Here are the top 10 markets for VA loan buyers, ranked in order: Tampa-St. Petersburg-Clearwater, Fla. San Antonio-New Braunfels, Texas Cleveland-Elyria, Ohio Rochester, NY Buffalo-Cheektowaga, NY St. Louis, Mo. Detroit-Warren-Dearborn, Mich. Birmingham-Hoover, Ala. Providence-Warwick, R.I.-Mass. Houston-The Woodlands-Sugar Land, Texas. “As home prices continue to rise and with interest rates double what they were just two … [Read more…]
Many readers report getting an email from Navy Federal (NFCU) about their cashRewards card that it will now earn 2% cashback on all purchases.
Email Subject: (Firstname), Unlimited 2% Cash Back: You Just Got Upgraded! 🎉
Previously the card earned 1.5% cashback everywhere, or 1.75% with direct deposit. Select customers now have an offer to get an additional .5% bonus on all purchases. (Not clear if direct deposit customers will get 2.25%.)
For now this is 2% everywhere card for those targeted. I’d guess they are piloting this with some users as they consider updating the card to earn 2% for everywhere, we’ll see. The public landing page still shows the 1.5% rate.
The card has no annual fee and no foreign transaction fee. It also has a nice signup bonus of $300 and signup bonus of a potential $98 Walmart+ credit.
Navy Federal is only available for military and veterans – full eligibility information can be found here (plus family members. Even if they are deceased). Learn more about Navy Federal credit cards in the post Navy Federal Credit Union (NFCU) Credit Cards: List, Best Cards & Things You Must Know.
Source: doctorofcredit.com
If you’re looking to save money on your next mortgage, a mortgage broker might be able to help.
A firm by the name of Polygon Research conducted a study and found that mortgage brokers can save consumers money versus other channels, such as retail.
The research, which was supported by the nation’s top mortgage lender (also a wholesale-only lender) United Wholesale Mortgage, found “substantial savings for consumers on average” via the wholesale channel.
For reference, the wholesale channel is B2B, where mortgage brokers provide financing to consumers from their lender partners.
Instead of being captive to a single bank or lender, they can shop the borrower’s loan scenario with multiple partners at once to find the best combination of rate and fees.
On the other hand, a retail loan officer can only offer pricing and loan programs from their captive lender.
The research found that for loans originated in 2023, consumers would save an average of $10,662 over the life of their loan when working with an independent mortgage broker compared to a nonbank retail lender.
Some of the largest nonbank retail lenders include Rocket Mortgage, CrossCountry Mortgage, loanDepot, Rate (formerly Guaranteed Rate), and Movement Mortgage.
Polygon also said upfront fees were lower on broker-originated loans compared to those originated by retail loan officers.
And the study found higher loan approval rates in Minority Majority Census Tracts (MMCT) via the wholesale channel (70%) versus retail (58%).
The average interest rate extended to home purchase consumers via the wholesale channel was 6.58% with 115 basis points paid upfront.
Conversely, the average interest rate received in the nonbank retail channel during that period was 6.60% with an upfront cost of 148 bps.
While the rates are fairly comparable, the borrowers via the wholesale (mortgage broker channel) paid less.
For example, on a $500,000 loan amount, the costs mentioned would be $5,750 versus $7,400, respectively.
The savings were even larger for VA loans, those reserved only for veterans and their families.
VA borrowers save an average of $13,432 per loan when they use a mortgage broker instead of going with a retail lender.
They obtained an average rate of 6.26% versus a rate of 6.40%, with a cost of 87 bps compared to 106 bps via the retail channel.
Of course, these savings can and will vary, and it depends who you speak with.
This is why I recommend that borrowers compare mortgage brokers too. Speaking to just one won’t give you the complete picture, even though they do shop on your behalf.
In a perfect world, you might speak to multiple retail loan officers and multiple mortgage brokers to truly comparison shop.
While mortgage brokers got a lot of flak during the early 2000s for originating loans that performed worse than their counterparts, even getting blamed for the mortgage crisis, they’ve since seen quite a renaissance.
Back in March, UWM noted that the mortgage broker share hit a staggering 24.3% in the fourth quarter of 2023, the highest share since 2009.
A lot of that growth could be attributed to UWM and its CEO Mat Ishbia, which became the first wholesale lender to take the #1 spot overall in the mortgage world.
And he has ambitions to increase it even further, noting that it wouldn’t be “unrealistic for the channel to hit 50% market share.”
While that remains to be seen, there are other big players in the space that could drive it higher, including their cross-town rival Rocket Mortgage, which operates Rocket Pro TPO, their growing wholesale division.
As noted, UWM is the nation’s top mortgage lender based on loan volume. The Pontiac, Michigan-based company funded roughly $109B in 2023, per HMDA data.
That was plenty to outrank their closest rival, Rocket, which mustered just $76B.
Source: thetruthaboutmortgage.com
There is no such thing as no-deposit car insurance. All insurers require payment before activating coverage.
You can lower your initial payment by taking advantage of discounts, only purchasing coverage you need and comparing rates to find the cheapest insurance company for you.
Your first car insurance payment can be as low as $29, according to NerdWallet’s August 2024 analysis of minimum coverage rates from the country’s largest insurers.
