U.S. homebuilder sentiment unexpectedly declined in June to the lowest level this year as mortgage rates near 7% limited prospective-buyer interest and weighed on the demand outlook.
The National Association of Home Builders/Wells Fargo index of housing market conditions fell by 2 points to 43. This month’s reading trailed all economists’ estimates in a Bloomberg survey, which had a median forecast of 46.
A measure of the sales outlook over the next six months dropped 4 points to 47 this month. That followed a 9-point decline in May that was the largest since October 2022. The prospective-buyer traffic gauge and the NAHB index of current sales both dropped to the lowest level this year.
“Persistently high mortgage rates are keeping many prospective buyers on the sidelines,” Carl Harris, NAHB chairman and builder from Kansas, said in a statement. “Home builders are also dealing with higher rates for construction and development loans, chronic labor shortages and a dearth of buildable lots.”
At the same time, the industry and prospective buyers may soon find some relief from high borrowing costs. Separate figures Wednesday showed the average rate last week on a 30-year fixed mortgage eased below 7% for the first time since March.
Mortgage rates move in tandem with Treasury yields, which also declined notably last week as recent data showed a broad cooling in inflationary pressures. That prompted traders to boost bets the Federal Reserve is in a better position to move ahead with interest-rate cuts, possibly as soon as September.
Cheaper financing costs have the potential to blunt some of the impact from elevated prices in the resale market.
This month, 29% of builders reported cutting home prices, the largest share since January, according to the NAHB survey. The average price reduction held steady at 6% for the 12th straight month. The share using sales incentives increased to 61% from a May reading of 59%.
Builder sentiment fell in the Midwest and South, while improving slightly in the West and Northeast.
Inside: Learn what 21 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 $21 a year, how much do I truly make? What will that add up to over the course of the year when working? Is $21 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 $21.50 an hour annually?
In this post, we’re going to detail exactly what $21 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.
$21 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $21 per hour is as annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $21 = $43,680
$43,680 is the gross annual salary with a $21 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s breakdown how that number is calculated.
Typically, the average work week 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 $21 times 2,080 working hours and the result is $43,680.
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.
Just above $43000 a year.
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 $21 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 $21 times 1,040 working hours, and the result is $21,840.
How Much is $21 Per Month?
On average, the monthly amount would average $3,640.
Annual Amount of $43,680 ÷ 12 months = $3,650 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 $15 an hour, you average an extra $1000 per year. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,840.
How Much is $21 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 $21 = $840 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $420.
How Much is $21 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $840 and double it.
$840 per week x 2 = $1,680
Also, the other way to calculate this is:
40 hours x 2 weeks x $21 an hour = $1,680
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $840.
How Much is $21 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 work day.
8 hours x $21 per hour = $168 per day.
If you work 10 hours a day for four days, then you would make $210 per day. (10 hours x $21 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $84.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
$21 Per Hour is…
$21 per Hour – Full Time
Total Income
Yearly (52 weeks)
$43,680
Yearly (50 weeks)
$42,000
Monthly (173 hours)
$3,640
Weekly (40 Hours)
$840
Bi-Weekly (80 Hours)
$1,690
Daily Wage (8 Hours)
$168
Net Estimated Monthly Income
$2,779
**These are assumptions based off simple scenarios.
Paid Time Off Earning 21 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 $43,680 per year.
This is the same as the example above for an annual salary making $21 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 $21 times 2,000 working hours, and the result is $42,000.
40 hours x 50 weeks x $21 = $42,000
You would average $168 per working day and nothing when you don’t work.
$21 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: $43,680
Federal Taxes of 12%: $5,242
State Taxes of 4%: $1,747
Social Security and Medicare of 7.65%: $3,342
$21 an Hour per Year after Taxes: $33,350
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$33,350 ÷ 2,080 hours = $16.03 per hour
After estimated taxes and FICA, you are netting $16.03 an hour. That is $4.97 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 a just over $16 an hour wage is much different.
$21 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 $21.01-21.99.
This is super helpful if you make $21.30 or $21.63, or $21.88.
