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Today we’ll check out “Celebrity Home Loans,” a mortgage lender that aims to treat you like a star. Perhaps more specifically, a Rockstar.

This means VIP service from start to finish to ensure you don’t have to “sweat the details” of your home loan financing.

Instead, you can focus on finding your dream home and leave the rest up to your mortgage lender.

This approach might explain how the company came up with its name, and what’s is mission is for its clients.

So far they seem to be living up to those lofty expectations, with excellent customer reviews from tens of thousands of customers. Read on to learn more.

Celebrity Home Loans Fast Facts

  • Direct-to-consumer, retail mortgage lender
  • Offers home purchase loans and mortgage refinancing
  • Founded in 2006, headquartered in Oakbrook Terrace, IL
  • Funded nearly $7.5 billion in home loans last year
  • Most active in California, Colorado, and Illinois
  • Do a near equal split of purchase loans and refis
  • Licensed to do business in 48 states and D.C.
  • More than 700 licensed loan originators nationwide

Celebrity Home Loans is a direct-to-consumer, retail mortgage lender with physical branches scattered throughout the country.

At last count, they employed more than 700 licensed loan originators nationwide.

They also own about two dozen other mortgage brands, including eClick Lending, Heritage Home Loans, Midwest Equity Mortgage, NEO Home Loans, and many others.

So there’s a chance you could obtain a mortgage from one of their many sister companies.

CHL got its start back in 2006, at around the time the housing market was peaking and began to fall.

Still, they managed to navigate the biggest housing crisis in recent history and fund tens of billions in home loans since.

Last year, they mustered an impressive $7.5 billion in loan origination volume, making them one of the bigger players on the national scene.

They do a near equal split of home purchase loans and refinances, which tells me they’re suitable for either purpose.

And while licensed in 48 states and the District of Columbia, they’re most active in California and Colorado, along with their home state of Illinois.

How to Apply with Celebrity Home Loans

To get started, your best move might be to visit their website from your computer or smartphone.

There you’ll be able to search for a nearby loan officer or branch office via their online directory.

You can see who works in an office nearby and quickly obtain contact information. Then reach out to get today’s pricing or inquire about available loan programs.

If you’re in the market to buy a home, their “Mortgage Assured” program goes beyond a standard pre-qualification and pre-approval to help you compete with cash buyers.

My assumption is it’s a fully-underwritten mortgage approval that gives home sellers confidence you’ll be able to obtain financing.

Once you find an individual you’d like to work with, you can click on the “Apply Now” button from their personal webpage to get started.

You’ll be prompted to create an online account with the option to also download Celebrity Home Loans’ free smartphone app.

Many loan tasks can be completed electronically, whether it’s the application itself, eSigning disclosures, or scanning/uploading documents.

Those who download the app have the option to message their loan officer instantly and receive updates as they go.

All in all, Celebrity Home Loans is big on technology and customer service, so you should get the best of both worlds here.

Loan Programs Offered by Celebrity Home Loans

  • Home purchase loans
  • Home renovation loans
  • Refinance loans: rate and term, cash out, streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • FHA loans
  • USDA loans
  • VA loans
  • Fixed-rate mortgages: 30-year, 15-year, and other terms available
  • Adjustable-rate mortgages: 5/1 and 7/1 ARM

Celebrity Home Loans offers a wide array of loan programs to fit nearly any situation.

Whether you’re buying a home, renovating one, or refinancing an existing mortgage, they’ve got solutions.

This includes conforming loans backed by Fannie Mae and Freddie Mac, jumbo loans, and the full suite of government options (FHA/VA/USDA).

And they lend on all major property types, whether it’s a primary residence, vacation home, or investment property.

Both fixed-rate and adjustable-rate mortgages are available in a variety of loan terms, including 5/1 and 7/1 ARMs.

Celebrity Home Loans Rates

One area where they lack information is loan pricing. There isn’t a section dedicated to mortgage rates or lender fees.

This contrasts some other banks and mortgage lenders that post daily mortgage rates and/or a list of lender fees.

As such, you’ll need to get in touch with a loan officer to obtain pricing your unique loan scenario. And to find out if they charge lender fees, such as a loan origination fee.

Be sure to compare the rate and fee they provide, collectively the mortgage APR, with that of other banks and lenders.

Doing so will allow you to determine how competitive they are relative to other options out there.

Service is definitely high up the list when it comes to selecting a mortgage company, but so is pricing, as it will stay with you for potentially decades to come.

Celebrity Home Loans Reviews

Over at Experience.com, Celebrity Home Loans has a solid 4.89-star rating out of a possible 5 from nearly 24,000 reviews.

You can see loan originator reviews as well if you want to see how a particular individual fared in the past.

This might be beneficial given the large number of folks employed by the company.

On Google, they have a perfect 5-star rating from about 1,500 customer reviews. Again, a great sign.

If you know the loan officer’s name, you might also be able to find personal reviews on Zillow.

And while they aren’t an accredited business with the Better Business Bureau (BBB), they do hold an ‘A+’ rating based on customer complaint history.

To sum things up, Celebrity Home Loans is committed to providing exceptional service to its customers.

And their many positive reviews show they’re holding up their end of the bargain.

So whether you’re buying a home or refinancing an existing mortgage, you should be in good hands.

The only question is how competitive they are relative to other options. Because they don’t lead with price, you may also want to compare their rates/fees to other companies before you proceed.

Celebrity Home Loans Pros and Cons

The Good Stuff

  • Can apply for a home loan online or via smartphone
  • Also have physical locations in several states
  • Offer a mostly paperless, digital loan process
  • Lots of loan programs to choose from
  • Excellent customer reviews
  • A+ BBB rating
  • Free smartphone app
  • Free mortgage calculators and glossary online

The Maybe Not

  • Not licensed in Nebraska or New York
  • Do not publicize mortgage rates or lender fees

(photo: Neal Fowler)

Source: thetruthaboutmortgage.com

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Your Guide to the Sharing Economy – MintLife Blog

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peer-to-peer lending). 

Looking for a quick definition? Keep the one below in mind.

Sharing economy definition

The sharing economy is a peer-to-peer lending system, often facilitated by online platforms, that allows individuals or small companies to share goods and services with one another.

To better understand the sharing economy, it’s helpful to see how it fits into the bigger picture of novel industries that are disrupting traditional ones. 

