Month: May 2024

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‘It’s not my motivation to always do something timeless,’ Kristina Crestin told me in our interview this week.

In a design landscape where we’re constantly discussing how to make interiors more ‘timeless’ or ‘anti-trend,’ it seems like a shocking revelation. The statement is especially surprising, coming from Crestin, a champion of the ‘classic’ modern farmhouse style in her HGTV series Farmhouse Fixer. Actually, her reasoning is quite freeing.

‘I get a lot of feedback from homeowners that have gone safer and more timeless with some things, but they just don’t love it as much as the places they took risks,’ Crestin explained on the home decor idea. Rather than guiding your interior design based on arbitrary ideas of what’s ‘outdated,’ Kristina recommends choosing an interior scheme based on personal taste.

Kristina Crestin with her co-host Jonathan Knight, former member of the boyband New Kids on the Block

(Image credit: HGTV)

When one is guided by personal taste, it’s easy to be drawn to current interior design trends. Crestin doesn’t necessarily think this is a bad thing. Instead, choosing where to integrate interior design trends you love requires reconfiguring where and how to spend budget. She used the analogy of buying a new wardrobe.

timeless interior design and focusing on the joy of the process. Crestin told Homes & Gardens: ‘I think people get trapped with the idea that they’re doing this once, they’re spending the money once and then they’re not going to change it for 15 years. Well, you wouldn’t address your wardrobe that way. Knowing that over time you might need to supplement some things takes the pressure off of feeling like it’s one and done. It’s more of a psychological thing.’

Shop the Modern Farmhouse Edit

The modern farmhouse style, often seen on Farmhouse Fixer, perfectly strikes the balance of incorporating trendy elements, but also remaining true to timeless materials and high-quality design.

Sherpa Shams

Wheel Chandelier

Marble Coffee Table

Whether you prefer following interior design trends or opting for more classic interior design, Crestin’s ideas are helpful reminder that it’s always okay to decorate to the tune of your own drummer. If you hate it, you can always change it later.

Source: homesandgardens.com

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A charge card is like a credit card, but instead of allowing you to carry a balance from month to month, you’re required to pay off the full balance every month. It’s a way to make purchases without using cash upfront, but you have to be careful to only spend what you can afford to pay off each month.

Many people incorrectly use the terms “charge card” and “credit card” as if they mean the same thing. While these types of cards have some similarities, they’re not the same. Charge cards are similar to credit cards because you can use them to make everyday purchases. However, rather than only paying the minimum balance each month, cardholders are expected to pay the entire balance in full.

Before you consider applying for a charge card, it’s important to understand how it works and the advantages of having this type of card. Keep reading to learn more.

What Is a Charge Card and How Does It Work?

A charge card is a type of card you can use to make both online and in-store purchases. Unlike credit cards, charge cards require cardholders to pay the entire balance at the end of their billing period.

Many charge cards come with various perks and rewards, such as reward miles or cash back. In most cases, you must have good or even excellent credit to qualify for a charge card.

Charge Cards vs. Credit Cards

While many people think credit cards and charge cards are the same thing, there are some stark differences between them.

Minimum Payment

Credit card companies require cardholders to pay at least the minimum balance each billing cycle. This could be a preset fixed amount or based on a percentage of the overall amount due. This feature allows cardholders to make purchases now and pay for them over several months. Failure to make minimum payments each month could result in late payment fees and other penalties.

Alternatively, charge cards have no minimum balance requirements. Instead, cardholders must pay their entire balance at the end of the billing cycle. Failure to make these payments could result in extra fees, or the credit card company could suspend or close the account.

Some charge cards offer alternative payment options for cardholders. For example, American Express gives cardholders the option to use its Pay Over Time feature, which allows them to pay the balance of certain purchases over a set period of time.

Spending Limits

When you apply for a credit card, you get a set spending limit you can’t exceed without facing possible penalties. Charge cards, on the other hand, have no set spending limit. Instead, approval for purchases is based on your specific income, payment history, and credit report.

APR Rates

APR rates are based on your credit history and credit score. When you have a credit card, your specific APR rate is disclosed upon approval and displayed on your monthly statements. Interest, based on your APR, is charged on any outstanding balance at the end of the cycle.

Interest rates don’t apply to charge cards. Since you’re required to pay the balance in full each month, you’ll never have an outstanding balance to generate interest. However, if you fail to pay your balance, you could face late payment fees and other penalties.

Pros and Cons of Charge Cards

Before you apply for a charge card, it’s important to understand the advantages and disadvantages that come with this type of card.

Pros

There are several benefits of getting a charge card, such as:

  • Having no spending limit can allow you to make larger purchases without worrying about going over your limit.
  • Since you must pay your balance off each month, you won’t face high APRs.
  • Many charge cards come with substantial rewards, benefits, and perks.