You are probably wondering can I live on my own making 21 dollars an hour? How much rent can you afford at 21 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $21 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated that $21 an hour was $16.03 after taxes. That would average $2,779 per month.
According to the Cents Plan Formula, here is the high level view of a $21 per hour budget:
Basic Expenses of 50% = $1389.50
Save Money of 20% = $555.80
Give Money of 10% = $277.91
Fun Spending of 20% = $555.83
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.
Learn how to budget on a low income.
So, you have to be strategic on 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 $21 per hour, then using the biweekly budget template is extremely helpful.
recommended budget percentages based on $21 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$218
Savings
15-25%
$510
Housing
20-30%
$983
Utilities
4-7%
$182
Groceries
5-12%
$291
Clothing
1-4%
$36
Transportation
4-10%
$146
Medical
5-12%
$182
Life Insurance
1%
$18
Education
1-4%
$36
Personal
2-7%
$67
Recreation / Entertainment
3-8%
$109
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$861
Total Gross Income
$3,640
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $21 Per Hour?
At this $21 hourly wage, you are close to double the minimum wage. Things should be easy to live off this $21 hourly salary.
However, it is still below the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
In fact, $21 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 $21 an hour annually?
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
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, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 21 dollars per hour. No going into debt for me. I will start saving money.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $21 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $21 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 $21.50 will add up over the year. Even better $24 an hour!
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 $21 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 needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
It is important to uncover what should I do for a living.
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.
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 of struggling financially and becoming financially sound happens.
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.
Related Question: How Fast Can you Make Money in Stocks? The Real Answer
Tips to Live on $21 an Hour
In this last section, grasp these tips on how to live on $21 an hour. 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 $21 an hour. An increase to $22 an hour is even better!
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 $21 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 $21 an hour minus all the taxes, FICA, social security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your gross 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!
Save $5k in cash with the trending 200 envelope challenge.
Use one of the popular saving money charts to help you!
It could be participating in a no spend challenge for the month.
It could be challenging friends not to go to Target for a week.
Whatever it is challenge yourself.
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. There are so many legit ways how to make 300 dollars fast today!
Whatever path you take, that’s fine. Just find ways to make more money. Period.
Can you imagine life earning a $100k salary?
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 week 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.
Here are resources now for you to pay off your debt:
Jobs that Pay $21 an Hour
You can find jobs that pay $21 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 – Get free training NOW!
Customer service representatives
Bank tellers
Freelance writers
Restaurant Kitchen staff
Truck driver
Uber /Lyft driver
Security guard
Movers
Warehouse workers
Pharmacy Tech
Welder
Forklift operator
Merchandiser
Call center agent
Nursing Assistant
Companies that pay more than $21 per hour:
Bank of America
USAA
Nationwide
Costco
Wayfair
Amazon
Best Buy
Target
Wells Fargo
Disney World
Disney Land
JP Morgan
Cigna
Aetna
$21 Per Hour Annual Salary
In this post, we detailed 21 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 21 dollars an hour annually…
$43,680
This is right between $43000 per year and $44k 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.
If you’re in a bind and there aren’t many other options available to you, it is possible to get a personal loan for paying rent. However, you’ll need a solid credit score and credit history to get a good interest rate on a rental assistance loan.
Before you’d get a loan for rent, you may want to evaluate the costs involved and the pros and cons. Read on to learn more about getting a loan for rent payment.
What Types of Loans Can You Use for Rent Payments?
There are several different types of personal loans that you can obtain for paying rent. These include secured and unsecured personal loans for rent assistance, as well as payday loans.
Secured Personal Loans
Secured loans require putting up collateral, which is an item of value used to back up the loan. If the payments on the loan are not made, the lender can seize the collateral and sell it to make up for their losses. Some types of collateral that may be used include cash savings, stocks, a car, a boat, a home, jewelry, fine art, and future paychecks.
Securing a loan with collateral may result in a lower rate, but all conditions are dependent on what the lender is willing to take and what terms they’re willing to offer on a personal loan.
Unsecured Personal Loans
Unsecured personal loans do not require collateral. Since the lender has fewer options for recovering the funds should the borrower default, these types of loans often come with higher rates and shorter terms.
