The cost of carrying gold in your wallet is about to get more expensive.
As of July 25, 2024, the annual fee on the American Express® Gold Card is increasing to $325, up from $250. Terms apply; see rates and fees. Existing cardholders will see the annual fee increase starting Oct. 1, 2024.
Accompanying the higher annual fee are new dining-based perks; an annual cap on qualifying bonus spending at restaurants; the ability to select a limited-edition card design; and a shake-up of the merchants where the card’s monthly dining credit can be used.
Through Nov. 6, 2024, new cardholders can also grab an enhanced welcome offer.
Here’s what you should know.
What’s new with the American Express® Gold Card?
The American Express® Gold Card hasn’t had an overhaul this significant since 2018, when it increased its annual fee to $250 (from $195) and added more rewards and goodies. Here’s what’s changing this time:
Annual fee: Increase to $325 (up from $250).
Increased welcome bonus: From July 25 to Nov. 6, 2024, new cardholders can earn 60,000 Membership Rewards points, plus 20% back on restaurant spending worldwide (up to $100) after spending $6,000 on eligible purchases on your new card in your first 6 months of card membership
New cap on bonus rewards at restaurants: Cardholders will receive 4x points on dining purchases worldwide (including takeout and delivery) on up to $50,000 in annual spending. Purchases above the cap will earn 1x point. Previously, there was no spending cap in this category.
New $50 semiannual Resy credit: Get $100 in annual statement credits, issued as two $50 semiannual credits, after enrolling and using your card on eligible purchases at U.S. restaurants on the Resy app or on Resy.com.
New $7-per-month Dunkin’ credit: Receive $7 per month in statement credits after enrolling and using your card at Dunkin’ Donuts locations in the U.S.
Updated $10-per-month dining credit: Five Guys is now an eligible restaurant for the $10-per-month ($120 annual) dining credit, adding to the existing list of Grubhub, The Cheesecake Factory, Wine.com and Goldbelly. Milk Bar and Shake Shack have been removed as eligible restaurants for the dining credit.
New card design: New cardholders can select a limited-edition white-gold card design (while supplies last), in addition to the existing gold and rose gold design options.
Terms apply.
What’s staying the same?
New and current cardholders will continue to enjoy the card’s existing credits and benefits, including:
$10 per month in Uber Cash credits (up to $120 annually) toward Uber Eats or Uber rideshares.
4x points at restaurants worldwide (now with the $50,000 annual cap).
4x points at U.S. supermarkets on up to $25,000 in purchases per year.
3x points on flights booked directly with airlines or AmEx Travel.
Terms apply.
What it means for cardholders
The new $325 annual fee represents a 30% increase over the previous fee of $250. (The fee increase in 2018 represented a 28% hike.) Whether these new changes are worth that much will depend on your spending habits and how well you actively manage your card to take advantage of the recurring credits. The new perks follow the coupon-book model American Express is using to offer more perceived value at a higher cost for their premium cards, like the American Express® Gold Card and the The Platinum Card® from American Express. However, adding more benefits for specific merchants makes the card more complex to optimize for some.
That said, the new welcome offer should suit many people well. Maximizing the 20% cash back on restaurant spending (up to $100) would require only $500 eligible dining expenses, and 60,000 points could take you far. NerdWallet values American Express Membership Rewards points at between 1 cent and 2.8 cents each (depending on how you redeem them). Between the points and the dining incentive, you could easily cover the annual fee for the first year before accounting for any additional monthly or semiannual credits.
According to NerdWallet’s 2024 Summer Travel Report, Americans who plan to travel this summer expect to spend $3,594, on average, on airfare or hotel expenses on their vacations. If you and your partner want to get away on a budget, you’ll need to choose your destination wisely.
Fortunately, there are many cheap romantic getaways that can help you cut costs without sacrificing romance and quality experiences. Here are five vacation ideas for couples to spark your wanderlust.
1. New Orleans, Louisiana
New Orleans offers a vibrant culture, nightlife and historical sites for visiting couples on a budget. Once you’ve settled in upon arrival, start your visit with beignets at the iconic Cafe Du Monde. This deep-fried pastry is generously smothered in powdered sugar, and one order includes three pieces for $3.85.
From there, take a leisurely stroll through the French Market, and ride a street car for only $1.25 per person to take you to your next activity.
During New Orleans’ peak season of February through May, you can still find many hotels in the French Quarter, the city’s oldest and most historic neighborhood, at less than $150 per night.
Other affordable things to do: Catch a live street performance of jazz music on Frenchmen Street, see the architecture of the St. Louis Cathedral for free or take a self-guided walking tour of the Garden District.
2. Portland, Oregon
Outdoorsy couples will love the abundant greenery, trails and waterfalls that Portland, Oregon, has to offer. For instance, Forest Park — located within city limits — overlooks the Willamette River and is home to more than 80 miles of lush trails.
Couples who prefer staying on pavement also can appreciate the city’s unique sights. Visit the International Rose Test Garden which has more than 610 rose varieties, or thumb through books at Powell’s City of Books, the largest independent new and used bookstore in the world.
Hotel accommodations in Portland at the start of the peak season in late June are below $150 per night. For the most frugal couples, there are also plenty of private and intimate Airbnb options for under $100 per night.
Other affordable things to do: Visit Hoyt Arboretum, go biking along the Willamette River or go food truck hopping for affordable bites.
3. Key West, Florida
It’s no surprise that summertime is a popular period of the year to soak in the tropical vibes and coastline of Key West, Florida, with your significant other. You can have a relaxing picnic on the sand for two and then go snorkeling at Fort Zachary Taylor Historic State Park.
When you’re back on land, wander through the historic Old Town together and consider visiting the unique Key West Shipwreck Museum, which starts from $17.99 per person.
Like many beach destinations during peak season, hotel stays can be pricey. However, some Key West accommodations, like the Hilton Garden Inn Key West Hotel, offer summer rates under $200 per night.
🤓Nerdy Tip
Several co-branded Hilton credit cards are available, including one without an annual fee, and offer perks like automatic elite status in the Hilton Honors program.
Other affordable things to do: Watch a pink sunset at Mallory Square (a waterfront plaza), visit the Ernest Hemingway House Museum or take a commemorative photo at the Southernmost Point of the Continental U.S.A. buoy.
4. Lake Tahoe, California/Nevada
If the idea of staying in a cozy cabin or lodge is more your pace, some of the best cheap romantic getaways can be found in the towns surrounding Lake Tahoe, which sits across the California and Nevada state lines. You’ll enjoy scenic views of the Sierra Nevada mountains and the lake’s crystal waters.
Riding the Heavenly Gondola offers breathtaking 360-degree views, if you’re willing to budget $75 per person for a round-trip ticket. If you would rather be in nature than above it, plan a picnic or take a guided tour at Emerald Bay State Park.
For an ethereal and minimalist experience, spend a night stargazing together to end your day with tranquility.
Wherever you’re looking for hotels around the lake, you can typically find accommodations under $150 per night.
Other affordable things to do: Hike Eagle Falls Trails, which ends at a waterfall, sunbathe and swim at Zephyr Cove, or visit Truckee Thursdays Summer Street Festival.
5. Albuquerque, New Mexico
If you’re planning a cheap vacation for couples in the fall, Albuquerque, New Mexico, can be a romantic destination. During the first full week of October, hundreds of hot air balloons take flight for the Albuquerque International Balloon Fiesta.
A hot air balloon ride can be costly (about $275 per person), but general admission tickets are just $15 per person, per session, which is typically half-day access on any day of the Fiesta.
You’ll find many hotels and other accommodations that are reasonably priced at less than $150 per night during the event.
Other affordable things to do: Walk through the shops and art galleries in the city’s Old Town neighborhood, birdwatch at the Rio Grande Nature Center State Park or learn about local cultures at the National Hispanic Cultural Center.
Cards for couples’ travel
If you want to make your getaway even more affordable, consider opening one of these travel cards and earning the welcome bonus:
Popular travel cards
The Platinum Card® from American Express
Capital One Venture Rewards Credit Card
Chase Sapphire Preferred® Card
on Chase’s website
Citi Strata Premier℠ Card
Annual fee
Welcome offer
Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Terms Apply.
Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening – that’s equal to $1,000 in travel.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠.
Earn 70,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $700 in gift cards or travel rewards at thankyou.com.
Still not sure?
Affordable vacations for couples are within reach
With travelers feeling the pinch of inflation for day-to-day goods, planning ahead for a romantic but affordable vacation is that much more essential. Whether you and your partner are looking to relax and unplug, or seek out new experiences and adventure together, one of the destinations above is likely a fit.
Bloomberg Philanthropies’ eye-popping $1 billion donation to Johns Hopkins University in Baltimore, which will allow the university to offer free medical school to most of its students, is among the largest-ever donations to a university or higher ed system in the U.S.
It’s also a reminder of just how expensive college has become.
The donation from former New York City mayor Michael Bloomberg’s philanthropic group covers tuition for medical school at Johns Hopkins for students from families earning less than $300,000 per year, beginning in fall 2024. That demographic represents 95% of Americans, according to a statement from the university. Students from families earning up to $175,000 per year will also have their living expenses covered, per the statement.
The annual tuition at Johns Hopkins’ medical school is $64,665, according to the university’s website. Several required additional fees and “indirect costs” such as housing and food bring the total annual cost to just over $102,000. Bloomberg’s gift is intended to assist qualifying students in perpetuity.
“As the U.S. struggles to recover from a disturbing decline in life expectancy, our country faces a serious shortage of doctors, nurses, and public health professionals — and yet, the high cost of medical, nursing, and graduate school too often bars students from enrolling,” Bloomberg said in a statement. “By reducing the financial barriers to these essential fields, we can free more students to pursue careers they’re passionate about.”
Student loans from our partners
College Ave
5.0
NerdWallet rating
5.0
NerdWallet rating
Fixed APR
4.17% – 16.69%
Min. credit score
Sallie Mae
4.5
NerdWallet rating
4.5
NerdWallet rating
Fixed APR
4.25% – 15.49%
Min. credit score
Education Loan Finance
4.0
NerdWallet rating
4.0
NerdWallet rating
Fixed APR
4.5% – 14.22%
Min. credit score
Bloomberg’s donation joins a slim list of higher-ed gifts exceeding the billion-dollar mark. Including this donation, there have been only four gifts of $1 billion or more given to a single university in recent decades, according to the Chronicle of Higher Education, which tracked higher-ed gifts from 1967 through July 2023.
In 2018, Bloomberg Philanthropies gave $1.8 billion to Johns Hopkins (also his alma mater), which remains the largest-ever gift to a university; it was earmarked exclusively for financial aid. In 2022, Stanford University received $1.1 billion from venture capitalist John Doerr and his wife, Ann; the money went toward launching the Stanford Doerr School of Sustainability. And earlier this year, Ruth Gottesman, a former professor at the Albert Einstein College of Medicine and widow of a Wall Street investor, gave the medical school $1 billion to cover all students’ tuition in perpetuity.
That Bloomberg’s donations, as well as Gottesman’s $1 billion gift, are intended specifically for students’ tuition speaks to the rising cost of college. Since 1963, the average college tuition has more than tripled even after accounting for overall inflation, according to BestColleges.com, leading to a boom in student borrowing.
Earlier this month, interest rates on some federal student loans hit record highs, which raises the cost of college for students and their families who must borrow to afford college. Collectively, U.S. student loan borrowers owe $1.74 trillion in federal and private debt, according to the most recent data from the Federal Reserve.
In January 2024, NerdWallet’s annual household debt study found that the average U.S. household with student debt owes $55,573.
Biggest donations to a college or university in the U.S.
Below are the 10 largest single contributions to a college or university system in the U.S., according to The Chronicle of Higher Education, which did not include grants in its ranking. (The Chronicle stopped tracking these gifts in July 2023.)
$1.8 billion, to Johns Hopkins University, from Bloomberg Philanthropies, to be used for financial aid. (2018)
$1.1 billion, to Stanford University, from the Doerrs, to establish the Stanford Doerr School of Sustainability. (2022)
$1 billion, to the Albert Einstein College of Medicine, from Gottesman, to cover all students’ tuition in perpetuity. (2024)
$1 billion, to Johns Hopkins University, from Bloomberg Philanthropies, to cover most students’ tuition in perpetuity. (2024)
$750 million, to California Institute of Technology, from billionaires Stewart and Lynda Resnick, to fund environmental research. (2019)
$650 million, to The Broad Institute, from philanthropist Ted Stanley, to fund mental illness research. (2014)
$600 million, to California Institute of Technology, from billionaires Gordon and Betty Moore, and the Gordon and Betty Moore Foundation, for educational and scientific programs.
$600 million, to Columbia University and NewYork-Presbyterian Hospital, from Florence and Herbert Irving, for cancer research. (2017)
$550 million, to Western Michigan University, from an anonymous donor. (2021)
$500 million, to Bard College, from George Soros’s Open Society Foundations, $500 million; to establish an endowment and fund other initiatives. (2021)
(Photo by Bryan Bedder/Getty Images for Bloomberg Philanthropies)
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
Supported by
SKIP ADVERTISEMENT
How To: Arrange Flowers
The Simplest (and Cheapest) Way to Decorate With Flowers
It starts in your own backyard (or the tiny container garden on your balcony): “You can put a single bloom in a flower vase, and that is often enough.”
25
Video
CreditCredit…Tony Cenicola/The New York Times
July 5, 2024
What’s the easiest way to make any room look better? A vase of fresh flowers.
It’s also one of the least expensive ways — if you have access to a garden, a yard or a container garden on a balcony.
Assembling flower arrangements like the ones you see in magazines or on social media doesn’t have to mean spending a small fortune at an upscale flower shop, where they do the arranging for you. A simple grouping of flowers, branches, leaves and even vegetables can look equally appealing.
lamps and ceramics. “You can put a single bloom in a flower vase, and that is often enough.”
Orangerie, a garden shop. But they agree that simpler can sometimes be better.
“We’ll often put kale, chard or leafy greens that you would eat into arrangements,” said Mr. Bellomo, 45.
We are having trouble retrieving the article content.
Please enable JavaScript in your browser settings.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
The home-buying process can be especially nerve-wracking if you’re worried about having less-than-ideal credit. Luckily, some lenders will consider applicants with bad credit — or no credit at all.
CNBC Select rounded up the top lenders that consider applicants with credit scores lower than the typical 620 requirement. We evaluated each based on the types of loans offered, customer support, the required minimum down payment amount, and other factors (see our methodology below).
Keep in mind that while you may be approved for a mortgage with a lower credit score, you’ll likely receive an interest rate on the higher end of the lender’s rate range.
Best mortgage lenders for bad credit
Best for flexible terms
Rocket Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and jumbo loans
Terms
15- and 30-year conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.
Credit needed
Typically requires a 620 credit score but will consider applicants with a 580 as long as other eligibility criteria are met.
Minimum down payment
3.5% if moving forward with an FHA loan
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Pros
Largest home lender in the U.S.
Offers 1% down conventional mortgage
High scores for customer satisfaction
Shorter-than-average closing time
Rebate of up to $10,000 for buying with Rocket Homes
Cons
No USDA mortgages, construction loans or HELOCs
Hard credit check required for customized rate
Higher origination fees than competition
No retail branches
Who’s this for? Rocket Mortgage stands out if you’re seeking flexibility. While most lenders tend to require a minimum credit score of 620, Rocket Mortgage accepts applicants with credit scores as low as 580.
Standout benefits: Rocket Mortgage offers a free program called Fresh Start to help potential applicants boost their credit scores before applying. Its proprietary low down payment option, the ONE+ mortgage, allows borrowers to put as little as 1% down.
[ Jump to more details ]
Best for veterans
Navy Federal Credit Union
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans, adjustable-rate mortgage
Terms
10 – 30 years
Credit needed
Not disclosed but lender is flexible
Minimum down payment
0%; 5% for conventional loan option
Terms apply.