Cons

While the benefits are great, you also need to consider the disadvantages of getting a charge card, including:

  • Charge cards often come with hefty annual fees. Be sure to read the fine print before applying for a charge card.
  • Typically, you must have good or excellent credit to qualify for a charge card.
  • You must be able to pay the entire charge card bill each month or face late fees and other penalties.

How Do Charge Cards Impact Your Credit Score?

Another thing you need to consider when getting a charge card is how it will impact your credit score. Lenders offering charge cards typically report all payments to the three major credit bureaus: TransUnion, Experian, and Equifax. Since your payment history accounts for up to 35% of your overall FICO credit score, making on-time payments each month can significantly impact your credit.

When it comes to your credit utilization, which accounts for up to 30% of your overall FICO credit score, having a charge card won’t make a difference. Since there’s no spending limit, most credit scoring models don’t consider charge cards when calculating credit utilization.

On the one hand, a charge card doesn’t give you available credit to use toward boosting your credit utilization ratio. On the other hand, you can make large purchases on your charge card without worrying about it having a negative impact on this ratio.

When to Get a Charge Card

You might have a limited choice of charge cards. However, options are available, such as the Platinum Card® from American Express and the American Express® Gold Card. Be sure to compare your choices and always read the fine print before applying for any type of credit.

You may need to have good or even excellent credit. If your credit score isn’t strong enough right now, you can take steps to improve your credit. Once your credit score reaches the “good” range, you can try applying for a charge card.

Find out your credit score with Credit.com’s Free Credit Score feature. If you want to take look at 28 of your scores and have more tools to manage your credit, the ExtraCredit® subscription is a great option for you.

Source: credit.com

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Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.

A 1099-c cancellation of debt form is issued when a lender forgives or cancels a debt. The 1099 c form helps the IRS account for canceled debts from the previous tax year.

The 1099-C cancellation of debt form deals with canceled or forgiven debt from the previous tax year. This form exists to ensure accuracy when reporting taxes and to help filers determine if they owe debt forgiveness taxes.

Cancellation of debt happens when a creditor discharges or forgives a debt you haven’t paid off. The IRS notes that cancellation can occur when the creditor gives up on collecting because it’s exhausted its resources and is unable to collect. In some cases, cancellation can come about as an agreement between you and the creditor. 

Here, we’ll answer several common questions about this form and explain how canceled debt relates to taxes. 

Key Takeaways: 

  • The IRS requires 1099-C forms because forgiven debt contributes to your gross income.
  • Receiving and filing a 1099-C form won’t affect your credit score positively or negatively.
  • Certain forgiven debts, such as mortgage forgiveness, are exempt from 1099-C requirements.

What Is a 1099-C Form?

Form 1099-C is a tax form required by the IRS in certain situations where your debts have been forgiven or canceled. Forgiven debt contributes to your gross income for the given tax year. The IRS requests 1099-C forms to account for those funds and debt forgiveness tax if need be.

If you received a 1099-C form in the mail, it’s because of a debt cancellation that occurred at some point during the previous tax year. Box 6 on the document contains a code to help you determine why you received the form.

Reasons why a cancellation might occur include:

  • A creditor stops trying to claim a debt.
  • Your mortgage is modified.
  • A property is foreclosed or repossessed. 

You can also learn more about the 1099-C cancellation of debt processes and why you might receive such a form if you’re unsure whether yours is accurate.

Is a 1099-C Form Good or Bad for Your Credit?

The 1099-C form shouldn’t have any impact on your credit. However, the activity that led to the 1099-C probably does impact your credit. Typically, by the time a creditor forgives a debt, you’ve engaged in at least one of the following activities:

  • Failed to make payments for an extended period of time
  • Negotiated a settlement on the debt
  • Entered into a program with the creditor because you can’t pay the debt, such as a home short sale or voluntary repossession
  • Been sent to collections
  • Had a foreclosure or repossession
  • Gone through bankruptcy

All those are negative items that can impact your credit report and score for years. So, while getting a 1099-C itself doesn’t change your credit at all, you’ve probably already experienced a negative hit to your score.

What Should You Do with a 1099-C Form?

First, find out whether the type of debt cancellation on the 1099-C form is excluded from taxable income. The IRS provides a list of exclusions; if your debt is included on this list, you won’t have to worry about the 1099-C form.

Some of the items on this list include:

  • Canceled amounts that were gifts or inheritances
  • Certain student loans and student loan discharges
  • Qualifying purchase price reductions

If you ultimately need to claim the income, you must incorporate the 1099-C into your federal tax filing and report the canceled debt as “other income”.  Forgiven debt can increase your gross income for that tax year, which might reduce your refund or increase the taxes you owe. 

In cases where the 1099-C canceled debt falls under an IRS exclusion—which means you don’t have to pay taxes on all or some of the income—you still may need to file a form. The creditor that sent you the 1099-C also sent a copy to the IRS. 

