I got active on Twitter over the past year and change and to my surprise (not sure why it’s surprising really), encountered lots of housing bears on the platform.
Many were/still are convinced that the next housing crash is right around the corner.
The reasons vary, whether it’s an Airbnbust, a high share of investor purchases, high mortgage rates, a lack of affordability, low home sales volume, rising inventory, etc. etc.
And the reasons seem to change as each year goes on, all without a housing crash…
So, now that we’re halfway through 2024, the obvious next question is will the housing market crash in 2025? Next year’s got to be the year, right?
But First, What Is a Housing Crash?
The phrase “housing crash” is a subjective one, with no real clear definition agreed to by all.
For some, it’s 2008 all over again. Cascading home price declines nationwide, millions of mortgage defaults, short sales, foreclosures, and so on.
For others, it might just be a sizable decline in home prices. But how much? And where?
Are we talking about national home prices or regional prices? A certain metro, state, or the nation at large?
Personally, I don’t think it’s a crash simply because home prices go down. Though it is a pretty uncommon occurrence to see nominal (non-inflation adjusted) prices fall.
Over the past few years, we’ve already experienced so-called home price corrections, where prices fell by 10%.
In 2022, we were apparently in a housing correction, defined as a drop in price of 10% or more, but not more than 20%.
Ostensibly, this means a drop of 20%+ is something much worse, perhaps a true housing crash.
But you have to look at the associated damage. If home prices fall 20% and there aren’t many distressed sales, is it still a crash?
Some might argue that there’s simply no other outcome if prices fall that much. And maybe they’d be right. The point is a crash needs to have major consequences.
If Homeowner Joe sells his home for $500,000 instead of $600,000, it’s not necessarily a disaster if he bought it for $300,000 a few years earlier.
He’s not happy about it, obviously, but it’s not a problem if he can still sell via traditional channels and even bank a tidy profit.
Of course, this means others who had to sell wouldn’t be so lucky, since their purchase price would likely be higher.
Still, this hinges on a major decline in prices, which historically is uncommon outside of the Global Financial Crisis (GFC).
Stop Comparing Now to 2008
One thing I see a lot is housing bears comparing today to 2008. It seems to be the go-to move in the doomer playbook.
I get it, it’s the most recent example and thus feels the most relevant. But if you weren’t there, and didn’t live it, you simply can’t understand it.
And if you weren’t, it’s hard to distinguish that time from now. But if you were, it’s clear as day.
There are myriad differences, even though they’re quick to mock those who say “this time is different.”
I could go on all day about it, but it’s best to focus on some main points.
At the moment, housing affordability is poor thanks to a combination of high home prices and equally high mortgage rates, as seen in the chart above from ICE.
Despite a big rise in prices over the past decade, the high mortgage rates have done little to slow down the party.
Yes, the rate of home price appreciation has slowed, but given the fact that mortgage rates rose from sub-3% to 8% in less than two years, you’d expect a lot worse.
It’s just that there’s really no correlation between home prices and mortgage rates. They can go up together, down together, or move in opposite directions.
Now, proponents of a housing crash often point to buying conditions right now. It’s a horrible time to buy a house from a payment-to-income perspective. I don’t necessarily disagree (it’s very expensive).
But that completely ignores the existing homeowner pool. And by doing so, it’s a totally different thesis.
You can say it’s a bad time to buy but that the average homeowner is in great shape. These statements can coexist, even though everyone wants you to take one side or the other.
Look at the Entire Homeowner Universe
To put this perspective, consider the many millions of existing homeowners coupled with prospective home buyers.
Your average homeowner today has a 30-year fixed-rate mortgage set somewhere between 2-4%.
In addition, most purchased their properties prior to 2022, when home prices were a lot lower.
So your typical homeowner has a rock-bottom interest rate and a relatively small loan amount, collectively a very attractive monthly payment.
To make matters even better for the foundation of the housing market, which is existing homeowners, most have very low loan-to-value ratios (LTVs).
They’ve also got boring old 30-year fixed-rate loans, not option ARMs or some other crazy loan program that wasn’t sustainable, as we found out quickly in 2008.
These homeowners also haven’t tapped their equity nearly as much as homeowners did in the early 2000s, despite home equity being at record high levels (see above).
This is partially because banks and mortgage lenders are a lot stricter today. And partially because of mortgage rate lock-in. They don’t want to give up their low mortgage rate.
In other words, the low mortgage rate not only makes their payment cheap, it also deters taking on more debt! And more of each payment pays down principal. So these loans (and their borrowers) become less and less risky.
Some have turned to home equity loans and HELOCs, but again, these loans are much more restrictive, typically maxing out at 80% combined loan-to-value (CLTV).
In 2006, your typical homeowner did a cash-out refinance to 100% CLTV (no equity left!) while new home buyers were coming in with zero down payment as home prices hit record highs.
Take a moment to think about that. If that’s not bad enough, consider the mortgage underwriting at that time. Stated income, no doc, you name it.
So you had virtually all homeowners fully levered along with a complete lack of sound underwriting.
Slumping Home Sales in the Face of Poor Affordability Is Actually Healthy
That brings us to home sales, which have slumped since the high mortgage rates took hold. This is normal because reduced affordability leads to fewer transactions.
The worry is when this happens supply could outpace demand, resulting in home price declines.
Instead, we’ve seen low demand meet low supply in most metros, resulting in rising home prices, albeit at a slower clip.
While housing bears might argue that falling volume signals a crash, it’s really just evidence that it’s hard to afford a home today.
And the same shenanigans seen in the early 2000s to stretch into a home you can’t afford don’t fly anymore. You actually need to be properly qualified for a mortgage in 2024!
If lenders had the same risk tolerance they had back in 2006, the home sales would keep flowing in spite of 7-8% mortgage rates. And prices would move ever higher.
That spike in home sales in the early 2000s, seen in the chart above from Trading Economics, shouldn’t have happened. Fortunately, it’s not happening now.
At the same time, existing homeowners would be pulling cash out in droves, adding even more risk to an already risky housing market.
Instead, sales have slowed and prices have moderated in many markets. Meanwhile, existing owners are sitting tight and paying down their boring 30-year fixed mortgages.
And with any luck, we’ll see more balance between buyers and sellers in the housing market in 2025 and beyond.
More for-sale inventory at prices people can afford, without a crash due to toxic financing like what we saw in the prior cycle.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
IMARC Group has recently released a new research study titled “In Vitro Diagnostics Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024-2032”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.
The global home decor market size reached US$ 749.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,087.5 Billion by 2032, exhibiting a growth rate (CAGR) of 4.1% during 2024-2032. The market is experiencing stable growth driven by the increasing focus on health and wellness, rising preferences for personalized and aesthetically pleasing interior designs, and integration of smart technology in decor products to provide enhanced experiences to individuals.
Global Home Decor Market Trends:
The rising influence of current fashion and design trends in home decor is positively impacting the market growth. Along with this, the burgeoning integration of augmented reality (AR) and virtual reality (VR) in the shopping process to enhance the shopping experience by allowing consumers to visualize products in their own spaces before purchase is acting as a growth-inducing factor. Apart from this, the increasing awareness of wellness, boosting the use of biophilic design principles that integrate natural elements into indoor spaces to enhance mental and emotional well-being, is creating a positive outlook for the market growth.
Request to Get the Sample Report: https://www.imarcgroup.com/home-decorative-materials-market/requestsample
Factors Affecting the Growth of the Home Decor Industry:
Changing Consumer Lifestyle and Preferences:
The changing consumer lifestyle as societal norms, economic conditions, and cultural shifts evolve, is one of the major factors boosting the market growth. Moreover, the rising adoption of remote work and flexible schedules, leading to increased demand for home office setups and ergonomic furniture is acting as a growth-inducing factor. Additionally, the growing preference for functional and aesthetically pleasing decor solutions that complement the home workspaces is fueling the market growth. Furthermore, the rising urbanization and compact living spaces, boosting the demand for multifunctional and space-saving furniture and decor, is contributing to the market growth.
Rapid Technological Advancements:
The rapid technological advancements and innovation that drive continuous evolution, thereby influencing product design, manufacturing processes, distribution channels, and consumer experiences, is enhancing the market growth. in line with this, the burgeoning integration of the Internet of Things (IoT) devices and smart home systems that revolutionize the way consumers interact with their living spaces, is propelling the market growth. Smart lighting systems, automated window treatments, and voice-controlled assistants enhance convenience and functionality while contributing to energy efficiency and environmental sustainability. Furthermore, the rising advancements in manufacturing technologies such as three-dimensional (3D) printing and automated production processes that enable greater design flexibility and customization in home decor products, is catalyzing the market growth.
Growing Focus on Environmental Sustainability and Ethical Consumerism:
The increasing awareness of environmental issues, coupled with a growing preference for ethically sourced and sustainable products, is positively impacting the market growth. in line with this, the heightened mindfulness among consumers of the environmental impact of their purchases, prompting them to seek home decor products made from renewable resources, recycled materials, and non-toxic substances, is acting as a growth-inducing factor. Moreover, the rising adoption of ethical sourcing and fair-trade practices as these have become important considerations for consumers when choosing home decor items, is promoting the market growth. Furthermore, the rising preference among consumers who are looking for home decor items that are durable, repairable, and recyclable at the end of their use, is providing a thrust to the market growth.
Key Companies:
Ashley Furniture Industries Inc. Duresta Upholstery Ltd. Forbo Holding AG Hanssem Co. Ltd. Herman Miller Inc. Inter IKEA Systems B.V. Kimball International Inc. (HNI Corporation) Koninklijke Philips N.V. Mannington Mills Inc. Mohawk Industries Inc. Samson Holding Ltd. Shaw Industries Group Inc. (Berkshire Hathaway Inc.) Sophia Home Springs Window Fashions Suofeiya Home Collection Co. Ltd.
Home Decor Market Report Segmentation:
By Product Type:
Home Furniture Home Textiles Flooring Wall Decor Lighting Others
Home furniture represents the largest segment by product type due to the increasing demand for functional and stylish furniture pieces that cater to diverse consumer preferences and lifestyles.
By Distribution Channel:
Home Decor Stores Supermarkets and Hypermarkets Online Store Gift Shops Others
Home decor stores account for the majority of the market share because they offer a wide range of curated decor items, personalized shopping experiences, and expert advice.
Regional Insights:
North America Europe Asia Pacific Middle East and Africa Latin America
North America leads the market owing to factors such as high disposable income levels, a strong housing market, and a culture that values interior design and home improvement.
Speak to An Analyst: https://www.imarcgroup.com/request?type=report&id=1122&flag=C
Key Highlights of the Report:
Market Performance (2018-2023) Market Outlook (2024-2032) Market Trends Market Drivers and Success Factors Impact of COVID-19 Value Chain Analysis Comprehensive mapping of the competitive landscape
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
Each week, Alexa is rounding up the buzziest fashion drops, hotel openings, restaurant debuts and celeb-studded cultural happenings in NYC.
It’s our curated guide to the very best things to see, shop, taste and experience around the city.
What’s making our luxury list this week?
A celebrity favorite home furnishings shop opens a New York outpost, Lele Sadoughi gets inspired by art and a beloved British brand crosses the pond.
Art meets accessories with designer Lele Sadoughi’s recently unveiled collaboration with The Metropolitan Museum of Art, inspired by six of the museum’s best-loved artists. Caitlyn Gaurano
Over the years, accessories designer Lele Sadoughi has partnered with SJP by Sarah Jessica Parker, J.Crew and Swarovski.
But she says she’s “always done a lot of painting, drawing and collage work,” so her latest collab — with The Metropolitan Museum of Art in NYC — seems spot-on.
