The influx of inventory provided some relief in a housing market that has been starved of supply for over a year. The total number of homes for sale in May was up 39.6% year-over-year across the metros surveyed. Despite the increasing options, buyer demand remained strong, keeping upward pressure on prices. The median home sale … [Read more…]
FHA loans have made their mark as Federal Housing Administration-insured mortgages whose generous terms make homeownership accessible to many borrowers. They come with either a fixed or adjustable interest rate.
The latter, known as FHA ARMs, are very much a niche product – less than 1 percent of FHA loans originated in April 2024 had adjustable rates, according to federal data. But they offer a lot of benefits, particularly a low introductory rate.
Before signing on the dotted line for an FHA adjustable-rate mortgage (ARM), however, it’s important to know what’s involved and how these types of mortgages work. Here are the basics of FHA ARMs.
What is an FHA adjustable-rate mortgage?
First, here’s a quick primer on how ARMs and FHA loans work.
An adjustable-rate mortgage, or ARM, is a type of home loan with an interest rate that changes over time. It has a lower fixed rate at the start of the repayment period, which usually lasts three, five, seven or 10 years. Afterward, the rate adjusts at predetermined intervals, such as every six months or one year, up to a certain percentage limit. This means your monthly mortgage payment could increase or decrease over the remaining loan term. If the payment goes up, it might no longer be affordable. For this reason, lenders typically qualify ARM borrowers based on their ability to repay a higher payment.
FHA home loans are insured by the Federal Housing Administration (FHA) and offered by FHA-approved mortgage lenders. These loans are geared toward lower-credit score borrowers, including first-time homebuyers, who often wouldn’t qualify for a conventional loan with no federal guarantee. FHA loans only require a 3.5 percent down payment but mandate the borrower to pay mortgage insurance premiums (MIPs). They also limit how much you can borrow.
FHA loan rates often run lower than conventional mortgages too, but sometimes the presence of their various fees (including the MIPs) actually makes their APRs higher.
How do FHA ARM loans work?
An FHA adjustable-rate mortgage works similarly to other adjustable-rate mortgages: The interest rate initially remains the same for a set time, then changes at preset times until the borrower fully repays the loan.
These changes are based on an index of prevailing interest rates — for FHA loans, either the Constant Maturity Treasury (CMT) index or the Secured Overnight Financing Rate (SOFR) — plus a margin, or extra amount, that the lender opts to add on. After the loan’s initial fixed period ends, the lender adds this margin to the index to come up with new rates. Depending on current economic conditions and prevailing interest rates, the adjusted rate might be higher or lower.
Your rate can’t increase or decrease beyond a specific amount, however. On ARM loans, there are both annual and lifetime caps, which limit annual rate changes, as well as changes over the loan’s entire term.
Types of FHA ARM loans
There are five kinds of FHA ARM loans:
1-year FHA ARM: Your interest rate stays the same for the first year of the loan’s term. After that, the rate can only increase by one percentage point (for example, 5.5 percent to 6.5 percent) per year and five percentage points for the life of the loan.
3-year FHA ARM: Your interest rate stays the same for the first three years, but the caps are the same as the 1-year ARM.
5-year FHA ARM: Your interest rate stays the same for the first five years. After that, the rate can only increase annually by one percentage point, and by five percentage points over the life of the loan; or by two percentage points annually and six percentage points over the life of the loan.
7-year FHA ARM: Your interest rate stays the same for the first seven years, then can adjust by up to two percentage points per year and six percentage points over the life of the loan.
10-year FHA ARM: Your interest rate stays the same for the first 10 years, but the caps are the same as the 7-year ARM.
There is also a difference between standard and hybrid ARM loans. The FHA has a one-year standard ARM loan, whose interest rate changes regularly based on the market. In addition, the FHA has four hybrid ARM loan products. These hybrid loans have a fixed introductory rate for a set number of years (3, 5, 7 or 10), after which the rate will adjust after a set period for the remainder of the loan term.
FHA ARM loan requirements
Borrowers and the homes they wish to buy must meet certain FHA loan qualifications, including:
Acceptable properties: Primary residences
Borrowing limit: For 2024, $498,257 for a one-unit property; $1,149,825 for a one-unit property in high-priced housing markets
Credit score: At least 580, or as low as 500 with a bigger down payment
Debt-to-income (DTI) ratio: 43 percent for housing and other long-term debt (some lenders may go up to 50 percent if the borrower has compensating factors); 31 percent for just housing debt.
Down payment: 3.5 percent with a credit score of 580 or higher; 10 percent with a credit score of 500-580
Employment: Proof of steady employment from the past two years
Income: Latest pay stub along with proof of any bonuses, commissions, etc., if consistent
Mortgage insurance premiums (MIP): 1.75 percent of the amount borrowed at closing, plus annual premiums based on the amount borrowed, down payment and loan term (15 or 30 years)
If your credit history is lacking, especially in the realm of handling debt, the FHA now allows lenders to include a borrower’s rental payments in their underwriting assessment, as well. You need to be able to show proof you’ve paid your rent on time every month for the past year.
