes, seniors on Social Security can get a mortgage.
Social Security Income (SSI) for retirement or long-term disability can typically be used to help qualify for a mortgage loan. That means you can likely buy a house or refinance based on Social Security benefits, as long as you’re currently receiving them.
However, seniors will also need to meet other eligibility requirements, such as having a good credit score and a low debt-to-income ratio.
Verify your home buying eligibility. Start here
SSI should be counted along with retirement funds and other liquid assets to calculate the borrower’s total qualifying “income”
Since Social Security income is typically non-taxable, it can also be “grossed up.” That means the lender can increase the qualifying amount by 10% to 25% and help you qualify for a larger monthly mortgage payment
For a lender to count Social Security income toward your mortgage, it will need to be documented via an SSA Award letter or proof of current receipt
If the borrower is drawing Social Security income from another person’s work record, they’ll need to provide the SSA Award letter and proof of current receipt, as well as verification that the income will continue for at least three years.
Mortgages for seniors on Social Security
Retirees and seniors have plenty of mortgage loan options. In fact, there are programs specifically designed to help seniors and retirees finance their homes.
As mentioned above, seniors can easily overcome the income hurdle for mortgage qualifying if they have sufficient assets, retirement savings, or investment accounts. Here are some commonly found home loans for seniors on Social Security, or other income sources.
Check your mortgage options. Start here
Asset depletion loans
An asset depletion loan is a type of mortgage designed for home buying and refinancing without regular income.
Technically, this is the same as a traditional mortgage. The only difference is the way a mortgage lender calculates your qualifying income. This loan is a good option for retired people. But anyone is eligible if they have enough cash reserves and the proper accounts.
Asset depletion mortgages allow borrowers to qualify for a home loan based on their liquid assets, rather than a continuing income source. The sum of the borrower’s assets is divided into a monthly “income,” which is used to determine whether they can afford mortgage repayment.
For instance, say you have $1 million in savings. The lender will divide this amount by 360 (the loan term in most fixed-rate mortgages) to arrive at an income of about $2,700 monthly. This number is used as your monthly cash flow for mortgage qualifying.
You need a significant amount in savings to qualify.
Only certain types of funds can be counted toward your qualifying income for an asset depletion loan. These typically include:
Checking and savings accounts
Money market accounts
Certificates of deposit
Investments such as stocks, bonds, and mutual funds
401(k) and IRA retirement accounts
Annuities
It doesn’t matter if the income has a defined expiration date. Lenders will require you to document the regular and continued receipt of qualifying income.
This is typically done using one or more of the following:
Letters from the organizations providing the income
Copies of retirement award letters
Copies of signed federal income tax returns
1099 forms
Proof of current receipt via bank statement deposits
For retirees who aren’t earning income, an asset depletion loan may be a good way to qualify for a new home loan or refinance.
Check your home buying options. Start here
Conventional loans
Conventional loans are a popular choice for many borrowers. Lenders generally consider Social Security income to be reliable, allowing seniors to qualify. However, these loans often require a good credit score, a low debt-to-income ratio, and sometimes a substantial down payment to secure favorable terms.
Fannie Mae senior home buying program
Fannie Mae has policies that allow eligible retirement assets to be used to qualify under certain conditions. It lets lenders use a borrower’s retirement assets to help them qualify for a mortgage.
If the borrower is already using a 401(k) or other retirement income, they’ll need to demonstrate that the income received will continue for at least three years. Additionally, they’ll need to provide documentation showing the money being drawn from the account.
If the borrower still needs to start using the asset, the lender can compute the income stream that asset could offer.
Freddie Mac senior home buying program
Similarly, Freddie Mac changed its lending guidelines to make it easier for borrowers to qualify for a mortgage with limited income, but substantial assets.
The rule allows lenders to consider IRAs, 401(k)s, lump sum retirement account distributions, and proceeds from the sale of a business to qualify for a mortgage.
Any IRA and 401(k) assets must be fully vested. They must also be “entirely accessible to the borrower, not subject to a withdrawal penalty, and not be currently used as a source of income.”
Verify your home buying eligibility. Start here
Reverse mortgage loans
One increasingly popular mortgage product specifically designed for seniors is the reverse mortgage loan.
The reverse mortgage, officially called the Home Equity Conversion Mortgage or HECM, is backed by the Federal Housing Administration (FHA). Reverse mortgages allow seniors to access the equity in their home via monthly payments made to the retiree. The interest is then deferred to when the loan matures.
Over time, the balance owed on the house rises while the amount of equity decreases.
With a reverse mortgage, one borrower must be at least 62 years of age or older to qualify.
Reverse mortgages aren’t for everyone. A home equity line of credit (HELOC), home equity loan, or cash-out refinance are often better choices to tap your home value.
Learn more about who should and shouldn’t consider a reverse mortgage here. Or check out the Department of Housing and Urban Development resource page on HECM reverse mortgages.
FHA loans
The Federal Housing Administration backs FHA loans, which have less stringent eligibility requirements than conventional loans. Seniors can use their Social Security income to qualify, but they may need to make a larger down payment, usually around 3.5% if their credit score is above 580. These loans also require mortgage insurance premiums.
VA loans
For veterans or spouses of veterans, VA loans are a government-backed option that comes with several benefits, such as no down payment and no private mortgage insurance (PMI). Social Security income is acceptable for meeting the loan’s income requirements, making it a viable option for retired military personnel.
USDA loans
The US Department of Agriculture backs USDA loans, which are intended for homebuyers in rural areas. While Social Security income can be considered for eligibility, these loans often have additional income requirements and limitations to ensure they are used by moderate- and low-income households. They also usually require no down payment.
Home equity line of credit (HELOC)
A HELOC is a revolving line of credit that uses your home’s equity as collateral. Social Security income can be used to qualify, but lenders typically require a good credit score and a low debt-to-income ratio. Interest rates are generally variable, and you only pay interest on the amount you borrow.
Home equity loans
Similar to a HELOC, home equity loans use your home’s equity as collateral but function more like a traditional loan with fixed payments over a set term. Social Security income can be used for qualification, but a good credit score and a low debt-to-income ratio are usually required. The loan provides a lump-sum amount, which is ideal for large expenses.
Cash-out refinance
A cash-out refinance involves replacing your existing mortgage with a new, larger loan and receiving the difference in cash. Social Security income can be counted towards meeting the lender’s income requirements. However, you’ll need to have substantial home equity, and lenders may apply additional scrutiny, such as a more in-depth credit check and possibly higher interest rates.
Mortgage alternatives for Social Security recipients
Navigating the housing market can be complex, especially when it comes to mortgages for seniors on Social Security. However, various mortgage alternatives are available that are tailored to accommodate the financial realities of Social Security recipients.
Verify your home buying eligibility. Start here
Buy a home with non-taxable income
Another helpful solution for seniors is counting non-taxable income.
Social Security income, for example, is typically not taxed. Most lenders can increase the amount of this income by 25%. This is known as “grossing up” (before taxes and deductions) when calculating monthly income.
Although lenders are not required to gross up non-taxable income, most will unless it’s not necessary. Further, the lender may choose to gross up by a smaller percentage, such as 10% or 15%.
Speak to your lender about how it calculates non-taxable income.
Buy a home with investment income
Investment funds can be used to qualify for a mortgage. But lenders likely won’t count the full asset amount.
When retirement accounts consist of stocks, bonds, or mutual funds, lenders can only use 70% of the value of those accounts to determine how many distributions remain.
Buy a home with a co-signer
One of the quickest and easiest solutions for seniors with trouble qualifying is to add a co-signer.
Some retired parents are doing this by adding their children or a family member to their mortgage application. A child with substantial income can be considered alongside the parent, allowing them to buy a home even with no regular cash flow.
Fannie Mae has an increasingly popular new loan program for co-signers. The HomeReady mortgage program allows income from non-borrowing household members, like adult children or family members, to be counted.
To qualify for HomeReady, you must meet the income limit requirements and purchase a primary residence. Vacation homes and investment properties are not allowed.
Property tax breaks for seniors
One final thing to consider as a senior homeowner is that you may qualify for a property tax break. Rules to claim your senior property tax exemption vary by state. So does the amount your taxes could be reduced. Check with your local tax authority or financial planner for more information.