Pros
0% downpayment for most loan options
flexible repayment terms ranging from 10 years to 30 years
Offers refinancing, second-home financing and loans for investment properties
No PMI required
Fast pre-approval
RealtyPlus program allows applicants to receive up to $9,000 cash back
Cons
Must be a Navy Federal Credit Union member to apply
Who’s this for? Navy Federal Credit Union is ideal for current or retired members of the Armed Forces with a Navy Federal Credit Union membership (immediate family members are also eligible). While this lender doesn’t disclose its required minimum credit score, it works with members to analyze their circumstances and find the right mortgage fit for them, making Navy Federal Credit Union a potentially more flexible lender if you have a lower credit score.
Standout benefits: You can use the RealtyPlus program to buy a home and receive up to $9,000 in cash back. Private mortgage insurance (PMI), is also not a requirement for a low down payment on a mortgage through this lender.
[ Jump to more details ]
Best for no PMI
CitiMortgage®
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
Terms
15 – 30 years
Credit needed
Minimum down payment
Terms apply.
Pros
Citi’s HomeRun Mortgage program allows for a downpayment as low as 3%
Citi’s Lender Assistance program gives eligible homebuyers a credit of up to $5,000 to use toward closing costs
Ability to choose between fixed-rate and adjustable-rate mortgages
New and existing Citi bank customers can qualify for closing cost discounts based on their account balance
HomeRun mortgage program allows for a downpayment of less than 20% without PMI
Provides homeownership education and counseling
Cons
No options for a 0% downpayment
Existing customers need high account balances to receive some of the highest interest rate discounts
Who’s this for? CitiMortgage is great if you want to put less than 20% down but avoid the monthly PMI bill. If you apply for a mortgage through Citi’s HomeRun program, you can make down payments as low as 3% without PMI. If you’ve already purchased your home, this program can also be used to refinance your mortgage.
Standout benefits: Existing Citi customers with an account balance between $1 and $49,999.99 can be eligible for a $500 closing credit. Those with higher balances can receive an interest rate discount. Qualified borrowers can use the Lender Paid Assistance program to get up to $7,500 in credits toward closing costs. Homeownership counseling and education are also available.
[ Jump to more details ]
Best for no credit score requirement
Guild Mortgage
Annual Percentage Rate (APR)
Fixed-rate and adjustable-rate available, apply online for rates.
Types of loans
Conventional loans, construction loans, FHA loans, VA loans, USDA loans and Jumbo loans
Terms
15-year to 30-year
Credit needed
Some loans require a 620 credit score, some require a 540 credit score or no credit score at all.
Minimum down payment
0% if moving forward with a USDA loan; 0% if moving forward with an Arrive Home™ or Zero Down mortgage (a 3% to 5% down payment is financed through a second mortgage with these options) ; 1% on conventional loans for some qualifying borrowers
Pros
Offers several low down payment mortgage options available
Wide variety of loans
Accepts applicants with credit as low as 540 or no credit at all with some loans
Provides lots of information online about the homebuying process
Robust brick-and-mortar and online presence
Cons
Rates are not available to view on the website
Mortgages may not be available for every home type
Who’s this for? Guild Mortgage can provide options even if you don’t have a credit score or have a score as low as 540 — a lower threshold than the typical 620 credit score lenders usually require to even look at an applicant. Instead, Guild uses proof of on-time payments such as rent checks, utility bills and insurance payments to verify an applicant’s credit. It also boasts a variety of loans and down payment assistance programs if you want to make a small down payment.
Standout benefits: Guild Mortgage’s Zero Down allows borrowers with a credit score of 600 or greater to take out an FHA loan with 0% down — the lender will provide an additional repayable loan to the borrower as a second mortgage to supplement the FHA’s traditional 3.5% down payment requirement. Qualifying borrowers who make up to 160% of the area median income can also take out Guild Mortgage’s Arrive Home™ loan, which allows borrowers to put 0% down by taking out a repayable second mortgage with the company.
[ Jump to more details ]
Best for a quick closing
CrossCountry Mortgage
Annual Percentage Rate (APR)
Fixed-rate and adjustable-rate available, apply online for rates.
Types of loans
Conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans
Terms
Apply online for terms
Credit needed
620 for conventional loans, 500 to 580 for some government-insured loans
Minimum down payment
Pros
Provides down payment grants
FastTrack Credit Approval program allows some borrowers to close on mortgage within 10 days
Website provides a variety of tools, including a mortgage calculator, homebuying guide, and refinancing guide
Available in all 50 states
Cons
Higher-than-average rates
Rates are not online
Who’s this for? CrossCountry Mortgage is great if you want a lender with faster-than-average closing times. It offers conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans. While most of its conventional loans require a 620 credit score, some federally insured options accept borrowers with a credit score as low as 500.
Standout benefits: CrossCountry Mortgage offers down payment grants for qualified buyers. With its FastTrack Credit Approval, CrossCountry says its borrowers have an edge in the home buying process with a reapproval process that allows borrowers to get the funds in as little as 10 days.
[ Jump to more details ]
More on our top lenders for those with bad credit
Rocket Mortgage
Rocket Mortgage — the largest home loan provider in the country — has a variety of loan options available — especially for those looking to make a small down payment. It accepts borrowers with credit scores as low as 580 and provides a large number of educational resources on its easy-to-use website. Rocket has consistently scored above average on customer satisfaction surveys.
Minimum credit score
580
Types of mortgage loans offered
Fixed-rate, adjustable-rate, FHA loans, VA loans, jumbo loans, HomeReady and Home Possible loans
Down payment minimum
1% with the ONE+; 3.5% with FHA loan
[ Return to summary ]
Navy Federal Credit Union
Navy Federal Credit Union is the largest provider of VA loans and provides many benefits to veterans, and their immediate families. With a VA loan, you have the option to pay 0% down and the seller can contribute up to 4% of the home’s value toward closing costs. Navy Federal also offers the Military Choice mortgage, which has similar guidelines to the VA loan, such as no PMI and a 0% minimum down payment, but allows sellers to contribute up to 6% of the home’s value toward closing costs.
Minimum credit score
Not disclosed.
Types of mortgage loans offered
Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans
Down payment minimum
0%; 5% with conventional loans
[ Return to summary ]
CitiMortgage
CitiMortgage allows homebuyers to make a small down payment without worrying about PMI. Citi offers qualifying existing customers closing cost aid or interest rate discounts.
Minimum credit score
580 if taking out an FHA loan.
Types of mortgage loans offered
Conventional loans, FHA loans, VA loans and jumbo loans
Down payment minimum
3%
[ Return to summary ]
Guild Mortgage
Guild Mortgage provides many loan types for borrowers with much lower credit than lenders usually require. In some cases, a credit score is not even needed. Guild also provides several low down payment options.
Minimum credit score
540 for some mortgages; no credit needed for some mortgages
Types of mortgage loans offered
Conventional loans, construction loans, FHA loans, VA loans, USDA loans and Jumbo loans
Down payment minimum
0% with a down payment assistance loan as a second mortgage.
[ Return to summary ]
CrossCountry Mortgage
CrossCountry Mortgage offers a wide variety of loans and says it can give its borrowers a leg up in the homebuying process through its FastTrack Credit Approval which allows borrowers to close on a loan in as little as 10 days.
Minimum credit score
580 or 500 for some government-insured loans.
Types of mortgage loans offered
Conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans
Down payment minimum
3%
[ Return to summary ]
FAQs
What is pre-approval and how does it work?
Pre-approval is a statement or letter from a lender indicating how much money you qualify to borrow to purchase a home and your potential interest rate. You’ll likely have to provide bank statements, pay stubs, tax forms and employment verification, among other requirements, and once pre-approved, you’ll receive a mortgage pre-approval letter, which you can use to begin viewing homes and making offers. It’s best to get pre-approved at the start of your homebuying journey before you start looking at homes.
How do mortgages work?
A mortgage is a loan you can use to purchase a home. It’s also an agreement between you and the lender that essentially says you can purchase a home without paying for it in full and upfront — you’ll just need to put some of the money down — usually between 3% and 20% of the home price — and pay smaller, fixed monthly payments over a certain number of years, plus interest.