Some types of debt cancellation on the 1099-C form are excluded from taxable income. The IRS provides a list of exclusions, which include debts that were forgiven because you were insolvent or involved in certain types of bankruptcies. You may want to double-check with your bankruptcy lawyer about whether you need to claim 1099-C income relevant to your bankruptcy discharge.

Call out box “Pro Tip:” link

If you don’t acknowledge the form and income on your tax filing, it could result in a tax audit. Luckily, the IRS provides a form for this purpose. It’s Form 982, the Reduction of Tax Attributes Due to Discharge of Indebtedness.

Who Can File a 1099-C Form?

According to the IRS, you can file a 1099-C form if you’ve forgiven or canceled at least $600 in debt for an individual or entity in the previous tax year. You must also be an applicable financial entity, such as a bank or credit union. 

For example, you don’t need to file a 1099-C form if you loaned your brother $1,000 and then told him on his birthday you’ve decided he doesn’t have to pay you back.

How to File a 1099-C Form

How you include your 1099-C depends on how you already file your taxes. Online tax filing programs include options for adding the 1099-C form when you file. Typically, you do this when entering various types of income.

You may need to file form 982 if you have exclusions to ensure you don’t pay more than you need to. You can work with a tax professional or use software to file taxes yourself. Both options can help you minimize mistakes and maximize your refund.

How to Read a 1099-C Form

Knowing how to read your 1099-C may help you understand why you got one and what you have to do with it. Here’s a breakdown of what each box means:

Codepen Link for 1099-C instructions

Codes that might be included in Box 6 on the 1099-C:

  • A. Bankruptcy Title 11
  • B. Other judicial debt relief
  • C. Statute of limitations or expiration of deficiency period
  • D. Foreclosure election
  • E, Debt relief from probate or similar proceeding
  • F. By agreement
  • G. Decision or policy to discontinue collection
  • H. Other actual discharge before identifiable event

What Is the Mortgage Forgiveness Debt Relief Act?

The Mortgage Forgiveness Debt Relief Act of 2007 generally excludes all forgiven debt on the mortgage of your primary residence. That means you may not have to include canceled debt on your mortgage as part of your income on your taxes. 

For example, if your debt is reduced through a restructuring of your mortgage or in connection with a foreclosure, it may be excluded. This is one of the most common exclusions, but there are a few other situations where you don’t have to include canceled debt.

1099-C Cancellation of Debt FAQ

Receiving a 1099-C form is a rare occurrence, which is why people often have so many questions about it. Here are several frequently asked questions we’ve encountered about this rare tax document.

What If You Receive a 1099-C Form on an Old Debt?

There aren’t statutes of limitations on the cancellation of debt, though the IRS does have rules about when these forms should be filed. The creditor must file a 1099-C the year following the calendar year when a qualifying event occurs. That just means the creditor must file the next year if they discharge or forgive a debt.

If the creditor files a 1099-C with the IRS, it typically must provide you with a copy by January 31 so you have it for tax filing purposes that year. This is similar to the rule for W-2s from employers and other tax forms.

However, there’s no rule for how long a creditor can carry debt on its books before it decides it’s uncollectible. So, if your debt isn’t canceled via repossession, bankruptcy or other such processes, cancellation could happen at any time. The creditor doesn’t have to tell you about it other than sending the 1099-C.

What If You Don’t Get Your 1099-C?

You may not receive a 1099-C or might receive it after you already filed your taxes. If you receive the form after you file, you should file an amended return. That’s true even if the 1099-C doesn’t change your tax obligation, as you want to get a Form 982 detailing the reasons for exclusion on record for documentation purposes. If you don’t receive a form at all, it may mean the creditor didn’t send one and you don’t have to file.

What If You Have a Canceled Debt That Is Less Than $600?

Canceled debt less than $600 still needs to be reported as income on your taxes, though you may not receive a 1099-C for it. Working with tax professionals may be a good idea if it’s unclear which form you should use and what income you need to claim.

What If You Misplaced Your 1099-C?

You should be able to contact the associated creditor for a copy of your 1099-C form if you lose it. If you can’t reach them or retrieve a copy, you may have to call the IRS to resolve the issue. 

What If Your 1099-C Form Is Incorrect?  

If your form is incorrect, you should contact the creditor to send a corrected version. If the creditor doesn’t send it before the tax deadline so you can file with the correct information, you’ll need to file an amended return when you receive it.

Though receiving a 1099-C doesn’t hurt your credit, the canceled debt that led to it probably will. It’s best to find other solutions to debt than delinquency or cancellation. You may be able to negotiate, refinance, or restructure your debt to make it more manageable.

Can a Creditor Still Collect After Issuing a 1099-C?

Yes, a creditor can still try to collect the debt a person owes even after a 1099-C has been issued. Even if a lender issues a 1099-C form, they can still choose to pursue delinquent funds if they simply want to collect the money you owe.

If you find yourself in this situation, reach out to your creditor as soon as possible and try to negotiate a new agreement.