FHA ARM loan rates
ARMs’ introductory rates tend to be lower than those of fixed-rate loans. As of June 13, 2024, the average interest rate for 5/1 ARM loans is 6.48 percent, compared to the average rate of 30-year fixed-rate mortgages at 7.08 percent, according to Bankrate’s survey of national large lenders. Even a 7/1 ARM loan has an interest rate of 6.72 percent.
When comparing FHA ARM offers, consider the introductory rate along with the lender’s margin. Generally speaking, the lower the margin, the better.
With rates rising, consider the type of FHA ARM, as well. The one-year and three-year ARMs, for example, have lower caps, meaning you won’t see as big of a jump in your rate if prevailing rates do go up in the future.
Should you get an FHA adjustable-rate mortgage?
If getting a lower initial interest rate will help you afford a home, choosing an FHA adjustable-rate mortgage can be a good option — as long as you factor in your ability to afford potentially higher payments later. An FHA ARM loan can also be a smart option if you only plan to own your home for a couple of years. You can take advantage of the lower introductory rate and then sell your home before the rate adjusts. Even if you do not sell your home, you might be able to refinance your loan into a fixed-rate mortgage, which will keep your monthly payments the same for the remainder of the loan term.
There might also be some instances where you expect you’ll be able to afford a higher payment in the future. For example, a future raise or promotion could mean an increase in earnings, enabling you to afford a higher mortgage payment later. However, if the prospect of a higher rate in the future is scary to you, then you should skip the ARM and opt for a fixed-rate mortgage.
Pros and cons of FHA ARM loans
Pros
Attractive introductory interest rates
Easier to qualify for if your credit needs work
Gets you into a home sooner thanks to a lower down payment and more affordable monthly payment
Cons
Risk of future increases to your rate, which can make monthly payments unaffordable, potentially forcing you to sell the home and move or increasing your risk of foreclosure
Need to refinance to remove mortgage insurance premiums
Limited to buying a home with a mortgage within loan limits and for use as a primary residence
Alternatives to FHA ARM loans
An FHA mortgage is not your only option. Some alternatives to FHA ARMs that can help you buy a home include:
HomeReady mortgage: Fannie Mae‘s HomeReady program requires a minimum 620 credit score. You do not have to be a first-time homebuyer, but you will need an income lower than 80 percent of the area median income. You’ll also need to take a homeowner’s education course.
Standard 97 Home Loan: Also provided by Fannie Mae, this mortgage requires 3 percent down, and at least one borrower must be a first-time homebuyer.
HomeOne Loan: Freddie Mac offers the HomeOne Loan for first-time homebuyers, and it has no income or geographic limits. You can put down a minimum of 3 percent on a home with this loan.
Home Possible Mortgage: Also offered by Freddie Mac, the Home Possible mortgage is a loan option for very low- to low-income homebuyers. You must meet qualifying income limits: no more than 80 percent of the area median income.
These mortgages are for primary residences only, so you will need to look at other options should you require a mortgage for a second home or investment property.
Refinancing an FHA ARM
Many borrowers refinance before the first ARM rate reset. You might want to refinance out of an ARM loan into a fixed-rate one if rates have dropped since you first obtained the loan and you want the stability of a non-fluctuating rate. You can also refinance to another ARM.
If you qualify, you might want to refinance from an FHA mortgage to a conventional loan, too. This allows you to eliminate (or work toward eliminating) mortgage insurance premiums, as conventional loans only require insurance if you have less than 20 percent equity in your home. In contrast, most FHA loans require you to pay insurance for the entire loan term, regardless of how much you’ve paid down the mortgage.
Keep in mind, refinancing is typically only worthwhile if you can get a lower rate and pay the closing costs. If you won’t be in the home long enough to recoup those costs and realize the savings, it might not make financial sense to refinance.
Bottom line on FHA adjustable-rate mortgages
The considerations for getting a FHA adjustable-rate mortgage vs. a fixed-rate one are similar to the considerations for their conventional loan cousins. ARMs work best for homeowners who are pretty sure they’ll be leaving their home within a certain number of years (coinciding with the end of the ARM’s fixed-rate period, or before) or who anticipate a big increase in income (because the ARM’s new, reset rate often means higher repayments).
Other than that, your main decision is whether it’s worth jumping through the extra application/appraisal hoops and paying the MIP that comes with FHA loans. If the better terms still seem worth it, then go for it.
Moda Domus Handcrafted Ceramic Cabbage Dinner Plate
While you can–and should–eat all your meals off this ceramide cabbage plate, it’s so beautiful that it should really count as a piece of art.
An Iron Catchall
Jan Barboglio Golondrina
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Jan Barboglio’s gothic-meets-medieval pieces are truly stunning to behold, and this cast iron dish from the designer is perfect for storing your jewelry, keys, or everyday nicknacks.