Qualifying for reduced real estate taxes could help lower your debt-to-income ratio (DTI). Having a lower DTI may increase the amount you can borrow on your new home loan.
“Keep in mind, even if you qualify for tax breaks, taxes will be calculated at the current tax rate in the local area,” says Jon Meyer, The Mortgage Reports loan expert and licensed MLO.
Senior home buying example: Qualifying for an asset depletion loan
As an example, suppose retiree Michael has $1 million in his 401(k). He has not made any withdrawals.
Michael is not yet 70½. This is the age at which the IRS requires account owners to start taking required minimum distributions from 401(k)s
He is living off Social Security income, along with income from a Roth IRA
To qualify Michael for a mortgage, the lender uses 70% of the 401(k) balance, or $700,000, minus his down payment and closing costs
Check your mortgage options here. Start here
Note: Fannie Mae also allows borrowers to use vested assets from retirement accounts for the down payment, closing costs, and cash reserves.
Let’s say that after down payment and closing costs, Michael is left with $630,000.
Assuming a 30-year mortgage, that amount of $630,000 can then be used to gradually pay for his mortgage over the next 360 months. That would give him $1,750 a month to put toward a housing payment.
Amount in 401(k) = $1,000,000
Qualifying 401(k) funds (70%) = $700,000
Funds left after down payment and closing costs = $630,000
Monthly mortgage budget ($630K / 360) = $1,750
Though it is not a separate loan type, lenders sometimes call this an “asset depletion loan” or “asset-based loan.” Borrowers may still count income from other sources when they use assets to help them qualify.
Michael could use the asset depletion method from his untouched 401(k). And then combine it with the income from Social Security benefits and his Roth IRA to borrow as much as possible.
He does not actually dip into his 401(k) to pay the mortgage. But this calculation proves that he could rely on his 401(k) to pay the mortgage if need be.
Challenges retirees and seniors face when getting a mortgage
While there is no maximum age limit to apply for a mortgage, seniors and retirees may find it tougher to qualify for a home loan.
Here are a few challenges you might face when buying or refinancing, and what to do about them.
Check your home buying options. Start here
1. No regular income
Mortgage companies need to verify that you can repay a home loan. Usually, that means looking at monthly income based on W2 tax forms. But most seniors won’t have a regular monthly cash flow to show lenders.
For those in retirement, lenders will often consider 401(k)s, IRAs, and other retirement account distributions for mortgage qualifying. They’ll also consider Social Security income, pension, and investment income.
However, borrowers need to prove these funds are fully accessible to them. You can’t qualify based on retirement accounts or pension unless you can draw from them without penalties.
Retirees also need to show their retirement accounts can be used to fund a mortgage, on top of regular living costs like food and utilities.
2. Income ending in under 3 years (retirement)
Home buyers who aren’t yet retired, but plan to retire soon, may hit a different snag in the mortgage application process. When you buy a home or refinance, mortgage lenders need to verify your income source will continue for at least three years after the loan closes.
Someone retiring in a year or two would not meet this continuing income requirement. In that case, they would not qualify for a mortgage or refinance loan. It won’t matter how high their credit score is. Nor will it matter how much credit card debt they’ve paid off. Or how much money they have stashed away in investments and retirement accounts.
What is the simplest solution to this problem? Don’t tell your lender you plan to retire.
There’s nothing on your pay stubs to cue a lender off about retirement plans, so they have every reason to believe your income will continue
There’s also no guarantee that you will retire when planned. Many people change their plans based on the current economy, their investments, or their desire to keep working
However, you’ll need to be certain you can afford mortgage payments with your retirement income.
If you’re in a situation where you’ve received a retirement buyout or your employer tells your lender about retirement plans, you may not be able to qualify for a new mortgage. If this is your situation, you may have to wait until you’ve retired and begun drawing from your retirement accounts to qualify based on your assets rather than your income.
3. Accessing retirement funds
Most underwriting guidelines consider distributions of 401(k)s, IRAs, or other retirement accounts to have a defined expiration date. This is because they involve the depletion of the asset. As such, borrowers who derive income from such sources must be able to document that it is expected to continue for at least three years after the date of their mortgage application.
In addition, individuals typically cannot withdraw money from 401(k) accounts before age 59 ½ without penalty. For this reason, the retiree must prove unrestricted access to these accounts, and without penalty.
If the accounts consist of stocks, bonds, or mutual funds, those assets are considered volatile. For this reason, lenders only use 70% of the value in retirement accounts to determine how many distributions remain.
When does it make sense to get a home loan as a senior?
Many retirees and seniors opt for a mortgage instead of paying off their loan balance or buying a new home with cash.
This can free up savings for other uses, depending on how long the loan will be around. Necessities such as food, transportation, and long-term care are among the highest expenditures for seniors.
Verify your home buying eligibility. Start here
Other than freeing up assets, there are a number of reasons seniors may be considering financing a new home purchase.
Sizing down: Empty nesters may size down to minimize square footage, maintenance, and mortgage costs
Physical challenges: Cleaning and repairs can become physically taxing. Many seniors purchase a new home to cut down on upkeep
Supplementing fixed income: More and more senior citizens are finding it difficult to live on their fixed incomes. Retirees may decide to sell or refinance their homes, finance a new home purchase, and use the equity cashed out to supplement their income
Moving to a new area: According to one survey, as many as 40% of retirees are venturing out of their home state looking for better weather, recreation, favorable taxes, and other benefits
If any of the above applies to you, it might be worth it to consider financing a home in retirement.
FAQ: Home loans for seniors on social security
Can seniors on Social Security get a mortgage?
Yes, seniors on Social Security can get a mortgage. Lenders often consider Social Security as a stable form of income. However, eligibility will also depend on other factors like credit score, other sources of income, and existing debts.
How much income does a senior need to qualify for a mortgage?
The income needed to qualify for a mortgage varies depending on the lender and the loan type. However, a general rule of thumb is that your mortgage payment should not exceed 28-31% of your gross monthly income. Lenders will also consider your debt-to-income ratio, ideally below 36%.
Are there home loans for people on Social Security?
Yes, there are home loans specifically designed for people on Social Security. These include government-backed options like FHA loan, VA loans and specialized products from private lenders. Reverse mortgages are another option, particularly tailored for seniors.
What is the 62 PLUS loan?
The 62 PLUS loan is a type of reverse mortgage designed for homeowners aged 62 and older. It allows seniors to convert a portion of their home equity into cash, which can be used for any purpose. This type of loan does not require monthly payments and is repaid when the homeowner sells the home, moves out, or passes away.
Can a senior on Social Security get a home loan with a low credit score?
Getting a home loan with a low credit score is challenging but not impossible. Some lenders specialize in offering mortgages to individuals with low credit scores. Government-backed options like FHA loans are also more lenient with credit requirements. However, you may face higher interest rates and may need to make a larger down payment.
How do you qualify for a mortgage if you are retired?
Qualifying for a mortgage when you’re retired involves demonstrating to lenders that you have a stable income, which can come from various sources such as Social Security, pensions, or investments. A good credit score is also crucial for securing favorable loan terms. Lenders will assess your debt-to-income ratio to ensure that you can afford the mortgage payments; this ratio should ideally be low. Additionally, having a substantial down payment can improve your chances of mortgage approval, as it reduces the lender’s risk. Overall, the key factors are stable income, creditworthiness, and a manageable level of debt.
Finding home loans for seniors on social security
Most mortgage lenders have loan programs that allow seniors to buy a home or refinance their current home. However, not all lenders are experienced in issuing mortgages for seniors on social security.
Prior to choosing a lender, make sure to ask a few screening questions. In addition to getting the lowest mortgage rates, you’ll want to know how the lender qualifies retirement income and how they calculate qualifying income from assets.
A few questions asked upfront can help you find an experienced lender to process your application and get you the best deal.
Time to make a move? Let us find the right mortgage for you
Federal Reserve left its key short-term interest rate unchanged again Wednesday, hinted that rate hikes are likely over and forecast three cuts next year amid falling inflation and a cooling economy.
That’s more rate cuts than many economists expected.
The decision leaves the Fed’s benchmark short-term rate at a 22-year high of 5.25% to 5.5% following a flurry of rate increases aimed at subduing the nation’s sharpest inflation spike in four decades. The central bank has now held its key rate steady for three straight meetings since July.