How is my mortgage rate decided?
Mortgage rates change almost daily and can depend on market forces such as inflation and the overall economy. While the Federal Reserve doesn’t set mortgage rates, they do tend to move in reaction to actions taken by the Federal Reserve on its interest rates.
While market forces may influence the general range of mortgage rates, your specific rate will depend on your location, credit report and credit score. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate.
What is a conventional loan?
A conventional loan is a loan that’s funded by private lenders and sold to government enterprises such as Fannie Mae and Freddie Mac. It’s the most common type of loan and some lenders may require a down payment as low as 3% or 5%.
What is an FHA loan?
A Federal Housing Administration loan, or FHA loan, typically allows you to purchase a home with looser requirements — for example, you may get approved with a lower credit score or be able to get away with having a higher debt-to-income ratio. You’ll typically only need to make a 3.5% down payment.
What is a USDA loan?
A USDA loan is offered through the United States Department of Agriculture and is aimed at individuals who want to purchase a home in a rural area. Best of all, USDA loans require a minimum down payment of 0% — in other words, you can use it to buy a rural home without a down payment.
What is a VA loan?
VA mortgage loans are provided through the U.S. Department of Veterans Affairs, meant for service members, veterans and their spouses and require a 0% down payment with no mortgage insurance.
What is a jumbo loan?
Borrowers who need a mortgage for more than $766,550 to purchase a single-family home (in most areas) will need to take out a jumbo loan. Note that these types of loans typically have stricter credit score and debt-to-income ratio requirements in part because they do not meet the Federal Housing Finance Agency’s (FHFA) conforming guidelines.
What is the difference between a 15- and 30-year term?
A 15-year mortgage gives homeowners 15 years to pay it off in fixed, equal amounts plus interest, while a 30-year mortgage gives 30 years to pay it off. With a 30-year mortgage, your monthly payments will be lower since you’ll have a longer period to pay off the loan, however, you’ll wind up paying more in interest over the life of the loan since it is charged every month. A 15-year mortgage, on the other hand, lets you save on interest but you’ll likely have to make a higher monthly payment.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best bad credit mortgages.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Our methodology
To determine which mortgage lenders are the best for bad credit, CNBC Select analyzed dozens of U.S. mortgages offered by online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can cater to a wider range of applicant needs. We have also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property.
Closing timeline: The lenders on our list can offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances in which a particular lender does.
Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate per the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee the interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
Supported by
SKIP ADVERTISEMENT
Dark and Stormy Is How They Take Their Décor
Some decorators swear by the calming effects of deep and moody hues.
Learn more
Jean Stoffer, an interior designer and TV personality, painted the walls and ceilings of her butler pantry in Grand Rapids, Mich., a gray-blue hue. “When we have parties, people are in there talking all the time,” she said.Credit…John Stoffer
Published May 26, 2024Updated May 28, 2024
When Emily Peterson purchased her seaside cottage in Cape Neddick, Maine, she knew its coastal hues had to go. “The second we walked through this house, I had this vision that I wanted it to be dark,” said Ms. Peterson, who bought the 1770s home nearly two years ago. “It’s been here for so many years and I just wanted to bring life back into it.”
And in this case, that meant going back to its historical roots with moodier colors.
So Ms. Peterson, who shares the cottage with her husband and two young children, painted over the butter yellow and powder-blue walls with dark greens and deep blues.
Bright, vibrant spaces have enjoyed their time in the sun — after all, last summer’s Barbiecore moment even extended to homes — but there’s growing interest in a dark interior aesthetic. On TikTok, videos highlighting this style often rack up thousands of likes. And on the home-decorating website Houzz, there’s been surge in searches related to dark and moody décor — for example, “moody bedroom” searches are up 142 percent.
log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Inside: The decision on where you live is a big life choice. Learn how an HCOL vs LCOL area will impact you financially. Plus find the cost of living city that fits for you.
HCOL. LOCL. MCOL. What do these acronyms mean and why should I care?
Back when I was trying to decide where to live, there wasn’t a big discussion about the high cost of living or low cost of living areas.
You just picked a city close to family or branched out to a new area. Were you drawn to the big city or not? Plain and simple.
Today, there are many tools at our disposal to try and figure out what is the best city to live in based on income, expenses, and the lifestyle that you desire.
In this post, you will see how to analyze what type of city you want to live in and see if it makes financial sense for you.
Why such the price difference between HCOL and LCOL?
In a low cost of living city, you can buy a house for $50,000. In contrast, a median home price in a high cost of living city can cost $1.5 million. This is a correlation between supply and demand in the market.
The more people who want to live in a certain area that has less available space will naturally drive up prices. Whereas most low cost of living areas, the supply is abundant since there is plenty of space to spread out and find your own neck of the woods for much less.
Here’s a quick comparison of HCOL vs LCOL vs MCOL.
New York City has the highest cost of living at 100, followed by Los Angeles and San Francisco. This graph highlights the difference in cost of living in these example cities.
HCOL Seattle, WA
MCOL Las Vegas, NV
LCOL Knoxville, TN
Cost of Living Index
85.57
69.33
63.26
2 Bed Apartment Rent
$2,724
$1,176
$788
Median Home Price
$826,200
$441,771
$256,188
Median Income
$92,263
$56,354
$33,229
Data from Nerdwallet, Census.Gov, and Numbeo
What is HCOL area Mean?
Simply put, HCOL means a high cost of living.
This type of acronym is to describe certain areas or cities where expenses that impact your budget the most, such as housing, food, and transportation, are more expensive than other areas.
When defining an HCOL area, it is a comparison of the cost of living based on other areas around other cities, states, and countries.
There is no hard line to define high cost of living since it is compared to the other cities.
Is it possible to live in a high cost of living area? Absolutely, it all depends on how you choose to live, the income you make, your lifestyle choices, and your savings percentage.
VHCOL are VERY high cost of living areas, such as Manhattan, Honolulu, San Francisco, Singapore, or Hong Kong.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Pros and Cons of HCOL
Just because an area is labeled HCOL does not mean that you shouldn’t call the city home and stay away from these areas.
There are plenty of advantages and disadvantages of living in a high cost city.
There are always drawbacks to living in a high cost of living area and you have to decide whether or not what works for you.
In order to make a solid decision on where the best place is for you to live, you need to know this information.
Advantages of HCOL City
Job Market is Solid
First of all, in HCOL cities, the job market is stronger, there are more jobs available, and typically those jobs have a higher paying threshold than other areas.
That is why many companies are attracted to these areas because they know the talent pool of potential employees is much stronger in high cost of living area versus other areas where there are not as many skilled workers.
Income is Higher
Since companies know they must pay their employees a fair wage living in a high cost of living area, incomes are higher to support the increased expenses.
This helps those municipalities collect more taxes, which feed back into the system to provide more for their residents.
More Opportunities
More opportunities abound in a high cost of living cities.
Not only in the job market but there is access to public amenities and conveniences. Some examples include museums, sporting events, transit, best medical services, endless entertainment options, quality restaurants, high-end shopping, and quick access to international airports.
Even better, you can find free entertainment each and every day that does not cost a penny. Here is a list of 101 things to do with no money.
There are many benefits of living in a high cost of living area just because their opportunities are endless. You will always find something to do and there is always stuff going on.
Better Schools
Typically, in your high cost of living cities, that is where you will find the better schools. This is in direct correlation to the job market and skilled workers.
These skilled workers tend to have a higher instance of college graduates and they tend to want the best for their children. As a result, the schools tend to be much better than you would find in other areas.
Higher Chance of Home Equity
Another advantage of big cities is the variety of neighborhoods you can find in a bigger city. You can find the type of house you want to live in and the diversity you crave.
While home costs are much higher, there is also a greater chance of income increasing your home equity much faster than other areas.
For example, in Michigan, you could pay $100,000 for the exact same house in 5-10 years since appreciation will not happen at the same rate as other cities. Whereas, if you look at some of the hot markets, like Denver, Phoenix, or Austin, the home prices have been skyrocketing.
