A summer vacation can feel like a seasonal rite of passage — a sacred time to break away from the demands of everyday life in favor of fun and relaxation.
But summer can also be an expensive time to travel, which makes it hard to budget enough money for your vacation.
Though it’s best to pay in cash for nonessential travel, there are financing options available, including credit cards, “buy now, pay later” plans and vacation loans. Consider the interest rate and how long you’ll be in debt when deciding which to choose.
The challenges of budgeting for summer travel
Travel demand is in “near-record territory” with all indicators pointing to a “very robust summer leisure travel season,” the U.S. Travel Association, a nonprofit that monitors the U.S. travel industry, said in an email. According to the association, demand has driven up prices in sectors like airfare and lodging.
Even without higher prices, travel is tough to budget for, says Jake Northrup, a certified financial planner in Bristol, Rhode Island.
“Travel usually comes in big waves, and there’s just a lot of uncertainty as to what things will actually cost,” Northrup says.
Adrienne Davis, a certified financial planner in the Washington, D.C., area, says her clients often receive last-minute offers to go on trips with friends or family, which leads to a cash shortage.
“We don’t expect prices to be that high when it’s time to book,” Davis says. “And if your money is already allocated on a month-to-month basis, it’s like, ‘Wow, where am I going to get this extra $500 or $1,000?’”
Northrup and Davis emphasize it’s best to avoid taking on debt for a vacation. But because a trip can mean precious time with loved ones or an enriching personal experience, it’s reasonable to explore your options.
“I certainly understand sometimes the best decision that you can make is not the most financially optimal one, and that’s OK,” Northrup says.
Credit cards, ‘buy now, pay later’ and vacation loans
Davis prefers a credit card if you must finance a trip because you’ll likely earn points or cash back, which can offset costs. Some cards come with protections, she says, like travel insurance.
But interest rates on credit cards are high, which is why Davis recommends getting a card with a 0% annual percentage rate and paying off the balance during the initial promotional period — typically 15 to 21 months — before regular interest kicks in.
Companies like Affirm and Uplift offer buy now, pay later plans for travel. These plans divide your purchase into equal installments that you pay over time, and interest rates vary.
Uplift partners with airlines, resorts and other travel companies, including some that offer zero-interest financing and terms up to 24 months, depending on the partner and loan amount. Affirm offers no-interest options with terms up to 60 months.
Northrup prefers buy now, pay later if it’s zero interest, but like any debt, it’s important to prioritize repayment to avoid fees or hits to your credit.
A travel loan, or an unsecured personal loan from a bank, an online lender or a credit union, is another option. These loans are larger, and rates vary based on your credit score and debt-to-income ratio. Repayment is typically two to seven years, so consider how long you want to be in debt after your vacation.
Saving for your next trip
Unpacking your bags after a trip with zero debt to repay is a great feeling. Here are tips for saving for your next vacation:
Start now: Time is your most valuable resource when saving. Start putting aside money now for next summer, even if you don’t have a trip planned, Davis says. By saving $85 per month, you’d have over $1,000 saved in a year.
Open a high-yield savings account: Davis and Northrup advise their clients to put travel-specific funds in a separate high-yield savings account. You’ll earn interest, and you won’t accidentally dip into the funds to cover other expenses.
Pick the destination last: Many travelers pick their destination first, then try to come up with the money. But you can reverse that process, Northrup says, by “backing into” the trip you want. See what you have saved, then choose a destination based on that figure.
This article was written by NerdWallet and was originally published by The Associated Press.
United Airlines’ Denver hub is getting a big face-lift.
Not only is the airline adding stunning new gates with Instagram-worthy bathroom areas, but it’s also debuting three new and revamped lounges in the coming months.
It all starts this summer with the opening of a new club in the A-West concourse, between gates A25 and A27. This will become United’s first lounge in Denver’s A concourse. It’ll also be a major upgrade for flyers leaving from this pier since you’ll no longer need to take the train just to use a lounge.
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Then, later this summer, United will reopen the B-East club, which has been closed for the past few months for renovations. Once complete, it’ll become the largest club in the network, spanning a whopping 36,500 square feet.
Once the B-East club opens, United will close the existing B-West club and renovate it in a similar style to its other club in Concourse B, with completion scheduled for 2024. United will then build a Polaris lounge in Denver, but that’s still a couple of years away.
When all is said and done, United will have over 100,000 square feet of club space in Denver, including its novel Club Fly concept. But the improvements aren’t just about a bigger footprint.
Each new club will be designed to reflect the Mile High City and Colorado, and there’s a lot to get excited about. Don’t believe me? Come along for a first-look hard-hat tour of the new A-West club.
2-story layout
United’s A-West club will feature a two-story layout — one of the few lounges in the network to span multiple levels.
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ZACH GRIFF/THE POINTS GUY
Once you take the escalator up to the reception area, you’ll find touchless entry gates that will let you into the lounge. From there, it’s your choice as to whether you’d like to hang out on the first or second level.
Both will offer fantastic views of the concourse and tarmac, as well as copious amounts of natural light. The lounge’s west-facing window seats are sure to be the most popular during Denver’s dramatic sunsets over the Colorado Rockies.
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ZACH GRIFF/THE POINTS GUY
The new A-West lounge will measure 24,900 square feet across both levels.
Colorado-themed design
From the moment you step inside, you’ll definitely notice a ton of improvements compared to United’s existing Denver clubs, beginning with the design.
United is going with a Colorado theme for this lounge, and based on the renderings, you’re sure to be impressed. Expect plenty of natural wood, along with gray carpets, blue accents and tan leather finishes.
At the moment, the lounge is still very much under construction, but you can already begin to see the Colorado inspiration. For instance, United installed gabion walls around the perimeter of the entrance hallway in a nod to the rock-filled walls that line Interstate 70 to prevent boulders from falling onto the road.
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ZACH GRIFF/THE POINTS GUY
This club will also feature two fireplaces — one on each level. A wood-filled wall display will flank the fireplaces under natural oak-lined ceilings. Assuming that the finished product looks anything like the renderings, it’ll likely feel that you’ve entered a cozy ski lodge rather than a busy airport terminal.
In fact, that’s exactly how Alex Dorow, United’s managing director of lounges, premium services and hospitality, conceptualized this new space. “If Ralph Lauren had to build a ski chalet, what would it look like?” he asked the team during the design process.
Amenities for the post-pandemic world
Aside from the finishes, United is purposely designing the space for a post-pandemic world. That means you’ll find more private workstations here than in most other United Clubs, in order to support those who are working from the road.
There will also be a few high-top coworking tables that’ll be perfect for solo flyers.
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ZACH GRIFF/THE POINTS GUY
Also, the dining area will feature a mix of one-, two- and four-top tables and booths, which will suit those traveling alone or with friends and family.
Speaking of dining areas, United is working to upgrade the lounge catering, said Dorow, and he teased locally inspired options that will rotate seasonally. “When we say local, it’s not just in the look and feel; it’s also in what you taste,” Dorow explained.
