California-headquartered LoanSnap was hit with a temporary order to cease and desist from Connecticut’s Department of Banking for “systemic” unlicensed mortgage loan origination activity.
Connecticut Banking Commissioner Jorge Perez alleged that LoanSnap violated the Truth in Lending Act (TILA) and Fair Credit Reporting Act (FCRA). But the crux of the commissioner’s findings focuses on unlicensed origination activities.
From at least August 29, 2022 to December 2, 2022, individuals who were not licensed as loan officers (LOs) in Connecticut acted as LOs by taking residential mortgage loan applications, soliciting Connecticut borrowers for mortgages and offering or negotiating terms of mortgages, according to the order issued earlier this month.
Unlicensed LOs made the first contact with a potential borrower by using purchased leads from lead generators, such as LendingTree, to make outbound calls to potential borrowers. These individuals also received inbound calls from individuals interested in obtaining mortgage loans, the order stated.
The commissioner alleged unlicensed LOs discussed the available products offered by SnapDoc based on the information obtained from the potential borrower. The individuals then made an initial determination as to whether there is a loan product available to the potential borrower.
Once an unlicensed LO deemed a potential borrower qualified for one of LoanSnap’s loan products based on the information gathered – via text, electronic mail, telephone call and additional verification documentation he or she required the potential borrower to submit – the unlicensed MLO then sent the file to a licensed LO.
The bulk of the origination work was performed by unlicensed LOs, generally titled as “sales development representatives” or “call center representatives,” according to commissioner Perez.
On LinkedIn, unlicensed individuals represented their job titles as a “mortgage loan officer” or included job descriptions including “prequalified inbound leads for the senior mortgage loan officers – over 100 calls per day” or “connection point between potential mortgage and refi-takers,” the order stated.
Connecticut’s Banking Department provided LoanSnap an opportunity to show compliance for the retention of its mortgage lender license in Connecticut before issuing the order but received a written response from the lender denying the allegations asserted in the compliance letter.
Perez directed LoanSnap to cease unlicensed LOs from taking any mortgage applications and for unlicensed LOs to disclose their Connecticut licensing status to a potential borrower, the regulator said.
A hearing – scheduled for March 14 – was granted to LoanSnap within 14 days following the lender’s receipt of the temporary order to cease and desist and a failure to request a hearing will result in the allegations deemed admitted, according to the order.
LoanSnap requested a hearing, according to Connecticut’s Department of Banking.
LoanSnap didn’t respond to HousingWire’s requests for comment.
The California-headquartered lender has 44 state licenses with 6 sponsored LOs, according to the Nationwide Multistate Licensing System (NMLS).
LoanSnap originated $3 million in production volume over the past year across 32 units, data from mortgage technology platform Modex showed.
In 2021, LoanSnap secured $30 million in series B financing led by True Ventures. Also participating in the funding included prior investors Baseline Ventures, Richard Branson’s Virgin Group, and MANTIS, according to the company’s previous release.
The Hong Kong and Boston Chase Sapphire lounge locations were the first to open, and a third spot is entering the scene: As of January 2024, the Chase Sapphire Lounge at New York’s LaGuardia Airport has opened its doors.
Here is what you can expect when you visit this two-level Chase lounge at New York-LGA.
Getting to the Sapphire Lounge LaGuardia
To get to the Chase Sapphire Lounge in Terminal B, pass through security and turn right. Go past the colorful falling water fountain. At the end of the concourse, you’ll find the entrance to the Sapphire Lounge, next to the Centurion Lounge entrance.
Take the elevator down to the ground floor to enter the lounge.
Hours of operation
The Sapphire Lounge at LaGuardia is open from 4:30 a.m. to 9:30 p.m. daily. The private Reserve Suites are open from 5 a.m. to 9 p.m.
Layout
The Sapphire Lounge by The Club at LaGuardia beats out many of its competitors on square footage alone. At 21,850 square feet, this massive Sapphire Lounge can fit a maximum of 269 people. The Centurion Lounge next door comes in at less than half the size by square footage.
There are two levels. The lower level has seating areas, play areas (not just for kids), relaxation rooms and the main dining area and bar.
Ascend the set of stairs located to one side of the center bar and you’ll find yourself in what Chase staffers called “The Perch.” This mezzanine area features more seating and tables, a refreshment station and access to the Reserve Suites: three reservation-only rooms available to groups who want more privacy than the lounge affords.
Design
The theme of trees and greenery runs throughout, with several large “tree trunks” breaking up space on both the first and second levels. The pervasive woodgrain, mid-century furniture and colorful, abstract art on the tambour panel walls gives the feeling of walking into a particularly chic rainforest. There’s even a canopy of plants lining the railings of the upper-level mezzanine.
The womb chairs and light, oak-colored wood are in line with current design trends. Yet, the lounge has an air of timelessness that feels sophisticated but fun — falling somewhere between the retrofuturism of the TWA Hotel at JFK and the intentional whimsy of a hip coworking space. Elevated furnishings can be found in the by-reservation private suites, but more on that later.
The lounge doesn’t have a lot of windows because of its location within the airport. However, even without natural light, there’s not a spot in the lounge that feels underlit. The sconces and variety of other lighting fixtures are a delightful detail.
Throughout the lounge, you’ll find touches of New York City, whether it’s a book of Bill Cunningham photos on the shelf or a series of photos featuring matchbooks from iconic New York restaurants like The Bitter End.
Seating areas on the lower level
The first floor of the lounge features plenty of space for work, relaxation, dining and even a little play. Cushy couches and chairs are scattered throughout.
A backlit, water vapor fireplace provides ambience in a more work-oriented section of the lower level where guests will also find two-person booths and a private phone room.
No need to worry about keeping your devices charged — there are outlets galore embedded in furniture, walls, tables and the floor.
Photo booth and arcade
On top of the areas for working or relaxing, there are a few rooms dedicated entirely to play. One is a photo booth that guests can use to snap photos with their traveling companions. Photos can’t be printed, but guests can have a digital copy sent to their email.
The photo booth doubles as an entrance to what Chase staff referred to as “the speakeasy” — a hidden arcade room featuring a pinball machine, tabletop shuffleboard and a jukebox. While there’s no drink service in the speakeasy, staffers indicated that there might be someday.
Children’s playroom
Families can use an enclosed playroom on the lower level without having to worry about disrupting other lounge guests.
Nursing room
A nursing room featuring a sink and changing table is available for use by families in addition to a dedicated changing room for those with babies.
The Reserve Suites
The Reserve Suites are three rooms that can be booked within the lounge that offer groups a private seating and entertainment area, access to fully-stocked showers and an upgraded menu. The privacy comes at a premium though.
Chase Sapphire Reserve® cardholders can reserve one of the two six-person suites and one four-person suite. The six-person suites feature a movable wall between and can be booked together for use by up to 12 people.
Suites are available in three-hour slots. Each of the six-person suites costs $3,000 to reserve (or $6,000 to combine the two suites) and the four-person suite is $2,200 for a reservation slot. You must book suites through the Chase mobile app at least 72 hours in advance.
So what does roughly $1,000 per hour get you?
In addition to private showers stocked with bathrobes and high-end toiletries from Oribe and Augustinus Bader, guests get access to a personal lounge staffer and a private menu from the New York restaurant Jeffrey’s Grocery.
Menu highlights include a hefty lobster roll and the Plateau le LaGuardia, a two-tiered tower featuring king crab legs, shrimp cocktail and a variety of tinned seafood. The suite-exclusive wine list is curated by New York City wine bar Parcelle and each of the suites includes caviar service in its price.
