Month: May 2024

Apache is functioning normally

The AAA credit card portfolio requires a little history lesson.

After Bread Financial formally partnered with AAA in 2022, the companies launched two co-branded credit cards: the AAA Travel Advantage Visa Signature Credit Card and the AAA Daily Advantage Visa Signature Credit Card. Both are issued by Bread Financial, formerly Comenity Bank, and offer solid rewards rates, although earnings are capped.

A third co-branded card, the AAA Cashback credit card, is issued by U.S. Bank.

The Travel Advantage and Daily Advantage credit cards have similar features, but they differ from their Cashback cousin when it comes to eligibility requirements, rewards and sign-up bonus.

Here’s what you need to know about the three AAA credit cards to help you decide the best fit for your lifestyle.

1. There are 3 AAA credit cards

Before applying for one of the AAA credit cards, make sure you’re filling out an application for the card you really want. The three AAA credit cards have different rewards structures:

  • AAA Daily Advantage credit card.

  • AAA Travel Advantage credit card.

  • AAA Cashback credit card.

AAA Daily Advantage credit card

AAA Daily Advantage is billed as a card for everyday spending. And for many cardholders, the rewards categories do represent common spending categories. The Daily Advantage card earns:

  • 5% cash back at grocery stores.

  • 3% cash back on gas and EV charging, wholesale clubs, streaming services, pharmacy and AAA purchases.

  • 1% cash back on all other purchases.

There’s a $500 annual cash-back cap on rewards earned at grocery stores, wholesale clubs and gas stations combined. After hitting the cap, purchases in those categories earn 1% back for the rest of the year. A $500 rewards limit may seem high, but some families will easily exceed it. If you spend $10,000 annually at grocery stores alone, you’d hit the $500 cash-back cap.

AAA Travel Advantage credit card

As the name suggests, AAA Travel Advantage is a travel-centric card, and its rewards categories bear that out. The Travel Advantage card earns:

  • 5% cash back on gas and EV charging.

  • 3% cash back on travel, restaurants, grocery stores and AAA purchases.

  • 1% cash back on all other purchases.

Rewards earned on gas and EV charging are capped at $350 per calendar year. The rewards rate drops to 1% once you’ve hit the limit. Given the 5% rate, cardholders would need to spend $7,000 a year (or about $583.30 per month) on gas and EV charging to reach the $350 rewards cap.

AAA Cashback credit card

The rewards rates are less impressive on the AAA Cashback card compared to the other two cards; however, there’s no cap on rewards. This card earns:

  • 3% cash back at grocery stores, gas stations and dining.

  • 2% cash back on AAA memberships, travel and insurance.

  • 1% on everything else.

🤓Nerdy Tip

Bread Financial doesn’t allow consumers to have both the Daily Advantage and Travel Advantage cards.

2. You may need AAA membership to get one of the cards

AAA membership is required to get the AAA Cashback credit card. Pricing depends on where you live, but in general, a membership can cost from $38-$164 a year for one person.

However, you don’t have to be a member of AAA to apply for the Daily Advantage or the Travel Advantage credit cards.

3. Reward redemption options vary slightly by card

If you have the AAA Cashback Visa, rewards may be redeemed for the following:

  • AAA gift cards.

  • Merchandise.

  • Statement credit ($25 minimum to redeem).

  • Direct deposit ($25 minimum to redeem).

  • Gift cards. 

The redemption options for the Daily Advantage and Travel Advantage cards include everything listed above plus Apple products and AAA merchandise, services and travel. Cardholders must have at least $5 to redeem if they opt for cash back or a statement credit.

For all three AAA cards, rewards expire after five years.

4. Sign-up bonuses vary by card, too

Currently, the Travel Advantage and Daily Advantage credit cards have the same sign-up bonus: a $100 statement credit for new cardholders who spend $1,000 on their AAA Visa Signature card in the first 90 days of account opening.