What to Do If You Received a 1099-C Form after Filing Your Taxes

If you don’t know a 1099-C form is coming, you could make a mistake on your tax return by filing too early. If you receive the form after you file, you should file an amended return. That’s true even if the 1099-C doesn’t change your tax obligation, as you’ll want to get the Form 982 on record for documentation purposes. 

The IRS also allows amended tax returns to be e-filed, making it even easier to quickly file an amendment. However, you can only amend 2020, 2021, and 2022 returns in this manner.

Enrich Your Personal Finance Knowledge with Credit.com

Learning more about taxes and financial matters is easier than ever. You can always consult Credit.com’s expansive personal finance guide to learn more about topics like unpaid taxes, credit reports, and debt-to-income ratios.

Receiving and filing a form 1099-C shouldn’t affect your credit, so you check your credit report if you notice any strange fluctuations in your score. Use Credit.com’s ExtraCredit® subscription for a full view of your credit profile—you can even get started with a free seven-day trial.

Your seven-day trial will begin after agreeing to these terms and submitting your ExtraCredit® sign-up. After your trial period, your subscription will automatically continue on the same day every month as the day you started your trial membership. The free trial is available for new ExtraCredit customers only. The credit card you provided will be charged $24.99 (plus any applicable tax) on the next business day and monthly; after your trial period unless you cancel. You may cancel at any time by downgrading your service level in your settings or by contacting us at [email protected]. Dishonored payments will result in an automatic downgrade to the free credit.com product.

Source: credit.com

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Historically speaking, mortgage rates have remained relatively low since the Great Recession, with some fluctuation at times due to market conditions. As a result, a generation of homebuyers has become accustomed to a low 30-year fixed-rate mortgage.

But with mortgage rates on the rise, it can put a sour taste in the mouths of people trying to join the ranks of homeowners in the country. They may be thinking that they missed an opportunity to buy a home. However, it’s important to look at the history of mortgages and mortgage rates to put the current conditions into context.

The History of Mortgage Rates

The modern history of mortgage lending in the U.S. began in the 1930s with the creation of the Federal Housing Administration. From the 1930s through the 1960s, a combination of government policy and demographic changes made owning a home a normal part of American life. During this time, the 30-year fixed-rate mortgage became the standard for home mortgage loans.

When discussing the fluctuation of mortgage rate trends, analysts usually refer to the average 30-year fixed-rate mortgage. Here’s a look at the trend of these mortgage rates since the 1970s.

The 1970s

Throughout the 1970s, mortgage rates rose steadily, moving from the 7% range into the 13% range. This uptick in rates was due, in part, to the Arab oil embargo, which significantly reduced the oil supply and sent the U.S. into a recession with high inflation — known as stagflation.

As a result, Federal Reserve Chairman Paul Volcker made a bold change in monetary policy by the end of the decade, raising the federal funds rate to combat inflation. Though the Federal Reserve doesn’t directly set mortgage rates, its monetary policy decisions can still impact many financial products, including mortgages.

The 1980s

The average 30-year fixed-rate mortgage hit an all-time high in October 1981 when the rates reached 18.63%. The Federal Reserve’s tight monetary policy affected this high borrowing cost and put the economy into a recession. However, inflation was under control by the end of the 1980s, and the economy recovered; mortgage rates moved down to around 10%.

The 1990s and 2000s

Mortgage rates continued a downward trend throughout the 1990s, ending the decade at around 8%. At the same time, the homeownership rate in the U.S. increased, rising from 63.9% in 1994 to 67.1% in early 2000.

Several factors led to a housing crash in the latter part of the 2000s, including a rise in subprime mortgages and risky mortgage-backed securities.

The housing crash led to the Great Recession. To boost the economy, the Federal Reserve cut interest rates to make borrowing money cheaper. Mortgage rates dropped from just below 7% in 2007 to below 5% in 2009.

Recommended: ​​US Recession History: Reviewing Past Market Contractions

The 2010s

Mortgage rates steadily decreased throughout most of the 2010s, staying below 5% for the most part. The Federal Reserve enacted a zero-interest-rate policy and a quantitative easing program to prop up the economy during this time following the Great Recession. This helped keep mortgage rates historically low.

The 2020s

The Federal Reserve reduced the federal funds rate to near-zero levels in March 2020, causing a drop in rates of various financial products. The effects of the fallout from the Covid-19 pandemic pushed mortgage rates below previous historic lows. The average 30-year fixed-rate mortgage hit 2.77% in August 2021.

However, with inflation reaching levels not experienced since the early 1980s, the Federal Reserve reversed course. The central bank started to tighten monetary policy in late 2021 and early 2022, which led to a rapid increase in mortgage rates. In May 2022, the average mortgage rate was above 5%. While this was below historical trends, it was the highest rate since 2018. From there, the 30-year fixed rate mortgage crept upward, reaching a high of 7.79% in October 2023 before declining to 7.1% in April 2024.