In the sitting area of each suite, there’s a beautifully incorporated TV on the wall that comes with a PlayStation 5 for guests. The TV can be turned off, leaving the design element of a stark, glossy black circle on the wall rather than a blank TV — a subtle touch that’s in line with the elevated feel of these private suites.
One of the few windows in the lounge is in the four-person suite, providing a near-panoramic view of The Perch and lower level of the lounge; though, there’s a curtain for privacy should you prefer it.
Meditation pods and treatment rooms
If you want to luxuriate a little but don’t want to shell out for the suites with their private showers, stop by the wellness area and treat yourself to some spa time.
The ordeal of engaging with commercial air travel can be more than a little de-centering. If you feel like you need some time to refocus and quiet your mind, the lounge offers two meditation pods, which can be booked in 30-minute slots via the Chase app or the QR codes found throughout the lounge. Meditation pod reservations are complimentary.
You can also book a free spa treatment, such as jade rolls and oxygen blasts, on-site on a first-come-first-served basis. The private treatment rooms are staffed by estheticians and feature products from New York facial bar Face Haus.
🤓Nerdy Tip
Each spa guest can also snag a free travel kit of skincare products from Face Haus.
Bathrooms
There are several bathroom stalls in the men’s room and women’s room on the first floor and an all-gender restroom on the mezzanine.
Food
Cold plates and made-to-order meals
At the back of the lounge’s lower level is the main dining area. The kitchen serves breakfast (4:30 a.m. to 10:30 a.m.) and all-day fare (11 a.m. to 9:30 p.m.) with menus featuring more typical lounge options alongside special, made-to-order dishes from Joseph Leonard, a West Village bistro.
During breakfast and regular service, cold and hot plates are available at the buffet counter. For breakfast, guests can expect the usual fare like pastries, fruit, yogurt, eggs, pancakes and French toast. Made-to-order options — including omelets, egg and cheese baos, and vegan spinach bowls — can be ordered by scanning the QR codes found at every table.
All-day food choices include Korean fried chicken bites, pumpkin muhammara, grilled cheese and made-to-order dishes like burgers or seared salmon over braised leeks. The latter items punched a fair bit above the lounge food weight class, retaining the restaurant quality you’d expect from a curated menu.
A selection of sweets is also available at the buffet, including lemon squares, chocolate chip cookies and mini chocolate bites.
The bar
Situated amid the dining space and seating areas is a circular bar, beautifully appointed with white stone countertops, mauve barstools and brass accents. Chase teamed up with New York mixologists Apotheke for locally-inspired cocktails.
The cocktail menu includes drinks exclusive to the LaGuardia lounge, like The Blackburn’s Sour — a berry-forward rum drink named for one of the first passengers to disembark at LaGuardia when it opened in 1939 — and a signature cocktail that you’ll find at all Sapphire Lounge locations, fittingly and simply called Sapphire.
Other standouts include the Red Eye, an interesting take on the all-too-familar espresso martini that takes things in a more refreshing direction with the addition of black cherry.
A wine list curated by Parcelle, spirits and a selection of beers on tap round out the bar’s menu, with soft drinks, juices and coffee also available.
Refreshment stations
The lounge features three refreshment stations, two on the first level and one on the second. Each refreshment station includes a mini fridge of canned beverages as well as drip coffee, tea, a digital espresso machine, nonalcoholic drinks on tap and assorted fruits and biscotti.
In keeping with the locally-sourced beverages, coffee is supplied by Greenwhich Village roaster Joe Coffee and teas are from SoHo-based tea blenders Harney & Sons.
How to get into the Chase Sapphire Lounge LGA
Access to the Sapphire Lounge by the Club at LaGuardia is pretty simple: you need to carry a qualifying Chase card or have a Priority Pass membership. Some credit cards include a Priority Pass membership as a benefit.
Chase cards that get you lounge access include:
Chase Sapphire Reserve® and J.P. Morgan Reserve cardholders each get two free guests, per visit. Additional guests come at a fee of $27 each. Ritz-Carlton cardholders get unlimited guests.
Priority Pass cards that get you access to the Chase LaGuardia lounge include:
The Platinum Card® from American Express
Capital One Venture X Rewards Credit Card
Marriott Bonvoy Brilliant® American Express® Card
Hilton Honors American Express Surpass® Card
U.S. Bank Altitude™ Reserve Visa Infinite® Card
Annual fee
Priority Pass benefits
Full Priority Pass Select membership. Enrollment required. Terms apply.
Full Priority Pass Select membership. Includes two guests per visit. No restaurants.
Full Priority Pass Select membership. Enrollment required. Terms apply.
10 complimentary Priority Pass lounge visits per year. Enrollment required. Existing cardholders who enrolled in Priority Pass on or before Jan. 31, 2023 will no longer have a membership as of Feb. 1, 2024. Cardholders who enroll between Feb. 1, 2023 and Jan. 31, 2024, will continue to have membership through Oct. 31, 2024. Terms apply.
Eight free Priority Pass lounge visits per year.
Learn more
(Top photo by Steve Miller)
The information related to the J.P. Morgan Reserve and The Ritz-Carlton™ Credit Card has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Back in August 2020, the Aspen Institute analyzed U.S. Census data to calculate that without “swift intervention” there might be an estimated 30 to 40 million people in America at risk for eviction, with 29 to 43 percent of renter households at risk of eviction by the end of 2020.
Here we are in early 2021, and some “swift intervention” has arrived in the form of an extension of a Centers for Disease Control and Prevention nationwide ban on “certain residential evictions.” The CDC order, which defines a temporary halt to residential evictions to prevent the further spread of COVID-19, went into effect on Sept. 4 and was to end on Dec. 31, 2020. It’s now in effect until March 31.
Aside from any federal rules, many states have put their own eviction bans in place. The NOLO legal information website has a list of state eviction protections. Princeton University’s Eviction Lab monitors weekly reports through its Eviction Tracking System with nearly real-time updates on states’ moratoria. For more updates, check with a legal aid organization where you live.
All good news but cold comfort if you’re one of the people who has already been evicted. Although it’s never a good time to leave your place of residence, to have to do so during a global pandemic adds an extra layer of fear and uncertainty. Aside from health worries, how do you get an apartment with an eviction? What happens to your credit? Will you be able to rent again?
What are the reasons for an eviction?
The following are some reasons you might face eviction:
Behind in rent
Won’t leave the property after the lease is up
Violated the terms of the lease
Engaged in illegal activity
Damaged the property
What does an eviction mean?
Landlords have to follow a series of legal steps before they can put you out. They can’t just change the locks while you’re not home.
Usually, but depending on local laws, the landlord has 30 days to notify you in writing that they’re terminating your lease. They must attend a hearing and make a case for why you, the renter, need to leave. If the landlord wins the case, and you don’t leave or make changes — by paying the back rent, for example — they will then contact law enforcement and schedule an eviction date. A sheriff or marshal will give you notice that law enforcement will arrive a few days hence to escort you off the premises.
You can, of course, defend yourself against an eviction if you believe it’s wrongful — a landlord’s illegal activity, the property is uninhabitable, the landlord is retaliating against you for demanding repairs.
Will eviction affect your credit?
An eviction shows up on your legal record, which future landlords will be able to access, and remains there for seven years. The eviction will not show up on your credit report, but it may affect your credit in these ways:
Your landlord may have sent unpaid rent information to a collections agency
If your landlord sues you in court for unpaid rent and wins, you’ll have a civil judgment against you. That civil judgment will show up on your credit history.
You can petition the court to expunge the eviction from your legal record. You can then contact the credit reporting agencies to remove the civil judgment from your credit report. Getting rid of the collections agency from your credit report will be more difficult.
If unpaid rent was the reason for your eviction, do all you can to make amends with your previous landlord or the collections agency. That includes paying back what you owe.