The three new Denver lounges will all feature United’s signature hydration walls and personal water bottle refilling stations. According to Dorow, the airline received feedback that more and more travelers want spouts to fill their own water bottles — a request that United is happily addressing in its newest outposts.
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Notably, the new A-West United Club will not offer shower suites, which is a bummer considering that the airline is planning to move its long-haul international flights to the A concourse in the coming years.
You will find gender-specific restroom facilities (featuring private, floor-to-ceiling stalls), an all-gender restroom and a family room on each level.
As with United’s existing lounges, expect fast and free Wi-Fi and convenient access to power outlets and USB ports.
A surprise is coming
While the new lounges seem like they’ll be a major upgrade for United’s Denver hub, Dorow didn’t spill all the beans during the hard-hat tour.
In fact, he teased an all-new amenity that’ll debut in all three of the new Denver clubs. “As we open up these lounges, you’re going to see some new ways that allow customers to also get to know one another,” he said.
He didn’t share specifics, but he kept mentioning “fun artifacts” and “games.” What that means is anyone’s guess, but the good news is that we’re just a few months away from finding out.
Better yet, even if this surprise is a dud, at least the rest of the lounge will bring some much-needed improvements to United’s Denver hub.
If you own a second home or hold a high balance loan amount, you may want to refinance sooner rather than later. That’s assuming you were thinking of refinancing.
The same goes for those planning to purchase a second home or take out a mortgage with a high balance, which is a loan amount above the baseline conforming limit.
The conforming limit for 2022 is $647,200, so if your loan amount will be north of that, take note.
Fannie Mae and Freddie Mac are raising loan-level price adjustments (LLPAs) for both types of transactions come April 1st.
Depending on the details of your loan scenario, this could drastically increase your closing costs and/or mortgage rate.
Second Home Mortgages and High Balance Loans Going Up in Price
In an effort to bolster its support for affordable housing and sustain equitable access to homeownership, the Federal Housing Finance Agency (FHFA) will be raising (LLPAs) for certain transactions.
These LLPAs get passed onto consumers in the form of either more expensive closing costs or higher mortgage rates.
As noted, they pertain to the financing of second homes, whether a purchase or refinance, and high-balance loans, those which exceed the conforming limit.
The idea here is that these types of home loans go toward more affluent individuals. And they also create more risk for Fannie Mae and Freddie Mac, which are backed by taxpayers.
After all, large loan amounts and vacation properties are more likely to default and/or create larger losses for the Enterprises.
And that could jeopardize the mission of Fannie and Freddie, which is mainly to provide affordable financing to first-time home buyers, as well as low- and moderate-income borrowers.
Looked at another way, these new fees will subsidize programs like HomeReady, Home Possible, HFA Preferred, and HFA Advantage, which provide cheaper financing to lower-income borrowers.
Speaking of, fees won’t be going up on those programs, or for first time home buyers in high-cost areas with incomes at/below 100 percent of area median income.
How Much More Expensive Will Mortgage Rates Be in April?
Before you get too worried, the cost of these changes may be minimal, depending on the loan scenario in question.
For example, upfront fees for high balance loans will increase anywhere from 0.25% to 0.75%, depending on the loan-to-value (LTV) ratio.
If we’re talking about a loan amount of $750,000 on a primary residence, another .25% in fee is roughly $1,875.
This might move the dial on your 30-year fixed mortgage from 3.25% to 3.375%, or simply increase closing costs.
If that fee is .75% higher due to an LTV of 80%, we’re talking $5,625 in cost, which will more than likely increase your mortgage rate an eighth of a percent or more.
It’s not the end of the world, but it’s yet another thing working against homeowners and home buyers as mortgage rates have started off 2022 higher.
And they tend to peak during spring and early summer, which means financing will be that much more expensive.
The situation is even worse for second home buyers or owners, where pricing adjustments will increase anywhere from 1.125% to a staggering 3.875%.
Using our same loan amount of $750,000, even at a low LTV ratio, the increase in upfront costs could equate to around $10,300.
If we’re talking a high balance loan on a second home at 80% LTV, which isn’t out of the question, it’s an additional cost of about $31,000.
Again, depending on if you let the rate absorb these additional costs, you could be looking at a rate that’s .25% to .50% higher, or more.
Second Home Owners and Those with Large Loan Amounts Should Review Their Mortgages Now
If you believe these changes may affect you, it could be a good time to review your outstanding home loans.
The same goes for prospective home buyers thinking about purchasing an expensive property or a vacation home, which are en vogue due to COVID.
As illustrated above, these higher pricing adjustments have the ability to raise mortgage rates considerably. Or at the very least bump up your closing costs.
With home prices and mortgage rates also seemingly headed higher by spring, it could make sense to accelerate any refinance or home purchase plans to avoid these looming fees.
The FHFA said the new fees won’t go into effect until April 1, 2022 to “minimize market and pipeline disruption,” aka higher pricing for confused customers.
But watch out for mortgage lenders beginning to price in changes earlier on. Simply put, this is yet another reason to make any planned move sooner rather than later.
If you own an investment property, the same types of pricing changes might be on the horizon. So if you’re looking for better terms or cash out, now might be the time.
Travelers who take advantage of American Airlines and JetBlue Airways’ partnership through the Northeast Alliance may face big changes in the coming weeks.
A federal judge has ordered the airlines to disband their agreement within 30 days.
Barring further legal maneuvering, the order could mean the end of the Northeast Alliance, which enables codesharing on certain flights, as well as the ability for members of both airlines’ loyalty programs to receive reciprocal perks on the carriers.
The decision came after a lawsuit filed by the U.S. Department of Justice. It argued the partnership between American and JetBlue stymies competition, ultimately hurting consumers. The airlines and the government faced off in a monthlong trial last fall.
So far, in the wake of the judge’s ruling, neither airline has shared specifics about how the decision might directly affect customers.
Those with existing reservations booked via the partnership or those planning travel in the near future don’t need to worry just yet. The airlines can still appeal the decision, but if JetBlue and American are ultimately forced to undo their partnership, options may be limited for many flyers.
What is the Northeast Alliance?
Launched in 2021, the Northeast Alliance between American Airlines and JetBlue features two main elements at its core: a codeshare agreement and reciprocal benefits.
Codeshare agreement
First, American and JetBlue codeshare on certain flights in and out of four key Northeast airports:
Boston Logan International Airport.
New York-John F. Kennedy International Airport.
New York-LaGuardia Airport.
Newark Liberty International Airport.
The idea is, you can book a ticket on American and end up with one or all of the flights on your trip aboard a JetBlue aircraft or vice versa … all on one seamless itinerary.
As recently as December 2022, the airlines announced 10 new destinations as part of the partnership. The agreement provides customers with “more choice and service.”
The airlines have even altered where they operate at certain Northeast airports, accordingly, since launching the partnership a few years ago.