A car insurance “deposit” counts toward your total premium. It’s not an additional fee.
Car insurance with no deposit doesn’t exist. Legitimate insurers require some money down before they’ll provide coverage. The good news is that an auto policy’s initial “deposit” isn’t a separate fee, but the first payment you’ll make towards buying and maintaining your coverage.
Most auto insurers will let you either pay in monthly increments or in full for the entire policy period, which is typically six months or a year. If you’re looking for the lowest possible payment to start your auto insurance coverage, the cheapest option will likely be to pay only your first month’s premium payment.
Even though you’ll have to put some money down to get car insurance, your initial payment doesn’t have to be astronomical. Read more to learn how to find cheap car insurance with a low initial payment.
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Just because a policy requires a payment upfront doesn’t necessarily mean you’re overpaying for your auto insurance coverage. Still, there are ways to make sure you are paying as little as possible in that first transaction.
Here’s how to lower your first car insurance payment.
Shop around. Your “deposit” will likely just be your first premium payment, so look for the lowest possible premium. The best way to do that is to compare car insurance quotes from at least three insurers. Not sure where to start? Take a look at NerdWallet’s list of the cheapest car insurance companies.
Ask about discounts. You may be surprised by the variety of discounts some insurers offer, so be sure to ask your insurer or agent for any discounts you might qualify for. You could get a lower price for making electronic payments, being a good student, insuring multiple vehicles or even driving a low amount of miles.
Only get the coverage you need. Look over your policy and drop any coverage you don’t really need. For example, if you drive an older car that’s not worth much, you likely don’t need comprehensive and collision coverage, which only cover your vehicle up to its current market value, minus your deductible.
Lower your deductible. If you have enough of a cushion in your emergency savings, you can choose a higher car insurance deductible. Although this would require you to pay more out-of-pocket before your insurance pays for a covered claim, your monthly premium would decrease.
Pay month-to-month. Most insurers give the option to pay for coverage in full or monthly installments. If you want to lower the initial cost for your coverage, pay month-to-month.
🤓Nerdy Tip
Keep in mind, paying for the full six or twelve months of coverage can end up being cheaper in the long run if your insurer offers a pay-in-full discount.
The initial payment for a car insurance policy can be as low as your monthly policy rate, and can vary based on the overall cost of your policy and the payment plan you agree upon with your insurer.
Below are the five cheapest large insurers for minimum coverage, according to NerdWallet’s August 2024 analysis, along with their median annual and monthly rates.
*USAA is only available to military, veterans and their families.
Below are the five cheapest large insurers for full coverage, according to NerdWallet’s August 2024 analysis, along with their median annual and monthly rates.
*USAA is only available to military, veterans and their families.
When you’re shopping for a policy with a very low monthly payment, keep in mind that it may offer very limited coverage.
The absolute cheapest policies will provide only the minimum-required coverage in your state, which typically only includes a limited amount of liability insurance. This pays for damage and injuries you may cause to others in an accident, up to your policy limits. But it won’t cover things like damage to your car or for your own injuries if you’re hit by an uninsured or underinsured driver. In most cases, your state’s minimum required limits are probably not enough to protect you financially in the event of a serious accident.
Before you buy the cheapest car insurance you can find, make sure you’re getting enough coverage to protect you financially. Unsure of what the different types of car insurance are? Use our tool below to learn about what each type pays for.
Source: nerdwallet.com
Jackie Menhennick will lead the Marquette office as the mortgage loan originator and operations manager. She brings over 30 years of experience in mortgage lending and management. The company said she would be tasked with assisting clients efficiently through the mortgage process. Motto Mortgage Express offers various loan options including Conventional, FHA, VA, USDA, and … [Read more…]
If you have military experience, a loan from the U.S. Department of Veterans Affairs could help you take a giant step toward becoming a homeowner. VA loans come with a number of benefits — notably, they require no down payment. But first, you need to understand the VA loan pros and cons to make sure it’s the right choice.
A VA loan is a federally guaranteed loan administered by the U.S. Department of Veterans Affairs. Even though the VA sets the basic eligibility requirements and guarantees the loan, borrowers actually apply to private lenders for these loans, after first obtaining a certificate of eligibility from the VA.
What is a VA loan? It’s a type of mortgage designed to help improve access to home ownership for veterans, service members, reserve members, National Guard members, and surviving spouses. It comes with several noteworthy characteristics that make it attractive for homebuyers, like having no down payment requirement and limited closing costs.
In order to get preapproved for a VA loan, you must get a Certificate of Eligibility that ensures you meet the service qualifications. Here are the basic requirements for each type of borrower:
• Veteran: Served at least 90 continuous days of active-duty service.
• National Guard: Served at least 90 days of active duty (there are additional eligibility options if you served before August 2, 1990).
• Reserve members: Served at least 90 days of active duty (there are additional eligibility options if you served before August 2, 1990).
• Spouses: You’re the surviving spouse of a veteran or the spouse of a veteran who is missing in action or being held as a prisoner of war.
Lenders also evaluate your VA loan approval and mortgage amount based on your credit score, income, debt, and assets. The VA does not impose a minimum credit score requirement, although many lenders require a credit score of at least 620.