What steps can you take to rent again?
You may have trouble finding apartments that accept evictions. For one thing, many property owners require a background check, but it’s possible to find some private owners who ask only for reference letters or apartments with eviction forgiveness. So, check upfront about how they will vet you.
While you’re looking for an apartment that accepts evictions, spend time rebuilding your own personal portfolio to show future landlords you’re worth any perceived risk:
1. Rebuild your credit
If you were delinquent in rent and got backed up on other bills, you’ll have dings on your credit report. You may want to engage a credit counselor to help in consolidating debt and creating a debt-management plan. (Check the Federal Trade Commission website for information on credit counselors.)
Ultimately, you’ll need to make a commitment — and stick to it — to pay all bills on time every time. Reduce your credit card balances and don’t apply for new credit cards. Keep in mind, rebuilding your credit will take time.
2. Write a letter of credit
You’ve got to convince a new landlord that you’re creditworthy. Be transparent and honest about your credit history and let a prospective landlord know that you’ve learned from past mistakes and will move forward responsibly.
You can do this by phone or by writing a letter in which you explain your circumstances. Offer details about how those have changed, e.g. you now have a higher paying job and define how you’re working to rebuild your credit. Back up your claims with pay stubs and reference letters.
3. Have references ready
Perhaps you have previous rental experience in which you were never late on payments. Get that landlord to write a letter attesting to that. You can also get employers, business partners, family and friends to write letters on your behalf.
4. Sweeten the deal
If you can afford it, offer to pay upfront more than what might be asked of you. Perhaps you can swing first and last month’s rent. Or, offer to pay a higher security deposit. Have a co-signer ready to help back your lease agreement. This makes you less of a risk.
You can find apartments that accept evictions
You want to make a good impression when you meet a prospective landlord to make your case. Dress neatly, stay calm, be honest and focus on your positive attributes. Although it might seem like it, an eviction is not the end of the world. Stay positive and spend time researching and preparing for how to get an apartment with an eviction.
Stacey Freed is an award-winning writer and former senior editor for Remodeling, a trade publication focused on the business of the remodeling and construction industry. As an independent writer, she continues to write about the building, design, architecture and housing industries. Her work has appeared in Better Homes and Gardens and USA Today special interest publications, Realtor magazine, This Old House, Professional Builder and online at AARP, Forbes.com, House Logic and Sweeten.com among other places.
What are you most optimistic about in the mortgage market in 2024? | Mortgage Professional TV [embedded content] A new year is upon us – but what does that mean for the US mortgage market? In the final episode of this Big Question series, recorded in late 2023, a host of industry experts offered their … [Read more…]
When it comes to home design, we’ve all decorated with a trend or two that we wish we could forget (anyone remember pistachio-colored kitchens?). But we’ve also discovered trends that have turned into classic finishes that are here to stay. (Looking at you, marble!) With that said, while trends come and go, it’s always fun to forecast what’s going to be hot in the new year. And as with the “never dress in a trend from head-to-toe” fashion rule, the same applies to home decor. It’s never wise to outfit an entire house in them, but sprinkle in a trend here and there for an updated look. From embracing bold hues to incorporating textured wallpapers, 2024 looks to be a colorful year. Four designers weigh in on what you’re sure to see inside beautiful homes around Dallas this year.
Trend: Working pantries
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More and more, new home builds and renovations are including a spot for a working pantry, which is a larger walk-in version with storage and prep space. “Adding countertops, outlets and space to prep in pantries bring an added layer of function to the home and can help achieve a mess-free kitchen space while entertaining,” says Hayden Dendy, designer for BRNS Design, a multidisciplinary architecture and design firm.
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Designer Kara Adam, owner of Kara Adam Interiors, is also urging her clients to consider adding a working pantry to their floor plans. Not only is it practical, but it’s another opportunity to have fun with design. “Pantries are no longer a closet with white shelves,” she says. “They are gorgeous and they’re functional. Design them with pretty countertops, tile and wallpaper, or paint them a fun color. They are truly treated as a room now, not just a closet. This will be budgeted into more and more of my clients’ projects.” She suggests storing appliances that take up space in the kitchen such as coffee makers, blenders and toasters. “They can also be plumbed with a sink or ice machine. Basically all of the things that are noisy or unattractive, so that your kitchen remains a pretty space,” she says.
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Trend: Saturated color
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“This year we are going to see homeowners being more adventurous with color,” says Danielle Frazier, co-owner and principal designer of interior design studio Twilly & Fig. “When you saw the trends go towards gray and neutrals and cooler tones, people lost that richness and connection to color. They are starting to feel that void and want to be more playful with color.” Within that, Frazier notes that spaces will continue to see monochromatic use of color, particularly with moody hues. She says she’s seeing an increase in purple spaces, as well. “We just did a living room in a grayish plum that is really rich. It’s a color you don’t hear a lot about now, but you’ll start to see it more,” she says. She suggests trying Benjamin Moore’s “Hazy Lilac” as a way to introduce the trending palette. Aside from the walls, Frazier also notes that homeowners are starting to ask for colorful pieces like rugs, sofas and wallpaper as well. “I think people are willing to take a risk with color on more investment pieces than they have in the past,” she says.
Adam agrees that the neutral all-white look is starting to fade. “In 2024, few people are going to ask for that,” she says. “People want a cozier environment rich in color. Even formal spaces are looking less formal because of the rich color. It draws you in and makes a space scream ‘come hang out in here,’” she says.
Trend: Mixing and matching genres
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As the neutral palette starts to fade, so does the matchy-matchy interior that looks more like a catalogue than a personalized lived-in space. “Our clients are craving an element in their design and in their homes that have a soulfulness to them,” Frazier says. “For instance, we’ve been designing a kitchen with custom handmade tiles on the backsplash. We’re finding that people are wanting to add depth, character and personality through handmade pieces and antiques.” She suggests shopping estate sales and local antique stores for hidden gems or planning a road trip to one of Round Top’s antique show weeks for one-of-a-kind finds.
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“We always encourage and push clients to embrace the unexpected,” adds Adam. “Mixing a contemporary piece with an antique will make an environment that is pleasing to the eye.”She also urges clients to purchase art, which personalizes a home even more. She suggest that her clients buy works that speaks to them, rather than what “matches” their interiors. “Your home is an expression of you,” she says. “Art is very subjective. And, it’s not just decoration anymore. It’s a statement.”
Trend: Bold bars and beverage centers
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“Bars are huge right now,” says Adam. “We have some homes with multiple bars. And much like how powder baths are the jewel box of the home, that’s how bars are going to be too. They will be extremely layered, rich in colors and accessories, and usually have unique countertops.” And thanks to the playful powder bath aesthetic that has been trending for some time, homeowners are craving more of that layered look throughout the home, which is where a bold bar comes in. “It used to be that we’d go into these beautiful, airy light homes and they’ve had this wild powder bath, but now you’re seeing that personality throughout the home,” she says.
Cheers to the new home bar: How to create a modern, multifunctional space
And on that note, Frazier is seeing an increase in beverage centers, which encompasses every drink throughout the day, from breakfast to cocktail hour. “In the past a beverage center was maybe just a coffee bar or a cocktail bar, but now people want them to be multipurposeful, a place where they can make their morning coffee or tea, make a smoothie bowl after a workout or pour a beverage after work.” Most of these areas include a beverage fridge or fridge drawers, a built-in pullout trash can, a wine fridge, a sink, and cabinets for blenders, coffee pots or tea kettles. “It depends on the person, of course, but they are designed for how they want it to function,” she says.