As of this writing, the welcome offer for the AAA Cashback card is potentially more valuable, depending on your spending. Instead of the standard 2% rate, new AAA Cashback cardholders will earn 4% on AAA memberships, travel and insurance for the first six months, up to $6,000. Were you to hit the $6,000 spending cap, you’d get $240 cash back.

5. Fees are minimal 

For the Daily Advantage and Travel Advantage cards, the combination of a $0 annual fee and a fixed 5% rewards category is especially notable. Other credit cards that feature a 5% rate often come with an annual fee or require you to actively track and opt in to bonus categories that rotate every quarter.

Source: nerdwallet.com

Apache is functioning normally

GRAND FORKS – Customers who wander into Flippin’ Happy Home Decor & More, located in the former location of Picks on South Washington, are often a little surprised to see all the vivid colors, said Keera Sullivan, who owns and operates the store with her husband Duane Sullivan.

They may be expecting the sort of merchandise they’re used to seeing at Picks.

Picks, which closed in December, offered merchandise that leaned toward neutral colors, such as black, white and cream, and more subdued colors – more “farm-house-y” in style, Keera said.

But Flippin’ Happy Home Decor & More offers a menagerie of products that in no way shies away from intense, bright colors. They show up in all kinds of items, including restored or repurposed furniture, hand-painted greeting cards, paintings and other artwork, pottery, candles, embroidered jean jackets, photographs, soap, stuffed animals and toys, jewelry and, of course, all manner of home decor.

In recent weeks, Keera Sullivan has noticed that customers come into the store and “they’ve realized it changed – but they’re not disappointed,” she said. “They say, this is really fun.”

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That’s exactly what she is aiming for.

“We try to make it more of a fun experience for customers,” she said.

Color is certainly a distinguishing factor in the store’s merchandise.

For example, Sullivan, who specializes in refurbishing vintage furniture, is working on a hot pink – “and I mean, really hot pink” – hutch, she said. It will be trimmed with gold accents. She plans to install a chandelier to further enhance the one-of-a-kind piece.

And the Sullivans have found that these bright-colored items appeal to customers of all ages, they said.

Since January, in the first few store openings, “we’ve had nothing but good feedback,” Keera Sullivan said. “People comment on how clean it is, how bright it is, and the variety (of merchandise).”

‘Good business decision’

The popular Picks store sold vintage, houseware, repurposed and home decor items – kind of a cross between thrift store and estate sale, the owner Kelley Palmiscno told the Herald last year.

For the Flippin’ Happy Home Decor & More store, the move – after three years at 418 N. Washington – to 1224 S. Washington in late January has been a good business decision, Keera Sullivan said.

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“Picks closing created a void in the community,” she said. “A lot of people enjoyed shopping there.” Some of the Picks vendors have joined the Sullivans’ business.

The South Washington location offered the couple about three times more space and a tried-and-true spot where customers were accustomed to finding locally-sourced, vintage and repurposed items.

“It’s a big popular space, and a busier location,” Keera Sullivan said. “Since moving, we almost tripled our sales in the first couple of months.”

In addition, she said, “Local shopping has been on the rise,” she said. “A lot of people want to support local makers.”

During the last weekend in February, the nice weather “sparked a fire in people,” Duane Sullivan said, with his wife adding, “There were so many people here, I was overwhelmed.”

The store, which features hand-made, upcycled, repurposed products, “is pretty special,” she said. “I think we’re only going to go up from here. Each week has been better than the last.”

The store is open on an intermittent basis – Wednesdays to Sundays – two or three times a month. This month, the dates are March 6-10 and 20-24. For more information, go to

www.flippinhappyhomedecor.com

or call (612) 581-2279.

Vendors like family

The Sullivans know their vendors well; they started out in December 2020 with eight vendors at their North Washington location and have grown to about 30, Keera Sullivan said.

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As part of their contract, the vendors work at the store, meeting customers, explaining their process and products, and handling sales, she said. “We like to have that face-to-face contact” between artist and customer.