Recommended: How Inflation Affects Mortgage Interest Rates

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Why Do Mortgage Rates Change?

As we can see from looking at interest rate fluctuations, major economic events can significantly impact mortgage rates both in the short and long term. As noted above, this has to do primarily with the Federal Reserve.

Federal Reserve actions influence nearly all interest rates, including mortgages through the prime rate, long-term treasury yields, and mortgage-backed securities. The Federal Reserve sets the federal funds benchmark rate, the overnight rate at which banks lend money to each other.

This rate impacts the prime rate, which is the rate banks use to lend money to borrowers with good credit. Most adjustable short-term rate loans and mortgages use the prime rate to set the base interest rates they can offer to borrowers. So, after the Federal Reserve raises or lowers rates, adjustable short-term mortgage loan rates are likely to follow suit.

Longer-term mortgage rates have also risen and fallen alongside economic and political events with movement in long-term treasury bond yields. In the short term, a Federal Reserve interest rate change can affect mortgage markets as money moves between stocks and bonds, affecting mortgage rates. Longer-term mortgage rates are influenced by Fed rate changes but don’t have as direct an effect as short-term rates.

Recommended: Federal Reserve Interest Rates, Explained

Can Changing Rates Affect Your Existing Mortgage?

If you have a mortgage with a variable interest rate, known as an adjustable-rate mortgage, changing rates can affect your loan payments. With this type of home loan, you may have started with an interest rate lower than many fixed-rate mortgages. That introductory rate is often locked in for an initial period of several months or years.

After that, your interest rate is subject to change — how high and how often depends on the terms of your loan and interest rate fluctuations. These changes are generally tied to the movement of interest rates, but more specifically, which index your adjustable-rate mortgage is linked to, which can be affected by the Fed’s actions.

However, most adjustable-rate mortgages have annual and lifetime rate caps limiting how high your interest rate and payments can change.

If you took out a fixed-rate mortgage, your initial interest rate is locked in for the entire time you have the home loan, even if it takes you 30 years to pay it off.

Recommended: What Is a Good Mortgage Rate?

The Takeaway

If you are in the market to buy a home, it might be tempting to rush and buy when mortgage rates drop a bit, or to put off buying until rates hopefully decrease in the future. However, choosing the perfect time to buy a home based on the ideal rate can be difficult. You’re probably better off letting your need for a home and your personal financial situation drive your decision making. (Do you have a down payment saved up? Is your debt under control?) When it’s time to buy, do your research and choose the best mortgage available for your personal situation.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

SoFi Loan Products
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.

SoFi Mortgages
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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Source: sofi.com

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Have you been asking yourself, “Should I move to Minneapolis, MN?” Located along the banks of the Mississippi River, Minneapolis is a dynamic city with a unique blend of natural beauty and urban charm. Known for its picturesque lakes, thriving arts scene, and diverse neighborhoods, Minneapolis always has something exciting in store. Whether you’re drawn to the city’s music and theater scene, its abundance of outdoor activities, or its friendly community, Minneapolis has plenty to offer for those looking to put down roots in the Land of 10,000 Lakes. In this article, we’ll discuss the pros and cons of living in this city to help you decide if it’s the right place for you. Let’s jump in.

Minneapolis at a Glance

Walk Score: 71 | Bike Score: 83 | Transit Score: 55

Median Sale Price: $330,000 | Average Rent for 1-Bedroom Apartment: $1,560

Minneapolis neighborhoods | Houses for rent in Minneapolis | Apartments for rent in Minneapolis | Homes for sale in Minneapolis

Pro: Flourishing arts scene

Minneapolis is renowned for its vibrant arts scene. The city is home to the Walker Art Center, one of the most celebrated contemporary art museums in the U.S., and the adjacent Minneapolis Sculpture Garden, famous for the iconic “Spoonbridge and Cherry” sculpture. Additionally, the Guthrie Theater offers world-class theatrical productions, and the First Avenue nightclub has played host to countless legendary performances. These venues provide residents with endless opportunities for artistic exploration and inspiration.

Con: Harsh winters

The winters in Minneapolis are notoriously brutal, with temperatures often plummeting below zero degrees Fahrenheit. The city experiences heavy snowfall, which can disrupt daily life, from commuting challenges to the simple act of walking outside. The city has efficient snow removal and a well-designed network of skyways in downtown areas that help pedestrians avoid the cold. However, the winter months can still be daunting for those not accustomed to such extreme weather conditions.

Pro: Abundance of lakes and parks

One of Minneapolis’s most charming features is its abundance of lakes and parks. The city’s park system is consistently ranked as one of the best in the country, offering residents access to over 22 lakes and more than 200 parks. From sailing on Lake Harriet to biking around Lake Calhoun (also known as Bde Maka Ska), the opportunities for recreation and relaxation are virtually limitless. This access to green space is a significant advantage of living in Minneapolis.