Are VA home loans good? They do come with a number of benefits. A big one is that there’s no down payment required. As long as your debt-to-income ratio can handle the mortgage payments, you can borrow up to the full sales price of the home with a minimal amount of cash at closing.
Here is what to think about as you weigh VA home loan pros and cons:
• No down payment requirement: You don’t have to put down any cash on your home purchase. Conventional loans typically require at least 3% down for first-time homebuyers and FHA loans require 3.5% down for all borrowers.
• No mortgage insurance: Other mortgages require that you pay private mortgage insurance when your down payment is less than 20%. There is no comparable fee with a VA loan.
• Lower interest rate: Not only are VA loan interest rates usually lower than conventional loan rates, you can apply for a VA Interest Rate Reduction if rates drop after closing.
• Flexible credit requirements: Lenders usually require a minimum credit score of 620. But technically, there is no minimum set by the government.
• No use limits: You can get a VA loan multiple times throughout your life; in fact, there are no limits on how many times you can use one to buy a home.
In addition to these advantages, there are also some potential drawbacks of choosing a VA loan for your mortgage.
• Funding fee: This is a one-time fee that is paid either at closing or rolled into your mortgage balance. The fee varies depending on how many times you’ve used the VA loan and the size of your down payment. For instance, a first-time VA loan borrower with a 0% down payment would pay a 2.15% funding fee.
• Strict appraisal process: All mortgage lenders require an appraisal, but your appraiser must be VA-approved with this type of loan.
• Property eligibility requirements: The home inspection must also meet VA-specific requirements, which means you can’t finance a major fixer-upper. For instance, it needs a working HVAC system, no lead paint, and adequate roofing, among other criteria.
When comparing a VA loan vs. a conventional loan, there are some significant differences to consider.
A VA loan has no minimum down payment requirement, while a conventional loan requires at least 3% down for first-time homebuyers. In the first quarter of 2024, the median home sales price was about $420,000. With a conventional loan on that amount, a first-time homebuyer would need a down payment of at least $12,600.
Although there’s no agency-mandated minimum credit score for VA loans, most lenders set a minimum of 620 — the same you’ll typically find with a conventional mortgage.
Although you may be required to pay a one-time funding fee with a VA loan, there’s no ongoing mortgage insurance like you may have to pay with a conventional mortgage.
Private mortgage insurance (PMI) is required with a conventional loan if your down payment is less than 20%. You may have a one-time, upfront payment at closing, or your PMI may be split up between up-front and monthly premiums that are rolled into your mortgage payment.
VA loans pros and cons may matter more or less depending on your personal situation. Some examples of when a VA loan may be the best choice include:
• Buyers who don’t have cash for a down payment or want to preserve cash for other goals may want to go with a VA loan after they weigh VA home loan pros and cons.
• Buyers who can’t make a 20% down payment (who would have to pay for private mortgage insurance if they obtained a conventional mortgage loan) might find a VA loan especially appealing.
Questions? Call (844)-763-4466.
Even if you’re eligible for a VA loan, it still makes sense to look at other options. Three other common types of mortgages include FHA loans (backed by the Federal Housing Administration), conventional loans, and U.S. Department of Agriculture loans.
An FHA loan is another federally guaranteed mortgage with flexible credit requirements. To qualify for a minimum down payment of just 3.5%, you need at least a 580. But you can still qualify with a 500 credit score, as long as you pay at least 10% down.
With a lower down payment, you must pay a mortgage insurance premium. There is an upfront fee at closing, as well as a monthly fee. If your down payment is less than 10%, the fee stays on for the life of the loan unless you refinance to a new mortgage.
Some conventional mortgages allow for a down payment as low as 3% for first-time homebuyers, though others may require 5%. You must pay private mortgage insurance for down payments under 20%, but that fee usually drops off once you have 20% equity in your home. The credit requirements are usually a little higher with conventional loans.
A USDA loan is designed for individuals looking to buy a home in a rural area. You can explore eligible properties on the USDA website. However, you also need to meet certain income limits based on your county and family size in order to qualify for this 0% down payment mortgage.
Weigh VA loan pros and cons to make sure you choose the best mortgage for your personal financial situation. Among the things you’ll want to consider are your credit score and how much, if anything, you have saved for a down payment on a new home.
SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.
Our Mortgage Loan Officers are ready to guide you through the process step by step.
VA loans have more flexibility with application requirements compared to other types of loans, as long as you meet the military service requirements. There may also be additional restrictions on the type of home you buy, especially if you’re eying a fixer upper.
No, you may get a VA loan with no down payment, as long as your debt-to-income ratio suggests that you can make the monthly mortgage payments.
The VA itself does not require a minimum credit score but most lenders look for a minimum credit score of 620 for VA loans.
Photo credit: iStock/sommart
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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ÂąFHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
SOHL-Q324-005
Source: sofi.com
You’ve probably heard about the big NAR settlement that could completely change how real estate works going forward.
But if you haven’t, or are unsure of what’s changing, there are two new rules set to go into effect August 17th, 2024.
The first is that offers of compensation will be prohibited on Multiple Listing Services (MLSs).