Payday Loans or Cash Advances
A payday loan, or cash advance loan, is a small, expensive loan you repay all at once, typically on your next payday. Interest rates and fees can be exorbitant. As a result, this type of loan should generally only be a last resort for covering rent payments.
Recommended: The Problem With Online Payday Loans and Fast Cash
Reasons Why You May Need to Use Loans for Rent
Using a personal loan for rent isn’t something you’d want to do routinely, but you may come across certain scenarios where it may make sense, such as when:
• You have a short-term financial setback.
• You’ll soon have the funds to pay the loan back.
• You have a good to excellent credit score.
• You can afford to make the monthly payments.
• Your only other option is a payday loan.
Keep in mind that while there’s a lot you can use a personal loan for, taking one out still involves assuming debt. If you’re not confident you can repay a loan for rent, then it’s worth considering if you have any other options available to cover your rental costs for the month.
What Happens If You Do Not Pay Your Rent?
If you do not pay your rent, your landlord can start eviction proceedings against you. Laws vary from state to state and city to city, but it’s important to pay your rent on time.
If you know you’re going to have trouble paying rent, dig out your lease agreement and find out if you have a grace period, what the late fees are going to be, and who to contact if you need to pay late. If you reach out to your landlord before you miss a due date and explain your situation, they may be willing to give you a grace period and delay eviction proceedings.
Is It a Good Idea to Use Personal Loans for Rent Payments?
Generally, experts advise against using a personal loan for paying rent. Ideally, you should have an emergency fund that can cover these essential costs if something unexpected arises.
However, if you’ve decided this is your best course of action, there are some positive aspects to obtaining loans for rent over other potential options. Of course, there are downsides to take into account as well.
Recommended: How to Start an Emergency Fund
Pros of Using Loans for Rent Payments
Personal loans are known for their flexibility and versatility. Here are some of the upsides of turning to a personal loan for paying rent.
Potentially Competitive Loan Terms
A personal loan can come with competitive terms. If you’ve kept your credit in good shape, you may be able to qualify for a low interest rate with low fees and a reasonable repayment term. Your credit score doesn’t have to be perfect to be approved for a personal loan, but a score higher than 670 can increase your chances of getting approved for a personal loan with a competitive interest rate.
Recommended: Typical Personal Loan Requirements Needed for Approval
Versatility and Accessibility
Personal loans are known for being flexible. Borrowers can use them for a wide variety of purposes. For instance, you can use a personal loan for debt consolidation or to cover home renovations, an upcoming vacation, or even rent, among other things. Plus, personal loans offer quick access to funds — sometimes even the same day you apply.
Could Help You Build Credit
If you make all of your payments on time, having a personal loan could improve your credit profile. Adding an installment loan can also improve your credit mix, which is factored into your score.
Affordability
Interest rates on personal loans are generally lower than interest rates for credit cards. Your landlord may not even be able to take a credit card payment.
Cons of Using Loans for Rent Payments
Using a personal loan to pay rent generally isn’t recommended unless it’s a last resort. There are a number of drawbacks to consider.
Additional Fees
Personal loans aren’t free. You may have to pay an upfront fee to take out the loan, not to mention late fees if you miss a payment or even prepayment penalties if you pay in advance.
Possible Harm to Credit Score
If you run into trouble making your loan payments on time, it could have a negative impact on your credit. This could make it harder to qualify for other types of loans, such as auto loans and mortgages, with favorable interest rates in the future.
Interest Rates
If you’re having trouble making your rent payment, other areas of your financial life may have taken a hit. This could mean the interest rate you’re given for a personal loan will be less than ideal. Even if you’ve been able to maintain great credit, you’ll still need to pay interest on a loan for rent.
Increased Debt
Personal loans add debt to your bottom line. You’ll pay more over time by financing your rent payment into a loan. If you’re experiencing financial woes, adding a loan payment on top of what you’re going through may not be a good option.