Thus, if you live in those quickly appreciating housing areas, there is a higher chance to increase the value of your house.
Disadvantages Of HCOL Cities
Higher Basic Cost of Living – Specifically Housing
First, housing costs can break the bank. It is the biggest expense for any household.
If you were unable to secure a salary to justify the housing cost, it makes it nearly impossible to be able to afford to live in a high cost of living area.
This is where you would have to get creative and look for housing subsidies or other means to stretch your housing budget.
Harder to Find Houses
Another con of a high cost of living areas is it is much harder to find housing! House and rent prices are higher, jobs are tougher to find where there’s opportunities abound, and you may feel like you are searching for a needle in a haystack.
You need to have the right opportunity to find the proper house for you. If you are looking at buying, you need things to line up properly and in your favor.
Stretch Yourself Too Far Financially
Since incomes tend to be much higher, many people find the urge to spend more discretionary income.
In many cases, this means that the average household may stretch themselves a little bit further by keeping up with the Joneses. They tend to spend more frivolously and not live as frugal.
This is a trap to be aware of if you are in a high cost of living area. You can be savvy with your money and save, but you have to be cognizant of how you spend your hard-earned salary.
HCOL Cities…
These are the HCOL areas. Do you need to avoid them? No, but going into those areas, you must realize the cost of living will be higher.
Here’s a list of all of the cities that are the top 20 cities that are high cost of living areas according to Kiplinger:
1.
Manhattan, New York
(145.7% above U.S. average)
2.
San Francisco, California
(94.7% above U.S. average)
3.
Honolulu, Hawaii
(97.6% above U.S. average)
4.
Brooklyn, New York
(80.5% above U.S. average)
5.
Washington, D.C.
(60.7% above U.S. average)
6.
Seattle, Washington
(56.7% above U.S. average)
7.
Oakland, California
(53.9% above U.S. average)
8.
Arlington, Virginia
(50.5% above U.S. average)
9.
Orange County, California
(50.2% above U.S. average)
10.
Boston, Massachusetts
(48.8% above U.S. average)
11.
Queens, New York
(47.8% above U.S. average)
12.
Los Angeles, California
(46.6% above U.S. average)
13.
Bethesda, Maryland
(45.5% above U.S. average)
14.
San Diego, California
(41.4% above U.S. average)
15.
Alexandria, Virginia
(40.0% above U.S. average)
16.
Stamford, Connecticut
(36.4% above U.S. average)
17.
Portland, Oregon
(34.3% above U.S. average)
18.
Fairbanks, Alaska
(27.9% above U.S. average)
19.
Bergen County & Passaic County, NJ
(26.6% above U.S. average)
20.
Anchorage, Alaska
(24.4% above U.S. average)
Source: Kiplinger
What Is LCOL Area Mean?
LCOL stands for lower cost of living.
These cities have a lower average cost of living versus the average.
Simply put…your ability to stretch your income goes much further in a low cost area compared to a high cost of living area. This is where you can get a bigger bang for your buck.
Pros and Cons of LCOL
The differences in the area where you can live can be vastly different. Thus, providing benefits or drawbacks of choosing to live there.
The cons are typically the reasons that most people want to stay away from these cities.
This is where personal preference tends to play the biggest reason for choosing one location over another.
Just like with a high cost of living area, you need to weigh the pros and cons of living somewhere where expenses are not quite as high.
Advantages of LCOL –
Slower Pace of Life
One of the biggest benefits is a slower pace of living in low cost of living area.
Life doesn’t move as fast.
There is more time to breathe, there is more time to step back and take a bigger picture. It is not go, go, go, go 24/7. Time to enjoy the fresh air and slower pace.
Cheaper Housing
This is why people choose to live in a low cost of living area. Period.
You are able to afford much more house for much less.
That right there, over the long term can make or break somebody financially.
Lower Taxes
Many of the lower cost of living cities also benefit from lower taxes as well. They have lower income taxes, and even possibly, lower property taxes. So, this is something to take into consideration when looking at a low cost of living area.
Check what the difference would be from where you’re currently at to where you are considering moving.
Remote Work
This is the bread and butter spot! When you can take in a higher pay and still live in a LCOL city.
After 2020, remote work is becoming more and more popular. In addition, it is an added benefit companies are including to attract skilled employees.
This is one scenario where you can get the best of both worlds.
Disadvantages Of LCOL Cities
Less Opportunities
First of all, there are fewer opportunities. There are fewer things to do, there are less things going on. The airport is a further drive away.
In a big city, you can always find events happening. It may not be the same in other cities. However, some cities have created programs to draw in residents with the big city feel like Bellefontaine, Ohio.
Income Potential is Lower
The job market doesn’t have the high-paying jobs that you would find in the bigger cities. The income potential in one of these cities does not compare.
Let’s face it… a good majority of your working years are about built around making an income. With a lower cost of living city, the income limitations can be cumbersome and it takes longer to be able to reach your financial goals.
LCOL States and Countries with LCOL
Geographic arbitrage can give you great value for your money.
Arbitrage is the spread of differing prices for the same thing like rent, food, or transportation.
This means you can save more money by living in LCOL state or spend less of your nest egg by living in a LCOL countries.
These are the areas you can find the lower cost of living. There are many LCOL cities to be found as well.
LCOL States:
1.
Mississippi
(84.10% of U.S. average)
2.
Kansas
(86.67% of U.S. average)
3.
Oklahoma
(88.09% of U.S. average)
4.
Alabama
(88.80% of U.S. average)
5.
Arkansas
(89.16% of U.S.average)
6.
Georgia
(89.30% of U.S. average)
7.
Tennessee
(89.49% of U.S. average)
8.
Missouri
(89.75% of U.S. average)
9.
Michigan
(90.54% of U.S. average)
10.
Indiana
(90.57% of U.S. average)
Source: US News
LCOL Countries:
Listed in alphabetical order because there are many to chose from based on your personal preferences.
The definition of MCOL is any area that just has an medium cost of living.
There is not one extreme or another. These cities are just plain average. Maybe slightly above or below the median cost of living.
This can be a sweet spot of reaching your financial goals while enjoying a higher quality of life.
Benefits of MCOL Area
As you can read on Reddit personal finance threads, there are plenty of reasons to live in an MCOL area.
Mostly because these types of cities you can get the best bang for your buck, and still have the pros of living in a high cost of living area, as well as the pros of living in a low cost of living area.
This is where the job market may be very stable with good wages but the cost of living is not going to cost you a fortune.
Also, you can find tons of cities that meet the criteria of a MCOL city.
Cost of Living Varies within Cities
Regardless of whether you choose, HCOL, LCOL, or MCOL areas, the cost of living will be dramatically different between these cities.
Whether you are looking at the downtown area, the outlying suburbs, or maybe even the cities that have popped up around near the main city.
Just because the city is HCOL or LCOL, there will be neighborhoods that will be the outliers to the main part of the city.
So, when you are looking at cost of living, you must know the things that are most important to you and what type of neighborhood that you would want to live in because they can be found.
That is what I call hidden gems.
It is possible to find a cheaper house in a low cost of living or high cost of living area, you just have to do your homework and know what you’re looking for.
Vice versa, it is very possible to find a neighborhood in a low cost of living area that is much higher than the surrounding areas.
How can I buy a house in a high cost of living?
It is possible to be a homeowner in a in a high cost of living area. You just have to be able to afford the down payment on the house to make being a homeowner justifiable, if possible.
Before you decide to buy a house, here are some factors you need to take into consideration..
1. Does it make sense?
First, you have to make sure that it makes logical sense to buy a house. Especially in a high cost of living area because the house prices may not match up to what the income that you are bringing in.
Will you still be able to reach your money goals by purchasing a house? Or will you be house poor?
2. Compare rent to potential mortgage
Will it be cheaper to rent? Or cheaper to have a mortgage?
To figure this out, take what the average rent is in your neighborhood. Then, use a mortgage calculator to figure out the maximum amount you can afford.
Since those calculators will leave you house poor. Decide what you are able to justify in spending on a mortgage and figure out what the mortgage payment is.