In other words, listing agents won’t be able to say they’re offering 2% or 3% to the buyer’s agent on the MLS.
The logic is that this type of co-op commission leaves the buyer out of the conversation, which isn’t fair if the buyer ultimately pays for it.
While they may not pay it directly, a pre-determined commission might result in a higher sales price.
In addition, there’s also not much transparency about the fee, nor do consumers know such fees are negotiable.
Simply put, this move is intended to boost transparency and ideally lower fees for consumers by letting buyers negotiate with their agents separately.
But there might be some unintended consequences as a result, which I’ll get to in a moment.
The other major change is that buyers must sign a written agreement before they can tour a property. At that time, compensation will also be discussed.
Now about those unintended consequences I alluded to. While the standard commission might go down thanks to these new rules, from say 2.5% to 1.5% or even 1% on the buy-side, there’s still the question of who pays it.
As noted, the seller can continue to offer buyer agent compensation, it just can’t be included on the MLS.
So hypothetically this could be conveyed in other ways, such as on their own brokerage website listing, via phone call, text, etc. At least that is what some think for now.
That too could change if this evolves into a situation where co-op commission is completely banned and decoupled.
But as of now, many real estate agents assume they can still make offers of compensation via channels other than the MLS.
In theory, this means nothing might change in some transactions. For example, a seller could tell their listing agent to offer 2.5% to a buyer’s agent. And a buyer’s agent may ask for 2.5% from their buyer.
The logic here is that they want to move the property quickly, and being stingy could backfire.
If they only offer 1%, or offer nothing at all, a buyer’s agent may need to make up the shortfall with the home buyer.
At that point, the buyer may balk or simply be unable to come up with the out-of-pocket funds to pay it.
When all is said and done, the seller might lose a buyer and kick themselves for not just offering compensation and getting a decent sales price.
On the other side of the coin, a buyer might be OK with getting nothing from the seller and paying their agent themselves to sweeten their offer (assuming multiple bidders).
So there are a lot of scenarios here and still a lot of uncertainty about how this could evolve.
But some things I’ve seen thus far are a real estate sign that makes clear the seller will offer buyer agent compensation, buyers forgoing an agent and contacting the listing agent directly, and some even signing a form that says they won’t tour homes that don’t offer compensation to the buyer’s agent.
It’s going to be very interesting. And like I said, it’s still very fluid and there’s a lot we still don’t know.
Beginning August 17th, 2024, home buyers will have a few options to pay the buyer agent compensation.
They can maintain the status quo and hope the seller offers it, with the buyer’s agent fee coming out of the sales proceeds.
They can go direct to the listing agent and request a dual agency, where the listing agent represents both buyer and seller.
They can hire a real estate lawyer and have them guide them through the process for a flat fee, assuming such a setup is permitted.
Or they can foot the bill themselves by simply paying it out of pocket.
Some folks seem to think buyers are going to increasingly pay the buyer’s agent commission themselves.
While I don’t fully agree, given the fact that most Americans can barely scrape together their down payment and closing costs funds, it’ll likely happen more frequently.
And if and when it does, it could burden some home buyers, especially the aforementioned who don’t have deep pockets.
That brings us to the original question in this post. If they’re unable to pay cash, can real estate commissions be financed instead?
At the moment, real estate commissions can’t be rolled into the loan amount, aka financed.
This goes for all major loan types, including conforming loans backed by Fannie Mae and Freddie Mac, along with FHA loans and VA loans.
The same is true of USDA loans for that matter as well, as seen in the screenshot above.
However, it’s important to note that real estate commissions aren’t considered in the maximum interested party contribution (IPC) calculations.
So you can get the seller to pay your buyer’s agent and still get the full amount of seller concessions for other stuff like lender fees and third-party costs, including title insurance and home appraisal.
Both Fannie Mae and Freddie Mac issued letters to confirm that real estate agent commissions won’t count towards the IPC limits if they continue to be customarily paid by sellers.
And the VA released a circular because their regulations specify that a veteran cannot pay for real estate brokerage charges.
In light of the settlement, veterans will be permitted to pay it, assuming buyer-broker charges are not included in the loan amount. In addition, it won’t be considered a concession.
As for why real estate agent commissions can’t be financed, for one it never really came up since the seller would typically pay the buyer’s agent via sales proceeds.
This was essentially a non-issue prior to the landmark NAR settlement.
The other wrinkle is loan-to-value ratio (LTV) restrictions. If the borrower had to add an additional 2-3% of the purchase price in real estate agent commissions to their loan amount, they might no longer qualify.
This is especially true when putting down 0% to 3.5%, which is quite common these days. The homes simply won’t appraise and the max LTVs will be exceeded.
Could this change in the future? It’s possible but not necessarily probable for the issues mentioned above.
Now let’s talk about a potential solution if the seller won’t offer buyer agent compensation and you don’t have cash to pay it out of pocket.
One viable option could be the use of a lender credit, which technically can’t be used for real estate agent commissions.
However, if the lender credit were used for other costs, such as lender fees and third-party fees, it would free up cash to be used elsewhere.
For example, say you’ve got a $500,000 loan amount and the buyer’s agent wants you to pay them 1%.