More Personal Loan Tips
It’s possible to obtain a personal loan for a wide range of purposes, including paying rent. However, it’s important to weigh the pros and cons of getting a loan for rent before you do so. You’ll owe interest (and possible fees), and you could do harm to your credit if you’re not timely about repayment. But if it’s your last resort, a loan for rent is an available option.
If you do decide to get a personal loan — whether for covering rent or another purpose — it’s important to shop around to find the best possible offer.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Are you able to use loans for rent payments?
Yes, you can use loans for rent payments. You may want to examine all your options before you do, though. Personal loans carry fees and interest, and if you miss payments, you can drag down your credit score.
Is it hard to get a loan for rent payments?
It can be hard to get a loan if you have poor or thin credit or a low income. A lender will analyze your credit score, credit history, and income to determine what amount you can afford to borrow and on what terms.
What type of loan is good for rent payments?
Personal loans are a flexible means to pay for a number of things, including rent. Payday loans and credit card cash advances are high-cost ways to make rent payments, and generally should be avoided.
Photo credit: iStock/nortonrsx
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Mortgage rates began the week with a modest move back up and over the 7% threshold, but managed to erase some of those losses today. The improvement followed this morning’s Retail Sales data which came out weaker than expected.
Mortgage rates are based on trading levels in the bond market. Bonds pay attention to multiple cues at any given time. Major economic reports are always among those cues as the health of the economy tends to coincide with rates (i.e. stronger = higher).
Retail Sales isn’t as big of a report as the Consumer Price Index (CPI) or The Employment Situation (the jobs report), but it’s a respectable supporting act. Sales growth was surprisingly high in the data that came out in March and April. May’s report showed a correction back to 0.0% growth.
Today’s report came in just barely positive at 0.1–a far cry from the 0.6 level 2 months ago and below the median forecast of 0.2. In addition, it included a revision to May’s report from 0.0 to -0.2. All told, it painted a less upbeat picture for the American consumer compared to a few months ago.
A slower economy is less able to sustain higher interest rates for a variety of reasons–not the least of which being the suggestion of slower price growth. With that, bond traders bought more bonds, thus pushing bond prices higher and yields (aka “rates”) lower.
Tomorrow is a market closure for the Juneteenth holiday. Trading resumes on Thursday but we’ll be waiting until the end of next week for the next round of big ticket economic data.
Mortgage rates cooled slightly once again this week, now averaging 6.95%, as they continued to dial back after last month’s surge and returned to averages typical of a year ago, Freddie Mac reports.
“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” says Sam Khater, Freddie Mac’s chief economist. “Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased, showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.”
Inflation Remains a Thorn for Rates
The Federal Reserve voted this week to hold its key benchmark interest rate, blaming still stubbornly high inflation for delaying its plans for cuts. The Fed’s announcement came shortly after the latest consumer price inflation data showed the CPI up by 3.3% compared to a year ago. While that is its slowest gain in three years, the CPI remains far from the Federal Reserve’s 2% target that it has set as justification for starting to cut its rate.
The biggest pressure on inflation remains the shelter component of the CPI, which is up 5.4%. Shelter made its slowest gain in two years, but it remains high and continues to cause inflation to remain high as well, says Lawrence Yun, NAR’s chief economist. “The non-official private sector data points to rising apartment vacancy rates from temporary oversupply, and rents are essentially showing no increases,” Yun says. “So, official consumer price inflation, with a lag time, no doubt has more room to slow down.”
Yun says the timing for the Fed to start cutting rates remains unclear. “But the longer-term outlook is for the Fed to cut interest rates six to eight rounds by the end of next year,” he says. If mortgage rates then soon follow, “home prices will remain solid, and home sales will pick up, especially in regions with rising inventory,” he adds.
Mortgage Rates This Week
Freddie Mac reports the following national averages for mortgage rates for the week ending June 13:
30-year fixed-rate mortgages: averaged 6.95%, dropping from last week’s 6.99% average. A year ago, 30-year rates averaged 6.69%.
15-year fixed-rate mortgages: averaged 6.17%, falling from last week’s 6.29% average. Last year at this time, 15-year rates averaged 6.10%.