Sadoughi chose six artists from the Met’s collection — Paul Cézanne, Edgar Degas, Gustav Klimt, Claude Monet, Pierre-Auguste Renoir and Vincent Van Gogh — and “interpreted masterpieces into wearable, three-dimensional art.”
The new collection (which launched yesterday) includes almost three dozen pieces, ranging from the designer’s iconic headbands and hair accessories to earrings, belts and bags.
From $55 at Lele Sadoughi and The Met Store.
Me And Em
Italian watchmaker Panerai is introducing the new Luminor Dieci Giorni timepiece — just in time for Father’s Day. Courtesy of Panerai
Giovanni Panerai opened his first shop and watchmaking school in Florence, Italy, in 1860.
In the ensuing years, the company supplied the Italian Royal Navy with various instruments, including diving watches, which debuted in the 1930s and ’40s. Luminor, the brand’s first watch for the “civilian market,” was introduced in 1993.
Many of Panerai’s styles, including this new Luminor Dieci Giorni, have not veered far from the originals. But there have, of course, been technological improvements, innovations and evolutions, following the whims of fashion.
This latest edition — released in time for Father’s Day and water resistant to 100 meters — has a 10-day power reserve, noted in Italian as “10 Giorni.”
It also boasts a very on-trend navy blue face and alligator leather strap. Snap it up.
Luminor Dieci Giorni watch, $15,200 at Panerai
Seven days a week, Sundays offers luxury nail treatments using non-toxic products. Courtesy of Sundays
After a bit of a hibernation, Sundays has finally reopened in Hudson Yards, in a much easier to find space on the third floor, next to Pandora (as opposed to a random corner near restrooms).
Not familiar?
Billed as a “non-toxic nail studio,” Sundays offers manis and pedis using products that are vegan and cruelty free in a space that seems designed for relaxation.
The new Hudson Yards studio includes a treatment room (the company is developing a menu of specialized body and face treatments) and offers a new Red Light manicure, which adds 10 minutes of “soothing light therapy” to drying time.
20 Hudson Yards, 500 W. 33rd St.; Dear Sundays
Beloved L.A. export Nickey Kehoe has brought its gorgeous furniture, designs and vintage curations to a new NYC location. Courtesy of Nickey Kehoe
For many lovers of design, no trip to Los Angeles would be complete without a stop at Nickey Kehoe.
The shop on Beverly Boulevard, in an area just east of The Grove, opened 16 years ago, following on the success of Todd Nickey and Amy Kehoe’s design firm (named to the AD100 last year).
Over the years it’s developed an extremely loyal following on both coasts, and earlier this month the company opened a New York City outpost, on two floors of a historic brownstone on the same street where Jackson Pollock once lived.
The location is apropos, as the duo behind the interior design firm (which celebratates its 20th anniversary this year) originally met in NYC in the ’90s.
Everything in the new space ascribes to their description “lovers of simplicity without fear of flair” in layers of vintage and new furniture, lighting, textiles and objects.
In the world of interior design, earthy colors have long been celebrated for their ability to create spaces that feel warm, grounded, and inviting. Inspired by the hues found in nature, such as rich browns, warm beiges, and lush greens, earthy color palettes can transform your home into a tranquil retreat. So whether you’re looking at homes for sale in Fort Worth, TX, already renting a home in Dallas, TX, or looking for your first apartment in Denver, CO, this guide explores various earth-tone décor ideas to help you infuse natural beauty into your living spaces.
Disclaimer: For those living in rental properties or apartments, please ensure that any significant changes to your living space are approved by your landlord and do not violate your lease agreement. Always check with your property management before making alterations to avoid any potential issues.
Understanding Earthy Colors
Earthy colors are derived from natural elements such as soil, stones, trees, and plants. These hues include:
Browns: From deep chocolate to light taupe, browns are versatile and can add depth and coziness.
Greens: Olive, sage, and moss greens bring a refreshing and calming presence.
Beiges and tans: Neutral and understated, these shades serve as perfect backdrops.
Terracotta and rust: These warm, reddish-brown hues evoke the essence of sunbaked clay and add a vibrant touch.
Grays: Soft grays mimic the look of stone and rock, providing a cool, balanced counterpoint to warmer tones.
“When working with color, the goal is always to find balance and harmony,” Kerry, personal color harmony expert with Indigo Tones, shares. “Earth tones tend to be muted and an overall harmonious look would be achieved in using them by avoiding pops of color and keeping the contrast low. It’s best to use soft or weathered textured fabrics mixed in the same color family and in a middle range between dark and light.”
Earthy color décor ideas around the home
Earthy décor ideas revolve around tones and textures that emulate the natural world, bringing a sense of the outdoors inside your home. “Look to the creatures or places that move you to inspire your design,” Lynne Niehaus recommends. “Ask yourself how it makes you feel.”
Using all five senses, analyze every color and detail then bring them into your space on a larger scale,” Niehaus shares. “Whether it’s the velvety smoothness of a petal of a favorite flower, the crisp contrast striping of a hawk’s tail, or the granular, purply-brown intrigue and sparkle of the wet sand as the water retreats to the sea; these sensory details replicate the harmony that nature provides.”
1. Embrace raw materials
“Introduce reclaimed wood furniture pieces to add character and history to your interiors,” Raihana Fardous with Interior Harbor recommends. “The imperfections and unique grains of reclaimed wood tell a story and connect your space to nature.” Complement these with chocolate-brown textiles and beige accents for a sophisticated and comforting look.
“Other raw materials like jute or sisal make for great rugs to ground the space, offering both texture and warmth. Pair these with woven baskets for storage, which add a touch of rustic charm and practicality,” Fardous continues.
2. Layer tones and textures.
“Earth tones don’t have to be boring and drab. The key to nailing a statement-making earth-tone look in your home design is introducing pops of color, texture, and nature,” Aisha Beau Johnson explains. “While camel, brown, or beige may be the base colors for furniture, you can capture the eye by including bold neutrals like terracotta, dusty pink, French blue, or Bordeaux to the other elements of the room. Knitted or waffle textured throws also add more warmth and contrast, while utilizing plants to bring in nature can add to the serenity of the space.” This layering effect adds visual interest and creates a harmonious, serene atmosphere.
Gracie Friedman seconds this sentiment, adding that earthy touches can create a standout space. “As a lover of neutrals in bright and airy spaces, I like layering and mixing in earthy decor to anchor the space. Adding natural wood elements, rustic vases, rich browns, greens, grays, and faux greenery such as olive tree branches or eucalyptus to space are simple ways to make a room feel earthy and organic. Keeping the “big stuff” (like furniture) more neutral allows you to easily swap different earthy elements like pillows, vases, and throw blankets.”
3. Add greenery
As Friedman mentioned above, incorporating green through accent pieces such as throw pillows, rugs, or artwork is a great way to work in earth-like tones and textures. Sage green armchairs, olive-hued vases, or potted plants can inject a sense of nature, making any room feel more alive and vibrant. Greenery not only adds color but also enhances the organic feel of the space.
If you don’t have much of a green thumb, lean into green shades. “If you, like me, can’t for the life of you maintain a houseplant for more than a few days, I suggest opting for earthy tones in your home to bring in some natural vibes,” shares Teresa Maria. “I’ve recently discovered kitchens with sage green used either on walls or the cupboards. Any shade of darker green is so pleasing to the eye and brings a sense of calm to any space.”
4. Introduce terracotta accents
Terracotta elements, such as tiles, pots, and décor items, bring warmth and a touch of rustic charm. Use them to add a Mediterranean flair to your home. Pair terracotta with wooden furniture and open shelving to display ceramics or decorative items, creating a cozy and inviting atmosphere.
5. Feature natural stone or clay
A backsplash or an accent wall made from natural stone, like slate, limestone, or travertine, can become a focal point in your space. These materials add texture and depth, anchoring the room and creating a grounded, earthy feel.
Atulya K Bingham, author of Mud Ball, Dirt Witch and more, recommends utilizing clay. “Clay plastering interiors completely transforms the atmosphere of a dwelling, both literally and figuratively,” Bingham shares. “Using local mud to create gorgeous interior renders is my go-to method for bringing nature right into my home and onto my walls. The result is walls that are warmer to touch, softer to look at, completely non-toxic, and a talking point to boot.”
6. Use cozy textiles
Incorporate earthy colors through bedding and textiles. A duvet cover in a warm beige or soft taupe, paired with pillows and throws in complementary shades, creates a restful and inviting atmosphere. Choose natural fabrics like linen, cotton, and wool for added comfort and warmth.
7. Maintain an earth-inspired palette
Stepping away from a cool-toned palette is recommended by Jessica McBride with Plank & Tile. “When it comes to the widely popular “earthy” aesthetic, there are numerous ways in which one can embody the essence of the outdoors within their home,” McBride notes. “Stepping away from a cool-toned color palette, and instead, incorporating accents of greens, muted browns, and orange tones through plants, rugs, pillows, wallpaper, and art is a great place to start. Additionally, to further elevate this theme, we love the look of mixed textures like rugged leather, wood, and stone.”
“When choosing an earthy color palette for your interior space, draw inspiration from a favorite vacation destination or setting,” Rose Benedict with Rose Benedict Design suggests for those unsure where to start. “With this approach, your color choices will feel even more personal, and as a bonus, your vacation photos will blend in beautifully. For example, if you’re in love with the warmth of the desert, then an array of tans, clays, and terracotta accents would be perfect for you.”
8. Incorporate natural scents
Enhance the earthy atmosphere by adding natural scents through essential oils or diffusers with fragrances like eucalyptus, lavender, or cedarwood. These scents not only refresh your home but also create a calming and inviting environment.
Your earthy sanctuary awaits
By embracing earthy color décor, you can create a home that feels grounded, welcoming, and in harmony with the natural world. Whether you’re redecorating a single room or your entire home, these ideas will help you bring the beauty and serenity of nature indoors.
Victor Ciardelli beamed as his mortgage company, Chicago-based Guaranteed Rate, launched a “financial wellness” and “personal well-being” app last fall before a live audience in Times Square with wellness celebrity Deepak Chopra.
“Something we are passionate about at Guaranteed Rate is caring about people and their overall well-being,” Ciardelli said in a video of the event posted online. “We wanted to make sure that we did something to help people in their general stress and alleviate pain.”
But in the days following the launch of the app, which offers home loan applications and other financial services alongside yoga classes and nutrition advice, Ciardelli wasn’t happy. Yelling at executive leadership on company calls, he referred to his employees as “failures,” complained that the team did not show him from a particular camera angle and said “Marketing is a f−−−ing disaster,” according to two executives who were on the calls.
Despite Ciardelli’s public remarks on the importance of personal well-being, many former employees told the Tribune they experienced or witnessed persistent verbal abuse and a misogynistic environment while working at Guaranteed Rate. As part of a Tribune investigation, reporters interviewed nearly 80 former employees and reviewed court records, internal company emails, written exit interviews and text messages.
Many of the former staff members who spoke with the Tribune described Ciardelli, the company’s president, CEO and founder, as a boss who was quick to berate, swear at and demean employees.
“Every person that works directly under Mr. Ciardelli is terrified of his potential anger outbursts,” one former assistant wrote to human resources after she was let go from the company a couple of years ago, according to an email reviewed by the Tribune.
Some former employees who spoke with the Tribune said they were driven to seek mental health care because of the work environment at the company; one former worker said she contacted a suicide hotline last year.
Multiple women who used to work at Guaranteed Rate, meanwhile, described working in a sexualized atmosphere where some male loan officers and managers made sexually explicit remarks to female employees, hit on them in the office or at work events, and commented inappropriately on their appearance — even, in one case, encouraging a woman to use her looks to help close a loan.