A 1% lender credit frees up $5,000 in cash to pay those other costs, allowing a buyer to compensate their agent with the freed up cash.
It’s still very early goings and unclear if such an arrangement will be permitted. After all, co-op commission might be on the chopping block next. But it’s something to consider.
Ultimately, it will likely be best for most home sellers to continue to pay the buyer’s agent via the sales proceeds.
This should maximize the number of eligible buyers/bidders and not shut out first-time home buyers, who are most at risk due to limited funds.
The good news is these real estate agent fees could come down as a result, saving both buyers and sellers some money along the way.
Source: thetruthaboutmortgage.com
Finding a place to live in Utah without breaking the bank can be a challenge. But if you know where to look, there are cities that offer affordability without sacrificing quality of life. Below, we’ve listed a handful of the cheapest places to live in Utah, where you can enjoy comfortable living at a lower cost.
Let’s take a closer look at seven of the most affordable cities in Utah along with some of the largest employers and most popular frugal attractions in each area. Today’s the day to find your new place in one of Utah’s top budget-friendly towns.
Average rent: $1,262
Layton stands out as the most affordable city for renters on our list, with an average rent of $1,262. The city’s affordability shines through with a wide range of apartment options. Studio apartments in Layton average just $750, offering budget-conscious renters a great deal. Even two-bedroom apartments remain relatively low-cost compared to larger cities in Utah at $1,649.
When it comes to employment, Layton has options. Hill Air Force Base is the premier employer in the area, providing tons of job opportunities. For those seeking leisure, Layton’s parks, like Layton Commons Park, offer plenty of free outdoor space to enjoy. The Davis Arts Council also sponsors free concerts and events throughout the year, making it easy to stay entertained on a budget.
Apartments for rent in Layton | Houses for rent in Layton | Homes for sale in Layton
Average rent: $1,307
Millcreek is another affordable option for Utah renters, with an average rent of $1,307. The city has a variety of rental options, with one-bedroom apartments averaging just $1,060. Even larger, two-bedroom units are reasonable at $1,399.
Millcreek residents benefit from employment opportunities in the nearby Salt Lake City area, including major employers like Intermountain Healthcare. For a little fun under the sun, Millcreek provides convenient access to the Wasatch Mountain Range, where you can enjoy hiking and nature walks without spending a dime. Local parks like Canyon Rim Park also offer free spaces for family outings and sports.
Apartments for rent in Millcreek | Houses for rent in Millcreek | Homes for sale in Millcreek
Average rent: $1,364
Ogden offers a blend of affordability and scenic beauty, with an average rent of $1,364. This city is particularly attractive to those looking for one-bedroom apartments, which average $1,316 per month. Even two-bedroom units remain affordable at $1,579, slightly below the state median.
Job seekers in Ogden can find opportunities with large employers like the IRS and McKay-Dee Hospital. Ogden’s historic downtown is home to a variety of free attractions, like Ogden Union Station and the scenic Ogden River Parkway, perfect for a budget-friendly weekend.
Apartments for rent in Ogden | Houses for rent in Ogden | Homes for sale in Ogden
Average rent: $1,421
Orem, a neighbor of Provo, has an average rent of $1,421, making it another budget-friendly choice. The city’s rental market offers reasonable rates, with one-bedroom apartments averaging $1,389 and two-bedroom units at $1,574.
The city is home to Utah Valley University, a major employer in the area, providing jobs in education and administration. For low-cost entertainment, residents can visit the SCERA Center for the Arts, which hosts free or inexpensive community events. Orem also boasts several parks and trails, like Nielsen’s Grove Park, where you can enjoy nature without cracking open your wallet.
Apartments for rent in Orem | Houses for rent in Orem | Homes for sale in Orem
Average rent: $1,448
West Jordan’s average rent sits at $1,448. Studio apartments in West Jordan are particularly affordable, averaging $1,225. One-bedroom units are slightly higher at $1,366, but two-bedroom apartments are a bit more at $1,752.
Employment opportunities are abundant in West Jordan, with major employers like Holy Cross Hospital anchoring the economy. The city also provides locals with plenty of affordable attractions, like Conservation Garden Park, where you can learn about water-wise landscaping. Veterans Memorial Park is another popular spot, hosting free events and equipped with plenty of space for outdoor activities.
Apartments for rent in West Jordan | Houses for rent in West Jordan | Homes for sale in West Jordan
Average rent: $1,484
Provo has an appealing average rent of $1,484. Studio apartments in Provo are especially budget-friendly, averaging $1,095, while one-bedroom units go for about $1,476. Two-bedroom apartments, slightly pricier at $1,880, remain below the state’s average. Provo’s affordability is largely influenced by its student population, which keeps rental demand steady but competitive.
Brigham Young University is the heartbeat of Provo, providing not employment for many locals and solidifying the city’s reputation as one of the top Utah college towns. The city also supports free attractions, like the BYU Museum of Art and a handful of university-hosted events throughout the year. Outdoorsy types can check out nearby Provo Canyon, with pristine trails and waterfalls at no cost.