Sharing economy vs on-demand economy

The on-demand economy is a name for the new suite of services most people have available with their phone. “On-demand” refers to the fact that, with just a few taps, swipes, and a credit card, there are many goods and services immediately available to consumers. 

For instance, let’s say you need groceries delivered — there’s an app for that. A fleet of gig-working delivery drivers (more on that next) is ready on demand to bring you the bread, almond milk, and kale that you need ASAP. 

How does this differ from the sharing economy? When investors, economists, and consumers talk about the sharing economy, they are referring more specifically to services that facilitate sharing goods. It might not even be on-demand; for instance, if you’re part of a group of people who share power tools, you might not have access to the bandsaw you need until the person who has it now is done in 3 days. 

The sharing economy and the on-demand economy have a lot in common, though, as they both allow peers to collaborate through the use of a third-party app. That brings us to another buzzword you might be hearing a lot about these days. 

Sharing economy vs gig economy

The gig economy focuses more on the workers’ side, rather than the consumer. For instance, both sharing economy services (like Airbnb) and on-demand economy services (like TaskRabbit), and even services that fall into both categories (like Uber), can be considered forms of gig economy work. 

The gig economy consists of workers who operate on short-term contracts, performing jobs through an app-based service. When investors and economists talk about the gig economy, they’re usually talking about the transition in many sectors toward this sort of short-contract-based work. 

The quintessential example is a service like Uber or Lyft. Rather than a full-time, wage-based job like taxi driver, many people are instead working part-time, contract-based, often precarious positions as ride-share drivers. That’s the gig economy in action. 

Examples of the sharing economy

We’ve already discussed a few types of sharing economy services, but what are a few more familiar examples? The answer is that there’s no set definition or criteria for what makes a service a part of the sharing economy. That said, there are a few examples that you’re probably familiar with:

  • Ride-share: Services like Uber and Lyft are great examples of the sharing economy — a driver shares their car (and time) with a consumer, who gets a lower-cost ride out of the arrangement. 
  • Car-share: Some services also allow you to share your car with peers, not by driving them, but by allowing them to rent it. 
  • Tool-share: Power tools are expensive. Luckily, the sharing economy makes it easy to see who has a tool you can borrow, and pay a small amount to rent it for a day or two while you complete a project. 
  • Clothing sharing: There are sharing sites for expensive designer clothes that you probably won’t wear more than once. Pay for a subscription, then rent for a few days. 
  • Crowd-funding: Have a new business idea or product concept? You can use services online that allow you to crowd-fund the startup costs. 
  • Peer-to-peer lending: Rather than going through a large financial institution or sketchy loan shop when you need cash, peer-to-peer lending allows consumers to seek financing from other individuals who have a little surplus cash they’d like to grow. 

As mentioned before, there’s no hard-and-fast definition or criteria — pretty much any service that allows people to help each other out can be considered a part of the sharing economy. 

Sharing economy apps

We’ve mentioned that the sharing economy is mostly facilitated by app-based services — but what are these apps? Chances are, you’ve probably already got a lot of them on your phone. Here are a few common sharing economy companies, and what they’re built for:

  • Ride-sharing and taxi alternatives: Uber, Lyft

This is definitely not a complete list. Chances are, if you need some item or service, but don’t want to purchase it yourself, there’s a sharing economy solution out there for you. A simple Google search of “[What you need]” + “sharing app” will likely bring you tons of interesting options to consider. 

Pros and cons of sharing economy

Like anything, the sharing economy comes with plenty of pros and cons to consider. Before going all-in on using sharing apps, let’s take a look at some of the benefits and downsides that come along with the sharing economy.

Pros

  • Sharing services can help you save money
  • Sharing apps give you access to things you might not otherwise have (like power tools or a small loan)
  • They’re often on-demand, too (though not alway), so you can get what you need quickly
  • They allow owners of assets to make a small, steady stream of passive income
  • They’re popular. According to PWC, about 19% of people have participated in the sharing economy, and that number is expected to grow. 

Cons

  • They might be riskier than a traditional business because you’re renting items (like a car) from an individual rather than a company
  • While they might allow for a new income stream, some sharing economy jobs (like rideshare drivers) might not allow you to make a full living
  • Some app companies might inflate prices or take a large commission in order to increase their own profits — be sure to do your research on an app before using it as either a buyer or seller

Overall, for most people, deciding whether using the sharing economy makes sense will be an individual process. For some people, making money with side hustle apps might be a great way to spend some time and earn a little cash. For others, it might not make as much sense. 

If you have a vacation home you don’t use often, it could totally make sense to rent it out to travelers who need a place to stay. Others might not want the hassle associated with cleaning the home and preparing it for the next guests — ultimately, it’s up to you whether participating in the sharing economy makes sense. 

Sharing economy: the takeaways 

The sharing economy is a great way for peers to connect and share goods and services they have access to with people who are looking for access at a bargain price. It can include anything from sharing cars and power tools to peer-to-peer lending and crowdfunding. 

Here’s what to remember:

  • The sharing economy uses apps to allow individuals to connect with each other, sharing their goods and services.
  • It’s closely related to the on-demand economy and gig economy; in fact, there’s tons of overlap when it comes to the apps used in each. 
  • You can use the sharing economy to access things like car rentals, fashionable clothes, power tools, personal loans, and seed money for your ingenious ideas. 
  • Apps like Uber, Vrbo, DailyLook, and Prosper are all popular sharing economy options. 
  • There are pros and cons
    • Pros: Usually inexpensive, a great way to find extra income, and convenient
    • Cons: You have to trust peer lenders and borrowers, and some companies pay workers less than other options, or charge fees that make lending not worthwhile

What options can the sharing economy open up for you? Research the ways that you can start using sharing apps today, and start saving (or making!) money. 

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If you own a second home or hold a high balance loan amount, you may want to refinance sooner rather than later. That’s assuming you were thinking of refinancing.

The same goes for those planning to purchase a second home or take out a mortgage with a high balance, which is a loan amount above the baseline conforming limit.

The conforming limit for 2022 is $647,200, so if your loan amount will be north of that, take note.

Fannie Mae and Freddie Mac are raising loan-level price adjustments (LLPAs) for both types of transactions come April 1st.

Depending on the details of your loan scenario, this could drastically increase your closing costs and/or mortgage rate.