Trend: Cozy spaces
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Homes built in the last decade mostly feature open-concept floor plans, which usually include an open family room, kitchen and breakfast nook. But Adam is hoping to design cozier spaces in the next year. “No one wants to relax in their family room when they are sitting on the sofa and behind them is the kitchen,” she says. Dirty dishes, a pot of soup on the stove or clutter on the countertops does not create for a relaxing space. “Creating separation is good for your mental health,” she says. “You can step away from it and go back and clean it up later.” Plus, when a space is large and open, there is no breaking point for a designer to do something playful and fun on the walls or molding. “When it’s one huge space, it’s a lot harder to upholster or lacquer a wall,” she explains.
Her clients are also asking for game rooms. “We can’t do enough of them,” she says. “We are redoing spaces so that people can have a mahjong room. In our home we have a table built for mahjong, but when it’s not set up for that, we always have a puzzle out, too. Work on a puzzle for 20 minutes and it’s good for your brain and it slows things down. Then you can go back to running around or going to carpool,” she says.
Trend: Textured and printed wallpaper
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Wallpaper has been trending for some years now, and it’s still holding strong in 2024, especially selections that boast texture, bold patterns and fabric. “In 2023, we launched our first wallpaper collection with Ever Atelier, Ever X Yates, and it led us to experiment with wall coverings in new ways. For example, new construction ceilings are typically much taller nowadays, and implementing wallpaper can help weigh it down and feel more proportional,” says Bryan Yates, principal designer of Yates Desygn. “In addition, we are currently framing three panels of a de Gournay print to work as a 9-foot-by-9-foot piece of art and create a more significant moment in a client’s dining space rather than using traditional panels as a series.”
Adam notes that adding the right wallpaper to a space helps to evoke a mood, too. “People are wanting texture as opposed to a super flat, quiet space. For instance, when you’re having a dinner party in a dining room covered in cool silk wallpaper, it makes people want to stay. We want our clients to have dinner parties that go on all night,” she says.
A variety of notable mortgage rates slumped over the last seven days. While 15-year fixed mortgage rates moved higher, interest rates on 30-year fixed mortgages shrank. For variable rates, the 5/1 adjustable-rate mortgage sunk lower.
30-year fixed mortgage: 6.99%
15-year fixed mortgage: 6.47%
5/1 adjustable-rate mortgage: 6.12%
In November, the average rate for a 30-year fixed mortgage started making sustained drops from its earlier peak of 8%. The most common home loans are now in the 6% to 7% range. Yet the mortgage market always has some level of volatility, and rates have already started inching back up at the start of this year.
“It’s not uncommon to see a shift in the pattern for interest rates in January, sometimes positive, sometimes not,” said Keith Gumbinger, vice president of mortgage site HSH.com.
The current housing market is difficult. High mortgage rates, expensive home prices and tight inventory are keeping homebuying out of reach for many. If you’re looking to buy a home, don’t try to time the market. Instead, experts recommend patience and preparation: Figure out what you can afford and take steps to improve your financial situation.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Today’s average mortgage interest rates
If you’re in the market for a home, check out how today’s mortgage rates compare to last week’s. We use rates collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Today’s mortgage interest rates
Loan term
Today’s Rate
Last week
Change
30-year mortgage rate
6.99%
7.00%
-0.01
15-year fixed rate
6.47%
6.46%
+0.01
30-year jumbo mortgage rate
7.02%
7.05%
-0.03
30-year mortgage refinance rate
7.19%
7.21%
-0.02
Rates as of Jan. 26, 2024
How to choose a mortgage
When picking a mortgage, consider the loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. You’ll also need to choose between a fixed-rate mortgage, where the interest rate is set for the duration of the loan, and an adjustable-rate mortgage. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market’s current interest rate. Fixed-rate mortgages offer more stability and are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 6.99%, which is a decline of 1 basis point from seven days ago. (A basis point is equivalent to 0.01%.) A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.47%, which is an increase of 1 basis point from the same time last week. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 6.12%, a fall of 25 basis points compared to last week. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
Calculate your monthly mortgage payment
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
When mortgage rates will stabilize, according to experts
Mortgage rates were near record lows, around 3%, at the start of the pandemic. That changed as inflation surged and the Federal Reserve kicked off a series of aggressive interest rate hikes, which indirectly drove up mortgage rates. Now, mortgage rates are still more than double what they were just a few years ago.
However, with the central bank keeping interest rates steady since late July, mortgage rates finally saw some sustained decreases in the fall. With the Fed planning to announce its next policy move in late January (and again in mid-March), experts are waiting for the first interest rate cut. It may be months before that happens, but mortgage rates could stabilize and start inching even lower in the coming months.
““The history of economic cycles has taught us that when the markets believe the Fed is done hiking rates, [mortgage rates] make a big move lower before rate cuts happen,” said Logan Mohtashami, lead analyst at HousingWire.
What affects mortgage rates?
Federal Reserve monetary policy: The nation’s central bank doesn’t set interest rates, but when it adjusts the federal funds rate, mortgages tend to go in the same direction.
Inflation: Mortgage rates tend to increase during high inflation. Lenders usually set higher interest rates on loans to compensate for the loss of purchasing power.
The bond market: Mortgage lenders often use long-term bond yields, like the 10-Year Treasury, as a benchmark to set interest rates on home loans. When yields rise, mortgage rates typically increase.
Geopolitical events: World events, such as elections, pandemics or economic crises, can also affect home loan rates, particularly when global financial markets face uncertainty.
Other economic factors: The bond market, employment data, investor confidence and housing market trends, such as supply and demand, can also affect the direction of mortgage rates.
Mortgage rate forecasts from experts
While mortgage forecasters base their projections on different data, most predict rates will remain near or above 7% for the rest of 2023. Here’s a look at where some of the major housing authorities expect average mortgage rates to land at the end of the year.
How to find the best mortgage rates
Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
If someone has access to both your bank account and routing number, they could make fraudulent ACH transfers and payments out of your account. In other words, you could wind up being scammed.
That’s why it’s so important to understand this aspect of your personal finances and protect your money. Read on to learn what happens if someone has your bank account number and routing number, what the risks are, and how to protect yourself.
What Can Someone Do With Your Bank Account Number Alone?
Many of us wonder, “What can someone do with my bank account number?” The good news is, if someone has only your bank account number, that won’t give them enough intel to do any damage. It’s not the same as a scammer obtaining your credit card digits. No one will be able to withdraw money from your personal bank account if all they have is your account number.
For those who may not know the difference between a bank account vs. a routing number, here’s the scoop:
• Your bank account number is the unique string of digits that identifies your particular account at a financial institution. Even if you have, say, multiple accounts at a bank, each will have its own distinct account number.
• Your routing number is the series of numerals that identifies your financial institution, or where the account is held.
Just because your bank account number alone doesn’t make you vulnerable doesn’t mean that you shouldn’t protect it. You should. If a scammer had your account number and other info — perhaps your driver’s license number and/or your home address — they might be able to make illegal purchases online. So it pays to be vigilant.
Routinely monitoring your account activity — say, once a week — is a smart move that allows you to quickly detect if anything is awry.
💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.
What Can Someone Do With Your Bank Account and Routing Number?
The short answer: Real damage. The combination of a bank account and routing number is a dangerous combo that scammers want. And those two numbers are fairly accessible. Think about how often these numbers get circulated: every time a check is written, cashed, signed over to someone else.
Here’s what can happen if they fall into the wrong hands.
ACH Fraud
With both those precious numbers, crooks could commit fraudulent automated clearing house (or ACH) transfers and payments. You’re probably used to seeing those ACH letters on your banking details when you set up automatic monthly payments and the like. When a scammer has your bank account and routing numbers, they could set up bill payments for services you’re not using or transfer money out of your bank account.
It’s tough to protect these details because your account number and routing number are printed right at the bottom of your checks. But do your best. Some pointers:
• Don’t leave your checkbook lying around.