Apartments for rent in Provo | Houses for rent in Provo | Homes for sale in Provo
Average rent: $1,554
Saratoga Springs comes in just under the state median, with an average rent of $1,554. The city’ one-bedroom apartments average $1,361, while two-bedroom units are priced at $1,747.
The city is close to several tech hubs, making it an attractive place for professionals working in nearby Lehi or Draper. For fun, Saratoga Springs residents can enjoy the natural beauty of Utah Lake, with free access to its shores and parks. The area also offers affordable golfing at the TalonsCove Golf Club, where locals benefit from discounted rates.
Apartments for rent in Saratoga Springs | Houses for rent in Saratoga Springs | Homes for sale in Saratoga Springs
All cities must have over 50,000 residents per the US Census and have an average rent price under the median rent price for the state – which is $1,561 per month according to Redfin data. Average rental data from Rent.com July 2024.
Source: rent.com
With its thriving job market, world-famous live music scene, outdoor activities, and unique local cuisine, Austin has long been attracting new residents from outside state lines.
The Texas city has seen its population double every 20 to 25 years. In fact, recent city data shows that people moving to Austin from other parts of Texas and other states made up 45% of the growth recorded in the city’s metro area between July 1, 2022 and July 1, 2023.
And even though this has been a major contributor of growth to the Austin region, recent figures show slower growth in the last couple of years, with the influx of residents from pricier cities driving up the cost of living and making it less appealing for potential newcomers.
Nevertheless, we wanted to see what drives people to move to Austin. What in particular makes this Texas city so attractive — particularly to people from other states? And it turns out, there’s lots to love about living in Central Texas, and it’s not just affordability.
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Dillon Forte, a famous tattoo artist who has inked celebs like Usher, Kat Von D, and Chris Hemsworth, chose to move out of Los Angeles and built a tattoo ranch just outside of Austin.
“I was living and running my shop in Venice, California, when I realized I needed a significant change for my family and the tattoo business,” says Dillon, owner and tattoo artist at FORTE Tattoo.
“I think the buzz of living around Los Angeles wears off when you get past your 20s, especially if you don’t have to be there for whatever you do. A majority of my clientele comes from all over the country and even from around the world.”
Settling down in the Texas city brought a positive change in Dillon’s life, with both his family life and business thriving in Austin’s welcoming environment.
“The people of Texas are just incredible, and my family has really enjoyed the change of pace. But what’s truly exciting is how my business has thrived in this new environment. It really speaks to the potential and opportunities that Texas offers those who appreciate it. Did I mention the food out here is incredible?”
“I had visited Texas many times and fell in love with its energy and culture while also appreciating the land and landscapes surrounding it. A few years back, I initially had my shop in Austin and moved it to a large property in Wimberley, just outside the city,” Dillon Forte added.
“This move allowed me to live both a big-city and small-town lifestyle, which is nearly impossible in California.”
Despite the city’s cost of living going up — with many citing the influx of new residents as one of the key factors for the rising prices — Austin is still considerably more affordable than bigger, tech-heavy cities like San Francisco, Boston, or New York City.
Aaliyah Kissick, now a Personal Finance Expert/CEO at Financial Literacy Diaries, experienced that firsthand while living in Austin when her husband was completing his internship in tech.
“Because I was studying financial planning, I was thinking about our future. What stood out to me is the relatively low cost of living. Compared to the rest of Texas, Austin is not as low-cost, but compared to other metropolitan areas with a large tech community, living here is the best bet.”
Originally from Los Angeles, Wendy Rosenthal returned home after spending 10 years living abroad to find an unrecognizable city, one in which the cost of living had skyrocketed — making it difficult to keep up with costs. So she weighed her options:
“Half of my family hails from Texas, so I’ve been visiting its vibrant cities my entire life. In the winter of 2019, while spending time with family in Austin, I decided to casually check out the local housing market,” Wendy reminisced.
“To my absolute astonishment, I discovered that for what I was paying in rent for a 3-bedroom apartment in Los Angeles, I could afford a 3-bedroom house with a huge backyard and pool in Austin for $1,000 less! Intrigued, I delved deeper into the cost of living in Texas. From business expenses to gas, electricity, and even private school fees for my son, everything was significantly cheaper.”
“The perks didn’t end there,” says Wendy, a successful entrepreneur, author, and life coach who founded Pathfinder 1 to 1.
“The streets were wider, traffic was lighter, and nature surrounded me and lakes, creeks and nature trails were just a short, anxiety-free drive away. Plus, there was a palpable culture of healthy living; every day, you could see people of all ages out walking, running, and cycling. I felt inspired, not imprisoned.
Taylor Moore, an adult influencer and co-founder of Teasy Agency, says her recent move to Austin, TX, has been transformative, offering a fresh perspective on the unique benefits of this vibrant city.
“I moved to Austin from Los Angeles, California, because of its affordability, vibrant culture, and business-friendly environment,” Taylor tells us, before sharing that “Moving to Austin felt like hitting the refresh button on life. The city’s affordable cost of living and dynamic cultural scene created an irresistible blend of opportunity and excitement.”
“Austin is where Silicon Hills meets Southern hospitality, perfect for someone looking to balance a thriving career with a rich, fulfilling personal life,” Taylor Moore added when citing reasons why she loves living in Austin. “The bustling tech industry and burgeoning creative community provide endless opportunities for innovation and collaboration.“
She pointed out that not only is her business thriving, but her personal life is too, with the city making it easier for her to strike a balance.