In February, a woman who used to work as a loan officer at Guaranteed Rate filed a lawsuit against two high-producing loan officers at the company, alleging sexual harassment and gender discrimination. Her complaint alleges one of the male loan officers sexually harassed her at a corporate event, that the other loan officer pressured her not to report the incident to human resources, and that for the remainder of her employment the man who made the remark used “gender-based and demeaning slurs to refer to” her and other women at the company.
Other former employees said they did not bring their complaints to human resources because they thought Ciardelli or other executives and managers meddled in the department’s business and might retaliate, with at least two former employees saying they’d observed how company leaders protected certain staff members. Others said they did complain but felt the department didn’t take the information seriously.
In response to a detailed list of questions from the Tribune, Ciardelli and Guaranteed Rate vehemently denied all of these allegations, describing the company as a positive workplace environment where women in particular are supported. The firm went to remarkable lengths to dispute the allegations, including sending the results of a worker satisfaction survey it conducted and forwarding more than 80 testimonials from current and former employees. Among them were five of Ciardelli’s current or former assistants, as well as numerous male and female executives praising his leadership and support.
The company also retained an outside law firm that, even before receiving the reporters’ list of questions, threatened to sue the newspaper for defamation.
Guaranteed Rate, whose corporate headquarters is in Chicago’s North Center neighborhood, has grown tremendously since its founding in 2000 to become one of the largest mortgage lenders in the country based on loan volume, according to industry news and data provider Inside Mortgage Finance. Its name has adorned the White Sox stadium since 2016, and as recently as 2018, Guaranteed Rate was named a Chicago Tribune Top Workplace — a distinction based on surveys conducted by an outside company, with no input from editorial staff on the selection.
Guaranteed Rate CEO Victor Ciardelli prepares to throw out the ceremonial first pitch at a White Sox home game in August 2016. The ballpark would be renamed after his company later that year. (Chris Sweda/Chicago Tribune)
Jason Scott, a former top-producing loan officer and director of VA lending, which provides home loans to military veterans and active-duty service members, at Guaranteed Rate said his earlier years at the company — when lower mortgage rates fueled industry growth — were positive. But Ciardelli’s outbursts and verbal abuse of employees grew more noticeable, he said, when rising interest rates started to erode those gains, especially after the boom years of the COVID-19 pandemic.
“I think crazy success just brings out who the real people are,” said Scott, who reported to Ciardelli in his director role and now works for CrossCountry Mortgage, a competitor of Guaranteed Rate. “What did you sacrifice to get there? Did you sacrifice your soul or your core values?”
Many other former employees who spoke with the Tribune did so on the condition they would not be named in this story, saying they feared Guaranteed Rate would sue them. Guaranteed Rate has filed lawsuits against former employees to claw back signing bonuses; it also has sued competitor New American Funding and former employees who have hired former Guaranteed Rate workers, accusing them of unlawful poaching.
Ciardelli declined to be interviewed without his attorney for this story. In response to written questions provided by the Tribune, he and the company suggested the criticism of Guaranteed Rate came from disgruntled employees who could not succeed in a demanding work environment within a challenging industry, or from people who now work for a competitor and therefore would benefit from disparaging the company.
“We hold ourselves and our team members to an incredibly high standard and are not apologetic about that,” Ciardelli said in his written responses, sent through the outside law firm retained to handle communications with the Tribune. “We also recognize … that to achieve great success, one must embrace a full ownership for their actions, both successful and otherwise to achieve growth and most important optimally serve our customers. We promote a transparent culture that supports all our team members toward that goal and welcome constructive criticism. As a result, we are not for everyone.”
Ciardelli specifically denied berating staff, yelling at executives after the app launch or ever calling employees “stupid” or “failures.” He quoted the company’s chief operating officer, Nik Athanasiou, as saying: “I have worked with Victor for 15 years. No one is in more meetings with him than me. I do not ever recall an instance where Victor was abusive toward another employee.”
Ciardelli also pointed to the company’s anti-discrimination and anti-harassment policies and said neither he nor any other executive interfered with human resources.
In response to questions from the Tribune about women’s complaints, including being subjected to sexually explicit comments and working in a “boys club” atmosphere, Ciardelli wrote that such allegations are “simply not true.” The company “has not, does not, and would not objectify women or put them in uncomfortable personal or professional situations,” he wrote.
Ciardelli also highlighted the large number of female loan officers working at the company, their professional success and the testimonials from female employees. When the Tribune asked to speak with four of those women, only one — Rola Gurrieri, the company’s New Jersey-based chief fulfillment officer — agreed to be interviewed without outside counsel or management present.
Regarding the lawsuit filed by former Guaranteed Rate loan officer Megan McDermott, the company told the Tribune it had “found no evidence supporting Ms. McDermott’s allegations of sexual harassment or gender discrimination” after conducting a “comprehensive investigation.”
Guaranteed Rate also sent a general statement detailing the company’s business philosophy, which includes a “fierce commitment to excellence.” Employees who do not “meet our core values or our quality standards” find it challenging to maintain job satisfaction at the company, it said.
“Many of these employees walk away not feeling good about the company which is a natural emotion when faced with a reality that their standards and the company standards are not aligned,” the statement said.
But many of the former employees who spoke with the Tribune described a cutthroat work culture they said could be frightening and upsetting, with several attributing that culture to Ciardelli’s laser focus on making money and growing Guaranteed Rate.
A sign is installed at the White Sox stadium in October 2016 to proclaim its new name: Guaranteed Rate Field. (Zbigniew Bzdak/Chicago Tribune)
The former assistant who emailed human resources asked not to be identified in this story, fearing it might jeopardize her current job or trigger retaliation from Ciardelli. In that email, the woman wrote that she was “constantly on edge and terrified to have an interaction with Mr. Ciardelli” and that she had “consoled each assistant on his team that endured the wrath of Mr. Ciardelli’s behavior.”
“I hope that my experience will open your eyes,” she wrote.
Flying too close to the sun
In an interview with the Tribune in 2014, Ciardelli made plain his ambition to grow the company.
“If you can’t handle it, you shouldn’t be here,” Ciardelli said. “Instead of feeling like, oh, we care about people’s feelings and all that, it’s all about results.”
In the same article, Ciardelli said he worked constructively with his employees when issues arose at work. “There’s no drama involved; there’s no yelling,” he said. “Let’s fix the issue and move on.”
But multiple former executives and employees told the Tribune Ciardelli regularly yelled at and verbally attacked executives and other employees in person and on company calls, sometimes in front of hundreds of people, with the calls following the app launch just one example.
Some former and current employees told the Tribune they tried to avoid Ciardelli because they were scared of his temper.
Scott, the former director of VA lending who worked at Guaranteed Rate from 2017 until he resigned in 2022, splitting his time between offices in Hawaii and Colorado, called Ciardelli a “bully.”
Scott told the Tribune that, during one call, Ciardelli took an executive “to the woodshed and just eviscerated him verbally,” saying things such as “I can’t believe you are this stupid.”
“(Victor) throws the grenade and then he leaves the room,” not giving people a chance to explain or talk through the issue, Scott said.
At the time of Ciardelli’s 2014 Tribune interview, Guaranteed Rate had 2,500 employees nationally, 1,050 of whom were based in Chicago, according to Tribune archives.
The company grew to employ 9,708 people nationwide at its peak in 2021, Guaranteed Rate told the Tribune in May. Part of the company’s growth stemmed from its acquisitions of other mortgage companies: Manhattan Mortgage and Superior Mortgage in 2012 and Stearns Lending in 2021.
Victor Ciardelli, shown in 2014 at Guaranteed Rate’s headquarters, told the Tribune that year that he had ambitious plans for the company and “if you can’t handle it, you shouldn’t be here.” (Abel Uribe/Chicago Tribune)
Guaranteed Rate also partners on mortgage services with some of the largest real estate companies in the country. Including the people working in those partnerships, Guaranteed Rate had 14,264 employees at its height in 2021.
Like other mortgage companies, Guaranteed Rate has suffered a significant decline in business over the last two years, stemming from mortgage rates that have more than doubled from their record lows during the pandemic.
As mortgage rates soared in 2022 and 2023, the firm implemented thousands of layoffs, with only 3,871 workers remaining as of April, or 5,756 among all its companies, excluding contractors, as of May, according to the company.
Yet Ciardelli’s volatile behavior predated the stressful times in the housing market, according to some people who worked for Guaranteed Rate. Many people who “fly too close to the sun” — a metaphor some employees used to describe working directly with Ciardelli — eventually leave, they said.
People who work in personal and executive assistant roles for Ciardelli rarely last long in their jobs, with many leaving after less than a year, former employees said. Some referred to Ciardelli’s assistant position as a “revolving door,” and the LinkedIn profiles of multiple former assistants show short stints with the company.
More than two dozen executives and senior loan officers have left the company over the last decade, with a significant exodus occurring in the past two years. Multiple former executives and loan officers — including Scott — told the Tribune they left because of Ciardelli’s verbal outbursts and what many described as a workplace where they felt bullying and misogyny were tolerated. Most now work for competitors.
Ciardelli and other executives sometimes would disparage people who left the company, according to Scott.
“I would be like ‘Guys, did anybody ever think about reaching out to them before they left and having an exit interview with them?’” Scott said. “You are talking about a person that was a top producer here that you loved them as long as they produced, and now that they leave, they are an enemy? … They are leaving for a reason.”
In Ciardelli’s written responses to Tribune questions, he said allegations of a toxic work environment or bullying on his part are “not aligned with Guaranteed Rate or my leadership.” He said neither he nor other executives have disparaged former employees when they left the company.
In response to a question about assistant turnover, Ciardelli wrote that he has worked closely with five “primary” assistants since 2000. “As is the case with any demanding support roles, there has been some turnover with secondary and tertiary assistants, but nothing that is abnormal or unexpected,” he wrote.
One testimonial sent to the Tribune was from Melissa Czaszwicz, who said she worked for Ciardelli as an executive assistant in the early 2000s. She wrote that she had a positive experience working closely with Ciardelli, who she said was especially supportive when she had children.
“Never did I witness anything inappropriate or out of line,” said Czaszwicz, who still works at Guaranteed Rate.
‘Mental health has suffered’
Some former employees who spoke with the Tribune said they were driven to seek mental health support during and after their time at the company because of the negative work environment they experienced at Guaranteed Rate.
Most of those who shared their experiences worked for an executive who has a close working relationship with Ciardelli. Former workers said this executive also verbally abused staff and was prone to volatile mood swings.
One told the Tribune she texted and called a suicide hotline last year while working at the company because of verbal abuse from the executive; she shared the texts she sent with the Tribune.
In her resignation email, sent to the executive and to the human resources department last year, she wrote: “My mental health has rapidly declined due to the way I have been treated and spoken to in the last couple of months.”
Another employee from the same team wrote in a 2019 resignation letter sent to the executive, human resources, Ciardelli and others that his “mental health has suffered.”
Founded in 2000, Guaranteed Rate grew to become one of the largest mortgage lenders in the country but has suffered a decline in business as mortgage rates have soared in the last two years. (Brian Cassella/Chicago Tribune)
In the resignation email and in an interview with the Tribune, the former employee said his boss gave him the runaround when he asked for time off to attend his mother’s chemotherapy appointments and complained to other employees about his requests.
Other employees discouraged him from requesting leave directly from human resources, warning him he would be fired if he went around the executive, according to the email.
Alyssa Ortiz, another former employee, said working with this executive was like being in an “abusive” relationship, being yelled at one minute and being invited for drinks the next.
“Everyone has gotten … chewed out and left crying,” said Ortiz, who worked for Guaranteed Rate from 2017 to 2019.
Ortiz told the Tribune that human resources and Ciardelli had been notified of this executive’s verbal mistreatment of employees but did nothing. She and about a dozen other former employees told the Tribune they felt Ciardelli protected this executive because of their working relationship.