• If you are mailing a check, wrap it in a sheet of blank paper so the numbers don’t show as it’s in transit.
• Pay attention to bank statements. Review them often to see if there are any fishy transactions happening.
• Protect yourself when online banking by using strong passwords. That password is a primary defense. If a thief has your bank and routing numbers and somehow manages to get access to your login name and password, big trouble may be on the horizon.
• Don’t make your password something obvious like your name, pass1234, or numbers that may be circulating in cyberspace, like your birthday which can be seen on Facebook.
Online Shopping
Know that all online retailers aren’t equal in terms of security measures. Some will allow people to make a purchase with bank account information alone, while others will also ask for a driver’s license or other state identification to add an additional layer of protection.
So what can a scammer do with your bank account number and routing number? They can find sites that let them shop with only that information. and could run up a tab.
Depositing Money
While it might seem like a dream come true if a mysterious sum of money appeared in your bank account, you should be more alarmed than overjoyed. Somebody who has your account and routing number may be using your digits to facilitate their illegal shenanigans (such as the kind of bank fraud known as money laundering). Report unusual deposits immediately.
Create Fraudulent Checks
Unfortunately, scammers can create fake checks using your checking numbers, and then those fake checks to pay for purchases (not every payee will verify a check) — or simply cashing them. Know, too, that with technology scammers could digitally scan the check and deposit the amount into their bank account.
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What to Do When Someone Has Your Bank Numbers
As careful as you try to be, stuff happens. What if someone has your bank account number and routing number? What if you see signs that they are using it for fraudulent transactions? Knowing how to report identity theft can help mitigate a bad situation. Have a strategy in place, just in case. Here’s some advice.
Contact Relevant Agencies
If you have the misfortune of being victimized, here’s what to do:
• Contact your bank the minute you realize it. You need to notify your bank within 60 days of your statement to avoid paying for unauthorized ACH transactions. The bank’s fraud department will work to help you get unauthorized charges reversed.
• Report the fraud to the fraud department of all three credit reporting bureaus, Equifax®, Experian®, and TransUnion®.
• File a report with your local police department.
• Also file a report with the Federal Trade Commission’s department that deals with identity theft.
Your to-do list doesn’t end there. You’ll want to be a stickler about monitoring your bank account to look for any signs that someone else is abusing your account. Be proactive and ask your bank about setting up text messages or push notifications every time a transaction is posted. This will help you keep track of what’s going on with your money.
Much as you may not be a paper person, when you’re a victim of bank fraud, documentation matters. You want copies of bank statements, a copy of the police report, your credit report, and any other relevant materials.
Cancel Your Account
As much as it’s a hassle, you need to get a new account number to replace the compromised one. Call your bank’s customer service number, contact a rep by chat, or, if you use a traditional vs. online bank, go to your local branch. Explain your situation, and take steps to get your assets transferred to a new bank account, get new checks printed, and get a new debit card if needed to safeguard your cash.
Tips on Avoiding Bank Fraud
There are no absolutes in life, but there are steps you can take to protect yourself as much as possible.
• You can get an identity theft protection service to monitor your bank accounts and alert you to any funny business, be it suspicious withdrawals or information changes.
• When shopping online, use a credit card (it offers more protection than say a debit card), prepaid card, or a money transfer app instead of typing in your account and routing numbers.
• Be stingy with your banking information to avoid bank scams. Know that less is best when it comes to sharing info.
• Go for multi-factor authentication when banking online. If you have linked bank accounts and credit or debit cards to online platforms, absolutely sign up for additional verification in order for purchases to go through. It’s like a forcefield around your account.
• It can be wise to limit your use of paper checks to only those things where an alternate form of payment is a hassle. Remember your checks are a gold mine of personal information, with your address, account and routing numbers.
The Takeaway
In today’s world, it pays to keep close tabs on your bank accounts and related numbers. Having your bank account and routing number can allow scammers to do damage in a variety of ways, from unauthorized ACH payments to fake checks. By protecting these digits and setting up other safeguards, you’ll minimize the odds of your falling victim to these wily thieves.
While on the topic of banking, it’s wise to make sure your financial institution is a good fit and offers the services and perks that suit you best.
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FAQ
Which bank details should I keep secret?
Protect your bank account and routing numbers to avoid having scammers siphon money away from you. Setting up two-factor authentication for online transactions can help protect you, too. It goes without saying that no one except you should know your username, password, and security questions. Also shred financial documents that you don’t need.
Is it safe to give out your account details?
Share your banking information sparingly, especially online. At most, share a few key points with a trusted friend or family member, and only punch your details into secure websites (look for the “https” at the beginning of the url and the padlock symbol) — though even those aren’t 100% scam-proof.
Can I give out my routing number?
A bank routing number in and of itself reveals very little. After all, it’s a nine-digit code used by financial institutions to identify other financial institutions. It’s very much public information and only becomes a risk factor when paired with other personal details.
Can someone steal your money with your bank account number?
Typically, a scammer would need more than just a bank account number to steal your money, but routing numbers are easily found. With those two pieces of information, a crook could use those numbers for online purchases or to otherwise defraud you.
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According to the J.D. Power and Associates 2007 Primary Mortgage Origination Study released today, most homeowners have not been impacted negatively by the current mortgage crisis, and overall satisfaction has remained stable since 2006.
“While it’s true that borrowers with weaker credit and those seeking larger ‘jumbo’ loans experience longer approval times and requests for more documentation, satisfaction has remained steady among the 75 percent of mainstream borrowers with good credit applying for moderately sized loans,” said Tim Ryan, senior director of the mortgage practice at J.D. Power and Associates.
Wachovia was the highest ranked mortgage lender in terms of satisfaction, receiving a score of 827 out of a possible 1,000 points, particularly for its improvement within the closing process, while SunTrust came in a close second with 818, and Bank of America rounded out the top three with 760 points.
The study, based on responses from 4,378 consumers who originated new mortgages between September 2006 and August 2007, measures customer satisfaction with four key factors of the loan origination process, including application approval, interaction with the loan representative, closing, and problem resolution.
Interestingly, J.D. Power suggested working directly with a mortgage lender instead of using a mortgage broker or an online service, saying it would lead to a more positive experience with fewer problems.
“The percentage of borrowers working directly with their lender instead of through a third party has increased, which has helped maintain the stability of overall satisfaction since 2006,” said Ryan. “This has also contributed to the average borrower experiencing faster approval and closing times.”
It’s the latest in a series of blows against mortgage brokers who have received a good share of the blame for the current mortgage mess.
Here are the rankings of mortgage lenders in terms of satisfaction, based on a 1,000 point scale (Industry Average 750):
Wachovia – 827 SunTrust Mortgage – 818 Bank of America – 760 National City Mortgage – 759 CitiMortgage/Citibank – 753 Chase – 752 Wells Fargo – 749 Countrywide Home Loans – 745 GMAC Mortgage – 744 ABN AMRO Mortgage – 740 American Home Mortgage Corp. – 736 Washington Mutual – 733 First Franklin – 595
Inside: Escape the cycle of being broke with insightful tactics. Learn to invest, save smartly, spot financial traps, and build secure money habits today.
You are desperate right now. You want to know why I am broke.
I get it. This is a situation I have been in before and just recently when I lost my main source of income.
The feelings of you can’t afford anything may send you down a steep spiral of depression.
So, how do we escape?
Here are the tips I used before and plan to use again.
Top Reasons for Why I am Broke
#1 – The Mindset Traps That Keep You Broke
A mindset that cultivates a sense of scarcity rather than abundance can be a massive roadblock to financial prosperity. When you’re shackled by thoughts like “I am always broke,” you unwittingly set the stage for a self-fulfilling prophecy.