“The lower taxes and friendly business environment made it an ideal place for Teasy Agency to grow and flourish. Leaving behind the concrete jungle of Los Angeles, I found in Austin a place where my professional ambitions and personal joys could coexist harmoniously.”
Reiterating Taylor’s point, Amy Jackson, Founder and CEO at TaleSplash says that moving to Austin inspired her to start her own business, encouraged by the city’s family-friendly yet highly entrepreneurial vibe.
“I moved to Austin at the end of 2020 after dealing with three consecutive summers of wildfire smoke, power outages, and the pandemic in Northern California,” Amy tells us. “We love how family-friendly and entrepreneurial Austin is. Moving here inspired me to start my own business.“
Another major draw for newcomers is the city’s diverse and inclusive community. “I moved to Austin because of its reputation as a diverse and inclusive city,” says Naomi Clarke, Head of HR at Flingster, who moved here from San Francisco, California.
“As someone deeply involved in community outreach and advocacy for LGBTQ+ rights, I wanted to be in an environment where diversity is celebrated and inclusion is a priority. Austin’s vibrant cultural scene, welcoming atmosphere, and progressive values made it the perfect place to continue my work and feel at home.”
A recent Texas transfer, Paden Sickles is a military veteran who launched her business, SickFit, a unique sock, streetwear, and custom embroidery company after a ruck march destroyed her feet.
“I recently moved to Texas from Savannah, GA, after transitioning from active-duty Army to civilian life. I’m still settling in, but having been stationed at Fort Cavazos (formerly Fort Hood) and living near Austin, I fell in love with the area and couldn’t wait to move back. I yearned for the culture. HEB is fantastic, but it’s really the culture, art, growth, like-minded people, and unique vibe that make it special.”
Paden Sickles also highlights the many benefits available to military veterans living here.
“I personally believe that Texas is the top choice as far as the best state for military veterans to live. And I say that because Texas just offers so many different things: you have the no-property tax for 100% disabled veterans, you have no state income tax, and then you have the Hazlewood Act for education as well. I may be a little biased, but for my research and what I’ve done, these factors contribute to Texas being a top choice for many veterans transitioning to civilian life.”
With a rich sense of history and a thriving entertainment scene, the downtown area is Austin’s beating heart. And newcomers like Rick Havacko, who handles Corporate Communications at Toshiba Business, quickly fell in love with this vibrant part of the city, going as far as calling it “one of the coolest places on the planet.”
“I moved to Austin in October 2021 from Orange County, California. I considered the move while working from home during the pandemic. When receiving approval from my employer to move, the choice was between Austin (where I had visited before and enjoyed) and Nashville, which I had heard such great things about. Upon traveling to both places in the summer of 2021, I decided to hang my hat in Austin. It almost came down to a coin flip though as both areas are so good featuring all the benefits of city life with a rural feel,” Rick said in an exclusive quote for Fancy Pants Homes.
“Beyond the obvious affordability v. California (though property taxes are much higher in Texas), the move has been one of my best decisions. Downtown Austin is one of the coolest places on the planet. It bustles with positive energy with live music at pretty much every turn & the University of Texas at Austin adds to that vibe. I would do it all over again. Happy to live in Central Texas.”
Carter Morgan, an international stand-up comedian who’s now busy performing at the Edinburgh Fringe Festival in Scotland, found a completely different reason to fall in love with Austin: the city’s burgeoning comedy scene.
“I travel outside of the US for months at a time doing mini-tours and comedy festivals, so keeping an empty apartment in NYC was getting expensive. I was looking for a new scene and one of my comedy buddies told me to check out Austin,” Carter tells us.
“I can’t lie, I was skeptical at first, but he wasn’t wrong: Texas has no state taxes, cheaper rent and an emerging comedy scene with clubs like the Creek and the Cave (which is run by a NYC expat), Cap City, The Velveeta Room, Fallout Theater, Comedy Mothership, and more. They even have major comedy festivals like Moontower and SXSW Comedy. All in all, the comedy is different and raw, and the scene isn’t as diverse as NY, but there’s still a lot for comedy lovers to like.”
Do you live in Austin? We’d love to hear what you love most about the city!
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Source: fancypantshomes.com
When you buy a house on or after Aug. 17, you’ll do things differently than before. Rules will change on that date, due to the settlement of an antitrust lawsuit.
Unlike before, you will decide how much your real estate agent will be paid for representing you when you buy a home. And your agent won’t be paid by the seller’s agent. Instead, you’ll probably ask the home’s seller to pay your agent — a request that will be subject to negotiation.
Here’s how the new process will work.
You’re browsing real estate websites and you’ve spotted a house that you want to visit so you can see inside — this is known as a home tour. Before a real estate agent escorts you inside, you will be required to sign an agreement that defines what the agent will do for you.
The agreement can outline a lightweight and short-term relationship with the agent or it can be a longer-term contract — whatever you negotiate.