Con: Traffic congestion

Like many major cities, Minneapolis faces issues with traffic congestion, especially during rush hours. The city’s layout and reliance on a few major highways can lead to significant delays, particularly on I-35W and I-94, which are crucial routes for commuters. While public transportation options like the Metro Transit light rail and bus services offer alternatives, the traffic can still be a considerable inconvenience for residents.

Pro: Thriving job market

Minneapolis boasts a robust job market, particularly in the fields of healthcare, education, and technology. The city is home to several Fortune 500 companies, including Target, UnitedHealth Group, and Best Buy, providing ample employment opportunities. Additionally, the University of Minnesota, based in Minneapolis, is a significant employer and contributes to the city’s focus on research and innovation. This economic environment offers locals a wide range of career paths and other opportunities.

Con: Seasonal allergies

Due to its lush environment and diverse plant life, Minneapolis can be a challenging place to live for people with seasonal allergies. Spring and fall are particularly difficult times for allergy sufferers as the pollen from trees, grasses, and weeds reaches peak levels. While the city’s green spaces are a significant asset, they can also contribute to discomfort for a portion of the population.

Pro: Diverse culinary scene

Minneapolis’s culinary scene offers an array of dining options that reflect the city’s multicultural population. From the traditional Scandinavian dishes that pay homage to the city’s Nordic roots to the thriving East African cuisine found in neighborhoods like Cedar-Riverside, there’s something for every palate. The city also boasts a growing number of farm-to-table restaurants and craft breweries, highlighting Minnesota’s rich agricultural heritage and innovative spirit.

Con: Limited public transportation options

While Minneapolis has made strides in expanding its public transportation system, options can still be limited. The Metro Transit system, consisting of buses and light rail lines, does not fully cover the metropolitan area. This can make it difficult for those without cars to access certain parts of the city and surrounding suburbs. This limited Transit Score of 55 can affect daily commutes and restrict access to certain amenities and job opportunities for those relying on public transit.

Pro: Active lifestyle

Minneapolis encourages an active lifestyle, with its extensive network of bike lanes and trails, public parks, and recreational facilities. The city has been named one of the best biking cities in America, with over 200 miles of bike trails and dedicated lanes for cyclists. Whether it’s kayaking on the Mississippi River or cross-country skiing in Theodore Wirth Park, Minneapolis provides ample opportunities to stay active and engaged with the outdoors.

Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.

Source: rent.com

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In Delaware, the allure of small-town charm meets the convenience of city living, making it an ideal destination for renters seeking a balanced lifestyle. From the bustling urban center of Wilmington, with its rich history and thriving arts scene, to the youthful energy of Newark, home to the University of Delaware, the state caters to diverse experiences. In this ApartmentGuide article, we’ll explore the pros and cons of living in Delaware, providing insights into what makes it a distinctive place to call home.

Renting in Delaware snapshot

Population 1,031,890
Avg. studio rent $958 per month
Avg. one-bedroom rent $1,054 per month
Avg. two-bedroom rent $1,254 per month
Most affordable cities to rent in Delaware Smyrna, Newark, Dover
Most walkable cities in Delaware Wilmington, Newark, Dover

1. Pro: Rich historical sites

Delaware, known as “The First State,” boasts a wealth of historical landmarks and museums that offer a glimpse into the nation’s past. From the cobblestone streets of New Castle to the expansive grounds of the First State National Historical Park, residents can immerse themselves in the early colonial and American history that shaped the nation.

2. Con: Traffic congestion

Despite its small size, Delaware experiences significant traffic congestion, particularly around Wilmington and during the summer season. The influx of tourists heading to popular destinations like Rehoboth Beach can lead to frustrating delays on major routes such as I-95. If you’re planning a drive, it’s wise to schedule around rush hour and consider peak times to ensure a smoother journey.

3. Pro: No sales tax

Delaware does not have sales tax which is a major perk for residents, offering significant savings on everyday purchases. This policy covers a broad spectrum of goods, from clothing to electronics, enhancing the purchasing power of residents and contributing to a higher standard of living. With no sales tax to worry about, Delaware residents can enjoy greater affordability and value when shopping for essentials.

4. Con: Limited public transportation

Public transportation options in Delaware are somewhat limited, especially outside of Wilmington. In fact, in cities like Dover, the transit score is 28, meaning there are a few nearby transit options. This can pose challenges for those who rely on public transit for their daily commute or for accessing essential services.

5. Pro: Access to beaches

Delaware’s coastline is home to some of the most beautiful beaches in the Mid-Atlantic, such as Rehoboth Beach and Bethany Beach. These beaches offer residents and visitors a chance to enjoy seaside leisure activities, boardwalk attractions, and community events.

6. Con: Seasonal crowds

The appeal of Delaware’s beaches also brings seasonal crowds, particularly in the summer months. This influx can lead to crowded beaches, increased traffic, and higher prices in coastal towns like Lewes, impacting the tranquility of the off-season.