A Decorative Candle
Fornasetti Frutto Proibito Candle
You would be forgiven for thinking this candle is too pretty to burn, but its wonderful notes of jasmine and blood orange will make you eager to light it. Once the wax has burned down, the apple-shaped ceramic container can also easily be repurposed.
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An Unusual Lamp
Tennant New York L’Escargot Lamp
For the creature lovers out there, this unique lamp is inspired by sea snails found in the Galapagos. The base is wrapped with leather cord and is sure to be a conversation starter.
A Cozy Throw Blanket
Barefoot Dreams CozyChic Throw Blanket
This plush throw blanket might seem quite classic, but its fuzzy finish adds some textural interest.
A Statement Throw Pillow
Schumacher The Wave 20″ Pillow
Starring a faded, waved print by esteemed interior designer Miles Redd, this throw pillow offers added cushioning and a hint of edge to an otherwise simple living room.
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A Luxury Coffee Table Book
Paul-Gérard Pasols Louis Vuitton: The Birth of Modern Luxury
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Though an interesting read in itself, this book is too stylish not to be displayed. Leave it out for your guests to educate themselves and learn a little more about your interests.
A Decorative Box
Bordallo Pinheiro Small Pimiento Box
You get bonus points for storing veggies in here, but even as a fun decorative box in your collection, this piece stands out. It’s microwave and dishwasher-safe and makes for the perfect piece of coffee table eye candy.
A Glass Figurine
Daum Crystal Coral Sea Small Shell Figurine
French glassware company Daum has been making lovely, colorful figurines for centuries. Whether placed above the mantle or on your bedside table, this blue conch shell style will help bring the beachy aesthetic into your home.
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A Sculptural Vase
Michael Aram Butterfly Ginkgo Small Vase
Fresh flowers will look even more striking in this sculptural vase. The ginkgo-adorned piece catches the light in the most luminous way.
Minimalist Nesting Trays
Open Spaces Nesting Trays
Simply tossing your keys or jewelry into one of these nesting trays can immediately make your home feel more put together. What’s more, they’re stackable.
A Time Keeper
Vitra Nelson Night Clock
Opening your phone to check the time will simply never be as glamorous as glancing at this cool clock.
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Elevated Salt & Pepper Shakers
L’objet Han Salt & Pepper Shakers
For something equally luxe to match your pristine tableware, these crystal and gold-plated salt and paper shakers fit the bill.
A Designer Pillow
Dior Large Square Pillow
Dressed in a print so recognizable it needs no introduction, this Dior style is the ultimate throw pillow for fashion lovers. You can also get it custom embroidered to make someone’s day.
Vintage-Inspired Wall Decor
Crosley 1950 Payphone
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As a decor item, this retro-inspired phone will become you room’s next focal point. But the best part is, this device is fully functional—with or without coins.
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An Elegant Water Jug
Toast Jack Welbourne Wave Jug
Replacing modern designs with handmade ceramics is an easy way to add a warmer, holistic energy to your home. Rather than filling up your cup in the sink, pour from this elegant water jug instead.
A Spurge-Worthy Chess Set
Ameico Man Ray Chess Set
As both a mentally-stimulating game and luxe home accessory, this hand-finished beechwood chess set delivers on all fronts.
Preserved Roses
The Million Roses Long Stem Roses | Candy Pink Roses
Considering how much money these preserved roses will ultimately save you on weekly bouquet runs, they’re well worth the investment. Here, you get a bundle of two dozen, which should last at least three years with zero upkeep.
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Intricate Wallpaper
MINDTHEGAP The Station View Wallpaper
Adding wallpaper, even to a single wall in a room, can instantly transform your space. This intricate option from Anthropologie offers an old-world feel.
Hanging art in your home is one of the best ways to not only elevate the look of your space, but also show off your taste and sensibilities. This distinct photograph by Cas Friese can be bought in several sizes, depending on your needs.
Tatjana Freund is Hearst’s Fashion & Luxury Commerce Editor, covering beauty, fashion and more across multiple brands. Previously, she worked at ELLE.com and Marie Claire. She’s a fan of whiskey neat, podcasts that give her nightmares, and one time Zoë Kravitz laughed at a joke she made.
Federal regulators announced the approval of rules intended to provide quality control and eliminate potential discriminatory practices in the use of automated valuation models in appraisals.
The rules were originally proposed a year ago by a group of federal agencies involved in their design, including the Office of the Comptroller of the Currency, Federal Housing Finance Agency, Federal Reserve, Federal Deposit Insurance Corp., Consumer Financial Protection Bureau and the National Credit Union Administration.
The regulations will require mortgage originators and secondary market issuers to have procedures in place to ensure confidence in AVM estimates, protect against data manipulation and provide a backstop against conflicts of interest. They also mandate ongoing random sample testing and compliance with nondiscrimination laws.
The final rule does not spell out specific requirements for how institutions are to structure their practices but allows each to determine their own procedures based on their size and risk profile.