Last summer, for instance, JetBlue finished relocating all of its LaGuardia Airport gates to Terminal B, where American operates its hub, making it easy for customers to make connections.
Loyalty benefits
The second big part of the Northeast Alliance is the reciprocal benefits offered to American and JetBlue’s loyalty members, which transfer between the airlines.
The agreement allows TrueBlue members to earn points and Mosaic elite status tiles while flying on American flights. And AAdvantage members can earn miles while flying on JetBlue flights (though not on JetBlue’s transatlantic flights).
Through the alliance, AAdvantage elite status members and Mosaic elite status members can also enjoy some of their loyalty perks while flying aboard the opposite carrier, from free bags to complimentary economy plus seats and priority boarding.
As part of the judge’s order, all of this would presumably have to end 30 days after the May 19 ruling — which would fall in mid-June.
What happens to the Northeast Alliance now?
Despite the order to end the Northeast Alliance, neither airline seems to be in a hurry to make swift changes.
A quick check of American’s website for a hypothetical Fourth of July trip from Raleigh-Durham International Airport in North Carolina to Boston reveals an itinerary entirely operated by JetBlue via the Northeast Alliance.
Likewise, here’s a potential mid-July itinerary from Boston to Charlotte booked via JetBlue.com that features flights operated by JetBlue and American aircraft.
Perhaps more pressing, it’s also not entirely clear what would happen to existing reservations when it comes to the reciprocal perks (for instance, elite status members hoping to enjoy their free baggage benefit) or reservations booked as part of the codeshare agreement.
That may be by design, says Florian Ederer, an associate professor at Yale University’s School of Management. His research focuses on antitrust cases, and he has closely followed this case.
“It’s not entirely clear that this is going to happen immediately,” Ederer says. “[The case] may have some ways to go.”
Ederer predicts the airlines will appeal.
In email statements to NerdWallet, both airlines criticized the judge’s decision and hinted at further legal proceedings.
“We believe the decision is wrong and are considering next steps. The Court’s legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance,” American Airlines said.
“We are disappointed in the decision,” JetBlue said. “We are studying the judgment in full and evaluating our next steps as part of the legal process.”
In accordance with federal civil case procedures, the plaintiff (in this case, the government) and defendants (in this case, the airlines) are entitled to appeal.
Good or bad for consumers?
At its essence, this case focused on what’s ultimately good for customers. Both airlines argued in court and after the judge’s decision that their partnership has been a “win” for flyers.
“JetBlue has been able to significantly grow in constrained Northeast airports, bringing the airline’s low fares and great service to more routes than would have been possible otherwise,” JetBlue said.
“There was no evidence in the record of any consumer harm from the partnership,” American said.
But in his opinion, Judge Leo T. Sorokin argued otherwise.
“Until 2020, American and JetBlue were fierce and frequent head-to-head competitors. … The NEA changes all of that,” he wrote, raising concerns about fares and features offered as part of the partnership.
For his part, Ederer believes breaking up the Northeast Alliance may ultimately be positive for customers, calling the existing alliance a “merger in everything but name.”
“I do think that disbanding this agreement will actually reinject a healthy dose of competition, lower prices and higher quality for consumers in the Northeast,” he says.
(Top photo courtesy of JetBlue)
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 2023, including those best for:
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When it comes to farm-fresh produce, a little do-it-yourself — in the form of visiting a pick-your-own farm — can go a long way to saving you cash.
Pick-your-own farms (or U-picks, as they are commonly called) are those where the farmer sets aside fields for the purpose of allowing visitors to harvest their own produce. Typically, it’s weighed and sold by the pound, although plenty of farms go by container size, too. Available produce varies by farm and area, with picking starting as early as March for asparagus and ending when the last apples come off the tree in September or October.
Compared with the supermarket or farmer’s market, savings per pound at u-picks range from 20 percent to 50 percent, depending on the item, says John Slemmer, the founder of Pick Your Own, which lists u-pick locations nationwide. Generally, the more you buy, the better the price – making u-picks an especially good deal for people who want to make homemade jams, pickles, jellies and other preserves. (Frugal Foodie goes every year to get her favorite fruits: raspberries, strawberries and blueberries, freezing enough to enjoy year round.)
Trying a u-pick farm is also a great way to support local farms, many of which use sustainable or organic farming methods, says David Becker of Friend of the Farmer. You’re also getting a great product, because it was picked at the height of freshness.
Here’s how to get the best deal on a u-pick visit:
Call ahead
That gives you a chance to check prices and policies, as well as the condition of the fields. “They can get picked out pretty quick,” Slemmer says. Some fruits can ripen overnight, like strawberries, but others may take a day or two for enough to ripen to make a visit worthwhile. It’s also worth asking about any policies that might prove problematic — a few farms frown on bringing kids along, others may have a minimum charge for u-pick goods.
Time your visit
Mornings are best, especially if you plan to visit on a weekend, when crowds are bigger. Try to wait until the weather has been clear for a few days: some fruits soak up more rain than others, leading to a watery, bland taste, says Becker.
Compare prices
Nearby farms tend to be competitive with each other on price, so check several against each other and the going rates at your supermarket. Be sure to compare similar quantities and quality (especially if it’s organic). Factor in the cost to get there, too, with gas at an average $4 per gallon nationwide.
Ask about discounts
Some farms will offer them if you’re buying a substantial quantity say, a few bushels of apples to make applesauce, Slemmer says. Others will offer a deal on pre-picked “seconds,” the fruit that isn’t as pretty but just as tasty. Slemmer paid $6 a bushel for apple seconds last year, compared with the farm’s usual rate of $15 to $20.
BYO
Containers, that is. Farms sometimes provide big buckets, but more often hand over smaller containers for things like berries, Becker says. If your aim is to pick a lot, juggling several while simultaneously trying to pick gets frustrating fast.
Consider chemicals
Ask whether the farmer uses pesticides or fungicides, and how recently a field was sprayed, Becker says. Many farmers practice organic methods, but don’t have the substantial time and money it takes to get certified. It also depends on the crop. Blueberries rarely need chemical spray, but strawberries, apples and peaches often do, he says. It’s still fine to pick and buy that fruit, but knowing could dictate how much you decide to sample in the field.
Prepare for a full day
Collecting enough fresh-picked fruits and vegetables can take a few hours in the field, so plan appropriately. Wear sunscreen and bring water. But there are other reasons to make u-pick a full day trip – more farms offer other free or cheap agri-tainment, like petting zoos, mazes and horseback rides.
Frugal Foodie is a journalist based in New York City who spends her days writing about personal finance and obsessing about what she’ll have for dinner. Chat with her on Twitter through @MintFoodie.