The mental narrative that convinces you wealth is unattainable can keep you trapped in a loop of missed opportunities and poor financial decisions.
You may inadvertently sabotage your potential to earn more, save, or invest wisely by clinging to a defeatist paradigm.
Fixing a broken mindset is about shifting from a state of helplessness to one of deliberate, empowering action.
It starts with self-awareness and is further built through intentional positive affirmations and financial education.
Overcome By: Remember, the mind is powerful—it can be your greatest ally or your most formidable adversary. Change your money mindset.
#2 – Living Beyond Your Means: A Fast Track to Empty Pockets
Living beyond your means is akin to constantly filling a sieve with water, hoping it will someday retain more than it loses—a surefire way to financial drought. It’s a lifestyle where your outflow far exceeds your inflow, and every paycheck evaporates into the ether of consumerism.
With the advent of credit cards and buy-now-pay-later schemes, the temptation to spend money we don’t have has never been greater.
The façade of affluence conceals the grim reality of financial instability.
Acknowledging this trap is step one. Living within one’s means doesn’t imply sacrificing joy or reverting to asceticism; it’s about striking a harmonious balance between the lifestyle you desire and the one you can sensibly afford.
Overcome By: Making choices aligned with your financial reality, finding contentment in simplicity, and prioritizing financial health over transient pleasures.
#3 – Chronic Debt: Borrowing from Tomorrow for Today
Chronic debt is a pervasive issue, ensnaring individuals in a vicious cycle of borrowing today and worrying about repayment tomorrow. This pattern often stems from an urgency to fulfill immediate desires or needs without adequate financial resources.
Alarmingly, the trend of increasing consumer debt signals a culture obsessed with instant gratification as consumer debt is $16.84 trillion in Q2 2023, according to Experian. 1
Being in debt should not be normal.
The onus of breaking free from chronic debt lies in reevaluating your relationship with money. It means slowing down the urge to splurge, meticulously planning for future financial obligations, and carving a path towards debt repayment.
Overcome By: Find the discipline to not only stop accumulating debt but also to aggressively tackle existing debts through methods like debt snowball or debt avalanche strategies.
#4 – You Haven’t Learned to Plan and Budget for a Brighter Tomorrow
The lack of a strategic financial plan and a detailed budget is tantamount to navigating unknown terrain without a map. Without these critical tools, your finances are left to chance rather than choice, leaving you vulnerable to the whims of circumstance.
Budgeting is perhaps the most fundamental step toward taking ownership of your financial future. It gives you a clear snapshot of where your money is going, which is essential for making informed spending decisions.
However, many avoid the budgeting process, perceiving it as restrictive or complex. The truth is that budgeting liberates you from the anxiety that comes with uncertainty. It empowers you to align your spending with your financial goals and to find a balance between today’s necessities and tomorrow’s aspirations.
Overcome By: Choose a budgeting method whether it be the zero-based budget, the 50/30/20 rule, or the envelope system, the key is to find a method that resonates with your lifestyle and stick to it.
#5 – No Emergency Fund to Weather Financial Storms
An emergency fund is an essential bulwark against the financial tempests life invariably hurls your way. Without it, a single unforeseen event—a job loss, a medical emergency, or an urgent car repair—can capsize an already precarious financial ship. The lack of an emergency cushion extends an open invitation to debt and financial strain.
The data tells a stark tale:
A statement from the Consumer Financial Protection Bureau highlights that nearly a quarter of consumers (24%) don’t have an emergency savings account. 2
Additionally, 39% have less than a month’s worth of income saved for emergencies, setting the stage for potential financial disaster. 2
This precarious situation has become more pronounced with the increasing cost of living and high inflation rates witnessed in 2021-2023.
Overcome By: Structured, automatic savings transfers to facilitate the gradual growth of your emergency fund without it feeling like a financial blow. The goal is to build a reservoir robust enough to cover several months of living expenses, providing a comfortable buffer that can help you bounce back from setbacks without the need to borrow money at high-interest rates or liquidate precious assets at inopportune times.
#6 – Lack of Understanding of The Power of Investing
Understanding the power of investing is key to grasping the potential of a seed. A seed, given the right conditions, can grow into a flourishing tree. Similarly, investing allows your finances to grow beyond the confines of stagnant savings.
Yet, many people fail to harness this power due to a lack of understanding or fear of the unknown. This was me for many years until I decided to learn to trade stocks.
A common misconception surrounding investing is that it’s solely the playground for the rich or financially savvy. This myth steers many away from multiplying their wealth via investments, leaving them to rely solely on their primary source of income. Moreover, a lack of understanding often leads to panic during market volatility, resulting in ill-timed decisions to buy high and sell low—contrary to sound investment strategies.
Overcome By: Invest money consistently into a low-cost mutual fund or ETF that tracks the overall S&P. Then, continue your investing education on how to invest in stocks.
#7 – Wasteful Spending Habits
Wasteful spending habits are the quiet thieves of financial security. They nibble away at your earnings, leaving you wondering where your money has gone at the end of each month. This pattern often goes unnoticed, as it’s usually composed of small, seemingly insignificant purchases that accumulate over time.
The danger of wasteful spending is its subtlety.
It’s the daily coffee on the way to work, the meal out because cooking feels like too much of an effort, or the impulse buys during the sale season.
Individually, these do not seem like considerable expenses, but together, they can consume a substantial portion of your budget.
To curtail this financial leak begins with recognizing and acknowledging these habits. Tracking every penny spent can be an eye-opening experience, illustrating just how quickly the ‘little things’ can add up. With this awareness, one can then consciously decide where to cut back.
Overcome By: Adopting a minimalist approach, where value and purpose become the benchmarks for every expense, can help combat wasteful spending. Questions like, “Do I really need this?” or “Will this purchase add value to my life?” can serve as useful filters. Take up a no spend challenge to see your mindless consumption.
#8 – Fail to Recognize the Patterns That Lead to a Near-Empty Wallet
Failing to recognize the patterns that deplete your wallet is akin to ignoring the signs of a leaking roof until it caves in—it’s a disaster in the making. Often, it isn’t one significant financial blunder, but rather a series of small, recurring missteps that lead to the near-empty wallet syndrome.
For instance, routinely underestimating monthly expenses can lead to a perpetual state of surprise when the bills pile up.
Similarly, neglecting to keep tabs on bank account balances may result in overdraft fees that, over time, take a sizable bite out of your funds.
Disregarding the accumulative effects of late payment charges or routinely paying only the minimum on credit card balances can exacerbate financial distress.
Overcome By: To reverse this trend, one must become a detective in their own financial mystery. Start by scrutinizing bank statements and tracking expenses. Look for patterns, like repeated late-night online shopping sprees or habitual dining out, which contribute to the thinning of your wallet. Use budgeting apps or spreadsheets to flag these patterns visually, making it easier to identify and amend them.
#9 – How Fear and Denial Contribute to Ongoing Money Issues
Fear comes in several forms: fear of failure, fear of taking risks, and even fear of facing the truth about one’s financial situation. It can immobilize individuals, preventing them from making necessary financial changes or taking action that could otherwise mitigate or reverse money woes.
For instance, the fear of losing money might dissuade one from investing in potentially lucrative opportunities, leaving them stuck in the low-yield safety of a savings account.
Further, there’s the psychological phenomenon of denial—a defense mechanism that numbs the pain of reality. When faced with mounting debt or budgetary failure, denial kicks in, allowing individuals to live as if the problem doesn’t exist. Unfortunately, ignoring overdue notices or dodging calls from creditors doesn’t make debts disappear.
Denial only deepens the financial hole, often leading to larger, more complex problems.