That provides another reprieve for consumers who have faced higher borrowing costs for credit cards, adjustable-rate mortgages and other loans as a result of the Fed’s moves. Yet Americans, especially seniors, are finally reaping healthy bank savings yields after years of paltry returns.
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Will the Fed raise interest rates again?
The central bank didn’t rule out another rate increase as it downgraded its economic outlook for next year while lowering its inflation forecast. In a statement after a two-day meeting, it repeated that it would assess the economy and financial developments, among other factors, to determine “the extent of any additional (rate hikes) that may be appropriate to return inflation to 2% over time.”
Fed Chair Jerome Powell said at a news conference, noting the Fed’s key rate is “at or near its peak.”
while the Dow Jones Industrial Average closed at a record high after rising 1.4% following the Fed’s signals that it’s probably done lifting rates and is forecasting three cuts next year. The 10-year Treasury was down to about 4% from 4.21% on Tuesday.
Last month, Powell said high Treasury yields, if persistent, likely would constrain the economy and require fewer Fed rate increases,
In its statement Wednesday, however, the central bank didn’t acknowledge the recent decline in Treasury yields, suggesting yields are still relatively high and could spike again, crimping the economy.
“Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation,” the Fed said, repeating the language of its previous statement.
Is inflation really slowing down?
The Fed’s middle-ground approach may have been cemented Tuesday by a mixed report on the consumer price index. The good news was that overall inflation barely budged in November amid falling gasoline prices, pushing down annual price gains to 3.1% from 3.2%, still well above the Fed’s 2% goal.
The Federal Reserve System is the U.S.’s central bank.
When does the Fed meet again?
The first Federal Reserve meeting of the new year will be from Jan. 30 through 31.
Federal reserve calendar
Jan. 30-31
March 19-20
April 30- May 1
June 11-12
July 30-31
Sept. 17-18
Nov. 6-7
Dec. 17-18
The U.S. economy was strong in the third quarter as consumers continued to spend despite high interest rates and inflation.
The value of all services and products generated in the U.S., or GDP, rose at a seasonally adjusted 4.9% for the year in the months spanning July to September, according to the Commerce Department. That was more than twice the 2.1% increase in the previous quarter and the most aggressive pace of growth since the end of 2021 when the economy surged back from a recession sparked by the pandemic.
a recession over the next year, down from the 61% odds forecast in May.
Barclays predicted a loss of roughly 375,000 jobs by the middle of next year. But consumer spending remains robust despite high inflation and interest rates that are making credit card use and consumer loans more expensive. And that may help stave off a recession, says Barclays economist Jonathan Millar.
What does FOMC stand for?
The FOMC is the Federal Open Market Committee, the voting body responsible for setting interest rates. The 12-member committee includes seven members of the Board of Governors and five of the 12 Reserve Bank presidents.
What causes inflation?
Inflation can have many roots. Typically, it’s caused by “a macroeconomic excess of spending over the economy’s relative ability to produce goods and services,” said Josh Bivens, the director of research at the Economic Policy Institute, a left-leaning think tank based in Washington D.C.
That means more people are wanting items and services than there is adequate supply, leading producers to raise prices.
“If everyone in the economy, tomorrow, decided they weren’t going to save any money from their paychecks, and they’re just going to spend every last dollar out of the blue, they would all run to the stores and try to buy things,” Bivens said. “But, producers haven’t produced enough to accommodate that big surge of across-the-board spending. So, you would see prices bid up.”
Inflation can also happen when there are too few producers, or there aren’t enough employees to provide the coveted products and services, Bivens said.
Finally, economies also have some “built-in inflation” to help keep inflation in check. In the U.S., that target is 2%, meaning businesses can raise prices 2% annually year and that shouldn’t overburden consumers. That’s also the typical cost of living raise offered by employers.
Inflation meaning
Inflation is the term for a “generalized rise in prices,” according to Josh Bivens, head of research at the Economic Policy Institute, a left-leaning think tank based in Washington D.C.
Everything from food to rent can become costlier due to inflation. But it is the overall impact that determines what the inflation rate actually is.
“Inflation, though, really is meant to only refer to all goods and services, together, rising in price by some common amount,” Bivens said. The Federal Reserve’s inflation goal is 2%, which means businesses can hike prices by 2% a year and that shouldn’t cause consumers financial distress. Cost of living increases to workers’ pay are also expected to meet that target to ensure consumers can adequately deal with the rising costs of goods and services.
What is CPI?
In November, the Consumer Price Index (CPI) ‒ a measure of the average shift in prices for different products and services ‒ was 3.1%, down slightly from the month before.
Annual inflation is down dramatically from the 9.1% in June 2022 that marked a 40-year high but remains above the 2% target the Fed sees as the level that signals the rate of price increases is under control.
Why is CPI important?
The Federal Reserve watches two key aspects of the economy, price stability and maximum employment, and those are the main factors it takes into account for its interest rate decisions. The CPI is a primary measure the Fed looks at to help determine if prices are “stable.’’
What is the difference between CPI and core CPI?
Core prices don’t count the volatile costs of food and energy items, giving a more accurate window into longer-term trends.
Are wages going up in 2024?
If you’re deemed a top performer at a company that is offering raises, you’ve got a pretty good chance of getting a pay boost next year.
About 3 out of four business leaders told ResumeBuilder.com they intended to give raises. But half of those company executives said only 50% or less of their staff members would see a pay hike, and 82% of the raises would hinge on performance. For those who do manage to get the salary boost, 79% of employers said the pay hikes would be greater than those given in recent years.
Are U.S. Treasury yields rising?
Not recently.
The 10-year Treasury yield was above 5% in November when the Fed kept rates steady for the second consecutive month the first time it had left the key rate unchanged two months in a row in almost two years.
That led to mortgage rates spiking to almost 8% and pushed up other borrowing costs for consumers and businesses. Stocks meanwhile sank close to a recent low, leading Fed Chair Jerome Powell to say such financial pressures could achieve the same cooling effect on the economy as additional rate hikes.
But in the following weeks, 10-year Treasury yields dipped to 4.2% and stocks rebounded. That might make the Fed resist rate cuts in case the economy heats up and causes the broader dip in prices “to stall at an uncomfortably elevated level,” Barclays says.
Barclays and Goldman Sachs forecast that rate cuts won’t happen until the spring, and that there will be only two, to a range of 4.75% to 5%, with more cuts implemented in the next two years.
When will inflation go back to normal?
It may take a little while.
Inflation’s decline likely “won’t show much progress in coming months,” Barclays wrote in a research note.
Overall price hikes have eased significantly since peaking at 9.1% in June 2022, a four-decade high. And in October, broader inflation as well as core prices experienced a dip, leading to a lower 10-year Treasury yield.
But core prices, which exclude the volatile costs of food and energy, will probably rise 0.3% each of the next three months, Goldman Sachs says. Used cars and furniture have been getting cheaper as the supply-chain shortages of the pandemic end. Meanwhile, health care, auto repairs, car insurance and rent continue to get more expensive, as employers pay higher wages to attract workers amid a labor shortage lingering from the global health crisis.
What is core inflation right now?
Core prices, which leave out the more volatile costs of food and energy, bumped up 0.3% in November, slightly more than the 0.2% uptick seen the previous month. That kept the yearly increase at 4%, the lowest rate since September 2021.
New inflation tax brackets
Inflation may also impact the amount of taxes you have to pay.
The Internal Revenue Service said in its annual inflation adjustments report that there will be a 5.4% bump in income thresholds to reach each new level in next year’s tax season.
In 2024, the lowest rate of 10% will apply to individuals with taxable income up to $11,600 and joint filers up to $23,200. The top rate of 37% will apply to individuals earning over $609,350, and married couples filing jointly who make at least $731,200 a year.
The IRS makes these adjustments annually, using a formula based on the consumer price index to account for inflation and stave off “bracket creep,” which happens when inflation shifts taxpayers into a higher bracket though they’re not seeing any real rise in pay or purchasing power.
The 2024/25 increase is less than last year’s 7% increase, but much more than recent years when inflation was below the current 3.1% inflation rate.
Will Social Security get a raise because of inflation?