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<img width="600" height="577" src="https://blog.mint.com/wp-content/uploads/2012/03/Stocksy_txp3bf5357bNVj000_Small_660159.jpg?w=600&h=577&crop=1" class="rkv-card__media" alt decoding="async" loading="lazy" data-attachment-id="3200" data-permalink="https://mint.intuit.com/blog/male-butcher-hands-purchase-to-customer-looking-at-camera/" data-orig-file="https://blog.mint.com/wp-content/uploads/2012/03/Stocksy_txp3bf5357bNVj000_Small_660159.jpg" data-orig-size="865,577" data-comments-opened="0" data-image-meta=""aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"" data-image-title="Is Buying a Side of Beef Worth It? MintLife Does the Math" data-image-description data-image-caption="
Series on an English butcher shop. Images on poster in background taken by Kirsty Begg, also available to licence on Stocksy http://www.stocksy.com/gourmetphotography/gallery/butcher
When my husband and I walked into our last home for the first time, we felt like we were walking right into the ’70s. With disco-era fixtures and old smelly carpet, the four bedroom colonial was quite the sight. Oh, and let’s not forget the orange laminate flooring that graced the kitchen and bathrooms. Except for the master bathroom, of course. It had shag carpet.
But, for every problem we saw, we also saw potential. Paint can work miracles, after all, and floors are fairly easy to replace. And the kitchen? It wasn’t great, but we thought new appliances and flooring would make it workable. Plus, the bones of the house were in great shape. Built in the ’70s, the brick exterior and interior of the home were in impeccable condition. The house also had beautiful dark woodwork all over the place, a feature that was currently overshadowed by all of the ugly going on.
Doing it Ourselves
After closing, we spent the next month scraping up laminate and tearing up carpet, painting, and cleaning. After that, we planned to have a professional install tile floors in the kitchen, sun room, and bathrooms, and then have carpet put in everywhere else. So we headed to the local home improvement store.
I’ll never forget the day I found out how much it costs to have someone install tile.
“Excuse me. $5 per square foot for installation?” I wondered how that could be possible. “But the tile is only $1.49 per square foot.” Could that possibly be right?
After talking to a few people in the industry, I found out that tile installation is rather messy and labor intensive, which is why it was so dang expensive. And since we planned on putting in almost 800 square feet of tile, we decided to do it ourselves. How hard could it be?
Practice Doesn’t Always Make Perfect
Since we had so much tile to install and no experience, we called in reinforcements. We hired a family friend to help us cut and lay the tile for $20 an hour. Together, we laid all of the tile over the course of three days. And when it was all said and done, I was pretty happy with the job.
Until I wasn’t.
After we moved in, I spotted a few uneven and crooked tiles. Even worse was the fact that the grout kept coming up in several places, even after sealing it multiple times. No one else seemed to notice the imperfections, including my husband, so I chalked it up to the fact that I’m slightly OCD. But it still drove me crazy, and I was constantly touching up and adding grout all over the house during the six years we lived in the home. And it was a pain.
What I Learned
In the world of personal finance, it’s often considered a weakness to pay someone to do something you can do yourself. And believe me, I get it. We’re all trying to save money any way we can, right? In that respect, paying for labor doesn’t seem all that smart.
One the other hand, my own lack of skills gave me reason to believe that it’s not always a bad idea. Hell, I worked in a mortuary at the time. What did I know about tile floor installation?Unfortunately, nothing.
The fact is, some people aren’t particularly handy or skilled in construction. Others might not have the time to devote to large projects. Or maybe home remodeling just isn’t your forte, and that’s okay too.
Fortunately, there are plenty of ways to save when you can’t (or don’t want to) do it yourself. Here’s what I’ve learned:
Do the prep work yourself: Even if you need to hire skilled labor for your project, you can still do the prep work yourself and save some cash in the process. For instance, carpet companies, as well as the big box stores, can charge as much as 50 cents per square foot to tear up, and dispose of, your old carpet. Paying someone to tear up old tile can cost considerably more. Doing these chores yourself is a great way to save if you have the time and ability.
Determine your scope of ability: Unfortunately for us, I’ve learned that our skills are limited to painting and grunt work. But, your scope of ability might be different. Maybe you’re skilled at carpentry or have some basic plumbing skills. Whatever it is, find ways to put those skills to work.
Shop around to save: If you have to pay someone to install cabinets, remodel a bathroom, or lay carpet or tile, it really does pay to shop around. Look for sales, coupons, or special discounts at competing stores. Also consider local contractors for the work, as they may be willing to meet or beat their competitor’s prices.
Compare apples to apples: When comparing prices for your home remodel, it’s important to compare apples to apples. A perfect example is when you’re shopping for flooring. In addition to the price for the carpet or flooring itself, there are a whole host of other expenses to compare. These can include tear-up of old carpet, padding, installation, and stairs. Some companies even charge to move furniture.
Putting Those Lessons to the Test
This summer, my husband made a career change that didn’t quite work out. So, after careful thought and consideration, we decided to sell our house and move to a different town where he could find work. And after living in a small, temporary home for a few months, we finally found a house we wanted to buy. And rather predictably, it’s somewhat of a fixer-upper.
But this time, things are different. First of all, we now have kids, which means we can’t spend every evening and weekend working on a large project. And since we’ve made peace with our limited home remodeling skills, we’ve chosen to leave most of the work to the professionals. Here are the updates we’re working on, as well as where we saved:
Carpet: With so many variables, carpet shopping can become a tricky endeavor. After comparing pricing and quality at five different stores, we chose a 100 percent polyester carpet for all of the bedrooms. The store we chose offers free installation with any purchase over $1,500 and had the best quality padding available at 20 cents less than their competitors. When you’re buying a lot of carpet, those small savings really add up!
Tile: We found acceptable porcelain tile at the local home improvement store for only 89 cents per square foot. And, since we failed miserably at tile installation last time, we chose to hire a contractor to install the subfloor and tile. Fortunately, he said he could do the installation less than what the big box stores are charging, which led to additional savings.
Paint: Since we’re relatively skilled at painting, we chose to paint the entire interior of our new home ourselves.We’re saving by doing all of the work ourselves, obviously, and by painting the majority of the home one color — a smooth, creamy water chestnut.
Kitchen: Our new home still has the original kitchen cabinets. And while they’re holding up relatively well, they’re not all that great either. But, instead of replacing them, we’re currently in the process of cleaning them up and staining them a slightly darker color. In addition, we’re getting new countertops to replace the cracked and mismatched counters currently in the home. And since we’ve never installed countertops before, we’re hiring that part out.
Do you remodel your home yourself? Are there certain projects that you feel are beyond your scope of ability?
Both 10-year fixed and 15-year fixed refinances saw their mean rates climb sharply this week. The average rate on 30-year fixed refinances also made gains.
Amid its ongoing battle to fight inflation, the Federal Reserve announced a 0.25% hike to its target federal funds rate on May 3. Refinance rates, like mortgage rates, fluctuate on a daily basis and could see further movement in response, or they could stay generally the same.
“The market has already built in the expectations for a 25-basis-point hike in May and then no further hikes after that,” says Scott Haymore, head of capital markets and mortgage pricing at TD Bank.