Second Home Mortgages and High Balance Loans Going Up in Price

In an effort to bolster its support for affordable housing and sustain equitable access to homeownership, the Federal Housing Finance Agency (FHFA) will be raising (LLPAs) for certain transactions.

These LLPAs get passed onto consumers in the form of either more expensive closing costs or higher mortgage rates.

As noted, they pertain to the financing of second homes, whether a purchase or refinance, and high-balance loans, those which exceed the conforming limit.

The idea here is that these types of home loans go toward more affluent individuals. And they also create more risk for Fannie Mae and Freddie Mac, which are backed by taxpayers.

After all, large loan amounts and vacation properties are more likely to default and/or create larger losses for the Enterprises.

And that could jeopardize the mission of Fannie and Freddie, which is mainly to provide affordable financing to first-time home buyers, as well as low- and moderate-income borrowers.

Looked at another way, these new fees will subsidize programs like HomeReady, Home Possible, HFA Preferred, and HFA Advantage, which provide cheaper financing to lower-income borrowers.

Speaking of, fees won’t be going up on those programs, or for first time home buyers in high-cost areas with incomes at/below 100 percent of area median income.

How Much More Expensive Will Mortgage Rates Be in April?

Before you get too worried, the cost of these changes may be minimal, depending on the loan scenario in question.

For example, upfront fees for high balance loans will increase anywhere from 0.25% to 0.75%, depending on the loan-to-value (LTV) ratio.

If we’re talking about a loan amount of $750,000 on a primary residence, another .25% in fee is roughly $1,875.

This might move the dial on your 30-year fixed mortgage from 3.25% to 3.375%, or simply increase closing costs.

If that fee is .75% higher due to an LTV of 80%, we’re talking $5,625 in cost, which will more than likely increase your mortgage rate an eighth of a percent or more.

It’s not the end of the world, but it’s yet another thing working against homeowners and home buyers as mortgage rates have started off 2022 higher.

And they tend to peak during spring and early summer, which means financing will be that much more expensive.

The situation is even worse for second home buyers or owners, where pricing adjustments will increase anywhere from 1.125% to a staggering 3.875%.

Using our same loan amount of $750,000, even at a low LTV ratio, the increase in upfront costs could equate to around $10,300.

If we’re talking a high balance loan on a second home at 80% LTV, which isn’t out of the question, it’s an additional cost of about $31,000.

Again, depending on if you let the rate absorb these additional costs, you could be looking at a rate that’s .25% to .50% higher, or more.

Second Home Owners and Those with Large Loan Amounts Should Review Their Mortgages Now

If you believe these changes may affect you, it could be a good time to review your outstanding home loans.

The same goes for prospective home buyers thinking about purchasing an expensive property or a vacation home, which are en vogue due to COVID.

As illustrated above, these higher pricing adjustments have the ability to raise mortgage rates considerably. Or at the very least bump up your closing costs.

With home prices and mortgage rates also seemingly headed higher by spring, it could make sense to accelerate any refinance or home purchase plans to avoid these looming fees.

The FHFA said the new fees won’t go into effect until April 1, 2022 to “minimize market and pipeline disruption,” aka higher pricing for confused customers.

But watch out for mortgage lenders beginning to price in changes earlier on. Simply put, this is yet another reason to make any planned move sooner rather than later.

If you own an investment property, the same types of pricing changes might be on the horizon. So if you’re looking for better terms or cash out, now might be the time.

Source: thetruthaboutmortgage.com

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A 15-time Grammy Award-winning singer/songwriter/producer, not to mention best-selling author, entrepreneur and The Voice judge, Alicia Keys is a trailblazer.

With a thriving career that spans more than two decades, the Empire State of Mind singer is one of the biggest names in the music industry. And her personal life is equally full of achievements.

Back in 2010, she married record producer/rapper Swizz Beatz (by his real name, Kasseem Daoud Dean), and the two welcomed two children to the family: Egypt Daoud and Genesis Ali Dean.

So it only makes sense that this exceptional artist lives in a house that’s just as impressive as her neverending list of trophies and awards.

Alicia Keys’ house in La Jolla, California. Credit: Gary Kasl courtesy of The Agency

In 2019, Grammy Award-winning singer Alicia Keys and husband Swizz Beatz paid $20.8 million for a striking cliffside mansion in San Diego’s upscale La Jolla neighborhood.

The high-profile purchase even made its way to our TV screens, as part of Bravo’s Million Dollar Listings LA show, which brought the already-famous property back into the spotlight.

The one-of-a-kind architectural masterpiece — widely known as The Razor House — has been getting people talking since it was first designed in 2007 by San Diego-based architect Wallace E. Cunningham.

The imposing concrete and glass mansion is perched on the edge of a cliff overlooking the Pacific Ocean.

And while many have been dubbing it ‘the Iron Man house’ due to its resemblance to Tony Stark’s house, it may be time for a new nickname that suits its famous owners better.

Alicia Keys and Swizz Beatz, the famous owners of the Razor House. Image credit: Georges Biard, CC BY-SA 3.0, via Wikimedia Commons

A closer look at Alicia Keys’ house, an architectural marvel overlooking the ocean

The modern cliffside mansion was designed by AD100 architect Wallace E. Cunningham, most famous for his striking residential projects, which he likens to sculptures.

More specifically, as the architect himself put it, he designs “one-of-a-kind sculptures for people to live in.”

SEE ALSO: Drake’s House in Toronto, the Star of his ‘Toosie Slide’ Video, Is Peak Luxury

And that couldn’t be more true for some of his iconic residential projects: the Harmony House and the Wing House in Rancho Santa Fe, and the architecturally distinct Razor House that Alicia Keys and Swizz Beatz now call home.

Alicia Keys’ house in La Jolla, CA, known as The Razor House. Credit: Gary Kasl courtesy of The Agency

Perched on the edge of a cliff overlooking the Pacific Ocean, the concrete and glass structure has long been rumored to be the real-life version of Tony Stark‘s futuristic mansion.

But the home has never made an appearance in any blockbuster movie.

View from the Razor House at sunset. Credit: Gary Kasl courtesy of The Agency

It was, however, used for a VISA Black commercial and a luxurious Calvin Klein ad, but that’s pretty much all the screen time the mansion got.

That’s a shame because the house itself is worthy of the biggest screens on earth.

Nearly every wall in the residence is glass, while the floors are mostly hewn from travertine stone. An extra-long infinity pool (one of many) juts out over the cliff’s edge, turning swimming into the stuff dreams are made off.