“The flexible approach to implementing the quality-control standards provided by the final rule will allow the implementation of the standards to evolve along with changes in AVM technology and minimize compliance costs,” the announcement said.
Finalization of the proposed regulations comes after a comment period, with the agencies receiving approximately 50 responses from stakeholders.
The addition of nondiscriminatory policy surrounding AVM use — what the regulators referred to as the rule’s “fifth factor ” — received support from many commenters but also detractors.
“While existing nondiscrimination law applies to an institution’s use of AVMs, the agencies proposed to include a fifth quality control factor relating to nondiscrimination to heighten awareness among lenders of the applicability of nondiscrimination laws to AVMs,” the federal announcement said.
Supporters said nondiscrimination could be seen “as a dimension of model performance and a required aspect of quality control,” adding that failing to address bias might result in ” safety and soundness risk.”
But public remarks also pointed to pushback involving such a mandate, with some comments suggesting documented instances of AVM bias were not prevalent. Others mentioned the fifth factor duplicated existing laws and other policies, while at the same time, provided no clear performance metric for users to determine if bias existed within data.
Some opposed pointed to the cost of compliance and limited resources at their institutions.
“They argued that small entities do not have access to an AVM’s data or methodology, are unable to validate the algorithms that AVM providers use, and lack the staff to assess the AVM models results,” according to the announcement.
Commenters also said the burden of nondiscrimination compliance should fall on the AVM providers, who often hold proprietary models. The regulators noted a number of individuals calling for the creation of a separate independent third-party nonprofit to test AVM systems to ensure compliance. Such an entity would both save lenders time and improve data quality, they said.
In addition to mortgage originations, the policy applies to AVM use in the determination of values for loan modification requests and applications for home equity lines of credit. But the regulation exempts licensed appraisers utilizing AVMs in the process of their work.
Use of automated models gained momentum as the government-sponsored enterprises began seeking alternative appraisal methods to address speed and costs. But their adoption previously drew criticism from the likes of CFPB, who raised concerns about potential algorithmic biases involved with any tools influencing credit decision making.
Inside: Learn what 26 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $26 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is $26 an hour good?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $26.50 an hour annually?
When you finally start earning $26 an hour, you are happy with your progress as an hourly employee. Typically, this is when many hourly employees start to become salaried workers.
In this post, we’re going to detail exactly what $26 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$26 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $26 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $26 = $54,080
$54,080 is the gross annual salary with a $26 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s break down how that number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $26 times 2,080 working hours, and the result is $54,080.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
That is super close to the $55000 salary threshold, which is just below the median salary for a middle-income worker.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $26 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $26 times 1,040 working hours and the result is $27,040.
How Much is $26 Per Month?
On average, the monthly amount would average $4,507.
Annual Amount of $54,080 ÷ 12 months = $4,507 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Plus by increasing your wage from $21 an hour, you average an extra $867 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $2,253.
How Much is $26 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $26 = $1,040 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $520.
Here are jobs that pay weekly.
How Much is $26 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,040 and double it.
$1,040 per week x 2 = $2,080
Also, the other way to calculate this is:
40 hours x 2 weeks x $26 an hour = $2,080
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,040.
How Much is $26 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $26 per hour = $208 per day.
If you work 10 hours a day for four days, then you would make $260 per day. (10 hours x $26 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $104.
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$26 Per Hour is…
$26 per Hour – Full Time
Total Income
Yearly Salary(52 weeks)
$54,080
Yearly Wage (50 weeks)
$52,000
Monthly Salary (173 hours)
$4,507
Weekly Wage (40 Hours)
$1,040
Bi-Weekly Wage (80 Hours)
$2,080
Daily Wage (8 Hours)
$208
Net Estimated Monthly Income
$3,441
**These are assumptions based on simple scenarios.
Paid Time Off Earning 26 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $54,080 per year.
This is the same as the example above for an annual salary making $26 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $26 times 2,000 working hours, and the result is $52000 per year.
40 hours x 50 weeks x $26 = $52,000
You would average $208 per working day and nothing when you don’t work.
$26 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $54,080
Federal Taxes of 12%: $6,490
State Taxes of 4%: $2,163
Social Security and Medicare of 7.65%: $4,137
$26 an Hour per Year after Taxes: $41,290
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$41,290 ÷ 2,080 hours = $19.85 per hour
After estimated taxes and FICA, you are netting $19.85 an hour. That is $6.15 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on over $19 an hour wage is much different.
$26 an Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $26.01-26.99.
This is super helpful if you make $26.40 or $26.44.
You are probably wondering can I live on my own making 26 dollars an hour? How much rent or mortgage payment can you afford on 26 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $26 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $26 an hour was $19.85 after taxes. That would average $3,440 per month.