Yes, but it will be a lot less than what recipients received in 2023.
The cost-of-living adjustment, or COLA, to Social Security benefits will be 3.2% next year. That’s roughly one-third of the 8.7% increase given in 2023, which marked a forty-year high.
The 2024 COLA hike is above the average 2.6% raise recipients have received over the past two decades, but seniors remain concerned about being able to pay their expenses as well as the increasing possibility Social Security benefits will be reduced in coming years, according to a retirement survey of 2,258 people by The Senior Citizens League, a nonprofit seniors group.
How does raising rates lower inflation?
The federal funds rate is what banks pay each other to borrow overnight. If that rate increases, banks usually pass along that extra cost, meaning it becomes more expensive for businesses and consumers to borrow as rates rise on credit cards, adjustable rate mortgages and other loans. That’s why the funds rate is the key mechanism used by the Federal Reserve to calm inflation.
Simply put, companies and consumers don’t borrow as much when loans cost them more, and that means an overheated economy can cool and inflation may dip.
Will credit card interest rates continue to rise this holiday season?
The Fed’s string of rate hikes, aimed at easing the highest inflation in four decades, are a big reason credit card interest rates have reached record highs just in time for the holiday season.
Some retail credit cards now charge more than 33% interest, topping a 30% threshold that stores and banks were previously able to bypass but seldom did – until now.
“They can charge that much,” said Chi Chi Wu, a senior attorney at the nonprofit National Consumer Law Center. “Credit cards can actually charge whatever they want. It’s a little-known fact.”
The domino effect of a high benchmark rate and soaring credit card interest could put many Americans in financial straits this holiday season.
Though some consumers are paring back to deal with high prices, rising debt and shrinking savings, the average shopper expects to spend $1,652 this year on holiday purchases, according to the consultancy Deloitte, more than was typically spent in the last three years.
A lot of the buying will be done with credit cards. In an October poll of 1,036 shoppers by CardRates.com, nearly 4 in 10 respondents said they intend to have holiday credit card debt in the new year.
The nation’s collective credit card debt was $1.08 trillion, at the end of September, a record high. And the average interest rate was 21%, the highest ever documented by the Federal Reserve.
Savings account impact of high rates
The upside to the Fed’s string of rate hikes has been that consumers were able to earn good interest on their savings for the first time in years. Even when the Fed leaves interest rates unchanged, savers can do well.
Unfortunately, most account holders aren’t making the most of that potential opportunity.
Roughly one-fifth of Americans who have savings accounts don’t know how much interest they’re earning, according to a quarterly Paths to Prosperity study by Santander US, part of the global bank Santander. Among those who did know their account’s interest rate, most were earning less than 3%.
But consumers have time to make a change that could enable them to make more from their savings.
“We’re still a long way from (the Fed) beginning to cut rates,” said Greg McBride, chief financial analyst at financial services platform Bankrate. “This is great news for savers, who will continue to enjoy inflation-beating returns in the top-yielding, federally insured online savings accounts and certificates of deposit. For borrowers, interest rates staying higher for a longer period underscores the urgency to pay down and pay off costly credit card debt and home equity lines.”
The string of Fed rate hikes that began in March 2022 has made it costlier for consumers to borrow as interest rates on credit cards and other loans increased dramatically.
At the same time, inflation has made daily needs more expensive, pushing more Americans to lean on credit cards to get by. But lenders have become more reluctant to issue new cards, so in the midst of the holiday season, more shoppers are seeking higher credit limits, experts say.
In October, the application rate for higher limits rose to 17.8% from 11.2% in the same month the previous year, and from 12.0% in 2019, New York Fed data showed.
For some consumers, a higher limit on a card they already have is about their only option.
“After COVID, inflation and interest rates went out of control … people have less emergency funds for car repairs or buying presents,” said Brandon Robinson, president and founder of JBR Associates, which specializes in retirement strategies. “What they’re doing is using more credit card utilization – over 30% or well over 50% of their credit card allowance – and then can’t get approved for another card because their credit rating is down.”
Inflation is leading more Americans to work multiple jobs
The number of Americans working at least two jobs is at its highest peak since before the COVID-19 pandemic, according to federal data, an uptick that may reflect the financial pressure people are feeling amid high inflation.
Almost 8.4 million people had multiple jobs in October, the Labor Department said, a figure that represents 5.2% of the laborforce, the highest percentage since January 2020.
“Paying for necessities has become more of a challenge, and affording luxuries and discretionary items has become more difficult, if not impossible for some, particularly those at the lower ends of the income and wealth spectrums,” Mark Hamrick, senior economic analyst at Bankrate, told USA TODAY in an email.
People may also be moonlighting to sock away cash in case they’re laid off since job cuts typically peak at the start of a new year.
What is the Federal Reserve’s 2024 meeting schedule? Here is when the Fed will meet again.
What is the mortgage interest rate today?
Mortgage rates are falling, so is it time to buy?
It depends.
First of all, the Fed doesn’t directly set mortgage rates, but its actions have an impact. For instance, when the central bank was steadily boosting its key rate, the yield on the 10-year treasury bond went up as well. Because those bonds are a gauge for the interest applied to an average 30-year loan, mortgage rates increased.
But over the past six weeks, mortgage rates have been declining, averaging 7% for a 30-year fixed mortgage. That’s down from almost 7.8% at the end of October, according to data released by Freddie Mac on Dec. 7.
That may be giving some wannabe homeowners the confidence to start house hunting. For the week ending Dec. 1, mortgage applications rose 2.8% from the prior week, according to the Mortgage Bankers Association.
“However, in the big picture, mortgage rates remain pretty high,” says Danielle Hale, senior economist for Realtor.com. “The typical mortgage rate according to Freddie Mac data is roughly in line with what we saw in August and early to mid-September, which were then 20 plus year highs.”
So, many potential buyers may still need to sit on the sidelines, waiting for rates to drop further, says Sam Khater, chief economist for Freddie Mac. Hale and many other experts believe mortgage rates will dip next year.
Interest rate projection 2024
The Fed is expected to cut interest rates next year, though markets and economists disagree about how many rate cuts there will be.
Futures markets forecast there will be four or five rate cuts in 2024, amounting to a quarter of a percentage point each. The cuts, they predict, should start by spring, and ultimately drop interest rates as low as 4% to 4.25%.
But core prices, which leave out the volatile costs of food and energy and are the metric followed more closely by the Fed, ticked up 0.3% in November, higher than the 0.2% increase the month before. That might make the Fed more hesitant to nip rates in the immediate future.
Goldman Sachs and Barclays expect there to be only two rate decreases in 2024. And Fed Chair Jerome Powell has cautioned in recent public remarks that it was “premature” to talk about rate cuts.
November inflation report
Inflation dipped slightly last month, with falling gas prices mitigating the impact of rising rents.
Consumer prices overall increased 3.1% from a year earlier, slightly below the 3.2% rise in October, according to the Labor Department’s consumer price index. That slower pace moves the inflation rate nearer to the level, reached in June, that was the lowest in over two years. Month over month, prices increased a slight 0.1%.
Core prices, however, which leave out the more erratic costs of food and energy and which are more closely monitored by the Fed, increased 0.3% in November after rising 0.2% the previous month. That means core inflation’s yearly increase remained at 4%, though it’s the lowest level since September 2021.
A cadre of Silicon Valley elites is drawing fierce criticism from local residents and environmentalists for planning a new city on the outskirts of the Bay Area, a project dubbed “California Forever.” But the effort should be applauded for revealing a truth about California’s failed housing policies.
This group of California’s most influential wants to build one or more new towns on the urban fringes, having spent about $900 million to buy an area roughly twice the size of San Francisco some 60 miles east of the city. The project breaks with the philosophy of the state’s housing policy, which has long been focused on urban densification.
Despite the state’s efforts to encourage residential development, California’s housing markets remain among the least affordable in the country. The homeownership rate is near the nation’s lowest. To afford a house at the median price today in Southern California, a family needs an annual income of $180,000, twice the region’s median.
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Some housing advocates insist that the solution is to force growth into existing neighborhoods. Yet the state’s supposedly pro-development new housing laws have yet to produce more homes at a scale sufficient to address the affordability crisis, and recent data suggest an accelerating decline in housing production.