Front-facing view of Alicia Keys’ home. Credit: Gary Kasl courtesy of The Agency

Swizz Beatz and Alicia Keys’ house has endless concrete terraces that make the most out of the mesmerizing views of surrounding hills and the ocean below.

The three-story home comes with 6 bedrooms and 6.5 baths, with nearly every room opening up to stunning views.

SEE ALSO: Lizzo’s house in Los Angeles, a $15M luxe ‘treehouse’ with a celebrity past

Inside Alicia Keys’ house. Credit: Gary Kasl courtesy of The Agency
Bedroom with ocean views inside Alicia Keys’ house. Credit: Gary Kasl courtesy of The Agency

Fashioned with a state-of-the-art kitchen and giant round living room anchored by a fireplace, Alicia and her music producer husband, Swizz Beatz, have everything they need to unwind with their sons, Egypt and Genesis, including several outdoor lounge areas. 

Inside Alicia Keys’ house, La Jolla, CA. Credit: Gary Kasl courtesy of The Agency

SEE ALSO: Where does Adele live? A look at the $58M ‘house that Rocky built’

Inside Alicia Keys’ house, La Jolla, CA. Credit: Gary Kasl courtesy of The Agency

Among its most notable amenities, the Razor House lists: an extensive fitness space, two steam rooms, a den, a theater, and a library with a custom-made Ralph Lauren pool table.

Inside Alicia Keys’ house, La Jolla, CA. Credit: Gary Kasl courtesy of The Agency

The Razor House was initially listed for $30 million

Initially listed for sale in 2018 for $30 million, La Jolla’s most famous home took a little over a year to make a buyer fall in love with it up to the point of committing enough to put a ring around…. those house keys.

The Razor House in La Jolla, CA. Credit: Gary Kasl courtesy of The Agency

But when it did, it nabbed more than just a nice selling price and some very famous new owners.

Putting an end to the property’s year-long run on the market, Alicia and her powerhouse music producer husband Kasseem Dean, better known as Swizz Beatz, purchased the Razor House for a cool $20.8 million.

The $20M+ selling price (despite being a considerable drop from the initial asking) made it one of the most expensive homes sold in La Jolla, California in 2019 — proving once again that whatever Alicia Keys does, she does in style and ready to set new records!

Neither Alicia Keys nor Swizz Beatz (who has produced hit singles for the likes of Kanye West, Jay-Z and Beyoncé) had any connection to La Jolla or the larger San Diego area when they bought the home, leading people to speculate that the iconic residence will serve as a vacation home for the couple.

But a tour given to Architectural Digest in late 2021 proved them wrong.

Not only do Alicia Keys and Swizz Beatz live in the Razor House, but they’ve turned it into an elegant, art-filled, inviting home. Take the tour:

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The history of the Razor House before it became Alicia Keys’ home

According to the San Diego Reader, the futuristic structure was named after the land it sits on, a three-quarter-acre lot near Razor Point.

Created for original owner Don Cooksey (a software designer and entrepreneur who later filed for bankruptcy) many architects initially backed away from the ambitious project, calling it “rebuildable”.

That’s until Cooksey approached Wallace E. Cunningham, who bought the modernist gem to life — and built the dramatic estate to match the breathtaking landscape that surrounds it.

By 2011, following the financial hardships of its initial owner, The Razor House ended up in bankruptcy sale.

The Razor House in La Jolla, CA. Credit: Gary Kasl courtesy of The Agency

According to Realtor.com, Donald Burns, a Florida-based telecom entrepreneur and inventor of the magicJack — a device that allows you to make calls from your computer — purchased the property as a second home at the 2011 bankruptcy sale.

Burns paid $14,097,000 for the home and invested heavily in the property.

“He made a lot of upgrades to it,” Matt Altman, one of the property’s listing agents and star of reality TV show Million Dollar Listing Los Angeles said.

“He updated to the next level. He wasn’t doing this to make money; he was doing this to make a nice home. He did a significant amount of work on this house.”

The entire home is automated and optimized for iPad control of everything from audio and visual systems to motorized window coverings and control of the home’s radiant floor heating, air conditioning.

There’s also a backup generator to ensure power never goes down, and an entire computer room is dedicated to housing the home’s automation control systems. So basically, The Razor House may not be Iron Man’s house, but it does comes with its own Jarvis.

*This article was first published in September, 2019, reporting on the famous couple’s purchase of the home. It has since been updated for timeliness and accuracy.

More celebrity homes

Travis Scott’s House is a $23.5M Ultra-Modern, Yacht-Inspired Mansion
Where Does Lady Gaga Live? Check Out Her ‘Gypsy Palace’ in MalibuZendaya Owns a $4 Million Home Fit for a Disney Princess
Chrissy Teigen and John Legend’s house in Beverly Hills

Source: fancypantshomes.com

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Your Money

Mortgage Fees (Seriously) Spurred Outrage on TikTok. Here’s Why.

Changes to fees applied to federal mortgages have led to a misconception that borrowers with low credit scores will pay less at the expense of borrowers with good credit.

Credit…Adam Maida

Published May 7, 2023Updated May 8, 2023

Mortgage fees usually induce yawns and glazed-over eyes. But when word began circulating last month that updated pricing would cost some home buyers more, it resulted in viral TikTok videos with thousands of outraged comments misinterpreting the new rules.

Many critics raised similar questions: Why were some borrowers with lower credit scores and down payments receiving improved pricing on their mortgage rates, while others with high credit scores and larger down payments were being charged more? Are responsible borrowers subsidizing riskier loans?

The changes made the rounds on cable television, even landing a spot on Tucker Carlson’s final show on Fox News, where he claimed that they were going to provide incentives for bad behavior. But much of the controversy focused on the winners and the losers of the pricing updates — and not the fact that the most creditworthy borrowers with large down payments would still pay much less. To clear up any confusion, the federal regulator behind the new pricing had to issue a statement: Sparkling credit still pays.

“You still get a better rate and loan pricing if you make a higher down payment and have better credit,” said Bob Broeksmit, president and chief executive of the Mortgage Bankers Association, an industry trade group.