“We like to put that personalization behind it,” Sullivan said, noting that customers seem to enjoy interacting with and getting to know vendors.

“People will ask, do you ever paint furniture in red? Or, do you do this in blue?” she said. “So vendors find out what customers want and what else they could be making.”

She and her husband share information about the artist and the products, if the vendor does not happen to be in the store.

One vendor, Chrissie Fisher of Grand Forks, makes crocheted stuffed animals.

“She puts so much detail” in each of her items, Sullivan said. “And, she makes sure her creations are kid-safe. … (One of my daughters) likes to eat eyes off them – and, with these, she can’t.”

The store contracts with vendors who wish to have a designated booth in the store, and with general vendors whose products are intermingled with others in a different space. The store receives a commission on each item sold. The booths are all full, but the Sullivans are always looking for vendors whose products do not duplicate items already in the store.

“We’re always looking for new and creative talent,” Sullivan said.

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But the creative people who are connected with Flippin’ Happy Home Decor & More are not just business associates, said Kristen Peterson, of Grand Forks, one of the first vendors to join the store.

“Keera has done something remarkable with this business, in bringing together the artists and vendors and also growing it to the point where it (became) necessary to move to another location to support its growth.”

Speaking for vendors, Peterson said, “She has given us a place to sell our artwork and crafts and merchandise. She also created a team that has grown to be a family. …

“We have gotten to know each other’s children and spouses,” she said. “There is a very supportive nature about the women who are vendors … If one is sick or having health problems, we try to rally and send our support or provide ears to listen.

“If someone needs advice on a project or is looking for materials or help, we are there to offer whatever is needed.”

Along with another vendor who has also been with the business since the beginning, Peterson said, “For us, it feels like a home.”

Peterson also emphasized how important it is to have a place for vendors to show and sell their products.

“There is only one major craft show in the area per year,” she said. “And I know that I, as an artist, have struggled to find venues and galleries in Grand Forks that are willing to show my work. I have a great relationship with Artwise Gallery here in town, but otherwise, it has not been easy. Keera has brought us together and given us a place where we can show our work and be ourselves. That really means a lot to us.”

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And from Sullivan’s perspective, she said, “we are pretty proud of these vendors. We actually couldn’t do this without (them). It’s really a team effort.”

Source: grandforksherald.com

Apache is functioning normally

One of the notions surrounding the Treasury auction cycle is that the bond trading community tends to build in a “concession” ahead of any given auction.  That’s a fancy word to say “rates go higher.”  Clearly, if that was always the case, speculators could reliably bet on it and, over time, it would get back to being less of a certainty.  Nonetheless, it is still a fairly reliable occurrence to see some selling ahead of an auction, albeit without predictable timing or magnitude.  The practical reason for this is that traders will buy $42bln in 10yr notes this afternoon, and that’s $42bln less in buying demand available before the auction.  Lower demand = lower prices = higher yields.  

All of the above assumes we’re talking about a level of movement that actually matters, and today’s movement really doesn’t.  So far, today’s narrow range is fully contained by yesterday’s range (i.e. today is an “inside day”). Moreover, it’s a very small uptick in yields that follows 5 straight days of gains.  This is one of those rare times that the future actually becomes less and less random. The more consecutive trading sessions bonds string together in the same direction, the more likely it becomes to see at least some sort of a push back in the other direction–even if only small and temporary.  

Source: mortgagenewsdaily.com

Apache is functioning normally

SEATTLE — Mortgage rates, now hitting 7%, are putting heavy pressure on potential homebuyers.

According to Bankrate Analyst Alex Gailey, it may be time to rent rather than buy. 

“A housing shortage, rising home prices, and high mortgage rates are tipping the housing market in favor of renting, at least in the short term, all across the country,” said Gailey.

A new Bankrate study reveals the Seattle metro area ranks third in the nation as the least affordable area to buy versus rent. Only Silicon Valley and the Bay Area are more expensive.