Over the last five years, California has consistently lagged in construction not just of single-family housing but of multifamily housing as well. Not one California metropolitan area was among the top 50 in housing growth last year; Texas had six areas on that list, Florida 11. Los Angeles, the state’s dominant metropolitan area, didn’t crack the top 200.
Clearly we need a new approach that is more aligned with market demands. A recent report by London Moeder, a San Diego real estate consultancy, noted that California regulations make it difficult to build the kinds of housing people are looking for, particularly multi-bedroom homes that can accommodate families.
Research by Jessica Trounstine at UC Merced similarly found that “preferences for single-family development are ubiquitous. Across every demographic subgroup analyzed, respondents preferred single-family home developments by a wide margin. Relative to single-family homes, apartments are viewed as decreasing property values, increasing crime rates, lowering school quality, increasing traffic and decreasing desirability.”
Opposition to densification of existing neighborhoods remains staunch in many cities, with some threatening a voter initiative to restore municipal control of zoning.
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California’s focus on increasing density in urban areas is also at odds with the national shift toward remote work and retail and office growth in more suburban, lower-density areas.
A sensible California housing policy would respond to these trends and consumer desires, much as the Bay Area project promises to do. This does not mean we will need sprawling growth.
California’s population is dropping and is not expected to increase in the next four decades, which alters projections of future housing needs. The solution lies in strategic growth. Rather than force growth in places that are declining in population and resistant to development, including Los Angeles County and San Francisco, the state needs to look at the parts of California that are growing, places such as Riverside and Yolo counties.
To encourage growth where it’s happening naturally, the state could create a “Housing Opportunity Area” comprising the Central Valley and Inland Empire, subject to more liberal rules than the coast. Land costs are far lower in the interior of the state than in metropolitan Los Angeles, San Francisco, San Diego and San José. Policies that support inland development could help stem the outbound migration of Californians.
The rise of remote work means development away from urban centers is far more plausible and less environmentally toxic than in the past. Indeed, the International Energy Agency suggests that if everybody able to work from home worldwide were to do so just one day a week, it would save around 1% of global oil consumption for road transport per year. That would prevent 24 million metric tons of annual carbon dioxide pollution, equivalent to the bulk of greater London’s emissions. And roughly 40% of California’s jobs, including 70% of its higher-paying ones, could be done at home, according to research by the California Center for Jobs and the Economy.
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Equally promising, many new suburbs are being designed in consciously more sustainable ways, as MIT professor Alan Berger suggests. Sophisticated systems for controlling energy and water use can make suburban and exurban communities more environmentally responsible. Another promising innovation is broader use of manufactured housing, which has the potential to speed construction by as much as 50%, according to a 2019 McKinsey & Co. report. A single-family subdivision is under construction by 3-D printer in suburban Austin.
There are still opportunities for innovative housing production in dense urban cores such as downtown San Francisco and Manhattan. New York Mayor Eric Adams is seeking to quickly add 20,000 housing units through office building conversions. He has also proposed a larger program to convert more than 130 million square feet of office space to residential use, though he needs state legislation to reach that goal.
More such promising opportunities may lie in old, underused retail spaces in both cities and suburbs, which have the advantage of simple floor plans, ample parking and presence across metropolitan California. A recently announced plan to replace Buena Park’s vacant Sears building with 1,100 housing units could represent one piece of our housing future. Flagging malls in Orange County and throughout California provide similar possibilities.
Such developments are critical to our increasingly diverse middle and working class. Older, overwhelmingly white Californians have achieved high rates of homeownership, but the rates among millennials, African Americans and Latinos are well below the national average.
If they don’t leave the state entirely, younger generations will tend to continue to migrate outward in search of affordable suburbs. The majority of people of color in California live in suburbs, accounting for virtually all suburban growth over the past decade. Communities could be built in the exurbs and beyond for senior citizens, too, helping to produce new housing opportunities for young families near job centers. The outer suburbs and exurbs are the future homes of most Californians.
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We have the land for such a new vision. While other populous states have devoted as much as a third of their land to urban development, California’s developed lands constitute only 6% of the state. A “7% solution” to the California housing crisis would free up 1 million more acres to build the new communities that we largely stopped building around 2000, when we had 5 million fewer people.
Relying on billionaires to build new cities in the hinterlands isn’t a generally sustainable answer to California’s housing crisis. But the California Forever project does rightly suggest that our solutions must build on the state’s penchant for innovation, capitalism and a distinctly suburban lifestyle.
Joel Kotkin is the presidential fellow in urban futures at Chapman University. Wendell Cox is the principal of Demographia, a public policy consulting firm.
Want to learn how to get a free cell phone and even a free monthly phone plan? Cell phones can be expensive, so I get it. From buying the actual phone to paying for the monthly service plan, it can all add up so quickly. Learning how to get free stuff can really help you…
Want to learn how to get a free cell phone and even a free monthly phone plan?
Cell phones can be expensive, so I get it. From buying the actual phone to paying for the monthly service plan, it can all add up so quickly.
Learning how to get free stuff can really help you to save a lot of money.
Luckily, there are ways to get a free cell phone, and there are even affordable cell phone plans for those who need it.
Some of these programs are through the government, while others are given by wireless carriers competing for your business. Government-sponsored programs like the Lifeline program help low-income families stay connected by giving them free cell phones and discounted wireless plans. On the other hand, wireless carriers also give away free things occasionally to try and get new customers to switch to them.
Below, I will be talking about how to get a free cell phone from the government, how to sign up for free monthly cell phone plans, and how to get a phone and service if you don’t qualify for one from the government. Even if you don’t qualify, there are ways to get a cell phone or service for free.
Recommended reading:
Why Are There Free Cell Phones And Plans?
Free phones exist for a few different reasons. Below, I will be talking about free government cell phones specifically. In a further section, I will tell you how you can get a free cell phone if you don’t qualify for a free government cell phone.
Free government phone program
There are free cell phones offered by the U.S. government through two programs – Lifeline and the Affordable Connectivity Program (ACP).
These programs help low-income individuals stay connected, as phone service is important for daily tasks such as finding a job, allowing U.S. residents to call emergency services, and staying in touch with friends and family.
Lifeline and ACP give subsidies to the phone companies, which, in turn, provide free phones and service to eligible customers.
Overall, free government cell phones support the goal of changing lives positively by making sure that even those who don’t have enough money can still have access to a phone.
How to qualify for a free government cell phone
To qualify for a free government cell phone, you need to meet specific eligibility requirements. You may be eligible if:
Your income is at or below 135% of the federal poverty guidelines for Lifeline and 200% for ACP.
You participate in a qualifying federal assistance program such as:
Medicaid
Supplemental Nutrition Assistance Program (SNAP)
Supplemental Security Income (SSI)
Women, Infants, and Children (WIC)
Federal Public Housing Assistance (FPHA)
Veterans Pension and Survivors Benefit
There are also tribal assistance programs. If you live on Tribal lands, you can get Lifeline if your household income is at or below 135% or if you participate in any of the programs listed above, as well as Bureau of Indian Affairs General Assistance, Tribal Head Start, Tribal Temporary Assistance for Needy Families (Tribal TANF), or Food Distribution Program on Indian Reservations Assistance.
Only one ACP or Lifeline benefit is allowed per household (not per person).
Please visit the Lifeline Support website and ACP website to determine your eligibility and apply for the programs. You can also learn more about this on the Federal Communications Commission’s (FCC) website.
What kind of free government cell phone do you get?
If you are eligible for the ACP benefit or the Lifeline program, you may receive a one-time free cell phone from one of the phone companies partnered with the government.
The specific models of phones that you can get may vary, but they are usually basic smartphones and you won’t know the specific device until it is shipped to you in the mail.
Please note that the government doesn’t offer free iPhones as part of either program (but you may be able to get a free iPhone from one of the carriers below for switching to them).
Free government cell phone plans
If you are looking for a free wireless plan or a monthly service discount, there are many options for you.
When looking for a free government cell phone plan, it’s important to consider the options that are available to you. Different providers have their services through government programs like Lifeline and the Affordable Connectivity Program.
When comparing plans, think about factors such as:
Unlimited talk and text
Data allowances and the amount of high speed internet you get
5G or 4G LTE coverage
The specific plans and devices will vary depending on the provider and your location.