January, when the regulator that oversees Fannie and Freddie — the Federal Housing Finance Agency, known as the F.H.F.A. — introduced new pricing charts that lay out how fees are applied to different borrowers and loan types. But the change may have resurfaced now because the updated fees became effective for loans delivered to Fannie and Freddie on May 1. Given the time it takes to close new loans and home purchases, the new fee menus had already been incorporated into mortgages for a while.

There’s little borrowers can do to control the market forces that drove up interest rates on mortgages in the past year. They stood at 6.4 percent as of Friday, nearly twice their level at the start of last year. But your financial profile — your credit scores, the size of your down payment — also factors into how much you pay for a loan. That’s where these fees come into play.

Depending on how borrowers stack up, they will pay a separate fee on a mortgage backed by Fannie Mae and Freddie Mac.

Those fees, which are a percentage of the loan amount, are often layered on top of a borrower’s base mortgage rate; and the higher your credit score, the less you generally pay. In other words, the riskier the loan is deemed to be, the higher the fee.

Freddie Mac, can add $30 to $70 a month for every $100,000 you borrow). That means they pay more, in total, than those with down payments of 20 percent or more.

The insurance protects the lender, not the borrower — that, in turn, reduces some of the risk of borrower default to Fannie or Freddie and shifts it to the private insurer. “So those who put down less than 20 percent pose less risk,” according to a recent paper by Jim Parrott of the Urban Institute, “and should pay less in fees.”

Those nuances aren’t easily explained in short clips on social media. Instead, many critics figured that less creditworthy borrowers were getting a break at the expense of those with higher scores.

“Did you ever think in a million years that having good credit would actually punish you if you were buying or refinancing a home?” one outraged TikTok user asked.

“Guess I’ll go drop my credit score by over 100 points before I go buy my 1st home,” a commenter added.

Those sentiments — or some version of them — gained traction on cable television, social media and elsewhere. “We’re hurting the good people,” Mr. Carlson said during his segment.

Sandra Thompson, the director of the F.H.F.A, explained in a statement meant to “set the record straight” on why the agency made the changes, which began with a review of Fannie and Freddie’s pricing and programs in 2021 (it was last updated in 2015). The agency reiterated that it had recalibrated the fees on its most traditional mortgages to better reflect the risks of the loans and to strengthen its finances.

mission. And the F.H.F.A. said it made other changes to help support those goals.

At the beginning of last year, the agency said it would raise fees on loans that weren’t exactly central to that mission: It increased pricing on vacation home loans, larger mortgages (in some high-cost areas, these loans exceed $1 million), as well as on borrowers who refinanced their loans and withdrew cash from their home equity. “It is through those increases that we were able to eliminate fees for certain home buyers that are lower or moderate income,” according to F.H.F.A. officials.

Gary Acosta, a co-founder and the chief executive of the National Association of Hispanic Real Estate Professionals, said he thinks borrowers on the margins were paying an excessive amount in fees in relation to the risk they added to Fannie and Freddie’s mortgage portfolios. But he doesn’t think the price changes are meaningful enough to make a big difference.

“It is not clear that these price adjustments are going to result in more borrowers being able to participate in homeownership,” Mr. Acosta said. These borrowers may still be more likely to find better pricing through the Federal Housing Administration, he said, a government agency that insures mortgages made largely to first-time homeowners, often with small down payments and lower scores than Fannie or Freddie will permit.

Mark Calabria, a former director of the F.H.F.A. and a senior adviser at the Cato Institute, a libertarian think tank, also expects the pricing changes to have minimal effects on the broader housing and mortgage markets.

But there are practical takeaways. People living in higher-cost areas who need larger mortgages to finance their homes, for example, may be better off getting mortgages through providers that hold the loans in their own portfolios instead of selling them to Fannie or Freddie.

“It still pays for you to build your credit and to shop around,” said Mr. Calabria, “even more now.”

@tarasbernard

A version of this article appears in print on  , Section B, Page 1 of the New York edition with the headline: Clearing Up Confusion Over Fees. Order Reprints | Today’s Paper | Subscribe

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Do you want to make your money work for you?

I know what you’re thinking—money doesn’t grow on trees.

It takes money to make money.

That is a true case, but it doesn’t mean you have to be a millionaire to start. You can invest $100 to make $1000.

But there are a few things that will help any of us start seeing some green: time, patience, and perseverance.

We all know that money is a powerful tool. It helps us get what we want, live the way we want to, and achieve our goals. But how do you make your money work for you?

If you’re new to financial success or are looking for some fresh ideas on increasing your wealth, then you are in the right place!

That’s where this post comes in! In it, we delve into the five best ways to grow your wealth and show you how they work.

How can you make your money work for you?

There are many ways to grow your wealth. You can invest in stocks, bonds, and other securities. You can also start your own business or invest in real estate. Whatever you choose to do, make sure you are diversified and have a plan.

Making your money work for you is all about creating passive income streams.

This means finding ways to make money without having to actively work for it. Some examples include investing in stocks, real estate, and businesses.

How to Make Your Money Work for You: The [Best Ways] to Grow Your Wealth.

Your money is a powerful tool that can help you save, invest and grow your wealth, but only when you know the ways to make it work for you.

This is something that many people don’t learn and don’t invest the time to understand.

The best way to grow wealth is by taking your time and doing the research necessary for you to understand what it takes. You have to know how much money you need, where it will come from, and how you will invest it.

#1 – Create Financial Goals

It’s important to have specific financial goals because they give you something to work towards and help keep you motivated. Having specific goals also makes it easier to measure your progress and see how far you’ve come.

To create specific financial goals, start by thinking about what you want to achieve.

  • Do you want to save for a down payment on a house?
  • Are you looking to pay off debt?
  • Looking to increase your saving percentage?
  • Or do you want to retire early?

Once you know what your goal is, break it down into smaller steps that you can take to get there. For example, if your goal is to save for a down payment on a house, your first step might be saving $2000 for a down payment fund. Then, once you have that saved up, your next step might be saving $1,000 for the down payment fund.

Keep breaking your goal down into smaller and smaller steps until it feels achievable.

When setting financial goals, avoid setting goals that are too vague or unrealistic. For example, don’t set a goal of “saving money” without specifying an amount or timeline. Also, avoid setting goals that are so small they’re not worth achieving (like saving $5 over the course of a year).

#2 – Develop Passive Income Streams

Passive income is a type of earnings that does not require active work to generate. This can include earnings from investments, rental properties, and other business ventures in which you are not actively involved.