Overcome By: To confront these challenges, it’s crucial to adopt a stance of brutal honesty with oneself. This means acknowledging fears and confronting financial shortcomings head-on. Professional help, such as financial counselors or advisors, can provide support and guidance to navigate these tricky emotional waters.
#10 – No Clear Financial Goals and Plans
The absence of clear financial goals and plans is like embarking on a voyage without a destination. It not only leads to aimless wandering but also ensures that you miss out on the focus and motivation that well-defined objectives provide.
When you lack clarity on what you’re saving for or what you wish to achieve, there is little impetus to resist the temptations of immediate gratification or to weather the short-term sacrifices that long-term gains often require.
Setting clear and measurable financial goals lays the groundwork for creating effective plans to reach them.
Overcome By: To break this cycle, begin by reflecting on what you value most and where you would like to be financially in the future. Whether it’s achieving debt freedom, owning a home, funding education, or planning for retirement, having specific goals in mind will define the purpose of your financial activities. Craft a plan that outlines the steps needed to accomplish them.
#11 – Laziness is your Game
When you approach your finances with a laissez-faire attitude, it’s akin to ignoring the health of a garden; without regular attention and effort, it’s bound to wither. Financial laziness can manifest in various ways, from failing to review bank statements and ignoring budgeting to neglecting opportunities to cut costs or boost income.
Each act of omission is a step closer to the financial doldrums.
Procrastination or avoidance might seem less painful at the moment, but they ultimately compound the problem. Contrary to what some might think, simple acts of financial diligence, such as cash management or regularly doing household chores, do not require Herculean effort.
Moreover, they set a foundation for sound financial habits that thwart needless spending.
Overcome By: Schedule time for financial management much like an important meeting.
#12 – Keeping up with Others is Breaking Your Bank
The urge to keep up with others—often termed the ‘Keeping up with the Joneses’ or ‘Keeping up with the Kardashians’ phenomenon—is a profound pressure that exerts an invisible, yet powerful, force on financial habits. This social comparison can lead to an insidious form of competition, one that disregards personal financial realities in favor of an illusory social standing.
It’s an impulse driven by comparison, where the benchmark of success is set not by personal satisfaction, but by the possessions and lifestyles of others.
The decision to upgrade to a luxury car, splurge on designer clothes, or redo a perfectly functional kitchen stems not from need, but from a desire to project an image that matches or surpasses those in your social sphere.
Financial guru Dave Ramsey encapsulates this philosophy with his common saying, “Live like no one else will now, so in the future, you can live like no one else can.” This means making money moves that are right for you, not those dictated by social pressures, which can sometimes involve humbler living now for a wealthier future.
Overcome By: Breaking free from the shackles of this social competition requires introspection and a bold reaffirmation of personal values. Adjusting focus towards personal financial goals and aspirations, rather than mirroring others’ spending decisions, is key.
#13 – Need Help Differentiating Needs from Wants
The blurring line between needs and wants is a common financial pitfall that can lead individuals deeper into the morass of money woes.
Needs are essentials, the non-negotiable items necessary for survival—food, shelter, healthcare, and basic utilities.
Wants, on the other hand, include anything that is not vital for basic survival but enhances comfort and enjoyment of life.
The difficulty in distinguishing between the two often stems from habituation. What starts as a luxury, like eating out at restaurants, getting a high-end smartphone, or subscribing to multiple streaming services, can quickly become perceived as essential. This is particularly difficult in a consumer-driven society, where advertising and social media constantly inflate our perception of what we ‘need’ to lead a fulfilling life.
The result? A budget that’s stretched thin on non-essentials, leaving little room for savings or investment.
Overcome By: Regularly reassess expenses and ask the hard questions about whether a purchase is genuinely essential or merely a desire dressed up as a need.
#14 – You Don’t Make Enough Money to Cover Your Expenses
When your income doesn’t cover expenses, the strain can be relentless. This financial imbalance is often the stark root of the “I am broke” refrain. In such cases, every dollar becomes precious, and the financial breathing room feels nonexistent.
The reason is straightforward: if what comes in is less than what goes out, deficits and debt are the inevitable outcomes.
Addressing this challenge requires a two-pronged approach—increasing income and/or reducing expenses. For many, reducing expenses is the immediate reflex, and while it’s an essential strategy, there’s only so much you can save, but no limit to how much you can earn.
Overcome By: Focus on making more money. This could mean asking for a raise, seeking better-paying job opportunities, pursuing a side hustle, making money online, or acquiring new skills that offer higher income potential.
Long-Term Solutions to Build a Secure Financial Future
Building a secure financial future is an aspirational goal for many, but achieving it requires a strategic approach characterized by foresight, discipline, and an understanding of personal finance.
Becoming financially independent doesn’t happen by magic chance; it’s the result of deliberate actions taken with consistency over time.
Here are the foundational blocks for constructing a sturdy financial edifice:
Invest in Financial Literacy: Knowledge is power, and this is especially true in the realm of finance. Educate yourself about budgeting, investing, insurance, taxes, and retirement planning. Reliable resources include books, online courses, podcasts, and workshops.
Set Clear Financial Goals: Define what financial success looks like for you, whether it’s being debt-free, owning a home, or achieving financial independence. Detailed goals provide direction and motivation for your financial plan.
Create a Robust Budget: A flexible budget isn’t a one-time exercise but a living document that should evolve with your financial situation. It should reflect your income, fixed and variable expenses, and financial goals.
Establish an Emergency Fund: This is the bedrock of financial security. Aim to save three to six months’ worth of living expenses to protect yourself from unforeseen circumstances without falling into debt.
Pay Off Debt: High-interest debt is a major impediment to financial growth. Utilize strategies like the debt snowball or avalanche methods to tackle debts efficiently. Once you’re debt-free, avoid accumulating new debt.
Diversify Income Streams: Relying on a single source of income is a risk. Look for opportunities to create additional streams of income, such as side businesses, freelance work, or passive income from investments.
Invest Wisely: Make your money work for you through smart investments. Consider diversified portfolios, retirement accounts, and tax-efficient investment strategies to grow your wealth over time.
Plan for Retirement: The future is closer than you think. Contribute regularly to retirement accounts like 401(k)s or IRAs. Take advantage of employer match programs if available, as they’re essentially free money.
Protect Yourself with Insurance: Ensure you have adequate insurance coverage for health, life, property, and potential liabilities. This helps to guard against catastrophic financial losses.
Breaking the Cycle of Being Broke
Just like becoming broke is often a gradual process—a few uncalculated loans, hasty investments, and numerous credit card swipes. Suddenly, financial stability seems like a far-off dream.
The same goes for breaking the cycle of being broke. It is about moving from living paycheck to paycheck with no savings, drowning in debt, and making questionable spending decisions to become financially stable.
Even though our society may see being broke as normal, it is possible to embrace financial prudence to defy such norms. It’s time to delve into the reasons behind the perpetuation of brokeness and unveil practical steps toward lasting financial freedom.
What do I do if I’m broke?
Finding yourself in a financial predicament where the end of your money arrives before your next paycheck is a stress-inducing scenario.
When faced with the stark reality of being broke, here’s a step-by-step guide to help you navigate through and set the stage for a more stable financial future:
Assess Your Situation: Take stock of all your available assets and resources. This includes checking account balances, any savings, and items you could potentially sell for quick cash. Understanding what you have can help you gauge your immediate next steps.
Prioritize Your Expenses: Sort your expenses by urgency and necessity. Essentials like rent, utilities, and groceries come first. Non-essentials or discretionary spending should be paused or significantly reduced until your financial situation improves.
Reduce Costs Immediately: Eliminate any non-essential expenses. Cancel or suspend subscriptions, memberships, or services that are not vital. Consider cheaper alternatives for necessary expenses, and utilize community resources, such as food pantries, if needed.