Real estate investment trust Redwood Trust is expected to close on Tuesday on the offering of $85 million in debt, following on the heels of other companies in this space. Analysts say the resources could be used to buy back other outstanding notes or improve the company’s cash position in the near term.
Redwood’s unsecured debt consists of senior notes due in 2029 that pay 9% annually. The offering can be increased by $12.75 million in aggregate principal amount available for 30 days to cover over-allotments.
The company said the proceeds of the debt offering are expected to fund, among other things, the firm’s residential lending business, the acquisition of mortgage-backed securities (MBS), and strategic acquisitions and investments.
It can also repay indebtedness, such as a subsidiary’s 5.75% exchangeable senior notes due in 2025 and Redwood’s 7.75% convertible senior notes due in 2027.
BTIG analysts Eric Hagen and Jake Katsikas estimate that the debt offering will bring the company’s total unsecured debt stack to $850 million, supported by about $1 billion in stockholder equity.
According to the analysts, at wider spreads, the company “could look to buy back its 2025 and 2026 notes with a portion of the proceeds.”
In the near term, however, the analysts expect Redwood’s leadership to “opportunistically keep a higher cash balance,” mainly because a new facility will provide $150 million in borrowing capacity.
Morgan Stanley; Goldman Sachs; RBC Capital Markets; Wells Fargo Securities; Keefe, Bruyette & Woods; and Piper Sandler were the book-running managers for the offering. The notes, which had an investment grade rating of BBB from Egan-Jones Ratings Co., are expected to be listed on the New York Stock Exchange.
Other companies in the space have also recently issued or are about to issue debt.
loanDepot plans to extend its $497.8 million in senior notes due in the fourth quarter of 2025. Mr. Cooper issued senior notes to qualified investors in January that will mature in 2032 and bear interest at 7.125% per year.
In addition, Pennymac issued new debt last year that will mature in December 2029 and pay 7.875% annually. And Rithm Capital priced an offering of $775 million in aggregate principal of senior unsecured notes due in 2029 at 8% per year.
Las recompensas de la tarjeta de crédito lo pueden ayudar a recuperar algo de dinero por cada dólar que gaste, pero también pueden resultar confusas. Primero, tiene que decidir qué tarjeta solicitar si aún no tiene una tarjeta de recompensas. Luego, está el cómo y dónde utilizarla mejor. Y por último, lo bueno: canjear las recompensas obtenidas.
Las reglas del programa de recompensas pueden volverse intensas. Los puntos pueden tener un valor determinado cuando se canjean por viajes, pero tienen otro valor si se canjean por reembolsos en efectivo. A veces puede transferir puntos a programas de fidelidad de aerolíneas u hoteles o combinarlos con los puntos de otra persona. Las millas aéreas pueden valer más para las reservaciones de viajes internacionales, pero si sólo desea un boleto más barato para un vuelo nacional, sus puntos no estarían alcanzando su máximo potencial.
Es suficiente para que cualquiera quiera tirar su cartera por la ventana. Pero con algunas estrategias moderadas es posible maximizar las recompensas (en inglés). (Y sí, si lo que más desea son viajes nacionales con descuento, adelante).
Adapte su estilo de vida y el nivel de esfuerzo deseado
Es posible que los amigos puedan tener opiniones firmes sobre qué tarjeta es mejor, pero no es necesario que su tarjeta ideal esté de moda. Piense en dónde gasta más dinero, cuánto esfuerzo está dispuesto a hacer para manejar las tarjetas y las recompensas, y en qué le gustaría canjear las recompensas.
Si lo que quiere es sencillez, opte por una tarjeta que le proporcione una cuota fija alta en todo. Si se siente cómodo con alguna complejidad adicional, seleccione tarjetas que obtengan tasas más altas para sus gastos específicos, como en tiendas de abarrotes, gasolineras o restaurantes o en compras relacionadas con viajes.
Las tarjetas de devolución en efectivo ofrecen las opciones de canje más fáciles, por lo general un crédito en el estado de cuenta que reduce el siguiente estado de cuenta de su tarjeta de crédito o quizás un depósito directo en su cuenta bancaria. Las tarjetas de viaje ofrecen la promesa glamorosa de vacaciones más baratas, pero usar puntos y millas requiere una planificación a más largo plazo.