With inflation falling steadily from its peak last summer, the Fed has signaled that the end of the current rate hiking cycle may be in sight. Depending on incoming inflation data, the Fed may hold rates where they are — but not cut them — until inflation reaches its 2% goal.
“Ultimately, more certainty about the Fed’s actions will help to smooth out some of the volatility we have seen with mortgage rates,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.
As the Fed aggressively ratcheted up its federal funds rate in 2022, refinance rates spiked, but we’re seeing signs that rates may be slowly starting to level out as inflation eases.
For the first three meetings of 2023, the Fed has adopted smaller rate increases — 25 basis points as compared with the 75- and 50-basis-point increases common last year — as it waits to see the cumulative effects of policy changes on inflation.
Looking at average mortgage rate data for the past year, mortgage rates hit a peak in late 2022 and have been trending down since then. We’re still a long way from the record-low refinance rates of 2020 and 2021, but borrowers may see rates fall in 2023.
“With the backdrop of easing inflation pressures, we should see more consistent declines in mortgage rates as the year progresses, particularly if the economy and labor market slow noticeably,” says Greg McBride, CFA and chief financial analyst at Bankrate. (Bankrate, like CNET Money, is owned by Red Ventures.) He expects 30-year fixed mortgage rates to end the year near 5.25%.
Regardless of where rates are headed, homeowners shouldn’t focus on timing the market, and should instead decide if refinancing makes sense for their financial situation. As long as you can get a lower interest rate than your current rate, refinancing will likely save you money. Do the math to see if it makes sense for your current finances and goals. If you do decide to refinance, make sure you compare rates, fees, and the annual percentage rate — which shows the total cost of borrowing — from different lenders to find the best deal.
30-year fixed-rate refinance
For 30-year fixed refinances, the average rate is currently at 7.21%, an increase of 12 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. Be aware, though, that interest rates will typically be higher compared to a 10- or 15-year refinance, and you’ll pay off your loan at a slower rate.
15-year fixed-rate refinance
The current average interest rate for 15-year refinances is 6.62%, an increase of 24 basis points from what we saw the previous week. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. On the other hand, you’ll save money on interest, since you’ll pay off the loan sooner. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you’ll save even more in the long run.
10-year fixed-rate refinance
The current average interest rate for a 10-year refinance is 6.71%, an increase of 23 basis points compared to one week ago. Compared to a 15- or 30-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.
Where rates are headed
At the start of the pandemic, refinance interest rates hit a historic low. But in early 2022, the Fed started hiking interest rates in an effort to curb runaway inflation. While the Fed doesn’t directly set mortgage rates, the Fed rate hikes led to an increased cost of borrowing among most consumer loan products, including mortgages and refinances. Mortgage rates hit a 20-year high in late 2022.
Recent data shows that overall inflation has been falling slowly but steadily since it peaked in June 2022, but it still remains well above the Fed’s 2% inflation goal. After raising rates by 25 basis points in March, the Fed has indicated (PDF) it plans to slow — but not stop — the pace of its rate hikes throughout 2023. Both of these factors are likely to contribute to a gradual pull-back of mortgage and refinance rates this year, although consumers shouldn’t expect a sharp drop or a return to pandemic-era lows.
We track refinance rate trends using information collected by Bankrate. Here’s a table with the average refinance rates provided by lenders across the country:
Average refinance interest rates
Product
Rate
A week ago
Change
30-year fixed refi
7.21%
7.09%
+0.12
15-year fixed refi
6.62%
6.38%
+0.24
10-year fixed refi
6.71%
6.48%
+0.23
Rates as of May 26, 2023.
How to find personalized refinance rates
It’s important to understand that the rates advertised online often require specific conditions for eligibility. Your interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application.
Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. You can get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. To get the best refinance rates, you’ll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Don’t forget to speak with multiple lenders and shop around.
Refinancing can be a great move if you get a good rate or can pay off your loan sooner — but consider carefully whether it’s the right choice for you at the moment.
When to consider a mortgage refinance
Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. When deciding whether to refinance, be sure to take into account other factors besides market interest rates, including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up.
As interest rates increased throughout 2022, the pool of refinancing applicants contracted. If you bought your house when interest rates were lower than they are today, there may not be a financial benefit in refinancing your mortgage.
When most people talk about money management, they discuss tactics. Occasionally, you’ll encounter someone who elevates the discussion to strategy, rather than simply scattershot tactics.
But what’s missing from both conversations — both tactics and strategy — is a wider-lens look at how to become a better thinker; how to become a crisp, clear decision-maker.
How to think from first principles. How to better your brain. How to cultivate the wisdom to know the next move.
This series is an attempt to bring first principles thinking into the conversation around money. Welcome to the inaugural post.
[Quick recap] If you read the first issue of this series, you know I’m hyped about rethinking the FIRE philosophy into four pillars:
Financial psychology — This is the foundation of everything.
Investing — Let’s be honest: technically, you don’t need the “RE.” You can stop at “FI.” If you master your inner psychology and invest in your 401k, IRA and other brokerage accounts, you can live a wealthy and wonderful life. The “FI” is mandatory for everyone; the “RE” is optional.
Real estate — It’s a hybrid between owning an investment and running a business, so the “R” fits perfectly between “I” and “E.” Did someone say “mashup?”
Entrepreneurship — The last on the list because it’s the toughest, but this is where near-infinite potential lives. You’ll want to focus on F, I, and mayyyybe R first, before you tackle this tough cookie.
Financial Psychology
We recently re-ran one of my favorite episodes on the podcast: an interview with behavioral economist Kristen Berman, who states – among other things – that habits are overrated.
Wait … what? Habits are overrated? But … but … aren’t habits the cornerstone of, like, everything?
Nope, according to Berman. Habits are an excellent second choice.
Automation is more powerful than habits. The best upfront use of your time is to set up systems — e.g. automatic transfers and deposits. Habits are a fallback option for anything that can’t be automated.
Systems are likely to stick longer. Your automations don’t crack when you take a two-week beach vacation. Your habits, by contrast, might take the holidays off.
Systems rely on software. Habits depend on humans.
And in the end, the robots always win.
Investing
Successful investors tend to fall into two camps: those who are great at making returns, and those who are great at keeping their returns.
Those who are great at making huge returns are the ones who risk it all; they bet big on a handful of individual stocks, or they bought crypto in huge quantities during the early days, and their speculation paid off.
Our collective sense of survivorship bias applauds them.
But their risky behavior doesn’t stop. They double down again and again, until eventually they lose much of their returns.
Easy come, easy go.
By contrast, the investors who are great at keeping their returns often invest with a methodical, long-term, wide-lens approach.
It takes them decades, rather than mere years, to build their wealth. But once built, they tend to be more adept at keeping it.
SPOTLIGHT ON…
What tools are kick-ass at financial automation?
One of my favorites is Acorns, which automatically rounds up your purchases and invests the difference.
If you spend $1.73 on a coffee (wait, can you still get coffee for $1.73?? okay fine, if you spend $1.73 on … um … a bag of peanut M&M’s?), the tiny robots will round your purchase up to $2 and invest the difference, $0.27, into your Acorns account.