Is the mortgage payment less than average rent in the area?
For example, it may cost in a high cost of living area, like San Diego, it may cost $3,000 a month to rent a house. Whereas you might be able to buy a similar home in the same neighborhood and have your mortgage payment of $2,259.
Thus, making buying makes more financial sense than continuing to rent.
3. Expand your horizons
Another tip to afford your dream house – do not be set on that one specific neighborhood in a high cost of living area.
Many times you can find an up-and-coming neighborhood that is much less than the trendier and hip current neighborhoods that you want to live in.
Thus, you can typically save a good chunk of money. Plus in the long run, you greatly increase the potential for home equity.
4. New Homebuyer Programs
If this is the first time you are buying a house, then look into first-time homebuyer programs and grants. (Hint… this is like free money!)
There are many out there because cities want their residents to buy in their neighborhood and their cities because that means they are going to be there for a longer-term.
Also, there are programs for the military, teachers, nurses, single moms, minorities, graduate students. You just have to look.
5. Save for Down Payment
When you are looking at buying a house, this is the time to become serious about saving for a down payment.
You may have to find ways to save more money each month.
This could include things like downsizing your lifestyle to make it possible. Living with friends or family while you save up more money. Or just spending less for a certain period of time until you reach your downpayment goal.
6. House Hacking
The last step is one of the best ways to reach financial independence in a high cost of living city. Plus the concept works well in any city… house hack.
Find a multi-family housing property that you were able to buy. For example, plan to live on one side of the duplex and rent out the other. This will help you pay for your mortgage, by using the rent collected from your renters.
Thus, lowing your overall housing cost, which is your biggest expense.
Where Does Your Income Go the Furthest?
This is a comparison that you may be surprised by the outcome. Thus, proving why you need to do cost comparisons to see what financially makes the most sense when deciding to move from one to the other area.
comparison of income, expenses, taxes, and potential savings!!!!!!!!!!!
Once again, this is personal to your situation. So, take a moment and use the cost of living calculator yourself.
Paying taxes is one option to increase what you take home in each paycheck.
No Income States
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
For most people, that is an instant decrease in overall taxes!
Higher Taxed States
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area.
The higher taxes income tax states include:
California
Hawaii
New Jersey
Oregon
Minnesota
The District of Columbia
New York
Vermont
Iowa
Wisconsin
These states tax income somewhere between 7.65% – 13.3%.
Property Taxes
Property taxes vary from state to state.
In some states with large property taxes, it may even out with no income taxes. While other states, like Illinois, where property taxes are high and income taxes are above the national average as well.
Moving From HCOL to LCOL
The reason that most people move from HCOL to LCOL area is to save money. They want to decrease their expenses – that is the primary driver. Other times, it may be that they’re looking for a different type of lifestyle.
But as you can read on Reddit, everybody has a different personal experience.
It may have been beneficial and may have been bad timing. It may have been the best choice. It may have been the worst decision.
Make sure to factor in the costs associated with the move. Also, any ongoing expenses like travel if you are moving away from family.
How to Choose HCOL or LCOL?
Deciding where you live is one of the most personal decisions that you can make. Nobody can make it for you. You know what you want in life, how you want to live, and where you would feel more comfortable.
So, let’s look primarily at the financial side of making this decision of what is best.
1. Lifestyle You Desire
There are massive differences between HCOL and LCOL cities!! In big cities, life moves at a faster pace. While most cheaper cities areas move at a slower pace, so you have to make the decision of what type of lifestyle.
Do you want you want the big city? Do you want suburbia? Or do you prefer more of a country lifestyle?
When looking at this first factor, your answer should not include money. This is where your heart is. This is where your home. This is the life that you plan on living. This doesn’t include the financial sense.
This includes what makes your heart happy.
2. Your Money Goals
One of the things that discussed the most on this site is the 10 Money Bliss Steps to Financial Freedom. That is where most of our readers find their current money goal. And for good reason, you must build a strong foundation with money one step at a time.
In order to achieve long term financial success, the decision on housing is critical as it is the biggest expense in any budget. And that is can have the greatest impact on your budget!
On the flip side, the amount of income you are capable of making can also make the biggest impact on what you can afford to spend.
You must decide on your current money goal as well as the longer term money vision. Maybe you are looking at wanting to retire early? Love to live a slower life in the future?
It is possible to live in HCOL area where you are able to live extremely frugally and save more money. This is what my friend did over at Tuppennys FIREplace. For them, it was a smarter decision. On the flip side, maybe you are happier living a slower pace of life. Income is not the primary driver and you just want to enjoy life more.
At the end of the day, you must prioritize what you want, how your budget and your expenses correlate, and how your saving rate is impacted in various cities.
3. Season of Life
For those in their younger years may not understand this as much, but as you go through seasons of life, you will realize that you have different goals, objectives, and desires along the way.
When deciding where to live, your current season of life will probably have a very high impact on what you are looking for.
If you have young kids, you probably want to find a neighborhood where you have other families nearby that your kids can interact with.
If you are close to retirement, you may look decide to move out of the good school district because you do not need to pay the premium of living here. You may choose to move to a lower cost of living area, so you have the freedom to travel and help my kids and grandkids.
4. Potential Income & Career Opportunities
The greatest benefit of a high cost of living area is the income potential and the career opportunities. Both are much greater in the bigger cities than you would find in the smaller cities.
If your primary goal is increasing your income and advancing your career, then looking at high cost of living areas an absolute must. Plus you might be able to find something on the outskirts of expensive neighborhoods, that would make the most financial sense.
Then, living in HCOL is justified and necessary and the income can justify the higher costs associated.
On the flip side, there is plenty of income potential as a small business owner in a low cost of living area. You just have to know the market, what your skills are in, and what the needs are in your area.
4. Fixed Expenses
Fixed expenses can be dramatically different in each area.
Write out a list of your top fixed expenses and make sure to compare those as well.
For example, child care costs and tuition are going to be much more expensive in a big city than in the suburbs. Maybe in certain neighborhoods, a car would not be needed; thus, eliminating another big cost and associated maintenance.
While some fixed expenses seem meniscal, over time, they can add up significantly. Thus, helping or hurting your financial picture.
Unspoken Price Tag to Live Somewhere
As we covered in this post, there is a lot to consider when deciding between HCOL, LCOL, or MCOL areas.
It is a highly personal decision that you must take the time to make the best decision for you!
Not someone else, but for you.
One thing to watch out for when looking at where to live is what I call the “price tag” of a beautiful city.
Many times, employers know that the city that people want to live in their city for whatever reason. Thus, you will experience what I like to call the “income hit” to living there.
For example, Fort Collins, Boulder, and Austin are highly desirable areas for postgraduates to live in because they fall in love with the town and they want to stay here for the long term. Thus, employers know that this!
As a result, income for jobs maybe 10 to 15% less than they could make in any other type of market or city. So, that is something just to be aware of when wanting to stay in the city that they have grown to love.
In conclusion, when you’re looking at a high cost of living area versus a low cost of living area, there are two sides to the coin.
One – what makes financial sense. Two – your home is where your heart is.
Consequently, you have to make the decision on what makes sense for you.
While it makes financial sense to move to a lower cost city, at the same time, it may move you away from your family and your support system, and everything that you enjoy, and you may not be as happy in the long run.
Enjoy weighing the alternatives between all of the options available.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
After a makeover, Omni Hotel & Resorts’ Select Guest loyalty program is now a spend-based rewards system, with members earning Omni Credits that can be redeemed for hotel stays.
Program members are rewarded for spending more with the brand; big spenders have access to a faster path to elite status and the chance to earn and redeem awards more quickly.
Technically, you can get all the way to its top-tier elite status level through spend alone. Want to host an event or big dinner? Why not do it when checked into the hotel to earn extra Omni Credits?
These changes make its loyalty program more in line with other major hotel loyalty programs in terms of your ability to spend to earn elite status tiers. Here’s what you can expect with the new version of the program.
How to earn Omni Credits
The new program awards Omni hotel points (known as Omni Credits) for qualifying purchases. Examples include eligible room rates, spending at onsite restaurants, bars and spas, and spend on other activities like hotel-run golf courses.