In a written exit interview from 2020, one employee from the same department described how the executive would discuss former employees’ exit interviews with current employees.
“This created a fear for us to go to HR for anything moving forward,” the employee wrote.
Ciardelli said the company was not aware of any incident in which an executive read former employees’ exit interviews aloud; he said Guaranteed Rate “would never support this practice.”
Dozens of employees have left the executive’s department since 2017, according to interviews with former workers and LinkedIn profiles. The executive has since been promoted, the executive’s LinkedIn profile and the company’s website show.
In 2018, the head of human resources at the time took away the HR representative working with the executive’s department because of “risks” the executive posed to the company, according to an email reviewed by the Tribune.
“I can’t in good conscience keep allowing (the executive) to drag other employee (sic) into … schemes,” the former HR head wrote. “And by schemes I mean risky bull−−−−.” The department would have no assigned human resources representative after that, according to the email.
In correspondence with the Tribune, Guaranteed Rate described the company as a positive workplace where abuse and harassment are not tolerated and where complaints to human resources are taken seriously.
“We are not perfect by any means, but we do work hard to listen to our employees and make sure they feel supported,” a company spokesperson wrote in an email to the Tribune in April. “Most of all, we have no tolerance for any form of bullying, harassment or mistreatment. It is not who we are or who we want to be.”
Some of the employee testimonials provided by Guaranteed Rate expressed similar sentiments. For example, Mohamed Tawy, a branch manager and senior loan officer who has been with Guaranteed Rate for three years, wrote that the culture at the company is the best he has experienced in his 15-year career.
In an interview with the Tribune, Tawy said: “As a top producer … and I’m also a minority myself, I haven’t felt anything or seen anything that makes this company in any way negative for anybody that’s different. … I’ve seen here all that matters is that you do a good job, your production is good and that you follow the protocols and the rules, and I’ve seen people succeed with that more than any company I’ve been with.”
The Guaranteed Rate spokesperson also shared the results of an employee experience survey conducted in February. According to the company, the average rating for the culture at Guaranteed Rate was 8.49 out of 10, with nearly 75% of 3,745 employees responding. Those ratings were based on employees’ stated level of comfort providing feedback and/or concerns, how much they felt supported by the company in maintaining a healthy work-life balance and their sense of Guaranteed Rate’s commitment to promoting diversity and inclusion.
The email from the spokesperson said the company received “a countless number of positive comments and appreciation for their leaders, teams and our overall culture.”
In response to Tribune questions, Guaranteed Rate said in May that the survey was anonymous and it was analyzed by its “employee experience team.” The company did not provide the Tribune with a complete set of responses from the survey, but it volunteered that employees used the word “toxic” to make a negative comment about Guaranteed Rate in only 14 of the more than 5,000 written responses provided to three open-ended survey questions.
‘Mortified and disgusted’
Megan McDermott, a single mother of three, met her supervisor at Guaranteed Rate, Jon Lamkin, in person for the first time at a corporate event in December 2015, according to the lawsuit she filed in February.
When Lamkin heard the age of her oldest child, the suit alleges, he said: “You should have known better than to let some guy’s d−−− c−−− inside you.”
According to her lawsuit, McDermott reported the comment to Joseph Moschella, a regional manager and senior loan officer at Guaranteed Rate who was responsible for McDermott’s region while she worked at the company. Moschella, the suit alleges, “pressured” her not to make a formal complaint of sexual harassment to human resources.
McDermott told the Tribune she was “mortified and disgusted” after Lamkin made the comment.
“The irony here is that Jon should have known better than to treat an employee the way he did rather than telling me I should have known better to become a single mother at 20 years old,” McDermott said, “which is vile. … He set the tone the first day I met him of the power Joe and Jon had over my career.”
Megan McDermott, shown in March in New Jersey, has filed a lawsuit alleging she was “subjected to a sexual and gender-based hostile work environment” at Guaranteed Rate and did not receive the same opportunities, treatment and pay as male loan officers. (Brian Cassella/Chicago Tribune)
As McDermott went on to become a top-producing loan officer for Guaranteed Rate in New Jersey, her suit alleges Lamkin subjected her to abuse by “regularly screaming at her and using gender-based and demeaning slurs to refer to” her and other women at the company.
Her lawsuit alleges she was “subjected to a sexual and gender-based hostile work environment” by Guaranteed Rate, Lamkin and Moschella. Her suit also alleges McDermott did not receive the same opportunities, treatment and pay as male loan officers, which some other female loan officers told the Tribune reflected their own experiences as well.
McDermott did not lodge a complaint after Lamkin’s comment because she “believed she would be retaliated against” if she did so, the suit states. When she did report to HR around 2019 that Lamkin had engaged in “abusive behavior,” the department “failed to do anything to investigate or curtail Defendant Lamkin’s behavior,” the complaint alleges.
“Joe encouraged me not to go to HR because of the damage it would do to Jon’s career,” McDermott said. “Ultimately, all that they were worried about was Jon, his reputation and his career versus reporting inappropriate behavior.”
Guaranteed Rate told the Tribune in its May response that Lamkin’s comment was “nothing more than a single off-color joke,” that McDermott accepted an apology from Lamkin and that Moschella “encouraged” McDermott to contact human resources if she was “still upset.”
The company said it “could not find any record of Ms. McDermott making any form of complaint to the company’s human resources department in 2019, either verbally or in writing.”
McDermott told the Tribune she helped build Guaranteed Rate’s business in north Jersey from the ground up and said she loved the work until she found out she was not being treated equally as a woman.
“I believe management did not want to see me succeed, didn’t take me seriously and made decisions that negatively affected me and my children financially,” said McDermott, who now works for CrossCountry Mortgage, a competitor. “I ultimately left GR because I could no longer work in an environment where I was not valued and leadership felt that they could exploit me.”
Moschella and Lamkin are still employed at Guaranteed Rate. They did not respond to a Tribune request for comment. Guaranteed Rate told the Tribune in May that it had investigated McDermott’s allegations of sexual harassment and gender discrimination and found that “there is no evidence that Mr. Lamkin or anyone else at Guaranteed Rate ever created a hostile work environment for women.”
Guaranteed Rate also said in a statement that it complies with state and federal equal pay laws. The company said an “outside law firm” had reviewed its 2023 pay data and found it compliant with state equal pay laws.
In his written responses, Ciardelli highlighted the high percentage of female loan officers at the company in comparison to its competitors and said “our women originators thrive more than at any mortgage company in the industry.”
Employee statements provided through Guaranteed Rate’s attorneys included testimonials from dozens of women. Some noted the existence of the company’s employee resource group for women, GROW, while others cited the presence of women in leadership roles throughout the company.
“In addition to my professional growth I’ve experienced, I am equally grateful for the respect and dignity with which I have been treated as a woman in the workplace,” Jaime Kinman, a senior loan officer, said in her statement. “In an industry where gender biases still exist, I have never once felt marginalized or overlooked because of my gender.”
Gurrieri, the company’s chief fulfillment officer, said in an interview with the Tribune that she “never one time” experienced misogyny at the company.
“I got promoted when I’m six months pregnant,” she said. “That’s unheard of.”
Gurrieri, who has worked for Guaranteed Rate for more than six years, described Ciardelli’s leadership style as “extremely passionate.”
“There’s never been a day where I ever felt disrespected or not appreciated,” she said.
According to a former top executive who reported to Ciardelli for many years and a former human resources employee, a handful of loan officers at Guaranteed Rate were known sexual harassers, making women feel uncomfortable with inappropriate touching and unwanted advances in work settings.
But that behavior was rarely addressed, the former workers believed, because the men were friends with Ciardelli or were high-producing loan officers — each responsible for bringing in tens of millions of dollars in loan volume. Some of these loan officers still work at Guaranteed Rate.
Ciardelli called these allegations “simply not true” and said they were contradicted by the employee testimonials provided through the company’s attorney.
“They are also inconsistent with the recollections and experiences of multiple former HR professionals,” Ciardelli wrote.
A ‘sex-driven’ culture
In interviews with the Tribune, multiple former employees described a “boys club” atmosphere at Guaranteed Rate; Scott, the former director of VA lending, said there was “a lot of misogyny.”
Jessica Moreno, a former Chicago employee who started at Guaranteed Rate at age 23, said she was the first in her family to get a corporate job. Within a year of starting her job, she said, she was paying the mortgage on her family home.
But in her department, Moreno said she experienced a “sex-driven” culture.
“All the guys were just like, tongues on the floor,” said Moreno, who worked for the company for about four years starting in 2014. Her workplace was “like a men’s locker room, and women were in it,” she said.
Jessica Moreno, shown in April in Arizona, worked for Guaranteed Rate for about four years starting in 2014. She said male co-workers and managers hit on her and made comments on her appearance. It was “like a men’s locker room, and women were in it,” she said. (Brian Cassella/Chicago Tribune)
Male co-workers and managers would hit on her and make comments on her appearance, calling her pretty, Moreno said. Comments made at Christmas parties or happy hours could be crasser, she said.
“You’ll get, ‘Oh, I’ve always wanted to f−−− you,’” she said.
Moreno said she once overheard a male manager describe a woman who had interviewed for a job as a “fox.” Another time, she said, a manager invited a female massage therapist to the office; Moreno remembers male co-workers commenting on the therapist’s body, too.
Soon after she’d started at Guaranteed Rate, Moreno said, she met with HR to make a complaint about a manager who swore at and belittled her. The HR representative brushed off her concerns in that meeting, she said.
“After that, I felt so discouraged to never even speak up again,” Moreno said.
Moreno ended up leaving her position before taking a job working for a Guaranteed Rate loan officer; she said she was terminated after clashing with the loan officer’s assistant.
Some female former employees of Guaranteed Rate said they understood looks to be a currency within the company.
One former Chicago employee said a manager encouraged her to text a selfie to a client after hearing the client flirt with her over the phone and say he’d be inclined to speed up the loan process if he knew what she looked like.
The employee said she sent the selfie, and the manager then pushed her to go along with the client’s harassment until the loan closed, she said.
After receiving the photo, the client responded, “As pretty as you are I can’t believe some man hasn’t run off with you just howling away,” in a text reviewed by the Tribune. Later on, after sending her forms, the client texted her: “You said I would get another pic when I sent you the forms so?”
The employee said another manager in her division would frequently flirt with her and comment on her appearance. He once texted her to “stop losing weight damn it” and another time texted her that she “broke (his) concentration,” according to texts reviewed by the Tribune.
Another former Chicago employee remembered a manager telling her, while she was pregnant with her first child, “Whatever you do, don’t get a C-section — you’ll never wear a bikini again.” The employee went out on maternity leave days later. She said she did end up needing a C-section and remembers the manager’s comment echoing in her head as she was wheeled back for surgery. Two people the woman told about the incident at the time corroborated her account in interviews with the Tribune.
Several former employees in the marketing department, including two men, told the Tribune Ciardelli made comments about workers’ ages. One employee got Botox and fillers after Ciardelli told employees they were “too old” and likened the marketing department to his “grandmother’s mortgage company,” according to former marketing department employees.
In his written responses, Ciardelli said “Guaranteed Rate is committed to fostering an environment that promotes diversity, equity, inclusion, and accessibility. We maintain a comprehensive set of employment policies aimed at providing a work environment free of unlawful harassment and discrimination, where all employees treat one another with dignity and respect.”
Guaranteed Rate’s corporate headquarters is in Chicago’s North Center neighborhood in a building with a rooftop gathering space. (Brian Cassella/Chicago Tribune)
A spokesperson said in the April 1 email sharing the employee survey results that the company had launched “even more initiatives to ensure we have a positive work environment,” including anti-harassment training, training for the human resources team “to take proper and appropriate steps and best practices for investigating and responding to employee complaints” and reminders to employees on how to report harassment or abuse.