Step-by-step to getting a free government cell phone and service
Eligibility – First, you must figure out if your household is eligible for a free government cell phone plan. This usually depends on your household income, and the National Verifier uses data from different databases to determine if you are eligible or you may be required to show documents for proof.
Application – If you qualify, the next step is to apply for a plan. You can usually do this through the phone provider’s website or in person at a local office or retail location, and you will want to make sure you have documentation proving your household income when you apply.
Device selection – Based on availability, you’ll be able to choose your device, such as an Android smartphone or a Samsung Galaxy device. Some plans may offer iPhones or tablets as well, but it’s not as common.
Activate and use your new phone – Once you receive your device, follow the instructions for activating your new phone, and enjoy your new free government cell phone plan and service.
As you can see, getting a free government cell phone plan is a pretty easy process that can save you money.
Best Places To Get A Free Cell Phone And Plan
In this guide, you will learn about the best places to find a free cell phone. Here are the best places that give free phones:
1. Life Wireless
Life Wireless, a participant in the federal Lifeline program, gives free mobile phones and monthly service plans to eligible low-income households.
You can get free unlimited data, talk, text, and even hotspot if you qualify.
To see if you qualify, visit their website and check their eligibility criteria. Once approved, Life Wireless will provide you with a free phone and service plan that suits your needs.
2. TruConnect
TruConnect is another provider that participates in the Lifeline program. They give free smartphones and monthly service plans to qualifying customers.
TruConnect specifically gives out new Android smartphones. Their wireless plans include unlimited talk and text, unlimited monthly data, and unlimited international calling.
To apply, visit the TruConnect website and check if you’re eligible for their services. After verifying your eligibility, you’ll receive a free cell phone along with a monthly plan.
3. Assurance Wireless
Assurance Wireless is an ACP program participant that gives free phones and monthly plans to qualified low-income customers.
You can get free unlimited talk/text as well as 25 GB of high speed data plus 2.5 GB of mobile hotspot data each month on the T-Mobile network.
You can visit the Assurance Wireless website and check if you meet their eligibility criteria. Once approved, they will provide you with a free Android smartphone and a monthly service plan.
4. SafeLink Wireless
SafeLink Wireless, another Lifeline and ACP provider, gives a free cell phone and monthly service to eligible customers.
Their monthly plans come with unlimited data, unlimited talk/text, and 10 GB of hotspot data.
Simply head to the SafeLink Wireless website to determine your eligibility for their services. If you qualify, you’ll receive a free cell phone and a plan.
5. Q Link Wireless
Q Link Wireless is a Lifeline program participant that gives free cell phones and monthly plans to eligible individuals.
Their monthly plans come with unlimited data, unlimited talk/text, and sometimes even a free tablet (ACP subscribers under their network must pay a one-time $10.01 co-pay).
Visit the Q Link website, verify your eligibility, and apply for their service. Once approved, you’ll receive a free smartphone and a monthly service plan.
6. Craigslist
Craigslist is a popular site for buying, selling, and trading items, including cell phones. You might find people giving away free phones or trading them for other items.
I recommend looking at your local Craigslist “Free Stuff” section to see if there are any free phones near you that you can get.
7. Buy Nothing groups
Buy Nothing groups are local groups that give free items and services to their members. People like you and me give away, lend, or share items in these groups all the time.
I have personally given away many items in Buy Nothing groups, and it is such a great resource.
You can look for a local Buy Nothing group on Facebook and ask to join – you can start by searching for “Your town name + Buy Nothing group” on Facebook. Then, look for posts in the group, or post a new thread asking to see if anyone has a free cell phone to give away.
Companies That Give A Free Phone When You Switch Providers
One of the most common ways to get free cell phones is directly from the phone companies themselves. These companies give free phones or device discounts as part of their service contracts.
The cost of the phone is usually built into the monthly payment for the contract many times (and makes the monthly cost much more expensive). Most companies have a wide range of phones, from the latest iPhone to the newest Android device. It’s important to know, however, that these are typically tied to long-term contracts, which could last for up to two years or more and also may have high monthly plan costs.
To get a free phone, some of the companies may require you to trade in your old phone, while others give the free phone to new customers as a way to get you to switch from your current company.
If you’re thinking about switching cell phone providers, it’s helpful to know which companies give free phones as a bonus. Below, we look at four major cell service companies and their free phone deals for customers who make the switch.
Note: You won’t get a free monthly plan with the below providers.
8. AT&T
AT&T usually has promotions for new customers that include free phones. The devices that they give away can vary, but it’s usually for the most popular phone choices, such as Apple, Samsung, and Google Pixel.
In the past, I have personally received a free cell phone for signing up for a new plan with AT&T, so I know it’s real!
9. Verizon
Verizon is another company known for giving free phones to customers who switch to them. They usually have deals on smartphones like the latest iPhone, Samsung Galaxy, and Google Pixel devices.
10. T-Mobile
T-Mobile also has free phone deals for customers who make the switch to them. These deals usually include cell phones like Apple and Android.
11. Cricket Wireless
Cricket Wireless gives free phone deals to customers who switch from another carrier. The devices available as part of these deals often include budget-friendly options from major phone companies.
Before making any decisions, it’s important to compare these free phone offers with your current mobile plan and provider. Think about factors like phone coverage (will the new service plan have coverage where you live?), the amount of data you get, and contract length when deciding which deal is right for you.
Places To Get Cheap Cell Phone Service
If you don’t qualify for free cell phone service, then you may be interested in learning how you can save money with your monthly cell phone bill. Below are the best places to get a cheap monthly cell phone service.
Google Fi Wireless
Google Fi has affordable wireless plans depending on your needs, and it is what I have used for several years.
Their Flexible plan starts at just $20 per month, per line. This is a great option if you are looking for a plan that doesn’t break the bank and still has reliable service.
Mint Mobile
Mint Mobile is known for its very budget-friendly cell phone plans that start at just $15 a month for 5 GB. An unlimited plan is just $30 a month.
Mint Mobile runs on a reliable network, making it a great choice for someone who is trying to save money but still wants to be able to have service that they can count on.
Boost Infinite (formerly Republic Wireless)
Republic Wireless has affordable phone plans with a focus on simplicity and user flexibility. Their no-contract plans start at $15 per month for unlimited talk and text with the option to add data as needed.
I have several family members who were on Republic Wireless for years, and they liked how budget-friendly the service was.
Tello
Tello has plans that start at just $10 per month for 1 GB with unlimited minutes and free text messaging. Their Unlimited everything is only $29 per month.
They also provide a no-contract flexible option, allowing you to change your plan anytime to adjust to your needs.
FreedomPop
FreedomPop is a company that has both free and very cheap cell phone plans. Through the Affordable Connectivity Program, you can get unlimited wireless service (10 GB at 5G speeds) for just $0 a month.
If you don’t qualify for the government cell phone assistance program, they also have a free plan which looks to be a really good deal. You pay a one-time fee of $10 for the SIM card kit and the free plan includes 10 minutes of voice calling, 10 text messages, and 25 MB of high speed data each month. Yes, it’s not much data each month, but they also have plans for $30 a month that include unlimited texting and 10 GB of data.
Frequently Asked Questions About How To Get A Free Cell Phone
Below are answers to common questions about how to get a free cell phone and plan.
What programs give free phones to low-income individuals?
The Lifeline program is a government benefit that gives free or discounted phone services to qualifying low-income customers, including a free cell phone in some cases.
What are the top free phone plans in the US?
There are many popular free phone plans in the U.S. where you can get free cell service. Some popular options include the Lifeline Assistance program, which gives free or discounted cell phone service to eligible low-income consumers. Plus, carriers like Life Wireless have free monthly unlimited data, talk, and text through Lifeline and the Affordable Connectivity Program.
Who has the best free government phones? Which free government phone company is the best? What Lifeline provider sends the best free phones?
There are many different companies that participate in the free government phone program such as Life Wireless, Assurance Wireless, SafeLink, and Q Link Wireless. Each company is a little different, and you should choose the best one for you based on their coverage map, plan options (how much data do you need?), and phone device.
How do I qualify for a government assisted phone? Who is eligible for a free cell phone from the government?