7. Pro: Vibrant arts and culture scene

Delaware’s arts and culture scene is thriving, with numerous galleries, theaters, and festivals. The Grand Opera House in Wilmington and the annual Firefly Music Festival in Dover are just a couple of examples that highlight the state’s cultural offerings.

8. Con: Weather variability

Delaware’s weather exhibits significant variability, ranging from hot and humid summers to cold and snowy winters, which can be perceived as a drawback by some residents. Coastal areas are particularly vulnerable to storms and flooding, posing challenges for infrastructure and property maintenance. Moreover, the state’s location in the Mid-Atlantic region exposes it to the potential impacts of hurricanes and nor’easters.

9. Pro: Proximity to major cities

Delaware’s strategic location in the Mid-Atlantic offers easy access to several major cities. Residents can enjoy day trips or weekend getaways to places like Philadelphia, Washington D.C., and New York City, all within a few hours’ drive. In fact, Wilmington is around a 22 minute train ride to Philadelphia on the Northeast Regional train.

10. Con: Air quality issues

Delaware contends with air quality issues, primarily due to its industrial activity and transportation infrastructure. Cities like New Castle face challenges with air pollution stemming from heavy traffic and industrial emissions, impacting respiratory health.

11. Pro: Community and small-town feel

Despite its proximity to major urban centers, Delaware maintains a sense of community and small-town charm. Towns like Lewes and Smyrna offer a slower pace of life with friendly neighborhoods, local markets, and community events.

12. Con: Limited job market

Delaware’s job market faces limitations, notably due to its small size and concentration in certain industries. While sectors like finance and pharmaceuticals thrive, opportunities may be limited in other fields, impacting job diversity. Additionally, the state’s proximity to major metropolitan areas like Philadelphia and Baltimore means some residents commute for broader employment options.

Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.

Source: apartmentguide.com

Apache is functioning normally

Wednesday brought a full schedule of events and data for the bond market to digest and bonds dictate day to day changes in mortgage rates.  The morning’s data was perfectly palatable, resulting in modest strength heading into the afternoon’s Fed announcement.

Contrary to impression given by many news headlines on Fed day, there is rarely any significance to the Fed’s actual decision to hike/cut/hold steady at any given meeting by the time the meeting actually happens.  Markets will have long since priced in the likely outcome based on economic data and Fed policy transparency.

In other words, it was a surprise to no one that the Fed held rates steady at this meeting.  Bond traders tuned in for other reasons–mainly to hear what Powell had to say at the 2:30pm ET press conference.

There were a few ways Powell could have framed the recent set-backs seen in inflation data.  Some analysts thought he might say more to entertain the possibility of rate hike instead of a rate cut.  Powell (and, indeed, the Fed announcement itself) definitely acknowledged that inflation data meant a delay for the Fed’s next move, but in the press conference, Powell reiterated that the next move was much more likely to be a cut, based on the trajectory of the data.  

Bonds improved and many mortgage lenders were able to re-issue slightly lower rates compared to the morning levels.  The average 30yr fixed rate is still elevated by 2024’s standards, but nicely lower compared to yesterday’s latest levels.

Source: mortgagenewsdaily.com

Apache is functioning normally

(Bloomberg) — UK house prices fell at the sharpest pace in eight months after the cost of mortgages crept higher, one of the country’s biggest lenders said, underscoring continued cost-of-living pressures on consumers ahead of a general election later this year.

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The figures from Nationwide Building Society followed a scaling back of bets on Bank of England interest rate cuts this year, which pushed up the cost of home loans in markets. That’s strained the ability of people to afford to buy a property and held back a recovery from last year’s slump.

Higher borrowing costs have hurt Prime Minister Rishi Sunak’s government in the eyes of voters and reminded voters of the big jump in mortgage rates that Liz Truss triggered during her short term as premier in late 2022. The UK slipped into a recession last year, and the weak recovery so is reflected in the housing market.

“Though mortgage affordability is much better than it was last summer, it remains very stretched relative to historical norms,” said Peter Arnold, chief economist at EY UK. “A strong recovery in house prices and activity is unlikely.”

The Conservatives are defending seats in local authorities including mayors in West Midlands and Tees Valley in key local elections on Thursday. Sunak is widely expected to call a general election in the autumn.

Nationwide estimated house prices fell 0.4% in April after an 0.2% decline the month before. Economists had expected a 0.1% monthly increase. The average cost of a home is now £261,962 ($326,680), which is about 4% below the peak in the summer of 2022.

What Bloomberg Economics Says …

“The shift in the interest rate outlook was the catalyst for the change in sentiment at the start of the year, encouraging buyers to enter the market. However, borrowing costs have risen recently as investors reappraise how far the Bank of England will cut interest rates over concerns about persistent price pressures in both the UK and US. The best-buy five-year fix are above 4.1% having dropped below 4% at the start of the year. That will hit affordability.”