“Our executive team has emphasized to Human Resources that all complaints should be investigated, and any form of harassment and misconduct should be dealt with swiftly – and all managers and employees who are not acting in accordance with our values be rooted out of our organization,” the spokesperson wrote.
In the company’s May responses, it said these initiatives were launched in 2023 and were to “expand and enhance” the existing training program.
All Guaranteed Rate employees must complete “harassment and discrimination prevention training” upon being hired and on an annual basis thereafter, according to the company’s May response. The company said Guaranteed Rate has an “anti-retaliation” policy that prohibits retaliation against employees who report alleged harassment or discrimination or participate in an investigation into the conduct. The company also noted it has an ethics hotline through which employees can make anonymous complaints.
“We respect and treat all employees equally no matter their sex, color, or creed,” Ciardelli wrote.
In the last 10 years, Guaranteed Rate has not settled any lawsuits involving claims of a hostile work environment, according to the company. Guaranteed Rate’s response stated that within that time frame, the company settled six claims involving allegations of a hostile work environment, including arbitration cases as well as claims filed with the Equal Employment Opportunity Commission and state and local agencies. The majority of those claims were brought by male employees, and one was resolved in Guaranteed Rate’s favor, the company said.
Guaranteed Rate employees are asked to sign mandatory arbitration agreements when they are hired, but sexual harassment claims and claims filed with the EEOC and similar state agencies are not subject to arbitration, according to Guaranteed Rate’s May responses.
‘Positive thinking’
Publicly, Ciardelli presents himself as a champion of a positive work environment — an image the company has encouraged employees to promote.
In an email sent in February by a company executive and obtained by the Tribune, employees were encouraged to share a Forbes article featuring Ciardelli; the email provided step-by-step instructions for posting it on social media.
The story, published Feb. 7, was titled “Guaranteed Rate Founder Is All In On ‘Positive Thinking’ This 2024” and described his leadership style as “Chicken Soup for the Mortgage Industry.”
“I communicate the power of positivity and gratitude to everybody around me: employees, friends, family members, everyone,” Ciardelli was quoted as saying.
Less than 24 hours after it went live, the article disappeared from the Forbes website. The site provided no explanation, but one former Guaranteed Rate employee told the Tribune former workers had written to the author about factual inaccuracies.
On Feb. 8, a Guaranteed Rate executive sent another email encouraging employees — again with step-by-step instructions — to delete any social media posts linking to the article.
“We are working with Forbes to resolve and will let you know when it will be reinstated,” the email said. “We apologize for the inconvenience, and we will send out a new link as soon as it’s available.”
The Forbes contributor declined to comment for this story. Forbes told the Tribune the article was taken down because it did not adhere to the company’s “editorial guidelines” and did not respond to further questions.
The article has yet to be republished, but Guaranteed Rate still wants people to read it. The company shared it in a PDF on its LinkedIn page.
You may have heard that the nation’s largest mortgage lender just rolled out a zero down mortgage.
If you were around for the housing market crash in the early 2000s, it could feel like déjà vu. And not in a particularly good way.
After all, it was toxic home loans that sunk the market then, sending home prices crashing and short sales and foreclosures surging.
Does this mean we’re going down a familiar path, which will likely see a familiar outcome?
Or is it a big to do about nothing?
UWM’s New 0% Down Purchase Program
United Wholesale Mortgage (UWM), which works exclusively with mortgage brokers, recently unveiled a new loan program called “0% Down Purchase.”
As the name implies, it allows a home buyer to purchase a property with nothing out of pocket, at least with respect to down payment.
Upon first glance, this looks and sounds like a bad idea, especially with how high home prices are at the moment. Not to mention mortgage rates either…
But before we get into the judgment of the program, let’s talk about how it works.
It’s essentially a 97% LTV loan, widely available from both Fannie Mae and Freddie Mac, featuring a 3% silent second mortgage provided by UWM.
The silent aspect of the second mortgage means it doesn’t carry any monthly payments, or interest for that matter.
Instead, this lien just quietly sits behind the first loan and only comes due if the borrower sells the property, or refinances the first mortgage.
If borrowers choose to, they can make payments on the second mortgage, though there’s no obligation to do so.
Most will likely just ignore its presence and when the time comes, pay it off via a sale or refinance.
And when this occurs, it will simply result in slightly lower sales proceeds, or a bump in their loan amount when refinancing (but factor in how much they pay down the first loan between that time).
Who Qualifies for This Program?
There are two ways to qualify for this new program, one income-based and the other reserved for first-time home buyers.
Those with income at or below 80% of the Area Median Income (AMI) for the address of the property their purchasing can qualify if they meet Freddie Mac’s Home Possible® guidelines.
They simply need a 620+ FICO score and the loan-to-value ratio (LTV) must be between 95% and 97%.
So-called “very-low income borrowers” with qualifying income at or below 50% AMI will receive a $2,500 credit as part of the 3% down payment assistance.
This credit does not need to be repaid and is deducted from the balance of the second mortgage.
The other way to qualify, assuming your income is too high, is by being a first-time home buyer and meeting both Freddie Mac’s HomeOne® and UWM’s guidelines.
As a quick reminder, a first-time buyer is someone who has not had ownership interest in a home in the three years prior to application.
In addition, they must have a 700+ FICO score and the LTV must be greater than 95%, up to a maximum of 97%.
The Maximum Purchase Price is $500,000
Because the 3% credit is limited to $15,000, the max purchase price is $500,000.
This would result in a loan amount of $485,000 at 97% LTV with the silent second set at $15,000.
As noted, there are no monthly payments on the first mortgage, with the second accruing no interest either.
It comes with a 360-month loan term, aka 30 years, and features a balloon payment upon sale or refinance.
Simply put, a home buyer with limited down payment funds may now be able to purchase a property they wouldn’t have qualified for before.
The million-dollar question is does this significantly increase risk, or just boost home purchase loan volume for UWM?
How Much Riskier Are Zero-Down Loans?
Now I don’t want to be flippant and say down payments don’t matter. But if the baseline is 3% down, is 0% much different?
Sure, there is some skin in the game at 3%, or 3.5% in the case of an FHA loan, but it’s still pretty minimal.
It’s hard to say what difference it would make in terms of borrower behavior. Perhaps the down payment provides some risk mitigation.
Maybe it deters a high-risk borrower from making the decision to buy a home versus rent.
But ultimately you have to look at layered risk. Back in the early 2000s, zero down mortgages were pervasive.
However, they were offered alongside stated income underwriting and/or no doc underwriting.
In addition, you could buy an investment property with nothing down, again with limited documentation regarding your income, assets, or employment.
On top of that, borrowers often took out adjustable-rate mortgages, or worse, option ARMs that allowed for negative amortization.
Today, these loans need to fully underwritten, even if they don’t require a down payment. And my guess is most if not all will be 30-year fixed-rate mortgages.
That makes me feel a little better about them, even if they lack a financial commitment from the borrower.
And when you look at it in the context of 3% down loans being readily available from any lender that offers Fannie Mae or Freddie Mac loans, it doesn’t feel a whole lot different.
If we were comparing it to the traditional 20% down payment required for a home purchase, that’d be an entirely different story.
Then you’d feel that this program was pretty novel and potentially dangerous.
Almost nineteen years into early retirement now, I’ve come to realize that the complete freedom of this lifestyle can be a double-edged sword.
You’ve already heard me raving plenty about the upside: having the freedom to raise a son from the day he was born to beyond his eighteenth birthday with no compromises. And then to put thousands of hours into everything else I value as well: family, health, friends, adventures, building stuff, and even writing the occasional blog post. No complaints about any of this.
But if I can indulge you to play me a brief Tiny Violin of First World Problems solo, even this perfect life comes with one flaw: I never have to do anything I don’t want to do.
To most people, this sounds like a dream come true. Especially if you combine total freedom with plenty of money, life is just a non-stop blissful playground of self actualization, right?
Well, maybe, but maybe not. In reality, the answer depends on who you are.
Freedom and money reveal a person’s true strengths and weaknesses, and the result is a spectrum with “Unlimited drugs and booze on the couch” at one end, and “Create and manage a series of nonprofit foundations which employ thousands of people to research and invest in medical advances and clean energy” at the other.
For most of my journey so far, I seem to have found the balance pretty naturally. My Dad job was very intense for the first decade, but somehow I also had time to build and restore quite a few houses in the neighborhood, take plenty of intense trips to interesting places, give some talks and make some videos, and still write a few hundred blog posts.
But in these last few years, I have started slowing down, and it has become more and more difficult to wrangle and focus myself to get these things to happen as often.
Instead of constantly bouncing around the construction site building cool things, or falling into laser focus on the keyboard finishing an article that I just had to share with you, I found myself retiring to the couch earlier and earlier each afternoon, seeking distraction on the phone and wishing I had the energy and focus to do those other more enjoyable things.
So I fought back, by learning more about health and wellness. Trying to study and train my way into more energy and focus and motivation. And you’ve seen some of the results here, in articles I’ve shared about daily habits, steering clear of excessive comfort, and more.
And all of these things really work, IF you take the knowledge and actually put it into action. And therein lies the problem:
I kept learning effective new things, and successfully incorporating them into my life. They would work for a while, but gradually my brain would invent various excuses to stop doing them consistently, leaving me with plenty of knowledge but far too little accomplishment to show for it.
Until finally, just a few months ago, I realized that I had been sabotaging my own progress by turning my biggest life advantage into a disadvantage:
I have been using my freedom too much – in order to avoid doing things that I didn’t feel like doing.
See, freedom is great if it frees you from leaving your children at 5am so you can drive an hour through a traffic jam to sit in an office building for nine hours. But that same freedom goes to waste if you then just plunk the kids down in front of a playlist of cheap cartoons while you lounge in the corner to scroll Facebook all day.
You need to use it to do things that are even more valuable than the job you just quit. And if you can’t do that, you might as well just keep the damned job.
This is what I was doing, while lying about it to myself. I would focus on the easy things which are still good for me, like taking care of the house or hanging out with friends who live nearby. But I avoid doing the harder things – which for me means the things that require more planning, energy or focus. Even though these are the things that allow me to lead the life I enjoy most.
Let’s use workouts as an easy example. I already know that on a minute-for-minute basis, this is the single most effective thing almost anybody can do with their time because it drastically improves every other area of life. But despite knowing this, I was still following this pattern:
“I want to get in a really good weight training workout today. Because I know it’s the best thing I can possibly do for my health and wellness. But I don’t feel like doing a workout because it’s hard. So I’ll try to grease the wheels for myself so it’s easier to achieve. I’ll pick the perfect time of day when the weather is nice, and my energy level is high. I’ll set up my gym in advance the night before. And when that golden moment of perfect conditions hits, I’ll hit the gym!“
But between you and me, that moment didn’t always come. Some weeks I’d achieve it 2-3 times, some weeks I’d get “busy” and make excuses like “well at least I walked a lot today”. Some days I would complete a great workout, but when recording it in the journal I’d see that the previous one was over a week ago.
And the results of this lackluster effort were exactly what you’d expect: lackluster fitness.
Then something changed and I learned that there’s a much better way to get those workouts done. It’s by replacing the long, meandering, frankly wussypants dialog above with this one:
I want to work out today. I don’t feel like it. ^^^ AHA!! I JUST CAUGHT MYSELF TRYING TO SELF SABOTAGE! ^^^ I am now already putting on my shoes and walking to the gym.
I’m using workouts as an example because this is the behavior I managed to change most successfully, but the exact same technique applies to everything else that you or I want to do, but fail to do regularly.