To get a free government-assisted phone, you will have to meet certain income requirements or participate in a government assistance program such as the Supplemental Nutrition Assistance Program (SNAP), Medicaid, or Veterans Pension program.
Which carriers give free cell phones to seniors?
Some phone carriers have special deals and discounts for senior citizens, but I don’t know of any free phones that are targeted specifically for seniors. However, if you are a senior who qualifies for any of the government assistance programs mentioned earlier, you might be eligible for a free cell phone or a discounted service.
How do I apply for a free government phone?
Getting a free government phone is usually pretty simple and can be done on the phone company’s website directly. You can visit the website of a cell phone company that participates in the program, such as Life Wireless, and see if you qualify. They have easy instructions to follow, and you can find out if you are eligible for a free phone.
How To Get A Free Cell Phone – Summary
If you need a free cell phone or wireless service, there are many different options to look into.
Free cell phones can have a big impact on the lives of individuals and families. With these phones, they can:
Connect with potential employers
Call for emergency services
Stay up to date about news and important events
Both government-sponsored programs and wireless carriers have ways to get free phones.
The government programs are designed to provide free cell phones and service to eligible households, usually those who meet specific income or program participation requirements.
Telecommunication companies (like AT&T and Verizon) sometimes have deals to get potential customers to switch to them, such as free cell phone deals that are usually tied to specific contract terms (1 or 2 years long).
Do you want to know how to get a free phone? Did you know that you can get a free government cell phone?
Find lovely beaches, lush parks and peaceful neighborhoods in Cape Coral.
Is Cape Coral a good place to live? This question has crossed the minds of many prospective residents eyeing the sunny shores of Southwest Florida.
Cape Coral, located near Fort Myers, has a reputation for its lovely beaches, lush parks, and peaceful neighborhoods. In this comprehensive exploration, we dive into the various facets of living in Cape Coral to provide a well-rounded view of what life here truly entails.
Geographical beauty and outdoor fun
Cape Coral is dubbed as the “Waterfront Wonderland” owing to its over 400 miles of navigable waterways. The city’s geographical location by the Caloosahatchee River and Gulf Coast provides numerous avenues for waterfront living.
Residents revel in the close proximity to exotic beaches like Fort Myers Beach and Pine Island. The presence of several parks and natural preserves enhances the appeal for individuals who cherish the great outdoors.
Recreational activities
The city is a hub for a variety of outdoor activities including fishing, boating and hiking. The warm sunny weather, which graces the city year-round, creates a perfect atmosphere for residents to lead an active lifestyle.
The local flora and fauna add to Cape Coral’s charm. The city is known for its burrowing owls, which are not only a sight to behold but also reflect the area’s biodiversity.
Affordability
One of the prominent attractions of living in Cape Coral is its affordability. The city has a cost of living that’s below the national average, making it an enticing location for individuals on a budget.
Real estate
The real estate market in Cape Coral is relatively stable with a variety of housing options ranging from waterfront properties to suburban homes. Home prices are reasonable, providing new residents with a chance to own property in a beautiful city without breaking the bank.
Tax benefits
Florida is known for its friendly tax policies as there is no state income tax, which bodes well for both young adults and senior citizens looking to save on taxes. The lower cost of living extends to utility prices which are also below the national average.
Crime rate and safety
Cape Coral boasts a lower crime rate compared to larger cities in Florida. The lower rates of violent crime and property crime make it a safe community for families and individuals alike.
Economic growth and employment
Cape Coral is experiencing significant growth with a burgeoning economy. The influx of new residents and businesses has led to a robust real estate market and a growing city infrastructure.
The proximity to nearby Fort Myers expands employment opportunities for Cape Coral residents, who can commute for work and still enjoy the peace and tranquility that Cape Coral offers.
Education
Public schools in Cape Coral are part of the Lee County School District, which has a reputation for quality education. Additionally, there are several reputable private schools providing residents with a variety of educational options for their children.
Cultural richness and demographic diversity
Cape Coral hosts various cultural events year-round, providing residents with opportunities to immerse themselves in local and international cultures. The vibrancy of the local arts scene is a testament to the city’s cultural richness.
The city is home to a mix of young adults, families and senior citizens, creating a diverse community. This demographic mix enriches the life in the city and fosters a sense of community among residents.
Cons of Cape Coral life
While there are many benefits to living in Cape Coral, there are drawbacks too. Some residents might find the city to be too quiet, especially when compared to the bustling activity in nearby cities like Miami. The summer months can get exceedingly hot and humid, which might not suit everyone.
Also, the influx of seasonal residents during winter can lead to crowded streets and longer wait times at local establishments.
Living in Cape Coral comes with the reality of facing the hurricane season. The city’s location on the Gulf Coast exposes it to the risk of hurricanes and storm surges, with Hurricane Ian being a notable mention.
Living in Cape Coral
Cape Coral, with its beautiful beaches, affordable living and growing economy, certainly has a lot on offer for prospective residents. While the city has its share of challenges like facing the hurricane season and experiencing seasonal population fluctuations, the positives of living in Cape Coral, FL far outweigh the negatives for the most part.
The city is indeed a great place for individuals and families seeking a serene environment, lower cost of living and a community-centric lifestyle amidst the beauty of Southwest Florida.
Ready to find your Cape Coral rental paradise? Look at apartments for rent here.
The bank then complained that Ginnie Mae reversed its course after a few weeks and left TCB empty-handed. It said that Ginnie Mae had nullified the bank’s priority lien after TCB had already loaned millions of dollars for the sake of RMF, affecting retirees and the Home Equity Conversion Mortgage (HECM) program. The HECM program … [Read more…]
Cyber-attacks are on the rise as hackers and criminals learn about and adapt to methods put in place by government agencies to prevent scams. The FBI’s Internet Crime Complaint Center (IC3) reported monetary losses totaling more than $1.4 billion in 2017. [1]
While anyone, regardless of age, can be a target of common money scams, many hackers specifically target seniors. Nearly 17% of reported cyber crimes in 2017 came from victims over the age of 60. And with losses of over $342 million, seniors are losing more money to scams than any other age group. [1] Considering the average age of retirement in the U.S. is 60, this trends is a serious threat to the financial security of many Americans as they enter retirement.
With an empty nest and retirement on the horizon, your senior years should be the time to pursue your passions—not get scammed out of your hard-earned savings.
This guide covers the basics of recognizing and preventing common online money scams, plus provides tips to help seniors navigate the online world safely.
Table of Contents:
Why Scammers Target Seniors
Pew Research shows that seniors are adopting technology, such as the Internet and smartphones, more than ever before. [2] If you’re among the technology adopters, you know how great technology is for connecting with your children and grandchildren who live far away and with friends you haven’t seen in years.
Con artists and scammers exploit seniors online believing that they aren’t Internet-savvy, despite many proving otherwise. Here are a few of the reasons seniors are a frequent target of scams online:
You generally have larger savings accounts and valuable assets.
You’re perceived as more trusting and polite.
You may not recognize and report the scam right away.
As you age, cognitive function and physical ability declines.
How to Recognize a Money Scam
As online scammers get increasingly sophisticated, certain types of fraud can be hard to spot even for the most adept Internet user. To keep from falling victim to scammers’ tactics, make yourself aware of common warning signs and stay vigilant. A gut feeling is always a good place to start. For example, if something feels too good to be true, it probably is. Also, if a request from someone you know feels out of character, trust your instincts and do your research before taking action.
An easy way to know if something is a likely con is to use the three U’s for identifying money scams.
Unexpected: If you receive an email from someone you trust making an unexpected or unusual request for money or personal information, contact them personally to confirm.
Urgent: If the tone of the message is threatening or asks you to act immediately, take time to think it over or tell a friend before acting. If you’re still unsure, check the IC3’s Alert Archive to see if there have been other incidents of the same scam.
Unsecure: Make sure the address bar reads “https://” and not “http://” when entering personal or financial information online. If a URL begins with “https://” that tells you the site is secure and protects information that’s transmitted. If you provide sensitive information to an unsecure site, it can easily be stolen.
Top 10 Online Scams That Affect Seniors
Scammers see senior citizens as easy victims, but you can prove them wrong by educating yourself on some of their common schemes. They often use things like healthcare, retirement savings and online dating to lure unsuspecting seniors into giving over their personal information. Here are 10 of the most common online schemes that target seniors.