You can choose your favorite investing style (aggressive, moderate, conservative), or double the round-ups if you’re feeling spicy.
My personal tally? Welp, here it is:
So if I’m spending too much, or too often … at least I’m investing, too.
Check out Acorns here (you’ll also get a $5 bonus).
Real Estate
Many people have some variation of the following question:
“I’d like to buy an investment property. And I’d like to _____ [insert personal use here] _____ when it’s not rented out.”
For example, “I’d like to …”:
… use it as a summer/winter home.
… use it for a month or two every year.
… have my aging grandparents or parents live there.
… turn it into a home office temporarily or seasonally, like during the summers.
… let my kids live there after they move out.
… provide a home to my brother or sister while they’re getting back on their feet.
That’s fantastic. But that’s not an investment property.
There’s a difference between buying an investment property vs. monetizing a property while it’s not in use.
The former requires cold, hard math. Your personal preferences don’t enter the picture. You make spreadsheet-based decisions with Spock-like reason.
The latter’s existence is based on your personal preferences. Every decision, from location to layout to square footage, is influenced by your homeownership ideals.
On the surface you’re performing the same act. You’re purchasing a property, and then renting out said property. You’re advertising the vacancy, collecting rent checks, performing routine maintenance and repairs, and paying taxes as a landlord.
But there’s a huuuuge difference between the decisions you make when you’re selecting each type of property.
Many homebuyers get smacked upside the head with problems when they don’t understand which set of objectives they’re chasing.
They take their cues from the wrong group. They use the wrong formulas. They play the wrong game, follow the wrong rules, track the wrong scoreboard.
The home they purchase ends up being the wrong candidate for the job.
And that’s a six-figure mistake.
In our course, Your First Rental Property, we teach our students how to clarify exactly what they want in an ideal property, so that they never take cues from the wrong voices.
Entrepreneurship
Let’s keep this simple:
“Do I need business cards?”
No.
“Do I need a business plan?”
Meh. Maybe something that’s simple enough to scrawl on a napkin.
“Do I need a suit?”
Why, are you a funeral director?
Stop playing business. You’re not a little kid on a playground; starting a business by printing business cards is a grown-up version of make believe.
No matter what type of business you’re running — whether you’re dog-walking for extra income or freelance coding for the local university — you need two things:
Either a product or service
Someone who thinks your product or service is valuable enough to purchase
That’s it. Forget the business cards. Focus on (1) figuring out what product or service you can offer the world, and (2) telling the world* about it.
*You’ll want to narrow down “the world” into something more targeted. Like, tell Bob. Especially if Bob has a dog that needs walking, or if Bob hires freelance coders for the local university.
Wahoo!! You’ve finished reading Issue #2 of the First Principles series!
I hope this series inspires you to think, learn and take massive action.
Click here if you want future posts like this straight to your inbox with more thoughts, ideas and insights on a new take on FIRE.
Society’s obsession with celebrities is big biz! And when it comes to cashing in on it, paparazzi moguls François and Brandy Navarre are laughing all the way to the bank.
The couple just listed a palatial property in the upscale Los Angeles neighborhood of Pacific Palisades and they’re hoping to cash in $12,225,000 from their latest real estate venture.
Just the latest in a long streak of million dollar homes they bought (and later sold at a profit), François and Brandy Navarre’s house is listed with Zac Mostame and Santiago Arana of The Agency and Andreas Elsenhans of Westside Estate Agency.
From king & queen of the paparazzi to prolific real estate investors
Celebrity photos are a hot commodity. Whether an A-lister is caught canoodling with a beau, dropping their kids off at school, or simply out and about doing everyday errands, there’s big bucks in celebrity photos — which are taken by photographers dubbed ‘the paparazzi’.
Just ask François and Brandy Navarre, paparazzi moguls and real estate developers who are testament to the multi-million dollar industry of paparazzi pics.
The couple are co-founders and owners of the most successful celebrity gossip and paparazzi agency in Hollywood: X17.
Known for their aggressive tactics, hiding drones and long zoom lenses in pursuit of the perfect pic, the Navarres have built their dynasty off famous folks doing their ‘regular’ routines of getting groceries, exercising in their neighborhoods and going on the school run with their kids.
Of course, with great success comes great responsibility. Last year, X17 was sued by Prince Harry and Meghan Markle over unauthorized images of their son Archie. Jennifer Aniston also sued the couple over topless photos taken outside her Malibu home.
And many other celebrities — such as Kristen Bell, Dax Shepard, Halle Berry, Britney Spears and Jennifer Garner, to name a few — have been outspoken about the invasive and unsafe elements of having to deal with the paparazzi on a daily basis.
Like it or not, society’s obsession with celebrities is a money-making industry and the Navarres have profited in a big way — becoming as wealthy as their A-list clientele.
And as it turns out, their profitable paparazzi dynasty has afforded them some luxurious digs in the competitive Los Angeles real estate market.
A look at the Navarres’ past real estate ventures
According to Dirt, in 2021 the Navarres sold an 8,500-square foot estate in Los Angeles’ Pacific Palisades for $13.7 million.
And in 2005, they purchased a Pacific Palisades home for $5 million, which was located next door to Conan O’Brien’s estate, which they later listed for sale asking $15.9 million.
The former paparazzi couple also bought a beach house in 2000 for $1.7 million. The Malibu home has been for sale and for rent since 2016, with a listed price of $7.5 million and a summer rental rate at $45,000 per month.
Their latest home in Pacific Palisades has just hit the market
And now, the Navarres have listed another property for $12.225 million.
Located in their seemingly favorite upscale neighborhood of Pacific Palisades, the stunning estate is overlooking the Riviera surrounded by serene greenery and landscapes.
The midcentury modern home features 5 bedrooms, 4.5 bathrooms and a detached guest house.
Boasting an open floor plan and living area with vaulted ceilings and exposed beams, the luxurious Los Angeles home has jaw-dropping ocean views amid its 5,500-square feet.
The outdoor amenities include a pool, patio and plenty of gorgeous greenery to soak up the sweet California sunshine.
The plush property is listed by Zac Mostame and Santiago Arana of The Agency and Andreas Elsenhans of Westside Estate Agency.
More stories you might like
The House that Won Season 1 of HGTV’s ‘Rock the Block’ Competition is Now for SaleCelebrity Chef Giada de Laurentiis Sells Scenic Pacific Palisades Home for $7 Million Everything We Know About Adam Levine’s House in Pacific PalisadesHype House: the TikTok Mansion Owned by Some of the Internet’s Biggest Stars
If you haven’t had a chance to book a stay, know that Monday is the final day to book World of Hyatt properties before the award rates for many popular spots increase.
Starting Tuesday, 214 hotels in the World of Hyatt portfolio will require more points.
Across the properties going up, there will be an average price increase of more than 5,000 World of Hyatt points … per night. That’s not great news, but there is still time to lock in redemptions at some of our favorite hotels before prices increase.