The key is learning to watch over yourself like an Eagle and identify that exact moment of hesitation.
And then instead of using it as a trigger for excuses, you use it as a trigger for action.
It’s so counterintuitive at first, but then obvious in retrospect. Hesitance feels shitty in the moment, and it really can ruin your life if you listen to it too often. But the ultimate solution is usually to run directly towards, rather than away from, the stuff you don’t want to do.
So really, Hesitation can be the ultimate life coach.
Using Extremely Badass People as Fuel
As part of writing this article, I shared the idea around with friends to test it out first. And I was initially surprised to get mixed results. About half of them could relate with me: they felt they were underachieving in life and wanted to do more. The other half though I was crazy: these people feel they are already doing too much, raising multiple kids and managing multiple businesses and training for ironman triathlons in the mountains.
The overachievers go through life nicely buzzed but often stressed. When hearing them describe their schedules, I was absolutely not envious. At the same time, they weren’t impressed with my schedule either because it’s too easy. We could both benefit from making adjustments towards the center.
Enter Goggins
Typical Goggins results on Youtube
Impressive overachiever friends are one thing, but the thing that really flipped the switch for me was hearing a podcast interview with our planet’s most extreme example of driving yourself beyond your former limits, David Goggins.
I learned about his life story with a mix of awe and horror. Severely beaten as a child, he grew up with a looming wall of psychological demons and issues, but his reaction was the unique part: he has been driven to compulsively seek out and overcome extreme hardship, not just to unimaginable levels but hundreds of times beyond that.
From pushing through several near-death experiences just to qualify for a Navy SEALS career, to breaking his own legs, heart and lungs from the constant exertion of things like running 240 miles over four days without sleeping, to setting a world record of 4025 bar pull ups over 24 hours (shredding his hands to look like ground beef in the process), the man does things I would never have thought are even close to possible for a human.
And that flipped a switch for me, by putting my own incredibly easy, under-achieving life into perspective.
Because while I absolutely do not want any part of the Goggins life, and I’ll would gladly live my life never having run more than 10 miles at a single stretch, I do find it incredibly helpful to learn that pretty much all of our barriers are entirely mental, not physical or placed upon us by the outside world.
Sure, we do have different starting points and different amounts of luck. But instead of thinking of life like this:
–
I now realize that things are more like this:
–
And that’s a really empowering way to think about life, that feels like the sky has opened way up.
Ongoing Inspiration
So the podcast was just an introduction. I wrote down a particularly concise quote “You already fuckin’ know what to do.” on a piece of cardstock, stuck it to my bathroom mirror, and started acting on it immediately.
Suddenly, I was able to hit the gym every single day because I had two ways to approach it: wanting to put in a workout, and not wanting to put in a workout, either of which became a trigger to work out immediately.
And of course, once I finally put in the effort, it started working. Even though I’ve been sorta into this type of training since I was a teenager, I have mostly floated along on a plateau for years. But with this change in attitude,I gained ten pounds of lean weight over the first four months, returning to the strength and flexibility that I had at age 25, and every single joint in my body feels like it has been upgraded to a study, well oiled spring.
Middle aged man reclaims youth through motivation.
I also used the “catch yourself at the moment of hesitance” to get myself to run instead of walk more often (over 20 runs since I got back to Colorado last month), get over to the MMM-HQ coworking space for more work and socializing visits, and even to sit back down at the computer to write this post for you. While I’ve found that too much blogger work (and internet “success”) is a bad thing, there is still a right level that works for me. But it takes a lot of discipline to be willing to do it, because of all the other easier and more thrilling activities I could be doing with this same stretch of time.
Refilling the Inspiration Tank
For me, fully internalizing this one powerful piece of inspiring profanity has been transformative. But I still find that returning regularly to the well makes all this work even better. So I downloaded both of the Goggins audiobooks and worked through them in little chunks on my morning walks over the period of a month. Then I moved on to Peter Attia’s Outlive, and Jocko Willink’s Extreme Ownership.
While the intellectuals fret about the perils of “Bro Science” or the “Toxic Masculinity” of today’s tribe of health podcasters and question their motivation, I simply absorb the messages that work for me and discard the rest. Find people who make you reach a little higher, and feed on their energy.
And for me, being exposed to successful, strong, athletic people who squeeze a lot of work out of themselves is a big source of inspiration. It helps me do more with my day, which is exactly what works for me right now at this phase of life.
Fewer things are more comforting than a crackling fire on a chilly day, but what happens when your chimney needs a little TLC? Repairs generally cost between $160 to $750, with an average repair running around $455, according to HomeAdvisor. But the amount you end up paying will depend on several factors such as the type of repair needed, your chimney’s materials, and labor costs.
Even if you only light your fireplace for part of the year, you’ll want to fix any chimney problems as soon as you can. A damaged chimney could increase the risk of a fire or prevent toxic gasses from passing safely into the air outside.
Here’s a closer look at common chimney repair costs so you can plan accordingly.
Factors That Impact Chimney Repair Cost
If a chimney is well maintained, you can expect it to last for 50 to 100 years. Still, it’s a good idea to carve out space in your household budget for occasional maintenance and repairs. When you’re planning how to pay for the fixes, keep in mind that several different factors can impact your chimney repair costs.
Type of Repair
The type of repair can impact the overall cost of a project. For example, capping repair usually involves replacing the very top cap on your chimney. This type of project typically costs between $150 to $300, according to HomeAdvisor.
Another common repair is fixing the mortar and bricks in a chimney. The job might entail tuckpointing, which incorporates two different mortar colors to make the chimney look newer. Masonry chimney repair costs usually cost between $300 and $1,500, while prefab chimneys cost less because they have fewer components. The job typically costs between $250 and $1,200.
Lining repair involves fixing the chimney liner, which, when cracked, can pose a fire risk. Chimney liners cost between $625 to $7,000, with a national average of $2,500.
Recommended: What Are the Most Common Home Repair Costs?
Type of Chimney
Chimney types vary by material, and this can impact how much a repair costs. Four common types of chimneys include brick, stucco, metal, and prefabricated.
Depending on how much damage there is, brick chimneys cost $175 to $1,000 on average to repair, though you can expect to pay more for more significant work. If you’re fixing a metal and prefabricated chimney, plan on paying in the neighborhood of $200 to $1,200, depending on how extensive the damage is.
Have a stucco chimney? You’ll likely need to pay more to have it repaired. Projects typically run between $570 to $1,920, though bigger jobs can run as high as $4,200.
Labor
Professional chimney repairs usually cost between $50 and $200 per hour. That said, the more damage there is, the harder the damaged area is to reach, and the more time a project requires, the more you may end up paying in labor costs. 💡 Quick Tip: With home renovations, surprises are inevitable. Not so with SoFi home improvement loans. There are no fees required, and no surprises.
Additional Costs
A repair may not be the only cost you encounter. Chances are, you might also pay for routine chimney inspections, chimney cleaning, ongoing maintenance, and permits.
Chimney Inspection
Whether you’re buying a fixer upper or renovating your current home, you should plan on having your chimney inspected by a professional once a year. The condition a chimney is in determines the type of inspection it needs. There are three levels of inspection:
• Level one inspection: A level one inspection is an annual routine inspection and typically costs between $100 and $950.
• Level two inspection: A level two inspection goes a step further to include a more extensive investigation into potential structural issues caused by recent damage. It costs between $200 and $1,000.
• Level three inspection: A level three inspection looks at every part of a chimney, inside and outside, which may require taking out walls or portions of the chimney. It costs between $500 and $5,000.
Chimney Cleaning
Cleaning a chimney typically runs between $120 and $390, or an average of $250. If your chimney has not been maintained well, there may be heavy creosote buildup or other damage. This could lead to a higher clean-up bill of up to $5,000.
Ongoing Chimney Maintenance
All chimneys need regular maintenance. Depending on the type of upkeep required, you may pay for a simple cleaning (an average cost of $250). But if a chimney repair contractor finds that your chimney restoration needs more attention, you could pay more.
Permits and Related Fees
Once you find a contractor and finalize your plans, work can begin. Keep in mind that before constructing or changing the outside dimensions of a structure, your contractor will need to secure a building permit. A building permit generally costs $50 to $300 for small jobs.
Types of Chimney Repairs
From the crown to the flashing, we’ll look at the various parts of the chimney and what it might cost to fix each one.
Stack Repair
The chimney stack is the part of the chimney that appears above the roof. Chunks of missing masonry, crumbling brickwork, and visible cracks can signal that your chimney stack needs to be repaired.
Mortar Repair
Mortar acts as a buffer between the bricks in a chimney. But that buffer can crack and deteriorate from movement and pressure, so pay attention to how your mortar looks from year to year.
Repair could involve repointing and/or tuckpointing. Repointing means removing and replacing damaged mortar joints, while tuckpointing uses two different colors of mortar to make the mortar joints look different.
Crown Repair
The crown is the top part of the chimney and prevents rainwater from getting into your chimney. Typically made of concrete, the crown should be checked for visible cracks, deterioration, wall damage, and pooling water.
Cap Repair
Chimney caps, usually made of steel or copper mesh, sit on the crown at the very top of the chimney. The cap covers the flue, or the duct that allows smoke to leave the chimney. Caps also keep rainwater, animals, and debris from entering the chimney. Missing tops, rusted screens, creosote accumulation, and screen holes can all indicate that your chimney cap needs attention.
Foundation Repair
Chimneys often have their own foundations, but they sometimes settle. This could allow moisture, critters, and other items to enter your home. Look for a crumbling foundation, which might also present fire hazards and falling bricks and mortar.
Liner Repair
A chimney liner, or flue liner, is the vertical passage located inside your chimney that carries fumes to the outdoors. Similar to an exhaust pipe, the flue keeps wasteful gasses from spreading into your chimney cavity.
There are some signs that yours may need a replacement, including finding broken shards and flakes of parts of your chimney and smoke in your home. It’s a good idea to consider replacing your chimney liner if it’s older. Less-expensive models should last up to five years, while a well-constructed liner can usually be counted on for up to 20 years.
Wood Rot Repair
Wood rot can compromise your home’s structural integrity and affect any part of the chimney that has wood in it: the crown, cap, or flue liner. Indications of wood rot might include discoloration or staining, a musty smell, cracks in the wood, and evidence of pests.
Smoke Chamber Repair
The smoke chamber refers to the part of the chimney located just above the damper and connects the firebox to the flue. It guides smoke from a fire up into the flue and out of your home. Since many smoke chambers contain steps, gaps, and holes, they can contain flammable creosote and soot buildup.
Flashing Repair
The flashing of a chimney joins the roof to the chimney and is made of aluminum, steel, copper, vinyl, or PVC. The flashing should last 30 years. But if there’s damage, you could end up with leaks in the roof due to rusting and corrosion, animals, loose caulk and gaps, and wear and tear.
Flue Repair
A flue is any open, vertical part of the chimney that lets smoke escape. (Don’t confuse this with the chimney liner, which lines the flue.) Signs the flue needs attention may include broken shards and flaking and smoke in your home.
Cricket Repair
A chimney cricket, also called a roof cricket, sits behind your chimney and looks like a tiny peaked roof. It juts off the main roof and sits directly against the backside of the chimney to divert water from the masonry. Water stains on the ceilings or walls, rafters near a chimney or damaged mortar and bricks or rotten wood can identify whether the chimney cricket is working or not — or if you need a chimney cricket and don’t have one. (Tip: Chimneys that are 30 inches or larger need a cricket.)
Brick Replacement
Brick replacement may involve replacing just a few bricks — or redoing the entire chimney. Note that if the bricks are in areas that are hard to reach, a professional may charge more for the job.