According to the Cents Plan Formula, here is the high-level view of a $26 per hour budget:
Basic Expenses of 50% = $1720.42
Save Money of 20% = $688.17
Give Money of 10% = $344.08
Fun Spending of 20% = $688.17
Debt of 0% = $0
Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $26 per hour, then using the zero based budget template is extremely helpful.
recommended budget percentages based on $26 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$315
Savings
15-25%
$766
Housing
20-30%
$1,082
Utilities
4-7%
$225
Groceries
5-12%
$315
Clothing
1-4%
$45
Transportation
4-10%
$180
Medical
5-12%
$225
Life Insurance
1%
$23
Education
1-4%
$45
Personal
2-7%
$83
Recreation / Entertainment
3-8%
$135
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1,066
Total Gross Income
$4,507
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $26 Per Hour?
At this $26 hourly wage, you are more than likely double the minimum wage. Things should be easy to live off this $26 hourly salary.
However, it is still slightly below the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
In fact, $26 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.
Can you truly live off $26 an hour annually?
You just have to have the desire to spend less than your income. Plus consistently save.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I have aspirations and goals to increase how much I make. This is the time to start diversifying my income into multiple streams and start investing. I am going to stretch my 26 dollars per hour.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $26 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $26 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $26.50 will add up over the year. An increase to $27 an hour is even better!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work.
Making $26 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I need in my life to do what I want when I need to do it. Plus I am able to enjoy my entrepreneurial spirit.
This is a great way to find success and deny all of the naysayers.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: 20 Genius Ways on How to Make Money Fast
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially to becoming financially sound.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $26 an Hour
In this last section, grasp these tips on how to live on $26 an hour or just above a $50k yearly salary. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $26 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $26 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $26 an hour minus all the taxes, FICA, social security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Jobs that Pay $26 an Hour
You can find jobs that pay $26 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Virtual Assistant
Freelance writer
CDL Truck Driver
Managers
Entry Level Marketing Jobs
Data Entry Clerks
Customer service managers
Bank tellers
Maintenance workers
Freight broker – Learn how easy it is to start!
Administrative assistants
Athletic Trainers
Event Planners
Security guard
Movers
Warehouse workers
Certified Nursing Assistant
Companies that pay more than $26 per hour:
Costco
Wayfair
Amazon
Best Buy
Target
Wells Fargo
Disney World
Disney Land
Bank of America
JP Morgan
Cigna
Aetna
$26 Per Hour Annual Salary
In this post, we detailed 26 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 26 dollars an hour annually…
$54,080
This is right between $50,000 per year and $56k a year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
After you purchase a new home, there are many things to budget for, including moving costs, new furniture, and ongoing expenses such as your mortgage. Although it may seem like many of the significant expenditures are out of the way once you close on a property, there are additional costs that can add up.
To avoid financial surprises, it’s wise to jot down and budget for all of the extra expenses you will encounter when you move into your new place. To help you organize your finances, here are the things to budget for after buying a house.
Moving-Out Expenses to Budget for
Before you take up residence in your new home, you must move all of your things. Even if you pack and move all your belongings yourself, you’ll still have to spend on things like boxes, packing materials, and a truck. And if you use movers, it will cost you even more.
Recommended: The Ultimate Moving Checklist
Moving Your Belongings
There are three main options for moving your belongings:
• Renting a truck and doing it yourself. It’s more cost efficient than using professional movers, but DIY moving yourself still adds up. You’ll have to pay for the truck rental fee, gas, and damage protection. If you’re moving across the country, you may also have to factor in the costs of shipping some of your items. Even though you can enlist your friends and family to help you do the heavy lifting, the cost of moving yourself can still be significant, and it’s a lot of work.
• Hiring movers. If you decide to use professional movers, it’s wise to shop around to find the best price. Here’s why: For moves under 100 miles away, the national average cost of moving is $1,400, and it ranges from $800 to $2,500. If you’re moving long distance, the average cost can be as high as $2,200 to $5,700. To cut costs, you can do your own packing, which may save you money.
• Moving your things in a storage container. Another option is to use a hauling container — you load your things in it, and the container company moves it to your new location. This usually costs between $500 and $5,000, depending on the distance and how much stuff you’re moving. Long-distance moves will usually cost more than local ones.
Moving Supplies
If you decide to go the DIY moving route, you will need to buy boxes, bubble wrap, labels, and tape. And you likely have more items to wrap and box up than you think, which requires even more supplies.
Cleaning Supplies
You’ll probably want to clean your current property before you move out, and you’ll definitely want to clean the new place when you move in. That means buying mops, sponges, cleaning solutions, and paper towels. You may also want to get the carpets cleaned or hire a professional house cleaner if the place needs a deep cleaning.
10 Common Expenses After Buying a Home
Once the move is done, there are other expenses you’ll need to account for as you settle into your new abode. Here are a few things to budget for after buying a home.
Furniture and Appliances
You’ll likely bring some furniture and decor from your old place, but you’ll probably want to purchase some new things as well. For example, if the appliances are outdated, you might want to upgrade to new ones. And you may have more rooms to furnish, which requires additional furniture.
Consider opening a savings account for the new items you want to purchase. It can also help pay for any unexpected costs, such as having to replace a hot water heater that breaks.