Members earn points at different rates depending on the type of purchase:
Per eligible room rate: Members earn 5-10 Omni Credits.
Per $100 of eligible purchases beyond the room: Members earn 1 Omni Credit.
The higher your elite status, the more Omni Credits you earn. Tier three and tier four levels, called Champion and Icon, earn 10 Omni Credits per night stay instead of five (like the two lower levels).
🤓Nerdy Tip
If your spending beyond the room rate doesn’t reach the minimum $100 increment, you won’t earn extra on the non-room spend. What’s more, this total does not round up. If you spend $199 on hotel dining, you’d earn only 1 Omni Credit — not 2 — unless you exceed the $200 mark.
Elite status tiers
Omni’s Select Guest loyalty program has four tiers of status: Member, Insider, Champion and Icon. Status is earned by qualifying spending with the brand and can be unlocked at $1,000, $4,000 and $8,000 spend levels, or “Tier Dollars.” Tier Dollars include most charges to the room except taxes, gratuities and fees.
Member
General members receive these benefits:
Free deluxe Wi-Fi.
Free bottled water and a welcome drink upon arrival.
Earn 5 Omni Credits per room night.
Earn 1 Omni Credit per $100 of other hotel purchases.
Insider
Once you spend at least $1,000 in Tier Dollars within the calendar year, you advance to tier 2, the Insider level.
Insider benefits include:
Earn 5 Omni Credits per room night.
Earn 1 Omni Credit per $100 of other hotel purchases.
Free deluxe Wi-Fi and bottled water upon arrival.
Daily beverages comped by the hotel.
Two complimentary clothing items pressed or two shoeshines during the stay.
Champion
After you spend $4,000 in Tier Dollars within the calendar year, you will level up to Champion status.
Champion benefits include:
Earn 10 Omni Credits per eligible room night.
Earn 1 Omni Credit per $100 of purchases.
Free one-room-type upgrade.
Check-in as early as 1 p.m.
Checkout as late as 3 p.m.
Free bottled water each day.
Daily beverage delivered in the morning.
Four complimentary items pressed or four shoeshines.
Local market amenity provided upon arrival.
Guaranteed room availability if checking with the hotel at least 24 hours before arrival.
Icon
This is the top-tier level within the program and is for guests who spend at least $8,000 in Tier Dollars within the calendar year.
Icon benefits include:
Earn 10 Omni Credits per eligible room night.
Earn 2 Omni Credits per $100 of purchases in addition to the room spend.
Free premium Wi-Fi.
Free two-tier room upgrade.
Check-in as early as 9 a.m.
Checkout as late as 6 p.m.
Suite upgrade on redemption stays.
Guaranteed room availability by 4 p.m. on the day of arrival (available for one room per member).
Turndown housekeeping service.
Free bottled water daily.
Daily beverage delivered each morning.
Unlimited complimentary clothes pressing and shoeshines.
Chef-inspired welcome amenity/snack plus the choice of beverage the first night of the stay.
Ability to gift Champion status to another member.
It’s clear that the more business you do with Omni Hotels & Resorts, the more benefits you will receive when achieving different elite status tiers.
How to redeem Omni Credits
Once you earn 100 Omni Credits (or 20 stays at the lower two status levels), you can redeem them for a night’s stay.
There are no complex award charts or dynamic pricing for your award redemptions, and Omni Credits are valid for 36 months from the date of earning.
🤓Nerdy Tip
When the program changed in January 2024, it converted existing Award Credits to Omni Credits at the rate of 1:5.
Omni Select Guest gives more rewards for frequent travelers (and spenders)
The more you spend with Omni, the faster your path to elite status and free night redemptions. These changes to the program make it more rewarding and put it more in line with other hotel loyalty programs. By spending $8,000 with the brand within a calendar year, you will reach the program’s highest elite status tier, Icon. 100 Omni Credits will net you a free award night, which can be redeemed on non-blackout dates at any of the 50+ Omni destinations in the U.S.
One of the largest hub airports for Alaska Airlines is about to look a lot different.
Starting June 19, Alaska Airlines flights to and from San Francisco International Airport will operate out of the airport’s newest terminal, Harvey Milk Terminal 1.
Meanwhile, Southwest Airlines — which up until now had gates in Terminal 1 — will swap into Alaska’s old gates in Terminal 2.
Alaska’s arrival marks the final phase of the Harvey Milk Terminal 1 opening. The three-phase terminal opening kicked off in July 2019, with the debut of nine departure gates. The second phase, completed in May 2021, added seven new departure gates plus a new post-security connector to one of SFO’s international terminals. It also entailed a new museum gallery and exhibit honoring Harvey Milk, who was one of the first openly gay elected officials in the U.S.
With the final phase comes new technology and a more streamlined airport experience. Here’s a peek inside the final touches of the new terminal.
Automated bag tag and drop stations
(Photo by Sally French)
Check-in should theoretically run faster, given new Alaska bag tag stations that replace traditional tagging kiosks.
(Photo by Sally French)
Here’s how it works:
Check-in online and download your boarding pass to your mobile device.
Scan your boarding pass on a tablet at the check-in area, where you’ll be prompted to pay for checked bags, if applicable. A printer adjacent to the tablet prints out your tags, which you affix to your bag.
Bring your bags to a counter, where a machine scans the bag tag before it is placed on the belt. From there, place your bag on a conveyor belt, upon which it’ll be whisked away and loaded onto the aircraft.
(Photo by Sally French)
No human touch is needed, in theory.
Though for the folks who blunder through sticking together bag tags or or otherwise prefer to speak to a human, Alaska’s regional vice president of California, Neil Thwaites, says there will be plenty of staff members available nearby, too.
(Photo by Sally French)
The technological addition makes Alaska the first airline at SFO to offer automated bag drops.
A new post-security connector
Technically, you don’t have to go through Terminal 1 security to get to an Alaska gate. Yet another security connector will open, this one connecting Terminal 1 to Terminal 2 via a walkway on the other side of security.
(Photo by Sally French)
That means every SFO gate will now be connected post-security, Thwaites says.
That’s convenient for travelers connecting to flights on other airlines. It will also make it possible for travelers to access SFO airport lounges, like those in the Priority Pass network, in other terminals without having to clear security twice.
A new lounge (soon)
(Photo by Sally French)
Then there’s a new Alaska lounge, though it won’t open until mid-July. It’ll offer 230 seats — that’s about 55% larger than the current Terminal 2 Alaska lounge. The 11,000-square-foot lounge will feature two private booths for calls, lounge chairs and bistro seating. Expect a barista-staffed espresso bar, Alaska’s signature pancake machine, salads, hot foods, local wines and craft brews.
Though most refreshments are complimentary, premium spirits and food items are also available for purchase.
The existing Alaska lounge will close once the new lounge opens.
The bottom line
The new Alaska gate experience is part of a $2.5 billion investment Alaska pledged to make across its hubs and focus cities, which include San Francisco, Seattle, Portland, Los Angeles and Anchorage. The airline also stated its goal to get passengers through the lobby and to security in five minutes or less.
(Photo by Sally French)
Passengers traveling through SFO should expect an easier experience navigating the airport, given that every gate at the airport will soon be fully connected post-security. Particularly for travelers with international connections or who are flying with a Oneworld alliance partner, it’ll be convenient to not have to clear security again if flying.
For now, Alaska will have 10 dedicated gates at SFO, but that could change.
“We’re leaving plenty of room to grow over time,” Thwaites says.
The events behemoth Live Nation Entertainment is about to rack up some fees of its own — legal fees, that is.
On Thursday, the Department of Justice announced it was suing Live Nation Entertainment on antitrust grounds. The suit arrives after long-standing allegations of monopolistic practices and multiple federal investigations. The DOJ’s action was largely expected following a report of the impending suit by the Wall Street Journal on April 15.
Live Nation Entertainment encompasses international event promotion and management, as well as ticket sales through its better-known division, Ticketmaster.