Related: Suddenly, my Hyatt free night certificates feel worthless
At most properties, you can lock in stays for 13 months out (through April 2024) at the current award rates. Also, the vast majority allow free cancellations if your plans ultimately change.
However, there are a few exceptions to that general rule, especially around the winter holiday week, when some stays are nonrefundable. Some all-inclusive properties, such as some Secrets properties, charge a $50 cancellation fee at any point that you change your mind.
Read the fine print carefully before making a booking you are unsure about keeping, but know that most bookings are penalty-free until a few days before check-in.
If you want to make bookings but don’t currently have Hyatt points in your account, there are a few ways to do that.
First, if you have Hyatt Globalist status, you can have Hyatt make you some bookings without points needed until you get closer to check-in. Beyond that option, a few credit card transferable points programs, including Chase and Bilt, can typically transfer points instantly to Hyatt.
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Here’s a guide on how to book Hyatt stays without enough points in your account.
Here are some properties to prioritize if you want to lock in some stays today before they cost more starting Tuesday.
Hotels going from Category 4 to 5
Unfortunately, there are many popular properties that will soon be out of reach via the most common Hyatt free night certificates.
These awards are given out in several ways, including via the World of Hyatt Credit Card or by reaching certain qualifying night thresholds during the year.
Here’s a partial list of those properties that will no longer be eligible.
Andaz San Diego.
Chicago Athletic Association.
The Eliza Jane.
Hyatt Regency Grand Reserve Puerto Rico.
Grand Hyatt Jeju.
Grand Hyatt Seoul.
Park Hyatt Saigon.
Hyatt Regency Amsterdam.
Thompson Madrid.
Hyatt Place Moab.
Hyatt House Naples/5th Avenue.
Lahaina Shores Beach Resort, a Destination by Hyatt Residence.
Let’s take a closer look at three of these properties that represent particularly great value.
Related: The 23 best Hyatt hotels in the world
Andaz San Diego
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Andaz San Diego. CLINT HENDERSON/THE POINTS GUY
Why you should stay there
Andaz San Diego is a nice property in the heart of San Diego’s Gaslamp Quarter, close to popular restaurants and a ton of nightlife. The rooms are contemporary and the service is friendly and efficient, from the front desk to the restaurant staff. There is a hopping rooftop bar with great views of the city.
What it will cost
The Andaz San Diego will go from Category 4 to Category 5. When this change takes effect, it will go out of range of a Category 4 award certificate.
Award nights for standard rooms increase from 12,000-18,000 points per night to 17,000-23,000 points per night.
Chicago Athletic Association
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Chicago Athletic Association. HYATT
Why you should stay there
Chicago Athletic Association is housed in a classic building — formerly an 1890s-era private athletic club. The building may date to the late 19th century, but the rooms are refreshed and midcentury modern.
The central Chicago location is also a selling point, as the property sits near Millennium Park and the Art Institute of Chicago. It even has an on-site Shake Shack and a bocce ball court.
What it will cost
Chicago Athletic Association is going from Category 4 to Category 5. When this change takes effect, it will go out of range of a Category 4 award certificate.
Award nights for standard rooms increase from 12,000-18,000 points per night to 17,000-23,000 points per night.
Related: Book this, not that in Chicago
The Eliza Jane
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The Eliza Jane. HYATT
Why you should stay there
The Eliza Jane was a sweet spot for many looking to visit New Orleans as it was new, trendy, well located and still eligible for the Hyatt Category 1-4 award nights.
What it will cost
Eliza Jane is going from Category 4 to Category 5. When this change takes effect, it will go out of range of a Category 4 award certificate.
Award nights for standard rooms increase from 12,000-18,000 points per night to 17,000-23,000 points per night.
Related: Here’s how to quickly stock up on Hyatt points for your next vacation
Hotels going from Category 7 to 8
Unfortunately, Hyatt is also making some properties out of reach for even its more exclusive free night certificates. Category 1-7 free night certificates are provided when you pass 60 elite nights and qualify for World of Hyatt Globalist status.
These properties are moving out of range of that valuable certificate:
Alila Marea Beach Resort Encinitas.
Carmel Valley Ranch.
Hyatt Carmel Highlands, Overlooking Big Sur Coast & Highlands Inn, A Hyatt Residence Club.
Park Hyatt Beaver Creek Resort and Spa.
Hyatt Centric Key West Resort & Spa.
Wentworth Mansion.
The Lodge at Spruce Creek.
Ksar Char-Bagh.
Viceroy Bali.
Hotel Gajoen Tokyo.
Keemala.
Hotel Excelsior Dubrovnik.
Hotel Martinez.
Le Narcisse Blanc Hotel & Spa.
Boheme Hotel.
Mykonos Riviera Hotel & Spa.
7Pines Resort Sardinia.
Ca’Sagredo Hotel.
Grand Hotel Cocumella.
La Villa del Re.
Margutta 19.
Villa Spalletti Trivelli.
Villa Geba.
El Lodge Ski and Spa.
Nobu Hotel Marbella.
Grand Hotel Villa Castagnola.
Park Hyatt Zurich.
Villa Orselina.
Park Hyatt Zurich
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Park Hyatt Zurich. CAPE PEMBROKE/HYATT
Why you should stay there
The Park Hyatt Zurich is a sleek and modern midrise in the heart of the financial capital of Zurich. The modern artwork hanging on nearly every hotel wall is worth a visit alone.
What it will cost
The Park Hyatt Zurich is going from Category 7 to Category 8. When this change takes effect, it will go out of range of Category 1-7 award certificates.
Award nights for standard rooms increase from 25,000-35,000 points per night to 35,000-45,000 points per night.
Park Hyatt Beaver Creek
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Park Hyatt Beaver Creek. SUMMER HULL/THE POINTS GUY
Why you should stay there
Park Hyatt Beaver Creek is a five-star option in essentially every way if you want a ski-out Colorado mountain vacation.
Standard rooms routinely cost over $1,000 per night during the peak ski season. Staying with points is a way to have a ski vacation that’s as easy as stepping out onto the snow and being right next to the gondola without spending thousands of dollars on lodging.
Booking with points also means you get to skip the nightly resort fee. Those with Hyatt Globalist status luck out, too, with saving on mountain prices for breakfast each day.
What it will cost
The Park Hyatt Beaver Creek is going from Category 7 to Category 8. When this change takes effect, it will go out of range of a Category 7 award certificate.
Award nights for standard rooms increase from 25,000-35,000 points per night to 35,000-45,000 points per night.
Expect ski season nights to be at the high end of that range.
Related: Review of the Park Hyatt Beaver Creek
Popular leisure and big-city destinations increasing
In addition to the painful number of properties climbing from Category 4 to 5 and Category 7 to 8, plenty of hotels are moving up other levels on the award chart.
Many popular leisure resorts and busy city destinations will inch up from Category 6 to 7, meaning extra points for stays booked as of March 28.