Siding Repair
If you have a chimney made of siding, it can be at risk for rotting, swelling, and deterioration. Even if it looks good from the ground, a “diseased” chimney could be rotten and cause water to enter your home through the roof or ceiling.
Repairing vs Replacing a Chimney
The extent of your chimney’s damage determines whether you should have it replaced or simply repaired. However, there are some clear signs that indicate you may need to completely replace your chimney:
• Large cracks in the bricks
• White streaks on the bricks
• Spalling bricks (bricks falling down)
• Tilting
Even if some of those indications are present, it’s a good idea to consult with a professional to know exactly what to do next about your fireplace chimney repair.
Signs You Need a Chimney Repair
Indications you need a chimney repair include cracks that appear, smoke blowback, leaks, leaning, or spalling bricks. Let’s walk through what these might mean.
Cracks
Cracks in the chimney’s masonry can signal that it needs attention. Cracks can lead to gas seeping into your home, which can increase the risk of carbon monoxide poisoning. Excess moisture, earthquakes, or other weather events; hail; acidic decay; wind; and hot or cold temperatures usually cause cracks to appear.
Smoke Blowback
Smoke blowback creates a safety and health hazard. Not only could your house sustain a fire, but you could also face carbon monoxide, volatile organic compounds, polycyclic aromatic hydrocarbons, and other pollutants in your home. There are several causes for smoke blowback, including a blockage in the chimney or even a home that’s too well insulated.
Leaks
Chimney leaks are a common problem. When your chimney drips water or you see moisture in the fireplace or surrounding walls, you may also see attic and wall damage. The chimney itself may have a leak, or the roof may leak. For example, the chimney cap or crown may be damaged, bricks or mortar may have issues, the flashing may not be working properly, or condensation may have built up in the chimney.
Leaning
Exposure to all sorts of weather can cause the mortar joints in a chimney to decay. This causes bricks to loosen and the chimney to lean. Other reasons for leaning include a lack of footings and shifting soil. A leaning chimney doesn’t just look bad — it can also pose a safety risk and may even collapse.
Spalling Bricks
Spalling brick refers to bricks that flake, pit, or crumble and fall away from the masonry. Small cracks usually start and grow larger until the brick completely deteriorates. Improper mortar, weather, improper insulation, non-breathable masonry sealants, cleaning with a pressure washer, and impact to the bricks can all cause spall. Spalling poses a safety risk — there’s a possibility the structure collapses and damages the rest of the roof.
Shaling Tiles
Have you noticed pieces of flue tiles accumulating at the bottom of your chimney? This may be the result of shaling, which is a sign that your flue tiling is damaged. A professional can use special equipment to confirm whether there’s an issue, identify the problem spot,and offer potential solutions. 💡 Quick Tip: Loans typically offer lower interest rates than credit cards. Consider a SoFi home improvement loan to fund your next renovation.
Can I Repair My Chimney Myself?
Depending on the issue, fixing a chimney can take a big bite out of a homeowner’s budget, but there are several ways to finance the cost of chimney repair. For instance, you may decide to dip into emergency savings, use a credit card, take out a personal loan, or turn to your homeowners insurance.
Or, depending on your situation, it might make sense to explore a cash-out refinance, a home equity line of credit (HELOC), or consider emergency home repair financing options. As you make your decision, it’s a good idea to compare the interest rates and the pros and cons of each type of financing.
You may also be tempted to attempt to tackle the work yourself and save some money in the process. Though many home improvement projects may be appropriate for the DIY-er, chimney work is not one of them. You assume serious risks when completing a chimney repair yourself — the same kinds of risks you’d face repairing a roof. Even if you can overcome those risks, you’ll still have to know how to repair the chimney. And certain tasks, such as a complete chimney replacement, require advanced knowledge of the mechanics of a chimney.
Recommended: How to Pay for Emergency Home Repairs, So You Can Move on ASAP
The Takeaway
A well-maintained chimney is designed to last for decades, but that doesn’t mean it won’t require the occasional repair or maintenance. Repairs typically cost between $160 to $750, though that price depends on a range of factors, including the type of chimney you have, the work being done, and labor costs. But chimney upkeep is an important line item to include in the budget because there are potential safety risks involved when repairs aren’t made.
When it comes to financing chimney repairs, homeowners have several options, including homeowners insurance, dipping into an emergency fund, and taking out a personal loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
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FAQ
When should I replace my chimney?
You may never need to replace your chimney as long as you live in your home, since chimneys can “live” up to 100 years. However, if you live in an old home or can see issues with your chimney, consult a chimney repair contractor, who can determine whether it needs to be replaced.
How often should I clean my chimney?
The National Fire Protection Association (NFPA) suggests having your chimney cleaned and inspected once per year by a chimney sweep. You should also have your chimney swept at least once per year. A professional can ensure that everything is in working order.
What qualifications should I look for in a chimney repair contractor?
Hiring a professional with the right credentials is important, so look for certifications by the National Fireplace Institute (NFI), Chimney Safety Institute of America (CSIA), and Certified Chimney Professionals (CCP). Check a chimney repair contractor’s Better Business Bureau (BBB) rating. Ask for a portfolio and recommendations, and confirm that the company is insured.
How do I compare quotes from different chimney repair contractors?
Get several quotes from various contractors in your area and compare them apples to apples. The cheapest one may not be the best fit for the job. For example, one contractor may offer a more thorough repair than another for, say, brick chimney repair costs. Ask for a list of services and a detailed list of the costs involved before you decide on the contractor. It also doesn’t hurt to ask friends and neighbors for recommendations.
Are there any permits or inspections required for chimney repairs, and how much do they cost?
A building permit typically costs $50 to $300 for small jobs, though it may depend on where you live. Once you find a contractor, they should be able to answer your questions about the costs of a building permit.
Will my homeowner’s insurance cover the cost of chimney repairs?
If your home is damaged by a covered loss, your insurance will cover the cost of chimney repairs. For example, your insurance will likely provide coverage if lightning strikes your chimney and ruins the brick and mortar. However, if your chimney has been neglected and causes a fire in your living room, your homeowner’s insurance may not cover the damage. Ask your insurance carrier for more information about your specific situation.
How can I finance the cost of chimney repairs?
Consider a variety of different types of financing, from using your credit card to taking out a personal loan from a lender (such as your mortgage lender). Also consider emergency home repair financing options, a cash-out refinance or a home equity line of credit (HELOC). Compare the interest rates, pros and cons of each type of financing, to determine which type of financing works best for you. For example, if you know you will have a repointing chimney cost on your hands, consult with at least five contractors and get prices, then ask your bank or credit union for more information about financing options.
Are there any tax breaks available for chimney repairs?
Generally, home repairs, such as fixing a broken chimney, are not tax deductible. However, a home improvement, such as adding a chimney to your house, may be tax deductible. Check with an accountant for more information.
How can I ensure my chimney repair project stays within budget?
Put together a budget so you know exactly how much you can afford to spend on your chimney repair. Keep in mind that the chimney repairs cost could run you between $160 to $750, with an average repair cost of $450, to fix your chimney. Chimney rebuild costs will likely cost the most. Check with an experienced contractor in your area to learn about your project’s costs, and be sure to get a list of costs ahead of time.
What are the risks of not repairing my chimney?
Leaving chimney issues unchecked can result in a number of safety hazards, including fatal fires, carbon monoxide poisoning, and other toxic chemicals. To help you spot and address problems early on, consider getting an annual inspection recommended by the NFPA. A professional chimney inspection could uncover a chimney repair problem you can’t see from your living room or from the ground.
Photo credit: iStock/arak7
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It’s time to nurture nature with an eco-friendly home life.
In our fast-paced modern world, where technology reigns supreme and convenience is king, it’s easy to lose touch with the natural rhythms of the earth. But as we become increasingly aware of the impact of our actions on the environment, many of us are turning towards eco-friendly living not just for the planet’s sake, but for our own well-being too. Let’s explore how adopting a more sustainable lifestyle can not only benefit the environment but also improve our sleep and energy levels.
Exploring the connection: Sleep, energy, and the eco-friendly home
Sleep is a fundamental aspect of our health and well-being, yet many of us struggle to get enough quality rest each night. Likewise, low energy levels have become a common complaint in our caffeine-fueled society. But what does this have to do with the environment?
The answer lies in the intricate connection between our bodies and the world around us. Our sleep-wake cycle, also known as the circadian rhythm, is regulated by environmental cues such as light and temperature. When we disrupt these natural cues with artificial lights, electronic devices, and erratic schedules, we throw our circadian rhythm out of balance, leading to sleep disturbances and fatigue.
Furthermore, our energy levels are closely tied to our overall health and vitality, which in turn are influenced by the air we breathe, the food we eat, and the products we use. By prioritizing eco-friendly practices, we not only reduce our carbon footprint but also create a healthier environment for ourselves to thrive in.
Sustainable sleep practices
One of the first steps towards enhancing sleep and energy levels is to create a sleep-friendly environment. This means optimizing our surroundings to promote relaxation and restfulness. Here are some eco-friendly home tips to transform your bedroom into a sanctuary for sleep:
Natural materials: James Higgins, founder of Ethical Bedding, shares material matters. “Mindful purchasing and consumption means researching the companies you buy from,” Higgins notes. “Always choose organic (and plastic-free) wherever possible even if this means spending more. Spending a little more on higher quality products that are built to last will pay off in the long run.” Following Higgins’s advice and choosing organic bedding made from materials such as cotton, bamboo, eucalyptus, silk, or linen, which are not only gentle on the environment but also breathable and comfortable for sleep.
Chemical-free products: Avoid harsh chemicals and synthetic fragrances in your bedroom cleaning products and personal care items. Opt for natural alternatives to reduce exposure to harmful toxins that can disrupt sleep.
Mindful lighting: Embrace natural light during the day and minimize artificial light exposure at night, especially blue light from screens, which can interfere with melatonin production and disrupt sleep patterns.
Indoor plants: Incorporate indoor plants into your bedroom decor to improve air quality and create a calming atmosphere. Plants such as lavender, jasmine, and snake plants are known for their sleep-promoting properties.
Energy-efficient appliances: Invest in energy-efficient appliances and electronics to reduce energy consumption and minimize environmental impact. Hsin, with Nanani World, recommends this especially when it comes to lighting. “Switching to LED lighting from conventional incandescent bulbs can reduce energy consumption. LED bulbs last longer and are essential for lowering carbon emissions, which promotes environmental sustainability,” Hsin shares. Specifically, red LED lighting can enhance sleep quality and promote a quicker falling-asleep process, studies have found.
Disconnect from screens: Power down electronic devices at least an hour before bedtime to allow your mind to unwind and prepare for sleep. Sharon Bonner with Bright Ideas Event Agency shares her biggest wind-down tips. “No screen time 90 minutes before sleep and when sleeping, put devices in a Faraday bag to remove potential distraction,” Bonner shares.
Energize your day with sustainable living
Beyond improving sleep quality, adopting an eco-friendly lifestyle can also boost your energy levels and overall well-being. Here are some ways to energize your day while reducing your environmental impact:
Consider a plant-based diet: Incorporate more plant-based foods into your diet, such as fruits, vegetables, whole grains, and legumes. Plant-based diets are not only environmentally sustainable but also rich in nutrients that can increase energy levels and support overall health.Caroline James, with Envirolineblog.com, shares how to further make the most out of your meals. “Sometimes people think that being eco-friendly is more expensive. However, one of my favorite sustainable tips is to plan your meals and write a shopping list at the same time,” James explains. “Something as simple as writing a shopping list helps reduce food waste by assessing what you already have rather than impulse buying. Planning your meals also saves you money when you don’t overbuy and inevitably throw food away.”
Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain optimal energy levels. Invest in a reusable water bottle to reduce plastic waste and minimize your carbon footprint.
Re-read labels: A lot of household products are toxic and can negatively affect our health. Rachel Lincoln Sarnoff, former journalist and founder of Mommy Greenest, explains the dangers of certain household items. “When it comes to air freshening and candles (and cleaners, for that matter), avoid artificial fragrances, which can contain hundreds of chemical ingredients including phthalates linked to hormone disruption,” Sarnoff warns. “Unless a label lists the components of what scents the product — such as essential oils—then the word “fragrance” probably means it’s artificial.”Another household item to reconsider is non-stick pans. “[Non-stick pans] are coated with PFOAs that can be harmful to human health,” Sarnoff explains. “If you can’t afford to overhaul your set, start with those that are scratched, which are more likely to leach these toxic chemicals into your food, and replace pans with metal versions that don’t have a non-stick coating. You can have the pans sand-blasted down to a stainless steel base and either continue to use or recycle them.”
Get moving outdoors: Take advantage of the natural world around you by engaging in outdoor activities such as hiking, cycling, or gardening. Spending time in nature can reduce stress, increase energy levels, and foster a deeper connection to the environment.
Reduce, reuse, and recycle: Practice the three R’s of sustainability — reduce, reuse, and recycle — to minimize waste and conserve valuable resources. Valinda, founder of Green and Happy Mom, explains that opting for what you already own is the most eco-friendly choice. “Why buy a stainless steel bottle if your trusty plastic one still serves its purpose? The same principle applies to food containers, bags, and more. When considering a new purchase, explore secondhand options first, ” Valinda concludes. “Not only does this reduce the demand for new resources, but it also helps you save some money.” Emma Reed suggests finding reusable alternatives first and investing in them. “Whether that be reusable wipes for the home, a reusable coffee cup you can take out with you, reusable nappies/diapers for your baby, or beeswax wraps instead of clingfilm, there are many doable and handy options, Reed shares. “On top of being more environmentally friendly, they are also much kinder to your wallet too – it’s a win-win.”
Eco-friendly home: Other ways to cultivate a green oasis
Incorporating eco-friendly practices into every aspect of your home life can have a significant impact on both the environment and your well-being. Here are some overarching green living tips to help you reduce your carbon footprint and create a more sustainable living space:
Simple swaps: Jennifer Young with What’s Good suggests starting with swaps that impact your health first. “For example, your skin is your largest organ and absorbs 70% of what it comes in contact with — your feet absorb 100%! This means the first change is laundry, like clothing, sheets, and towels. Ditch the big plastic bottle laundry detergent and start using concentrated laundry strips or powders,” Young shares. “Both are plastic- and liquid-free which hugely reduces fossil fuel consumption. Plus, there are no synthetic fragrances, dyes, or other harmful chemicals that might interrupt your endocrine system or aggravate your skin. You can further protect your health and save energy by using dryer balls instead of dryer sheets or fabric softener.”Yalu Xu, with Momo Lifestyle, echoes this sentiment that embracing eco-friendly living starts with reevaluating household essentials. “There’s room for sustainability in unexpected areas, like bath mats. Traditional fabric bath mats require weekly washes, using over 2,000 liters of water each year, ” Yalu Xu shares.
“An innovative alternative is a product like Drytomita bath mat. Made from diatomaceous earth, these mats not only absorb and evaporate water quickly but also maintain their cleanliness and functionality like new for years, with simple sandpaper maintenance. It’s a testament to how sustainable choices can seamlessly integrate into, and enhance our daily lives.”Another simple swap, shared by Lamar with BRoadout is opting for reusable alternatives like cotton and choosing sustainable materials like bamboo. “Cotton and bamboo are both sustainable choices and both hold a pivotal role as one of our primary raw materials, featured in a wide array of products, Lamar explains. “Choosing sustainable cotton items for your home, like tents and chairs, or bamboo items like tables, is a thoughtful way to care for your loved ones and the environment.” Lastly, Alyssa Bolaños, founder and CEO of Oh-Eco.com, reminds us not to feel pressure to make all the swaps at once. “My number one tip for living more sustainably is to use what you have, then, get what you need – just the sustainable version,” Bolaños states. “As you run out of your household cleaners or items, swap them for a more sustainable version on your next shopping trip. So instead of a plastic toothbrush, switch to bamboo. Or instead of saran wrap, maybe reusable bowl covers or beeswax wraps. You don’t have to change everything overnight.”
Consider air purifying measures: Jen Stout, co-founder of Healthier Homes, explains the importance of air purifying measures. “Adding a portable air filtration system with UV/ion purification in your living and bedroom areas is well worth the investment,” Stout exclaims. “Something many don’t think about either is paint – look for paints that seal the surface and are zero VOC, to add beauty and color to your space, while keeping the air condition pristine.” Houseplants can also help filter toxins, add oxygen to the air, and contribute to healthy sleep.
Energy efficiency: Ecoclicky support team encourages homeowners to consider renewable energy sources. “Install solar panels to harness solar energy, reducing reliance on non-renewable power sources,” the team shares. “For those unable to install panels, choosing energy providers that offer green energy plans can be a great alternative.” The team also advises upgrading to energy-efficient appliances and LED lighting. “This cuts down on electricity usage along with remembering to unplug devices when not in use,” the Ecoclicky team notes.
By incorporating these overall green living tips into your home, you can create a more eco-friendly environment that benefits both your health and the planet.
Simplifying conserving and preserving the earth
As we reflect on our relationship with the planet, let’s remember that our actions not only shape the world around us but also impact our health and well-being. By embracing eco-friendly living practices, we can enhance our sleep and energy levels while safeguarding the environment for future generations. So, let’s commit to treading lightly on the earth and nurturing a sustainable lifestyle that benefits both ourselves and the planet we call home.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
The average cost of an oil change varies depending on where you live. The type of oil used is another factor, with varieties including conventional, synthetic, and semi-synthetic. For basic service with conventional oil and no extra quarts, you can count on paying between $35 and $75, according to Kelley Blue Book.
We’ll discuss the ins and outs of oil changes, including how often you should get it done, the benefits to your vehicle and the environment, and how to save money on your next oil change.
How Much Does an Oil Change Cost on Average?
The cost of an oil change depends on several things:
• Vehicle’s year, make, and model
• DIY vs. service station
• Geographic location
• Service provider
• Type of oil: conventional, synthetic, or synthetic blend
• Add-on services like filter changes and tire rotation
You’ll pay about $35 for basic service with no extra quarts. Top service with extra quarts will run about $75. This is likely to be with conventional oil.
With semi-synthetic oil, the average cost will be higher: $40-$100. And with fully synthetic oil, the price inches up to $65-$125. Some luxury vehicles require special filters, which can cost $260 or more.
The average cost of an oil change at a dealership is generally around $100; this typically includes a filter change. Another popular add-on is tire rotation, which can tack on $20-$50. It’s possible that a dealership or auto repair shop will offer a small discount for more than one service.
In case you were wondering, oil changes are not covered by car insurance because they’re considered a regular part of car maintenance. Learn more in our Insurance Tips for First-time Drivers. 💡 Quick Tip: Saving money on your fixed costs isn’t always easy. One exception is auto insurance. Shopping around for a better deal really can pay off.
Average Cost of Oil Change by Provider
The table below lists the price of the cheapest oil change option at a number of national service providers. Differences in price are often due to the quality of oil used, and the speed and scope of the service.
Service Provider
Lowest-Price Oil Change Service
Firestone
$24.99
Goodyear
$18.95
Jiffy Lube
$29.99
Midas
$33.99
NTB
$24.99
Pennzoil
$25.98
Pep Boys
$24.99
Sears
$19.99
Valvoline
$39.99
Walmart
$19.88
Data courtesy of CarServiceCosts.com
Recommended: How to Lower Your Car Insurance
The Difference Between Synthetic and Conventional Oil
Conventional oil is crude oil that’s been refined, while synthetic is made from chemical compounds. Synthetic oil has fewer impurities and is designed to protect car engines.
Conventional oil needs changing more often and can have problems flowing in extreme temperatures. Synthetic oil can be used for longer periods and flows in a wider range of temperatures. Although there are clear advantages to synthetic oil, there’s one disadvantage: It costs more.
Check your owner’s manual to see what type and grade are recommended for your vehicle’s engine. How much your car is worth may factor into your choice of which oil to use.
How Often Should You Get an Oil Change?
Your owner’s manual should also list how often to change the oil in your specific vehicle. In general, conventional motor oil needs to be changed after about 5,000 miles of driving. Synthetic oil can go as long as 10,000 miles. If you use semi-synthetic motor oil (a blend of the two), you may get 8,000 miles of usage before it needs to be changed.
Did you know you should also be evaluating your insurance on a regular basis? Annual personal insurance planning sessions can help your coverage keep up with important life changes.
Benefits of Getting Your Oil Changed
The benefits of regular oil changes are significant. They include:
• Cleaner engine. When you change the oil, you’re also getting rid of the dirt, debris, and contaminants in the old oil.
• More efficient engine. When the engine is clean and the oil is new, the engine has better lubrication and works more efficiently. This helps boost performance and maximizes the life of the engine.
• Better gas mileage. A more efficient engine will help your car get better gas mileage and save you money on fuel.
• Environmental benefits. When oil stays in your vehicle for too long, it starts to degrade. At this point, it releases potentially toxic hydrocarbons.
• Prevents overheating. Engine components generate heat, especially when you’re driving at faster speeds. When the engine is freshly and appropriately lubricated with motor oil, this lowers friction and reduces the risk of overheating.
How to Lower the Cost of Oil Changes
As noted above, timely oil changes can reduce fuel costs. To save money on oil changes, you can shop around for the best prices in auto shops or do it yourself. Before your first DIY oil change, you may need to invest in a few supplies. These include a wrench to remove the drain plug (your owner’s manual should list what size and type), an oil filter wrench, an oil pan, latex gloves, and perhaps a jack.
You can save $25 to $75 per oil change on average, depending on the oil and filter you use. So, once you’ve saved enough to “pay back” what you invested in the right tools, you can enjoy savings each time you change your own oil. Check out more tips for saving on car maintenance costs. 💡 Quick Tip: If your car is paid off and worth only a few thousand dollars, consider updating your car insurance: You might choose to opt out of collision coverage and double down on liability.
The Takeaway
The average cost of a basic oil change with conventional oil is $35, but you can find low-cost oil changes for as little as $19. Higher prices may indicate a better quality of oil, add-ons like filter replacement, or faster service. Your vehicle’s owner manual will recommend a type and grade of oil. Conventional oil is typically cheapest, followed by semi-synthetic, and then fully synthetic. Synthetic oils allow you to go longer between oil changes — 10,000 miles compared to 5,000 with conventional. To save the most money on your oil change, don’t be afraid to DIY.
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FAQ
Is $100 a lot for an oil change?
It depends on where you live, the type of oil used, your vehicle, and add-ons such as filter changes and tire rotation. The average cost of a basic oil change is $35, with prices as low as $19. Ask your service provider for a breakdown of what goes into that $100 oil change.
Should I get my tires rotated when I get an oil change?
Consumer Reports recommends rotating your tires every 5,000-8,000 miles. Tires protect you on the road, so this maintenance task shouldn’t be overlooked. Depending on the kind of oil you use and your owner manual’s recommendation, you may want to have your oil changed every 5,000-10,000 miles. If you can combine your oil change schedule with your tire rotation schedule, you might save a bit of money.
How much do oil changes cost in 2024?
The overall average with conventional oil and no other services provided is somewhere about $35. No-frills service with conventional oil starts at $19. You’ll pay for more synthetic oil and add-ons like filter replacement.
Photo credit: iStock/Phynart Studio
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