“Intente evitar el pensamiento de grupo y permitir que otros influyan en qué tarjeta es la adecuada para usted”, dice Juan Ruiz, cofundador de JetBetter, un conserje de viajes y servicio de reservación con recompensas. “Elegir la tarjeta correcta es como si un médico le recetara un medicamento”.
Gastar con estrategia
Los bonos generosos de inscripción (en inglés) hacen que las tarjetas de recompensas sean aún más atractivas. Si alcanza un determinado objetivo de gasto, como $3,000 en los primeros tres meses de tener la tarjeta, puede ganar un bono por un valor de cientos de dólares.
Por muy emocionante que esto pueda resultar, proceda con precaución. Piense en las recompensas como algo que gana cuando compra las cosas que habría comprado de todos modos, como comestibles o gasolina. Acumular una gran estado de cuenta de la tarjeta de crédito sólo por los puntos podría dejarlo debiendo más de lo que puede pagar, en ese caso los intereses superarán las recompensas. Un gasto mínimo que esté fuera de su presupuesto es señal de que una tarjeta no es la adecuada para usted.
“No se esfuerce por intentar comprar cosas que no debería”, dice Robert Walker, fundador de AwardCat, un servicio que ayuda a los viajeros a encontrar y un viaje de premio. “Piense con anticipación y sea estratégico”. Walker recomienda buscar gastos regulares que quizás no hubiera pensado en cargar en una tarjeta de crédito, como los recibos de servicios públicos o incluso los impuestos (en inglés). Si no incurre en una comisión adicional para pagar con tarjeta de crédito o si la comisión se anula mediante un bono de inscripción, ésta es otra forma de hacer que los costos cotidianos trabajen más para usted.
Disfrute sus recompensas
Las recompensas de la tarjeta de crédito no valen nada si no se canjean, por lo que no hay razón para admirar su montón de puntos durante demasiado tiempo. Con algunas tarjetas de recompensas de devolución de efectivo, puede canjear cualquier cantidad de puntos, aunque algunas tarjetas requieren que ahorre una cantidad mínima determinada (en inglés) antes de realizar un canje.
Sin duda, para viajar puede pasar meses pensando en cómo utilizar mejor sus puntos, pero no se pierda en la investigación por mucho tiempo. “La gente se queda atrapada tratando de hacer lo más inteligente, pero el valor de la recompensa es lo que se obtiene de ello”, dice Matthew Goldman, fundador de Totavi, una firma de consultora de tecnología financiera.
Goldman sugiere establecer el valor mínimo que aceptaría por punto y tener como objetivo un canje que lo cumpla. Entonces, si puede canjear puntos por 1 centavo cada uno para viajes, pero sólo 0.8 centavos cada uno por tarjetas de regalo, omita las tarjetas de regalo. Aún así, incluso un canje que no sea perfecto vale la pena en comparación con conservar sus puntos para siempre. “No son parte de su legado ni de su patrimonio”, dice Goldman. “No se estrese tanto. Haga algo que le divierta”.
Este artículo fue publicado originalmente en NerdWallet en inglés.
Lee co-founded Michigan-based Success Mortgage Partners in 2002 and has grown the company into a national leader. Under his leadership, the company has closed billions in mortgage loans annually since 2016 and operates in 42 states with over 600 employees. Lee also leads Title Partners, a full-service title and escrow company. Read next: Top producer’s … [Read more…]
WASHINGTON, D.C. (June 12, 2024) – Karen Kreutziger Powell, CEO of Flat Branch Home Loans, testified today at a hearing on pending legislation before the Committee on Veterans’ Affairs Subcommittee on Economic Opportunity.
Hearing details can be found here. Click here for Powell’s written statement.
[Note: Please find Karen Kreutziger Powell’s prepared oral statement below. She may add to or subtract from these remarks during the course of his testimony. Portions of the text may be omitted during the testimony.]