There are several different types of passive income:

  1. Interest and dividends from investments: This can include earnings from stocks, bonds, and other investment vehicles.
  2. Rental income: This can come from renting out a property you own, such as an apartment or vacation home.
  3. Business income: This can come from owning a business in which you are not actively involved in the day-to-day operations. For example, you could own a franchise or be a money-only investor.
  4. Royalty payments: These are payments made to you for the use of your intellectual property, such as patents, copyrights, or trademarks, a book, or a song.
  5. Other types of passive income include blog or affiliate revenue. For example, if you have a blog and it generates ad revenue or affiliate income from referrals to third-party products, that would be considered passive income.

Passive income is money you earn without having to work directly for it. It can come from any number of sources. Remember, passive income is different than active income, which is money you earn through a job or business ownership.

In fact, most millionaires have at least 3 passive income streams (source).

Passive income is the Holy Grail for online marketers. It’s automatic. Effortless. But, not at first. In the beginning, it’s grueling. I liken this to doing the most amount of work for the least initial return. However, over time as your passive income begins to increase, your reliance on an active income plummets.

That’s when the real magic starts to happen.

#3 – Plan for Each Dollar

The first step to making your money work for you is creating a budget. This will help you track your income and expenses so you can see where your money is going. You can use a budgeting app or spreadsheet to do this.

When it comes to managing your finances, it’s important to have a plan for each dollar that comes in. You should make conscious choices about where to spend your money and what type of accounts to use.

Your highest priorities should be determined by what is most important to you.

It is also important to remember that every penny counts- so use your money wisely!

#4 Pay Yourself First

One of the best ways to grow your wealth is to save first. This means putting away money into savings or investments before you spend it. This will help you reach your financial goals more quickly.

When you get paid, make sure to put some money into savings or investments before spending it. This way, you are prioritizing your own financial well-being.

Automating your finances is a great way to make sure your bills first are always paid on time and that you are saving regularly. You can set up automatic transfers from your checking account to savings or investment accounts

#5 – Get Out of Debt

Debt can be a major financial burden, preventing you from achieving your financial goals. It’s important to get out of debt as soon as possible so that you can free up your money to save and invest for the future.

In fact, this is one of the first steps we stress here at Money Bliss – pay off debt!

There are a few different ways to get out of debt. You can try negotiating with your creditors, consolidating your debts, or making more money to pay off your debts faster. Whatever method you choose, make sure you have a plan and stick to it.

There are a few things you should avoid when trying to get out of debt.

  1. First, don’t miss any payments or make late payments, as this will damage your credit score.
  2. Second, don’t use credit cards while you’re trying to pay off debt, as this will only add to your balance.
  3. Finally, don’t take on any new debts while you’re trying to get out of debt – focus on paying off the debts you already have first.

#6 – Start an online business

This can be a great way to create passive income and build wealth over time. There are many different types of online businesses that you can start, so do your research and find the one that is best suited for you.

Starting an online business is a great way to make some extra money on the side. It can be done relatively easily and doesn’t require much upfront work. Once you have the foundation in place, it’s easy to start generating income without any additional effort.

In fact, learning how to make money online for beginners is a hot topic!

The internet provides a unique opportunity to start and grow an online business. With the right tools, you can use the internet to your advantage and build a successful business.

#7 – Invest in the stock market

There are many ways to invest in the stock market, but the most common is through buying and selling shares on a stock exchange. You can also invest in mutual funds, which pool money from many different investors and then invests it in a portfolio of stocks or other securities. Another way to invest is through exchange-traded funds (ETFs), which are similar to mutual funds but trade like stocks on an exchange.

Before you start investing in the stock market, there are a few things you should consider.

  1. First, you need to decide what your investment goals are. Are you looking to grow your wealth over time, or do you need access to your money quickly?
  2. Second, you need to understand the risks involved with investing in the stock market. While there’s always the potential for making money, there’s also the potential for losing money.
  3. Finally, you need to research different investments and choose one that fits your goals and risk tolerance.

Investing in the stock market comes with a number of risks, including the potential for losing money. While there’s always the potential for making money, there’s also the potential for losing money. Before you invest, you should understand the risks involved and make sure you’re comfortable with them.

#8 – Automate your finances

Automating your finances means setting up automatic payments for your bills and other regular expenses. This can help you to stay on top of your finances and avoid late payments or overdraft fees.

There are a few different ways that you can automate your finances. You can set up automatic payments through your bank or credit card company. Alternatively, you can use a service like Quicken to track your spending and create a budget.

Automating your finances can save you time and money. It can help you to stay on top of your bills and avoid late fees or overdraft charges. Additionally, it can free up more of your time so that you can focus on other aspects of life.

#9 – Habit of Automatic Savings

Automatic savings works similarly to automating your finances, but instead of paying bills, money is automatically transferred into a savings account each month. This can help you build up your savings without having to think about it.

With automatic savings, you can grow your savings without extra work; however, if you need access to the money in your savings account quickly, it may take a few days for the funds to transfer back into your checking account.

Challenge yourself to save more than the average 5% personal saving rate.

Overall, automating your finances can be a great way to stay on top of your bills and save money. Just be sure to consider the pros and cons of each method before you decide which one is right for you.

#10 – Use a Rewards Credit Card and Pay It Off Each Month

When you use a rewards credit card, you earn points for every purchase you make. These points can be redeemed for cash back, merchandise, travel, or other perks. Some cards also offer bonus points for spending in certain categories, such as gas or groceries.

To get the most value from your rewards card, it’s important to pay off your balance in full each month. This way, you’ll avoid paying interest on your purchases and will actually save money by earning rewards.

This is something we do on a regular basis and helps us to pay for our travel.

There are both pros and cons to using a rewards credit card. On the plus side, you can earn valuable rewards just by making everyday purchases. And if you pay off your balance in full each month, you’ll avoid paying interest and will actually save money.

On the downside, if you carry a balance on your card from month to month, the interest charges will outweigh any benefits you earn from the rewards program. Additionally, some cards have annual fees that can offset any savings you might accrue from using the card.

#11 – Learning How to Budget

A budget is an estimation of revenue and expenses over a specified future period of time. A budget is often created annually, but may also be created more or less frequently like biweekly or by paycheck.

Budgeting is important because it allows you to track your income and expenses so that you can make informed financial decisions. It also enables you to save money by identifying areas where you can cut back on spending.