Negotiate with Creditors: If you’re struggling to pay your bills, proactively reach out to creditors to discuss payment options. Many are willing to work with you on a revised payment plan to avoid defaults.
Seek Additional Income Sources: Consider taking on a side job, selling unused items, freelancing, or offering your skills for short-term gigs. Even small amounts of additional income can make a significant difference when you’re broke.
Consider Assistance Programs: Look into local, state, and federal assistance programs. You may be eligible for temporary aid to help with food, housing, or utility bills.
Borrow with Caution: If borrowing is unavoidable, be cautious and choose the most cost-effective options such as loans from family or friends, a personal loan with a low-interest rate, or a hardship withdrawal from your retirement account (as a last resort).
Remember, being broke can happen to anyone, so there’s no shame in it.
The key is to take swift, decisive action to mitigate the immediate crisis while also planning longer-term strategies to prevent recurrence. By addressing the issue head-on and adjusting your financial habits, you can initiate the journey from being broke to becoming financially buoyant.
FAQ: Navigating Away from Being Broke
Finding yourself consistently broke at the end of each month is an indicator that there’s a disconnect between your income and your spending habits.
It’s often the result of several factors or behaviors that, when combined, result in a cycle of financial scarcity. Here are common reasons why this might be happening:
No Budget or Poor Budgeting
Overspending
Impulse Purchases
Lack of Emergency Savings
Failure to Track Expenses
Living paycheck to paycheck
High Debt Payments
Remember, understanding why you’re broke at the end of the month is the first step towards financial stability.
Saving money when funds seem stretched to their limit is a challenge that requires creative strategy and discipline. Even with a tight budget, there are ways to eke out savings without significantly impacting your day-to-day life.
If saving a significant amount seems daunting, start by saving your change. Physically save coins or use apps that round up your purchases to the nearest dollar and save the difference. Check out my mini savings challenges.
Saving money when it seems there’s barely enough to cover the bills begins with a commitment to take whatever steps are necessary, however small they may initially seem. Every dollar saved is a step towards financial resilience and a buffer against future financial challenges.
Investing can be a powerful tool for building wealth over the long term, and it’s often considered a key component of achieving financial stability. However, for those who are currently struggling to make ends meet, the decision to invest should be approached with caution.
Investing typically involves committing money with the expectation of achieving a future financial return. It has the potential to outpace inflation and increase your wealth due to the power of compound interest. Nevertheless, it often carries the risk of losing the invested capital, a risk that those in financial distress may not be in the position to take.
Feeling Broke without Money – Time to Make A Change
Feeling broke is a stressful and demoralizing experience, but it’s also a clarion call for change. It signals that your financial health needs attention and that your money management strategies may require a significant overhaul.
However, the situation is not without hope; with determination and the right approach, it’s possible to transform your financial landscape.
The journey away from the precipice of being broke begins with honesty, introspection, and a willingness to adapt. It’s about confronting uncomfortable truths, devising a clear plan, and taking decisive action. From crafting and adhering to a precise budget, cutting unnecessary expenses, to seeking additional income streams—all these steps are essential in the path to financial stability.
Remember, feeling broke isn’t a permanent state. Mindset is everything.
It’s a challenge to be met, an opportunity for growth, and a chance to steer the course of your financial ship towards calmer and more abundant waters. Your future self will thank you for the changes you implement today, so take that first step now.
>>>It’s time to make a change—because you deserve the peace of mind that comes with financial security.
Source
Experian. “Experian Study: U.S. Consumer Debt Reaches $16.84 Trillion in Q2 2023.” https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/. Accessed January 25, 2024.
Consumer Financial Protection Bureau. “Emergency Savings and Financial Security.” https://files.consumerfinance.gov/f/documents/cfpb_mem_emergency-savings-financial-security_report_2022-3.pdf. Accessed January 25, 2024.
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Finance of America Companies (FOA) Chief Marketing Officer Chris Moschner found himself working for the lender in the wake of its acquisition of American Advisors Group (AAG), and Moschner previously told RMD about his journey to the position and the “intoxicating” opportunity he sees in the reverse mortgage space.
But that space is also facing a series of challenges including lower origination volume, high interest rates and liquidity challenges. The companies have to react and respond to the macroeconomic environment, which could include employing other tools — including more market research — in its messaging, he said.
‘It’s obviously about the macros’
Describing the larger economic environment in the housing finance sector, Moschner said that those factors — particularly interest rates — are not able to be controlled by reverse mortgage companies themselves.
“It’s obviously about the macros,” Moschner explained. “I don’t think it’s anything about [what] the companies themselves [are doing], it’s strictly related to things like the health of the bond market, rates and our ability to invest [correctly] in the short term.”
In such instances, it becomes important to focus on what the companies can control, he explained. That includes borrower outreach efforts and methodologies.
“I think [we’ve seen] all of the ingredients and all of the tools for success the category has been laying down for a long time,” he said. “We know that we’ve got to do a better job of educating our customers. Education continues to be a barrier, but that’s not a problem that’s solved overnight. That’s a problem that’s solved with content.”
That content could include reverse mortgage marketing material that includes influencers, and more focused public relations exercises that aim to streamline messaging and advertising, he explained.
But making those more focused moves might need to come after the macroeconomic environment becomes more favorable, which could allow the companies to pivot to marketing “offense” as opposed to macroeconomic “defense.”
“Those types of things will avail themselves over time when we’ve had the opportunity to have a bit more of a stable footing enabled by the macro environment,” he said. “[At a time] when we’re not dealing with strong interest rate headwinds that are leading to bond market volatility, which is leading us to be unsure about what we’re going to get for these loans when we securitize them in the market. So, that’s really it.”
Passion for customers
Moschner identifies passion for the customer base as a key driver for his work, he said.
“[It’s about] truly understanding what it means to be an older American today,” he said. “And not just understanding it at a surface level, and not just [speaking in generalities]. It’s about really understanding them. Some of the work we’re doing now — that I can’t say much about yet — is really focused on foundationally understanding this category.”
Despite sharing a label of “senior” or “older American,” a wide swath of age ranges exist within the demographic. The interests of a 62-year-old are not necessarily identical to the interests or realities of an 85-year-old, Moschner suggested.
“[It’s about discovering] who’s in their network, who their influencers are, what’s important to them,” he said. “And it’s not only about their financial situation but the things that make them excited, nervous or otherwise. So we’re going to that exercise because again, one of the things I learned going back to [my time at Procter & Gamble (P&G)] was that ‘who-what-how’ framework.”
The first step is to “assess the landscape,” which includes a comprehensive review of the category and determining messaging for them that is most resonant and relevant, he said.
Market research
In his “Origins” interview, Moschner shared his history at P&G and how he came to his role at FOA from a classically oriented marketing background in consumer goods. When asked if a P&G-like approach that more regularly makes use of traditional market research tools could benefit the reverse mortgage industry, he agreed.
“FOA and AAG have certainly made use of market research in the past, but I think as an industry more broadly, we need to go deeper,” he said. “The 65-plus demographic is a very interesting and unique one because it is not where the majority of the marketing dollars are spent.”
Instead, most of those marketing dollars tend to focus on people at or below the age of 45, he said.
“Which is interesting because most of the wealth in this country is actually held by people 65 and above,” he explained. “That is certainly changing, but I would argue because of that fact there has been underinvestment in formal market research. There’s been underinvestment in things like attitude and demography studies, and the 65-plus demographic is very diverse in terms of life stage, lifestyle and socioeconomic pillars.”
Understanding the nuances of everyone within that larger demographic will be essential to unlocking the industry’s potential, Moschner said.