“You see home prices really high in Seattle, well above the national median sale price. In Seattle, the median sale price of a home is roughly around $800,000. That compares to the national median sale price, which is closer to $400,000. And so, that really makes a huge difference in the monthly mortgage payment you’re making,” said Gailey.

The Seattle-Tacoma-Bellevue area has the third-largest gap between renting and buying costs, with the average rent in the area at nearly $2,200 a month, while the typical mortgage payment is over $4,900. That’s a buy-to-rent ratio of 125%.

Gailey’s advice: If you want to buy right now you should make sure you’re in it for the long haul. 

“Time in the housing market is more important than trying to time the housing market,” said Gailey.

While affordability is one of the main obstacles for aspiring homeowners, if you can afford it, then buying is a smart financial choice in the long term.

In Washington state, on average, you need a combined income of $150,000 annually to afford to buy, and more than half of aspiring homeowners say they can’t get there.

Rental rates in the area are high as well but more comparable to the national average. The average rental unit prices at $2,200, compared to a national average of about $1,950.

©2024 Cox Media Group

Source: kiro7.com

Apache is functioning normally

In March, we explored the difference between Home Equity Conversion Mortgage (HECM) “expected rates” and “note rates” and why most reverse mortgages depend on these two interest rates. In April, we specifically focused on expected rates. We showed that when expected rates increase and round up to the next 1/8% (0.125%), the principal available to a prospect is typically reduced by an average of 0.6% (of the home’s value).

In the month since my last rate update was published, expected rates increased 39 basis points (0.39%), which rounds to 3/8%, or 3 principal limit cuts. Sadly, these higher expected rates have reduced the initial funds available for new HECM applicants.

But could there be a silver lining to higher rates? Maybe. When short-term rates increase, existing HECM clients will see their borrowing capacity increase at a faster rate. This brings us to the second rate, the note rate.

What about note rates?

Interest charges simply accrue. If payments are not made, then the loan balance will rise.

Therefore, it’s understandable why rising rates might cause concern for many borrowers. However, rate increases from month-to-month don’t impact the principal and interest payments of a reverse mortgage; those required monthly payments went away when the reverse mortgage was funded.

So, what is the benefit of higher note rates?

Homeowners with sizeable loan balances generally want interest rates to go down, but borrowers who are willing and able to wait to draw funds will benefit from higher rates. This is because the unused principal of a HECM adjustable-rate mortgage (ARM) will grow at the same rate that is applied to the loan balance.

For example, a HECM loan balance accruing interest at 7.50% (+0.50% in MIP) would have a line of credit (LOC) growing at an annual rate of 8%, compounding monthly at 1/12th of that rate.

The same is true of any unused proceeds like a Life Expectancy Set-Asides (LESA). In fact, repair set-asides and funds allocated for tenure and term payments will grow in the borrower’s favor as well, providing greater borrowing power in the future.

Example

Consider 62-year-old “Harry Homeowner” who has no existing mortgage. Harry wishes to utilize the HECM ARM line of credit and its growth for future cash flow needs. Harry establishes an initial line of credit of $200,000. The LOC and its growth can be modeled (below) to demonstrate the power of compounded growth at various rates.

  • With a note rate of 5%, the LOC after 15 years would grow to $455,517.
  • With a note rate of 9%, the LOC after 15 years would grow to $826,919.

May 2024 update

The 10-year CMT weekly average (used for calculating expected rates) increased 39 bps over the last month. However, the trend is lower after last week’s jobs report.

The current weekly average 4.61% is added to the lender margin and in effect for loans originated May 7 through May 13. The spread between the average 10 year and 1-year CMT has narrowed as shown here:

This column does not necessarily reflect the opinion of Reverse Mortgage Daily and its owners.

To contact the author of this story: Dan Hultquist at [email protected]

To contact the editor responsible for this story: Chris Clow at [email protected]

Source: housingwire.com