Simple Budgeting tips:

  1. Make sure your income and expenses are realistic
  2. Track your progress over time
  3. Don’t be afraid to adjust your budget as needed
  4. Keep your long-term financial goals in mind

Budgeting shouldn’t feel constricting – just that you are able to do what you want to do.

#12 – Save Your Money

Saving money is a key component of building wealth. You need to have money saved in order to invest, and you need to be investing in order to grow your wealth. There are a few different ways that you can save money.

  • One way to save money is to create a budget and stick to it. This will help you track your spending and make sure that you are not spending more than you can afford.
  • Another way to save money is to make sure that you are taking advantage of all of the tax breaks that are available to you. This can help you keep more of your hard-earned money in your pocket.
  • Finally, another way to save money is by automating your savings so that you do not have to think about it every month.

Try to save your money wherever you can, even if it is a small amount. Every little bit counts in the long run!

#13 – Now, Invest Your Money

Investing your money is one of the best ways to grow your wealth over time.

When you invest, you are essentially putting your money into something that has the potential to grow over time. This can be done through stocks, bonds, mutual funds, real estate, and other investments.

The key is finding an investment that has the potential for growth and then holding onto it for the long haul.

Especially learn how to flip money!

#14 – Put Money away for retirement

How much you need to save for retirement depends on a number of factors, including how long you expect to live and what kind of lifestyle you want in retirement.

A general rule of thumb is that you’ll need 70% to 80% of your pre-retirement income to maintain your standard of living in retirement.

There are a number of different options for where to save for retirement, including 401(k)s, IRAs, and annuities. Each has its own set of benefits and drawbacks, so it’s important to do your research before choosing one.

The main benefit of saving for retirement is that it gives you a nest egg to help cover expenses for retirement. Additionally, many employer-sponsored retirement plans offer matching contributions, which can help boost your savings.

#15 – Invest in yourself

The most important thing you can do with your money is to invest in yourself by getting higher education or learning new skills. By investing in yourself, you are ensuring that you will be able to earn a higher income and grow your wealth over time.

There are a few different ways you can invest in yourself.

  • One way is to invest in your education by taking courses or attending seminars that will help you learn new skills.
  • Another way is to invest in your health by eating healthy foods and exercising regularly.
  • Finally, you can also invest in your relationships by spending time with positive people who will support and encourage you.

Investing in yourself has many benefits that are normally overlooked.

First, it will help you earn a higher income which means you will be able to save more money and grow your wealth faster. Second, it will improve your health so that you can live a longer and happier life. Third, it will help improve your relationships so that you can have more supportive and positive people in your life.

This can help you earn more money over time and set you up for success.

Bonus Tip = Be Generous

When you give to others, you are actually helping yourself. Numerous studies have shown that giving makes us happier and can even improve our health.

There are many ways to be generous. You can give your time, your money, or your talents. You can also simply be kind and helpful to others. Whatever way you choose to give, make sure it is something that feels good for you.

Many people ask what to give and there is no one answer to this question. It depends on what you have to offer and what would be most helpful to the person or cause you are supporting.

Things to consider when putting money to work

When it comes to making money, there are a lot of different ways you can go about your little endeavor. But before we get into the specifics of how and when you should put your change to work, we have some general tips to help you along the way.

Where are you today?

First, start by looking at your current spending and saving habits. If you’re not saving anything right now, start small by setting aside $50 from each paycheck into a savings account. Once you have a cushion built up, you can start thinking about investing your money.

Also, think about your long-term financial goals and how much money you’ll need to save to reach them. Automate your savings so that it’s easier to stay on track.

How Much are You Spending?

You should also be mindful of your spending habits as they can have a big impact on your ability to grow wealth over time. Try to live below your means and avoid unnecessary purchases so that more of your money can go towards savings and investments.

It can also be helpful to create a budget so that you have a better idea of where your money is going each month. This will allow you to make adjustments as needed in order to free up more money for savings and investing.

Are you Investing?

Investing is one of the best ways to grow your wealth over time. When you invest, you’re essentially putting your money into something that has the potential to earn more money in the future. This can be done through stocks, bonds, mutual funds, and other investment vehicles.

It’s important to do some research before investing so that you understand the risks involved and don’t end up losing all of your hard-earned money.

Is Debt Holding You Back?

Last but not least, debt can also impact your ability to grow wealth over time. High-interest debt, such as credit card debt, can eat away at your savings and make it difficult to invest.

If you have high-interest debt, it’s important to focus on paying it off as quickly as possible. You may need to make some sacrifices in other areas of your life in order to do this, but it will be worth it in the long run.

How to Make Your Money Work for You FAQs

1. Invest in stocks: This is one of the most popular methods of growing wealth. When you invest in stocks, you are buying a piece of a company that will be worth more in the future. The key to making money with stocks is to buy low and sell high.

2. Invest in real estate: Another popular way to grow your wealth is to invest in real estate. When you invest in real estate, you are buying a property that will increase in value over time. The key to making money with real estate is to make sure your portfolio is set up for high probability of success.

3. Invest in bonds: Bonds are another way to grow your wealth. When you invest in bonds, you are lending money to a company or government that will pay you back over time with interest.

Saving money is one of the best ways to use your money. It allows you to have a cushion in case of an emergency, and it also allows you to save for future goals. There are many different ways to save money, but some of the best include setting up a budget and sticking to it, setting up a savings account, and investing in yourself.

Investing your money is another great way to use it. When you invest, you are essentially putting your money into something that has the potential to grow over time. This can be a great way to build your wealth over time and secure your financial future. Some of the best things to invest in include stocks, bonds, and mutual funds.

Of course, you can also use your money by spending it on things that you need or want. While this may not seem like the most productive use of your money, it is important to remember that spending is necessary in order to live a comfortable life. Therefore, it is important to find a balance between saving and spending so that you can enjoy both now and in the future.

  1. Keep your money in a safe place.
  2. Invest in a good financial institution.
  3. Diversify your investments.
  4. Review your insurance coverage regularly.
  5. Have an emergency fund.

Money Works for You

In this article, we covered a few different ways to grow your wealth.

Making your money work for you is a great way to grow your wealth without having to put in a lot of extra effort. By following the tips and tricks in this guide, you can easily make your money work for you and watch your wealth grow over time.

If you are looking for where to put your money to make it work for you, we uncovered the 15 best ways to make your money work for you.