1. Medicare Scams
If you’re 65 or older, you might rely on Medicare for your health coverage. Scammers know this and whenever Medicare sends out new cards or makes changes to its policies, they capitalize on opportunities to steal personal information. This can be done over the phone or by email. The scammer claims to be a Medicare representative and insists there’s a fee associated with getting you a new card or that your card has been compromised—neither of which is true.
According to Medicare.gov, “Medicare, or someone representing Medicare, will never contact you for your Medicare Number or other personal information unless you’ve given them permission in advance.”
How to protect yourself: Don’t respond to the email and mark it as junk or spam. If you need to speak with Medicare, call them directly at 1-800-MEDICARE (1-800-633-4227).
2. Health Insurance Scams
In order to make a profit, criminals may try to offer you health insurance plans that have little to no real value. In some cases, they may be selling discount cards or limited-benefit plans, but rarely explain how limited the coverage really is.
How to protect yourself: Never purchase insurance on the spot. Do your research on the company and thoroughly read the details of the coverage offered.
2. Counterfeit Medications
This scam is especially dangerous because it can cost you not only your money but your health. Prescription drugs aren’t cheap, and most seniors are dependent on a medication or two to maintain their health. Scammers exploit this by offering fake prescription medications for purchase online at a low cost. The number of counterfeit medication scams under investigation by the FDA is up four times since the 1990s. [3]
How to protect yourself: Always go through licensed medical professionals to get any prescriptions and pick up your medications at a local pharmacy. If you enjoy the convenience of ordering online, many reputable pharmacies allow you to refill your prescription online or have your medications delivered.
3. Phishing
Scammers often capitalize on your trust in people and institutions by posing as them in emails, on calls or in text messages. For example, the Social Security Scam is a form of phishing where scammers pose as government officials who need your social security information. Once they’ve gained your trust, they use that to gather personal, sensitive information like your Social Security number, bank/credit card information and/or passwords.
How to protect yourself: Always check the sender’s email address or phone number before clicking any links in emails or messages that request personal information.
4. Dating and Romance Scams
Online dating can be great for people of all ages—seniors included. But it’s important to practice the same kind of cautions online as you do in real-world dating. Online dating scams are one of the biggest and most costly scams, and scammers can break your heart and bank account if you’re not careful. It’s a red flag if someone builds a rapport with you only to turn around and ask for money. Even if the request seems heartfelt, like wanting to come see you, it could still be a play solely for money.
How to protect yourself: Take things slow, do your research and never send money to someone you don’t know personally. Even if you’ve met them, run the other way if they ask for money after you’ve known them only for a little while.
5. Investment Scams
In these cons, scammers take advantage of your need to build or maintain retirement savings. A lot of seniors are concerned about making their money last, which makes them vulnerable to ads or requests that promise high-profit, no-risk investments.
How to protect yourself: Stop and think, “Is this too good to be true?” Never accept an offer on the spot. If you’re not sure, talk it over with a trusted friend or check the IC3’s Alert Archive along with other online sources, such as the Scams and Frauds page on USA.gov.
6. Homeowner Scams
Seniors are at a point in life where they’re more likely to own their homes. While some may want to stay right where they are, others have grand dreams of moving to a new location—maybe somewhere warmer. In this scenario scammers work to identify the value of your property and then offer you a reassessment—for a fee, of course.
How to protect yourself: If you want to move, only work with a reputable realtor or go the for sale by owner route.
7. Sweepstakes and Lottery Scams
These scams use a surprise factor to trick you into thinking you need to click something to “claim a prize.” It can come as an email, a web pop up or even within a web page you’re reading.
How to protect yourself: If you receive an email that claims you’re a winner, it’s almost guaranteed to be a scam. On the off chance that you actually signed up for a sweepstakes, check your email inbox to see if you have a confirmation of your signup from the same email address. Better, yet, pick up the phone and call the company before you click on a link in an email or on a website.
8. Fake Charities
Seniors may feel more compelled to donate to those in need or contribute to disaster aid, but unfortunately fake charities often try and get donations after a natural disaster.
How to protect yourself: Do your research. Call a number to speak with someone from that charity or search the charity name and a phrase like “scam” or “fraud” in Google. You can also use the organizations listed by the FTC to research reputable charities.
9. Malware Scams
Using antivirus software is a great way to protect yourself from fraud. Unfortunately, scammers often pose as antivirus providers and instead install malware on your computer. These advertisements are often pop ups or web page ads.
How to protect yourself: Make sure anything you download to your computer is from a reputable source and never give anyone you don’t trust remote access to your computer.
10. Threats and Extortion
These types of scams utilize fear to get the desired outcome. Typically the scammer tells you that something terrible is going to happen if you don’t give them money or personal information.
How to protect yourself: Never act impulsively. Consider whether the scenario seems realistic. If you’re unsure or scared, talk to a friend. If the caller acts like a relative, hang up and call them back to ensure it is, in fact, your relative and not a stranger pretending to be your relative.
How to Protect Yourself Online
It’s good to know the basics about scams and the accompanying warning signs, but there are steps you can take to further protect your computer and online identity from fraud including. settings, tools and government resources.
Keep your firewall turned on. A firewall monitors incoming and outgoing network traffic to prevent unauthorized access to and from a private network. It protects your computer from hackers attempting to crash it or gain sensitive information.
Keep your computer’s operating system up-to-date. Make sure your computer software is up-to-date. You can usually subscribe to automatic updates online. If you keep your system updated, your computer will continue running smoothly and you’re sure to have the latest fixes for any security holes.
Turn on two-factor authentication. Two-factor authentication requires both a password and an additional piece of information to access your account. The second piece of information is typically a message sent to your phone or a code generated by an app or token.
Look out for unsecure networks and websites. If you get a warning message saying “Unsecure Wi-Fi Detected,” don’t visit any banking websites or store any passwords while on that network.Also, most browsers will warn you when you visit an unsecure site. The feature should already be enabled on most computers, but if not, make sure you enable this setting.
Install or update antivirus software. Antivirus software prevents malicious software programs from installing on your computer. Malware programs allow others to see your computer activity. Be wary of any ads on the Internet for these types of software as they are often not real solutions and instead are fraudulent.
Use a password manager. A password manager, like LastPass or Dashlane, lets you have a unique, strong password for every secure website—in other words, not your grandchild’s birth date. You won’t have to remember them all, because the password manager stores and encrypts your passwords for your protection.
Check your credit often. Major changes toyour credit can indicate potential fraud. Consider signing up for a free credit score and checking it every few weeks as a way to watch for changes.
Find Information About Active Scams
What To Do If You’re the Victim of a Scam
The best thing to do if you suspect you’ve been the victim of a scam is to report it. IC3 chief Donna Gregory says, “We want to encourage everyone who suspects they have been victimized by online fraudsters to report it to us.” IC3 receives over 800 complaints a day on average, so don’t let embarrassment keep you from reporting something.1 Reporting a scam helps law enforcement investigate similar scams and take action to bring the scammers to justice.
Steps to Take After Fraud
To report a scam, file a claim online at www.ic3.gov. You’ll be asked to provide complete information about the crime as well as any additional relevant information.
Once you’ve reported the scam to authorities, you also want to take action against any other loss. IC3 recommends that victims take actions, such as contacting banks, credit card companies and/or the credit bureaus to block accounts, freeze accounts, dispute charges or attempt to recover lost funds.
Keep a close watch on your credit reports and consider using credit monitoring tools.
In February 2018, the Justice Department made a coordinated sweep of elder fraud cases that resulted in several initiatives to reduce the number of annual cases. [4] This included building local, state and federal capacity to fight elder abuse, supporting research to improve elder abuse policy and practice, and helping older victims and their families.
Each year the number of Internet crimes increases and scammers become more sophisticated, but spreading knowledge and awareness is one of the best ways to combat the issue. Arming yourself with a basic understanding of the dangers online can help you protect yoursel f from fraud.
Additional Resources
Sources:
1 Federal Trade Commission Latest Internet Crime Report Released
2 Pew Research Center Tech Adoption Climbs Among Older Adults
3 National Council on Aging Top 10 Financial Scams Targeting Seniors
4 United States Department of Justice Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 Defendants