ORAL STATEMENT
Karen Kreutziger Powell, CEO of Flat Branch Home Loans
6/12/2024
Chairman Van Orden, Ranking Member Levin, and members of the Subcommittee, thank you for the opportunity to testify today on behalf of the MBA.
My name is Karen Kreutziger Powell. I serve as the Chief Executive Officer at Flat Branch Home Loans, an independent, residential mortgage lender, headquartered in Missouri and licensed in 38 states.
I have extensive experience originating, securitizing, and servicing VA Home Loan Program mortgages and am honored to appear before this panel.
MBA appreciates the focus of today’s hearing on proposed legislation aimed at authorizing a permanent partial claim program. This program is designed to give our nation’s heroes loss mitigation options comparable to those in other federal housing programs.
The VA Home Loan Program is a significant benefit earned by Veterans through their sacrifice and service. MBA recognizes the need to make this program more accessible, operationally efficient, flexible, and competitive.
This is particularly crucial during times of individual crisis for Veterans and their families, and it’s important this benefit is not diminished. That’s why I want to emphasize MBA’s strong concern that the VA Funding Fee should not be used for expenses unrelated to the home loan program.
MBA has worked closely with Committee staff on the topic of partial claims – and we are pleased to offer recommendations aimed at improving the proposed legislation. The VA may require additional resources from Congress to implement these suggested program improvements.
MBA welcomes legislation that authorizes a permanent partial claim for the VA Home Loan Program. A partial claim is a standard, simple, and time-tested foreclosure prevention solution available to borrowers in other federal housing programs but one that is missing from the VA’s loss mitigation toolkit.
It allows a borrower who has resolved a financial hardship to move missed payments to the back of the loan, without interest, following a period of forbearance. This helps borrowers get back on track with regular mortgage payments – or pursue a modification for a more affordable payment.
Despite the introduction of the VA’s newest loss mitigation program, known as VASP, MBA believes Veteran homeowners facing temporary financial hardship deserve access to partial claims to reinstate their loans and remain in their homes.
Access to both these solutions will provide struggling borrowers with a more durable set of loss mitigation options to preserve affordable homeownership.
We are, however, concerned that certain provisions of the current bill text, such as the repayment plan, could adversely affect Veteran homeowners, mortgage servicers, and the VA.
As drafted, this legislation adds hurdles that may negatively impact borrower benefits. These changes might be motivated by a desire to generate revenue through interest income, but VA will recoup the initial outlay most of the time, as a partial claim requires repayment at payoff, refinance, or maturity of the first lien mortgage. No other government program requires repayment with interest, and we urge amendments to the bill to achieve parity with other federal housing programs.
MBA appreciates your consideration of these recommendations. Our association and its members will continue to work with the agency, this committee, and other key stakeholders to ensure Veterans and their families have access to more affordable, sustainable homeownership opportunities.
The final topic I want to highlight today concerns the settlement agreement of the National Association of Realtors to resolve various class action lawsuits alleging antitrust violations. If approved, changes could impact decisions by sellers to cover buyer agent commission fees. VA’s regulations prohibit Veterans from paying fees or commissions to real estate agents in relation to a VA home loan.
This prohibition puts Veteran borrowers at a severe disadvantage, as they are prohibited from compensating real estate agents who guide them through the home-buying process. MBA is pleased that the VA has taken temporary measures to address the problem. We urge the VA to permanently amend its regulations.
Once again, MBA appreciates the opportunity to comment on the issues impacting the VA Home Loan Program – and the specific legislation before the Subcommittee today. We value our partnership with Congress and the VA to help Veterans utilize their earned benefit to achieve homeownership.
MBA looks forward to continuing to work with the Subcommittee to forge practical solutions and provide the VA with the necessary resources to implement changes and improve the Home Loan Program.
I look forward to answering any questions you may have on this or any of the proposed legislation.
Brittany is an education reporter covering Eanes, Hays and Pflugerville ISDs. She joined Community Impact in April 2023 where she previously covered transportation, development, real estate and healthcare. Brittany graduated from Texas State University with a degree in journalism in 2020 and prior to CI was a reporter at the Hays Free Press/News-Dispatch. Email Brittany with news tips or feedback at [email protected].