Whichever method you chose is up to you.

The best answer is to diversify your portfolio and create multiple streams of income.

So what are you waiting for? Get started today and see the results for yourself!

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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You don’t have to be a U.S. citizen to buy a home in the U.S. You don’t even have to be a U.S. resident. Anybody who wants to can purchase property here.

Between April 2021 and March 2022, the value of residential property in the United States that was sold to foreign buyers totaled $59 billion, according to the National Association of Realtors (NAR)’s International Transactions in U.S. Residential Real Estate report. The vast majority of non-resident buyers are from Canada and Mexico, followed by China. They’re largely purchasing detached single-family homes in Florida and California.

While almost half (44 percent) of foreign buyers rely entirely on cash to make these purchases, it’s also possible for non-residents to obtain a mortgage in the United States to help finance the new homes. It’s not all smooth sailing, though. Non-citizen homebuyers will have to deal with slightly more complicated mortgage application requirements establishing their financial qualifications. They will also have more complex tax laws to comply with as homeowners.

What type of property can a non-resident buy?

Any non-U.S. citizen, including permanent residents, temporary residents, non-residents, refugees, asylum seekers and those who are recipients of Deferred Action for Childhood Arrivals (DACA) relief, can buy property in this country. There are no legal restrictions prohibiting the purchase of real estate by individuals who fall into any of these categories.

“Purchasing a residential property in the U.S. is open to any individual regardless of their citizenship,” says Jen Horner, a Realtor with RE/MAX Masters in Salt Lake City, Utah.

There are also no limits surrounding the type of property that can be purchased. A non-U.S. citizen can buy a single-family home, condo, townhouse, duplex or apartment building — or even land with no structure on it at all.

“There are no restrictions in the United States on purchasing a property as a foreign national. This applies to resident foreign nationals who might want to buy property for primary residence based on where they currently live in the United States, or non-resident foreign investors looking to buy property for other reasons — such as investment use or a vacation home,” says Chase Michels, of the Michels Group at Compass in Hinsdale, Illinois.

According to the NAR, between the spring of 2021 and the spring of 2022, 74 percent of foreign buyers purchased a detached single-family home or townhome. In addition, 44 percent of foreign buyers purchased a property for use as a vacation home, rental or both.

What documents does a non-resident need to buy a home?

While they can buy freely, non-U.S.-citizen buyers are typically required to provide additional documentation to complete a home purchase in the United States, compared with U.S. citizens.

The exact requirements vary however, depending on whether the home is being purchased with cash or a mortgage, and based on the specific resident status of the buyer. Some of the basic requirements for non-U.S. citizen buyers, says Michels, often include:

  • A foreign passport, U.S. visa or driver’s license
  • Social Security number or Individual Taxpayer Identification Number (ITIN)
  • Financial statements from applicant’s foreign bank, if applicable
  • Evidence of financial assets/income (bank statements, etc.)
  • Tax returns (preferably U.S., if applicable)

“Cash purchases will require proof of identity and reporting the purchase to the federal government,” says Horner. “If a mortgage lender will be used, they have the ability to request as much documentation as they feel necessary to advance [the] mortgage application.”

Which begs the question: Are non-U.S. citizens able to obtain mortgages to finance home purchases in the United States? The short answer is yes. But it’s complicated.

How can a non-resident finance a home?

In general, mortgage lenders prefer to work with applicants currently living in the United States, and who are classified as permanent or non-permanent residents. (Individuals who have a green card and a Social Security number are permanent residents, while those who have a Social Security number, but no green card, are non-permanent residents.) Their rationale is simple: Applicants residing in this country are viewed as less of a risk, particularly in cases of default on the loan.

Their residency status impacts the specific type of mortgage that can be used. There are two main categories of lending for non-citizen purchases, says Michael Cantwell, loan officer for Guild Mortgage. “One major classification is that of a foreign national and the other would be those individuals currently living in the United States who have not received U.S. citizenship yet,” says Cantwell.

Applicants who fall into either of these categories can usually qualify for a conventional mortgage backed by Fannie Mae and Freddie Mac, as well as Federal Housing Administration (FHA) government-backed loans. However, non-permanent residents will need to be using the home as a primary residence in order to obtain mortgage approval.

“Many banks and mortgage companies offer conventional and FHA home loans to non-U.S. citizens provided they can verify their residency status, work history, and financial track record,” says Michels.

And for non-residents? Applicants living abroad can buy properties in this country using what’s known as a foreign national loan or foreign national mortgage loan, says Cantwell. These loans are typically offered by U.S.-based banks and lenders and are designed for borrowers living outside the country who are seeking to either purchase or refinance. Foreign national mortgages are not backed by Fannie Mae or Freddie Mac.

Additional rules and restrictions for non-residents

Tax rules also apply to properties owned by non-U.S. citizens. For instance, if a non-U.S. citizen rents out the property purchased to generate income, then that income must be reported and taxes must be paid both in the United States and in the property owner’s home country, says Bruce Ailion, a real estate attorney and Realtor with Re/Max Town & Country in Atlanta. In addition, non-U.S. citizens are liable for paying local property taxes.

And when selling a property in the United States as a non-U.S. citizen, capital gains tax will typically apply as well.

“When selling a property in the U.S. there are special withholding provisions that must be complied with,” says Ailion. “A tax advisor with specific knowledge in international tax should be consulted.”

On the plus side, all Fair Housing Act, Title VII, and other anti-discrimination protections apply to real estate transactions involving non-U.S. citizens. These laws are in force no matter who the buyer is, says Michels.

Final word on non-resident home purchases

It is entirely possible to purchase a home as a non-U.S. citizen — whether you’re a foreign national or a permanent or a temporary resident. There are no limitations on the type of property that can be purchased or how the property is used. Furthermore, U.S. laws that protect the rights of all homebuyers cover non-U.S. citizens and non-residents as well.

What’s really more significant, in terms of complications, is not a person’s citizenship, but their place of residency. If you don’t live in the U.S., buying a home does get more difficult — especially if financing is going to be needed for the purchase.

Non-residents must be prepared to deal with additional complexities, including more extensive documentation requirements establishing their identity, income and assets. They are limited to certain types of loans or mortgages, ones not backed by the primary mortgage market-makers. But the path to U.S. homeownership is certainly not blocked — it just may have a few speed bumps on it.

Source: thesimpledollar.com