The antitrust suit, which was joined by 30 states, was filed in federal court in the Southern District of New York. During a press conference following the announcement, Attorney General Merrick Garland detailed some of the DOJ’s allegations against Live Nation Entertainment including:
Locking out competition through long-term and exclusive contracts with major venues encompassing more than 70% of event ticket sales.
Imposing a “seemingly endless” bevy of fees, such as ticketing fees, service fees, convenience fees, platinum fees, handling fees and more.
Pressuring artists into using its services to promote events at venues it has long-term contracts with.
Working “strategically and illegally to eliminate the threat of potential rivals” in the event ticketing industry, in some cases even when the deal didn’t financially make sense for Live Nation’s business.
“Some monopolies are just so entrenched and some problems so difficult to address that they require decisive and effective solutions,” said Assistant Attorney General Jonathan Kanter at the press conference. “We request a remedy that has been used in antitrust law going back over 100 years, which is structural relief.”
Prior to the lawsuit, in Live Nation Entertainment’s first quarterly earnings call of the year on May 3, President and CFO Joe Berchtold said, “Based on the issues we know about, we don’t believe a breakup of Live Nation and Ticketmaster would be a legally permissible remedy.”
The investigation started with Taylor Swift’s Eras Tour
The Justice Department’s suit is the result of an investigation launched in November 2022 following an incident in which Ticketmaster mishandled sales of tickets for Taylor Swift’s Eras Tour. A multitiered presale event for the tour prematurely oversold tickets, which meant hopeful fans couldn’t purchase them in the public sale. Then resellers who did manage to get presale tickets posted those for sale at exorbitant prices.
In the aftermath, fans of the pop star, also known as Swifties, filed a class-action lawsuit accusing the company of fraud, misrepresentation and anti-competitive practices.
The incident also prompted Congress to begin investigating the event ticketing company. In February 2023, legislators recommended that the DOJ’s Antitrust Division probe Live Nation Entertainment, as well.
Then in November 2023, the Senate Permanent Subcommittee on Investigations (PSI) issued a subpoena for documentation that it said Live Nation had yet to produce during the subcommittee’s investigation. The subcommittee also wrote a letter to the Justice Department that said the Eras Tour problems “suggest that the Department’s past enforcement efforts have failed to protect competition.” It went on to say that if Live Nation had indeed abused its power in the event ticketing market, then it may be prudent for the DOJ to break up Live Nation and Ticketmaster.
Live Nation Entertainment controls most of the event ticketing market
In 2010, the Justice Department approved the merger of the event promoter Live Nation and ticketing company Ticketmaster to become Live Nation Entertainment. At the time that the companies consolidated, each was already the dominant player in the events industry: Ticketmaster for ticketing and Live Nation for owning, operating and promoting venues.
Peter Cohan, a professor of practice in the management division at Babson College in Wellesley, Massachusetts, says the merger has been costly for consumers. Face-value tickets have increased sharply, but increasingly pricey fees have been tacked on, as well. They’re commonly called junk fees, and the Biden administration has made a mission of targeting them in the events ticketing space, as well as travel and credit cards.
In a 2009 analysis that Cohan wrote prior to the Live Nation merger entitled “Chokehold on Live Entertainment,” he looked at fees. Cohan says, “I came across a typical kind of concert ticket — Denver, Colorado, a Green Day concert in 2009 — where the fee was 45% of the face value of the ticket. And now fees are as high as 70% or 75%.”
In more than a decade since its merger, Live Nation Entertainment has only strengthened its hold on the market. During last year’s congressional investigation, the PSI submitted a letter to the Justice Department citing statistics that demonstrate Live Nation’s reach: 60% of the event ticketing market is controlled by the company. That includes 80 of the top 100 largest arenas in the U.S.
Live Nation Entertainment’s ownership of and deals with venues make it difficult for artists to use any other ticketing platform for its tours, says Cohan. “If an artist wants to use a different ticketing provider, then Live Nation will basically threaten to say, ‘Well, you can’t use this venue,’” he says.
This hasn’t gone unnoticed by the Justice Department: In 2019, the DOJ determined that Live Nation had violated the consent decree it agreed upon during the merger. The consent decree specified that Live Nation Entertainment cannot retaliate against concert venues for using other ticketing services. According to a Dec. 19, 2019, press release, the DOJ found “Live Nation repeatedly and over the course of several years” violated this agreement.
The consent decree between the companies was supposed to expire after 2019, but the DOJ extended the terms of the merger deal to 2025. In the extension, the Justice Department clarified that Live Nation Entertainment must not pressure venues to use Ticketmaster under the threat of forfeiting Live Nation shows.
Live Nation Entertainment says it’s not to blame for high prices
In response to scrutiny over high ticket prices, Live Nation Entertainment sought to explain more fully the rationale behind the costs. Dan Wall, Live Nation Entertainment’s executive vice president of corporate and regulatory affairs, wrote in a March 4, 2024, open letter entitled “The Truth About Ticket Prices” that high prices “have very little to do with Live Nation or Ticketmaster.” Instead, steep demand for high-profile concerts, like the Eras Tour, naturally leads to more expensive tickets. He went on to add that artists’ increasing dependence on touring income — mainly due to the prevalence of music streaming, which doesn’t pay out for most artists — is also a contributing factor.
Still, Wall wrote that artists tend to underprice tickets “mostly out of regard for their fans,” but the resale market shows artists what their tickets could cost, which, in turn, leads artists to charge more because “when they don’t charge those prices scalpers will find ways to acquire tickets and resell them at full market value.”
He wrote, “The common thread to all these factors is that they have nothing to do with who the promoter is or who sells tickets to the show.” It is the performer’s business team that works with promoters to come up with a strategy that provides revenue while “doing right by their fans.”
Cohan says the secondary market has further exacerbated already high prices for tickets — by several thousand percent markups. “If you go to buy a ticket and Ticketmaster says you can’t get it, that’s because 90% of tickets are reserved for secondary market players who immediately bid up the price,” says Cohan. “Then you have to buy it on the secondary market and pay much more for it.”
On the secondary market, Cohan says, Ticketmaster then collects more fees on transactions. However, Ticketmaster has, in the past, publicly denied that it enables a mass-scalping system.
Live Nation reported a record $22.7 billion in revenue in 2023.
This isn’t the DOJ’s first rodeo with Ticketmaster
Anticompetitive accusations have been thrown at Ticketmaster for decades. In the early 1990s, the grunge band Pearl Jam feuded with Ticketmaster over its service charges. A June 30, 1994, article in the Los Angeles Times said the band accused Ticketmaster of refusing to sell tickets to the band’s tour at the price point they wanted to ask of fans: $18 or less, with under $2 in service fees (at the time, Ticketmaster charged $4 to $8 per ticket in service fees). Later, Pearl Jam tried to work outside the Ticketmaster system on its own low-priced tour, but the company allegedly influenced promoters and venues to boycott the tour altogether.
The clashes between Ticketmaster and Pearl Jam prompted a situation similar to the current inquiry following the Eras Tour mess: The Department of Justice launched an investigation into anti-competitive practices while Congress called for hearings. Ultimately, Ticketmaster won out.
What’s next
Cohan is skeptical that a breakup of the merger will happen. He speculates that it’s more likely that Live Nation will stall litigation for as long as possible and likely conduct changes to remediate some of the complaints rather than wade through an entire breakup of the companies.
But if the DOJ does break up the merger, Cohan says, it’s possible prices might improve somewhat since there would be less of a financial incentive for Live Nation to only use Ticketmaster. But he asserts that unwinding the merger is unlikely to make much of an impact.
“The situation was pretty bad before they were merged and probably would be pretty bad afterwards unless there was a fundamental change to the way tickets are sold,” says Cohan, who suggests direct artist-to-consumer sales would likely be the next best option. He reasons that artists need a way to sell tickets, but with existing e-commerce technology, big ticketing systems aren’t really necessary.
“I’m sure many artists — even the smaller ones — could probably pull their money together and build a system that they could sell tickets on directly to consumers without having all these intermediaries taking a piece out of it where they’re not really adding any value,” he says. “It would probably still be expensive to go to a concert, but with the non value-added cost taken out, it would be lower.”