—Niraj Shah, Bloomberg Ecoomics. Click for the REACT.

Home prices have stagnated over the past year, up just 0.6%. That’s much less than the 1.2% gain economists had expected.

“The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year,” Robert Gardner, chief economist at Nationwide, said in a report Wednesday.

Nationwide said research it did with Censuswide found that almost half of the prospective first-time buyers looking to secure a home in the next five years have delayed their plans.

“Among this group, the most commonly cited reason for delaying their purchase is that house prices are too high (53%), but it is also notable that 41% said that higher mortgage costs were preventing them from buying,” Nationwide said.

Another 55% of people said they’d be willing to buy in a cheaper area of the country or where they could get a bigger property — half willing to move more than 30 miles away.

The UK housing market has defied expectations of a sharp downturn last year, yet its recovery over the last few months has remained weak. Prospective buyers are still finding it hard to come up with the money for a deposit, while the benchmark lending rate is at a 16-year high.

BOE officials warning of lingering price pressures have pushed up two- and five-year swap rates, used to set the bulk of mortgage products. That suggests households would still be spending a higher share of their incomes on mortgage payments than they did in the decade to 2007, according to Bloomberg Economics.

Nationwide’s figures contrast with more upbeat data from the BOE showing mortgage approvals rose to the highest in 18 months in March. Banks and building societies authorized 61,325 home loans, up from 60,497 in February and the most since September 2022.

Separate data released Tuesday from HM Revenue & Customs, the UK tax authority, showed property transactions climbing for a third month to 84,200 in March.

However, a recent resurgence in borrowing costs has raised questions over whether the recovery can continue. Natwest, Santander and Nationwide all have increased mortgage rates this month in response to rising swap rates, which are used to set the bulk of mortgage products.

For the 1 million households due to refinance fixed-rate mortgages by end of the year, new loans will be pricier than the ones they are currently on.

“Buyers and sellers are starting to accept the new reality of the housing market in the face of current interest rate levels,” said Nathan Emerson, CEO of Propertymark.

–With assistance from Andrew Atkinson.

(Updates with comment and context from first paragraph.)

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©2024 Bloomberg L.P.

Source: finance.yahoo.com

Apache is functioning normally

In a low-volume mortgage origination market, some sellers “don’t have the balance sheet or their owners are not interested in legacy and continuity,” which is a different model than Lower’s, Snyder said.

The company is looking for geographic expansion and companies that are “technically sound,” he added. 

In November 2023, Lower announced the acquisition of Colorado-based Universal Lending Home Loans, which became a separate division. Universal president and industry veteran TJ Kennedy leads its retail and wholesale channels. Founded in Denver in 1981, Universal added 60 loan officers to Lower.  

That deal was followed by the acquisition of Texas-based Thrive Mortgage in December. As is usually the case with Lower’s deals, Thrive maintained its brand. Thrive CEO Selene Kellam, and Randell Gillespie, its national sales director, joined the executive team at Lower. 

Financials of the Universal and Thrive deals were not disclosed.

To support its business strategy, Lower announced in June 2021 that it had raised $100 million in a Series A funding round led by venture capital firm Accel. It also expects to raise more capital, “probably a Series B, ideally this year,” according to Snyder.

He added that becoming a publicly traded company isn’t out of the question, although it “really depends on the capital” needed in the future. 

“Lower is still majority owned by myself and my co-founders,” said Snyder, who started his career in corporate banking at Wells Fargo and American Bank. “But we have raised money from Silicon Valley. They have seen the bottom [of the mortgage origination market] and can now start seeing the growth.” 

Another minority stakeholder at Lower is Veritex Holdings, the parent company of Veritex Community Bank. In 2021, Veritex acquired a 49% stake in Thrive for $53.9 million, valuing the lender at roughly $110 million. Veritex kept a stake in Lower following the acquisitions of Universal and Thrive.

Acquisitions are only one part of Lower’s battle plan, as the lender is also looking to attract talent. In November, the company announced the addition of Amir Syed, co-founder of Growth Only Coaching, as its chief growth officer.

A multichannel lender, Lower operates an online consumer-direct channel that expects to launch a full-service refinance product by the end of the year. It also has an offline retail channel that is “picking up steam” through M&A opportunities, such as Thrive and Universal, and it maintains a local presence, Snyder said. 

Meanwhile, Snyder said that Lower’s third-party origination platform that services brokers and other fintechs has been competitive with niche products such as down payment assistance programs. 

“We get our customers from multiple places where they want to transact and then fulfill as efficiently as possible with technology,” Snyder said. 

Lower claims that the Thrive acquisition made it the country’s 25th largest mortgage lender.
According to the Nationwide Multistate Licensing System (NMLS), it had 620 sponsored loan officers and 108 active branches as of Tuesday.

Source: housingwire.com