Mortgage Payments
As a homeowner, every month you will making a mortgage payment that typically includes:
• The principal portion of the payment. This is the percentage of your mortgage that reduces your payment over the life of the loan. The more you pay toward principal, the less you will have to pay in interest.
• The interest. This is the amount you pay to borrow funds from the bank or lender to purchase your home.
If you are using an escrow account to pay your mortgage, other things may be included in your payment, such as your property taxes, insurance, and private mortgage insurance. This guide to reading your mortgage statement can help you understand all the costs involved in your mortgage payment.
Property Taxes
Property taxes are the taxes you pay on your home. In many cases, these taxes are the second most significant expense after your mortgage. Property taxes are based on the value of your home, which is typically governed by your state. The county you live in collects and calculates the sum due. Usually, property tax calculations are done every year, so the amount you owe may fluctuate annually.
Homeowners Insurance
Homeowners insurance helps protect your home from damage or destruction caused by events like a fire, wind storm, or vandalism. It can also protect you from lawsuits or property damages you are liable for. If someone slips and falls on your sidewalk, for instance, homeowners insurance will pay for the injured person’s medical bills and the legal costs if they decide to sue you.
The cost you pay for this coverage will vary by the type and amount of coverage you select.
Private Mortgage Insurance (PMI)
For borrowers who can’t afford a down payment that’s 20% of the mortgage value, lenders usually require private mortgage insurance (PMI). This type of coverage is designed to protect the lender if you default on your mortgage payments.
PMI can cost as much as a few hundred dollars per month, depending on the sum you borrow.
HOA Dues
This is a Homeowner’s Association fee, which goes toward the upkeep of property in a planned community, co-op, or condo. The amount can range from a couple of hundred dollars a year to more than $2,000, depending on the amenities you’re paying for (like a pool and landscaping). You typically pay HOA fees monthly, quarterly, or annually.
Utilities
Your utility payments include water, gas, electric, trash, and sewer fees. Some bills like water and electricity are based on the amount you use every month, so monitoring your electric and water usage, like taking short showers and turning lights off, can help lower your cost. Other payments, such as your trash or recycling, might be a fixed amount.
Lawn Care
Maintaining the curb appeal of your home requires landscape services and lawn care. If you choose to mow your own lawn, you may need to factor in the purchase of a mower, which can cost about $1,068 on average. If you hire a lawn service to cut your grass, you may pay $25 to $50 a week.
Pest Control
Pests, such as ants, ticks, rodents, or mice, can wreak havoc on your home and your family’s health. For these reasons, many homeowners hire a pest control company to prevent the infestation of pests around their homes. The company’s initial visit may cost between $150 to $300, then $45 to $75 for every follow-up.
Home Improvement Costs
As a homeowner, there are likely things you want to change about your house. From painting the walls to a complete kitchen renovation, transforming your property can add to the cost of owning a home. According to the HomeAdvisor 2023 State of Home Spending Report, homeowners spend an average of $9,542 on home improvement each year.
Additionally, as the features of your home age, you will need to replace and repair them accordingly.
Common Mistakes After Buying a Home
One of the most common mistakes people make when buying a home is spending more than they can afford. For instance, you may forget to factor in utilities, lawn care, HOA fees, costs of upkeep, and other hidden expenses that come with owning a home. It’s crucial to do your research to determine extra costs and add them up before you move forward with purchasing a property.
Another mistake new homeowners make is taking on too many DIY projects. TV shows can make home renovations look easy. However, many of these projects require professionals who know what they are doing. Attempting a home improvement project could cost you more to fix than hiring a pro in the first place. In fact, about 80% of homeowners that attempt their own renovation projects make mistakes — some of them serious.
Unless you can afford an expert, you may want to rethink purchasing a home that requires a lot of renovation.
The 50/30/20 Rule
For help planning your budget as a homeowner, you can use the 50/30/20 rule, which breaks your budget into three categories:
• 50% goes to to needs
• 30% goes to wants
• 20% goes to to savings
That means you’ll be budgeting 50% of your income to go toward necessities such as housing costs, grocery bills, and car payments. Then 30% will go toward things you want, such as entertainment (movies, concerts), vacations, new clothes, and dining out. The remaining 20% goes towards saving for the future or financial goals such as home improvement projects.
Using a 50/30/20 budget rule is simple and easy. It allows you to see where your money is going and helps you save.
Recommended: How to Track Home Improvement Costs
Lifestyle Tradeoffs in Order to Budget
With so many things to budget for after buying a home, you may need to cut back on spending. Start by looking at your discretionary spending and think about where you can trim back. For example, instead of eating out regularly, you can cook more meals at home. Or perhaps you can put your gym membership on hold and do at-home workouts for a while to stay in shape physically and financially.
Recommended: How to Budget in 5 Steps
The Takeaway
After you buy a house, there are many expenses you may not have accounted for, such as the cost of hiring movers; buying furniture; and getting your new place painted, cleaned, and ready to move into. Making a budget is vital to keep you on track financially, so you can enjoy your new home.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
How much money should you have leftover after buying a house?