On the lightweight end of the spectrum, you could sign a touring agreement that lasts a day or a week or gives you access to just one or two houses. Think of it as giving the agent an unpaid audition. “I give them options. Option one is we could just sign the agreement just for today,” says Danielle Rownin, real estate agent with Keller Williams Realty in Connecticut. If the agent and client aren’t a good fit, she adds, the agreement expires at midnight “and we’re free to move on.”
You’ll sign an agreement even if the agent gives you a virtual tour, which is typically done by walking around the house with a cell phone camera. But you won’t have to sign a touring agreement to visit an open house. Likewise, you won’t have to sign an agreement for the seller’s agent to give you a tour of the home, because that agent is working for the seller and not for you.
At some point, you’ll officially hire a buyer’s agent. You’ll sign a wordier and longer-term contract that not only describes the agent’s responsibilities, but also how much the agent will be paid. It might be called a buyer agency agreement, a buyer-broker agreement or a buyer representation agreement. These agreements aren’t new; in fact, they’ve been required in some states. But now they’ll be required just about everywhere.
This could be the first contract you sign; you don’t have to use touring agreements. Or you might build a rapport with an agent during a touring agreement and convert it into a buyer agency contract.
It’s still possible to buy a house without hiring your own agent to represent you, but it’s discouraged.
The contract will spell out how much you will pay the agent for representing you. “It could be a flat fee — small or large — or it could be a percentage of the purchase price,” says Leo Pareja, CEO of eXp Realty.
Real estate brokerages will experiment with flat fees and other pay structures such as hourly rates. But for now, most buyer’s agents will charge commissions that are a percentage of the home’s price. Experienced agents might request higher percentages, and newbie agents might ask for less. You’ll have to put on your negotiating shoes and push for a commission that works for you.
If a buyer’s agent requests a 3% commission, “You should definitely say, ‘That seems high to me. Would you be willing to lower that figure?’ That’s all you have to say,” says Stephen Brobeck, senior fellow for the Consumer Federation of America.
Some agents might respond with a lower commission. Others might hold firm, telling you that you get what you pay for. This unyielding approach might impress you if you believe it means they’ll advocate zealously for you. Just keep in mind that there are plenty of agents who will compete for your business, and some might charge less. You don’t have to sign a contract with the first agent you negotiate with.
Percentages are abstract numbers, so doing the math to calculate the cost of the commission in dollars can help you understand what you’re committing yourself to. Take a $400,000 home, for example. A 3% commission would amount to $12,000, while a 2.5% commission would cost $10,000.
The duration of the contract is another thing you’ll negotiate. The agent might want to lock you in for 90 days, explaining that we’re in a seller’s market and it might take a while to make a successful offer. However, Brobeck says 90 days is too long. “You should not accept anything more than 60, and you should ask for 30,” he says, explaining that you can renew the contract when it expires (if you’re satisfied with your agent).
Read the contract thoroughly and ask the agent to explain anything that’s unclear. If you still feel confused, seek a lawyer’s advice — it might be worth the price.
Watch out for fees on top of the commission, said Wendy Gilch, deputy director of Consumer Advocates In American Real Estate. “Admin fees, brokerage fees, transaction fees, regulatory compliance fees are junk fees and buyers should negotiate them out,” she said in an email. “They’ve become rampant, with some brokerages charging $800 to buyers on top of commission collected.”
The contract can specify the geographic area it applies to. It can be one address, one or more ZIP codes, a city, a county — whatever you negotiate. Gilch recommends against letting the agreement cover the whole state because that’s asking too much.
When you make an offer on a house, you can ask the seller to pay your agent in what is called a seller’s concession.
Having the seller pay your agent will be a relief if you’re already stressing about how you’re going to afford the earnest money deposit, the down payment and the closing costs. Your agent’s commission will be thousands of dollars, and many buyers don’t have that kind of money lying around.
“The seller has the ability to pay the buyer’s agent,” says Courtney Johnson Rose, president of the National Association of Real Estate Brokers, an industry group for Black agents. “That’s the seller’s prerogative.”
Here’s an example of how it can work: You offer $400,000 for the house on the condition that the seller pays your agent 2.5%, or $10,000. That means the seller nets $390,000 before paying the listing agent, taxes and closing costs.
You might find that the seller already has indicated a willingness to pay a concession of, say, up to 3% of the purchase price to pay the buyer’s agent or contribute to closing costs. In such a case, the seller won’t object to your request for money to pay your agent.
Even if the seller hasn’t signaled a willingness to pay your agent, you can still ask. It might be in the seller’s interest to pay. “Sellers who choose to offer said compensation will attract more buyers, get the best price and sell more quickly,” Rownin said in an email.
In a welcome change in policy, VA borrowers — home buyers with loans guaranteed by the Department of Veterans Affairs — will be allowed to pay their agents directly or via seller concession.
Finally, a word on the value of negotiating a lower commission with your agent. Look again at the example in which you offer $400,000 and ask the seller to pass along 2.5% of it, or $10,000, to your agent.
Now imagine a competing buyer who also offers $400,000 — but asks for 3%, or $12,000, to pay their agent.
Your offer lets the seller collect $2,000 more. The difference could tip the offer in your favor because you negotiated a better deal with your agent.
Source: nerdwallet.com