Here’s a breakdown of some popular spots that you should strongly consider booking now before prices increase.
Grand Hyatt Kauai Resort & Spa
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Grand Hyatt Kauai. SUMMER HULL/THE POINTS GUY
Why you should stay there
Grand Hyatt Kauai is a large, lush Hawaiian resort in sunny Poipu. It has one of the best pool complexes you’ll find anywhere, with a 1 1/2-acre saltwater lagoon, 150-foot waterslide and multiple layers of pools for playing, sunning and swimming.
This hotel also has an above-average club lounge, so those who have or purchase access can save on food costs by indulging there.
Standard rooms can cost close to $1,000 per night during peak times, making this a popular award redemption location.
What it will cost
The Grand Hyatt Kauai is going from Category 6 to Category 7.
Award nights for standard rooms increase from 21,000-29,000 points per night to 25,000-35,000 points per night.
Related: Review of the Grand Hyatt Kauai
Andaz 5th Avenue
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Andaz 5th Avenue. BENJI STAWSKI/THE POINTS GUY
Why you should stay there
It’s hard to beat the location of the Andaz 5th Avenue, given its proximity not only to Fifth Avenue but the New York Public Library, Bryant Park, Broadway and more. It’s close to almost everything without being in too frantic of a location.
What it will cost
Andaz 5th Avenue is going from Category 6 to Category 7.
Award nights for standard rooms increase from 21,000-29,000 points per night to 25,000-35,000 points per night.
Related: Review of the Andaz 5th Avenue
Hyatt Regency Maui Resort and Spa
Why you should stay there
The Hyatt Regency Maui offers an excellent location near Lahaina on Maui. It’s set on 40 acres on Kaanapali Beach and has a giant feature-filled swimming pool with a grotto bar, waterslide and bridge right next to the beach.
There are a total of 806 guest rooms and 31 suites, many with dramatic views of the ocean. This has traditionally been a great way to redeem World of Hyatt points (when available). However, cash prices have soared since the pandemic.
What it will cost
The Hyatt Regency Maui goes from Category 6 to Category 7.
Award nights for standard rooms increase from 21,000-29,000 points per night to 25,000-35,000 points per night.
Related: A review of the Hyatt Regency Maui
Hyatt Regency Aruba Resort Spa and Casino
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Hyatt Regency Aruba Resort Spa and Casino. HYATT
Why you should stay there
The Hyatt Regency Aruba Resort Spa and Casino has many amenities in a central location on the beach. On top of that, it has a large pool complex with a waterslide, activity pool and adults pool. Rooms were recently renovated, and as the name implies, there’s an on-site casino.
What it will cost
The Hyatt Regency Aruba Resort Spa and Casino goes from Category 6 to Category 7.
Award nights for standard rooms increase from 21,000-29,000 points per night to 25,000-35,000 points per night.
Grand Hyatt Vail
Why you should stay there
Grand Hyatt Vail is a full-service ski hotel without quite as high a price tag as the Park Hyatt Beaver Creek. That will still be true, but both are going up in award cost.
Right now, the maximum you’ll pay for mountain-adjacent lodging at the Grand Hyatt is just 29,000 Hyatt points per night, which is a great deal while you can lock it in.
This is not as ski-out as the Park Hyatt. However, during the heart of the season, an on-site ski lift will take you up the mountain, though you need to be an advanced beginner to an intermediate skier to traverse that terrain. In other words, new skiers will still need to take the shuttle to ski school.
What it will cost
The Grand Hyatt Vail is going from Category 6 to Category 7.
Award nights for standard rooms increase from 21,000-29,000 points per night to 25,000-35,000 points per night.
Expect standard rooms to fall at the top end of those ranges during much of the ski season.
Related: Guide to visiting Vail
All-inclusive resorts are going up
The all-inclusive resorts in the World of Hyatt program will also take a hit. Some will go from costing 25,000 points per night for double occupancy to 40,000 points per night. Hyatt uses a letter system for all-inclusives instead of numbered categories.
Lots of properties are increasing one category (for example, from C to D), and some are going up two categories (C to E). Some of the popular all-inclusive resorts changing categories are:
Zoetry Agua Punta Cana.
Zoetry Casa del Mar Los Cabos.
Zoetry Montego Bay Jamaica.
Hyatt Zilara Cap Cana.
Hyatt Ziva Cap Cana.
Hyatt Zilara Rose Hall.
Hyatt Ziva Rose Hall.
Hyatt Ziva Cancun.
Hyatt Zilara Cancun.
Hyatt Ziva Los Cabos.
Hyatt Ziva Puerto Vallarta.
Secrets Papagayo Costa Rica.
Secrets Wild Orchid Montego Bay.
Secrets St. James Montego Bay.
Breathless Montego Bay Resort & Spa.
However, before locking in your stays, carefully review the cancellation policy. Many of these properties impose a $50 fee if you need to cancel — and most require this at least four days prior to arrival.
Related: These are the most luxurious all-inclusive resorts
Zoetry Agua Punta Cana
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ZOETRY AGUA PUNA CANA/FACEBOOK
Why you should stay there
The Zoetry brand has multiple properties going up in award cost, including the Zoetry Agua Punta Cana. It’s next to the water with multiple on-site restaurants and standard rooms that start at over 700 square feet.
What will cost
Zoetry Agua Punta Cana is going from Category C to Category E (moving up two categories).
Award nights for standard rooms increase from 25,000 to 40,000 World of Hyatt points per night.
Hyatt Ziva and Zilara Cap Cana
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Hyatt Ziva and Zilara Cap Cana. HYATT
Why you should stay there
The Hyatt Ziva and Zilara Cap Cana in the Dominican Republic are side-by-side resorts, one dedicated to adults and the other for family travelers. There’s an on-site beach, pool and even a water park, making for a fun one-stop-shop resort.
What it will cost
The Hyatt Ziva and Zilara in Cap Cana are going from Category C to Category E (increasing two categories).
Award nights for standard rooms increase from 25,000 to 40,000 World of Hyatt points per night.
Hyatt Zilara and Ziva Rose Hall
Why you should stay there
The Hyatt Zilara Rose Hall and the Hyatt Ziva Rose Hall are two of the best all-inclusives in Jamaica. They have been favorite redemptions for folks at TPG over the years, offering good value in a setting where food and drinks are included.
Between the two neighboring resorts (one is adults-only, one family-friendly), you’ll find multiple pools, beaches and lounge areas.
What it will cost
The Hyatt Zilara and Ziva Rose Hall in Montego Bay, Jamaica, are going from Category C to Category D.
Award nights for standard rooms increase from 25,000 per night to 30,000 World of Hyatt points per night.
Bottom line
If you want to maximize your free night awards and World of Hyatt points at any of the 214 properties going up in price (view the full list), you need to do it Monday.
As mentioned, you can book future stays as far out as the calendar allows, typically 13 months. These changes go into effect for bookings made or modified on or after Tuesday.