After buying a home, the amount you have left will vary depending on your financial situation. However, it’s a good idea to have at least three to six months of living expenses in reserve. That way, in case of an emergency, you can stay afloat financially.
Is it worth putting more than 20% down?
Putting more than 20% down on your home can help lower your monthly mortgage payment and interest because you’ll be borrowing less money. It also gives you more equity in your home from the beginning. But make sure you can afford to pay more than 20% in order not to stretch beyond your budget.
What’s the 50-30-20 budget rule?
The 50/30/20 rule means that you budget 50% of your expenses for needs (housing, groceries, loan payments), 30% for wants (entertainment, eating out, shopping), and 20% toward savings goals (retirement, renovations, new furniture).
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The bond market was closed on Wednesday for the Juneteenth holiday. As such, mortgage lenders were either closed or unable to update mortgage rates based on market movement. Today’s rates are perfectly in line with Tuesday morning’s, on average, even though the bond market is slightly weaker.
Weakness in bonds refers to lower prices and higher yields/rates. Mortgage rates almost always move with the bond market, but when the movements are small, there can be exceptions.
That’s the case today as the losses leave mortgage-backed bonds right in line with the levels seen on Tuesday morning. Bonds did move on to stronger levels by Tuesday afternoon, but not to a sufficient extent for most lenders to update their pricing.
The net effect is an average top tier conventional 30yr fixed rate that’s still a hair above 7%.
(CNN) – Mortgage rates fell for the third straight week to their lowest level in almost three months.
Freddie Mac reported Thursday that the standard for a 30-year fixed-rate mortgage averaged 6.87% for the week ending June 20.
That’s down from last week’s 6.95% average and down from a 2024 peak of 7.22%. Still, mortgage rates remain higher than anything seen in the decade before 2022.
That’s the year the Federal Reserve began to raise interest rates to combat inflation.
Despite rates trending down, owning a home is becoming harder for many Arizonans. A study by Bankrate found you need to make at least $110,271 to comfortably afford a home in Arizona. That’s up 67% from 2020.
The median home price in the state is $451,500, according to Redfin. In the Phoenix Metro, it’s $461,990, up 5.5% from last year.
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Finance of America(FOA), the leading U.S. reverse mortgage lender, has received shareholder approval upon recommendation of its board to perform a reverse stock split at a 10-to-1 ratio in a move designed to boost the company’s stock price. This is according to a company filing with the Securities and Exchange Commission (SEC) reviewed by HousingWire’s Reverse Mortgage Daily (RMD).
A reverse stock split involves consolidating the available shares in the market into fewer, higher-priced shares. Faced with the prospect of being delisted from the New York Stock Exchange (NYSE) due to noncompliance with the exchange’s listing standard, the company sees this move as necessary to shore up its price, the filings suggest.
RMD reached out to FOA for comment on the move, but a spokesperson referred any questions back to the SEC filing.
“The Reverse Stock Split is intended to increase the per share stock price of our Class A Common Stock to regain compliance with the continued listing standards of the NYSE,” the filing reads.
The company obtained approval for the move from its stockholders, who represent nearly 70% of the voting power pertaining to outstanding shares of the company’s capital stock. The company also elaborated on the reasoning behind the move in a latter portion of the filing.
“Our Board has determined that it is advisable and in the best interests of the company and our stockholders to reduce the number of shares of Class A Common Stock outstanding with the primary intent of increasing the per share trading price of our Class A Common Stock in order to meet the NYSE’s price criteria for continued listing on that exchange,” the filing reads.
FOA is hopeful the move will make a material difference, according to the filing.
“We expect the Reverse Stock Split to increase the per-share trading price of our Class A Common Stock back above $1.00, and as a result, we also believe that the Reverse Stock Split may make our Class A Common Stock more attractive to a broader range of institutional and other investors, as we have been advised that the current per share trading price of our Class A Common Stock may affect its acceptability to certain institutional investors, professional investors and other members of the investing public,” the company said.
Brokerage houses and institutional investors often have “internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers,” FOA noted, adding that some of these policies “may function to make the processing of trades in low-priced stocks economically unattractive to brokers.”
The company is aware of certain risks that come with the move — including the possibility that it does not lead to the desired outcome.
The outcome of the move “cannot be predicted with any certainty,” it stated, nor can the company guarantee improved total market capitalization. There are other factors that could affect how the move ultimately plays out, including business performance and market realities.
FOA first received word from the NYSE that it was out of compliance with its continued listing standard in December 2023, with a second notice issued in February 2024. NYSE requires that listed stocks maintain a price of at least $1 per share “over a consecutive 30 trading-day period,” but the price has reached that threshold only eight times in 2024. At the end of trading on Thursday, the share price stood at $0.61.
Earlier this month, the company instituted a round of layoffs that impacted multiple layers of the organization, but it is unclear how extensive these layoffs were. At the same time, the company’s chief retail sales officer elected to voluntarily leave FOA, according to company president Kristen Sieffert.
According to Home Equity Conversion Mortgage (HECM) endorsement data compiled by Reverse Market Insight (RMI), FOA was the No. 1 lender in the country with 7,784 endorsements in the 12-month period ending on May 31, 2024.
This data does not include originations of proprietary reverse mortgages, but no provider of these loans publicly shares the sales volume figures for their private-label products.
When shopping for auto insurance in the First State, it makes sense to start by looking into the best car insurance companies in Delaware. But because so many different factors go into choosing an insurance company, it can be hard to know which “best” option is actually right for you.
To make the decision easier, NerdWallet analyzed 18 car insurance companies in Delaware to find the best car insurance for the following categories:
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.
How we found the best car insurance in Delaware
NerdWallet’s editorial team considered pricing, discounts, complaint data from the National Association of Insurance Commissioners and more to determine the best car insurance companies in Delaware. Our “ease of use” category includes factors such as website transparency and how simple it is to file a claim. As we continue to evaluate more insurance providers and receive fresh market data, our list of best car insurance companies is likely to change over time. In our list of the best insurers in the state, we only include insurance companies that have achieved a 5-star NerdWallet rating.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance company that works best for you. Our ratings are specific to auto insurance; a company’s rating for other products may be different on our site. See our criteria for evaluating auto insurance companies.
Best car insurance in Delaware overall: Travelers
Travelers earned the highest overall NerdWallet star rating out of the 18 car insurance companies we analyzed in Delaware. Its wide range of discounts and coverage options, along with the low record of complaints from its customers to regulators, make it a strong contender for drivers shopping for car insurance in Delaware.
One of the largest insurers in the country, Travelers has an expansive network of agents and a large variety of insurance products to choose from. This insurer stands out for its accident forgiveness plans and above and beyond coverage options including gap insurance and premier new car replacement.
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Best Delaware auto insurance for your budget: Travelers
Delaware drivers looking for a top-rated insurer that’s also good for their wallet are in luck. Travelers, NerdWallet’s pick for the overall best auto insurer in Delaware, is also the most affordable among insurers with NerdWallet star ratings of 4.5 and above.
Our June 2024 analysis showed that the average rate for full coverage insurance from Travelers is $1,145 per year or $95 per month for Delaware drivers. However, these are median rates and your rate may be different. Travelers also offers a wide variety of discounts, which may help you cut your premium down even further.
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
🤓Nerdy Tip
We don’t have data for every single company that offers coverage in Delaware, so Travelers may not actually be the best Delaware car insurance provider for you. Compare car insurance rates from several companies to find the company cheapest for you.
Best car insurance in Delaware for customer complaints: Travelers
Travelers is also the best car insurance company for Delaware drivers when it comes to customer satisfaction, based on the low number of complaints to state regulators compared to companies of similar size. This is based on a comparison across auto insurers in Delaware with a 4.5 NerdWallet star rating or above. Travelers’ high level of customer satisfaction is part of the reason why it also ranks as the best overall car insurance company in Delaware.
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Travelers
Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.
Great set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Best Delaware car insurance for ease of use: State Farm
State Farm is the best car insurance company in Delaware for ease of use. State Farm customers can manage their policy and submit claims online, and the mobile app has excellent user ratings for both iOS and Android devices. While offering robust online tools and services, State Farm also pairs all its customers with a dedicated agent for more personalized attention.
State Farm
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Average set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
State Farm
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Average set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Full list of the top auto insurance companies in Delaware
Out of all 18 car insurers NerdWallet analyzed, here is the full list of the companies that provide the best car insurance in Delaware. Only companies with a NerdWallet star rating of 4.5 or higher were considered.
How to get the best car insurance in Delaware
Still not sure which company to go with? Try these tips:
Assess your needs. Evaluate your own needs and preferences before deciding on a car insurance company, since everyone’s needs are different. For example, one person might prioritize a company with strong customer service and a low-mileage discount, while another may prize affordability and a well-polished mobile app.
Do your research. While the companies on this page represent solid choices, you may want to explore other options. Whichever insurer you go with, make sure they’re financially stable, have few customer complaints and offer the coverage you need at a competitive price. You can also check out our full list of auto insurance reviews.
Consider small insurance companies. Small, regional insurers may provide a better price and customer service than the big companies you see advertised on TV. You might have to recruit the help of a local independent car insurance agent to find them.
Shop around once a year. Make a practice of shopping for car insurance quotes about once a year — especially if price is important to you. Insurers adjust car insurance rates regularly, so a company that gave you the best rate last year might no longer be a bargain this year. Be sure to get quotes from at least three insurers, and for the most accurate comparison, use the same or similar coverage options and deductibles while shopping around.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance company that works best for you. Our ratings are specific to auto insurance; a company’s rating for other products may be different on our site. See our criteria for evaluating auto insurance companies.