Boston-based Rui Chaves, with over 20 years of experience in financial lending and mortgage, has joined Summit Funding to spearhead its growth in the Northeast. “New England is a tough market to compete in. In order to be successful there, you have to have an amazing leader like Rui Chaves. He truly cares about investing … [Read more…]
A number of real estate tech companies have ambitions to grow mortgage businesses, and results from the past year highlight which companies are actually gaining market share.
Why it matters: The data shows, in very real terms, what “investing for growth” really means, and which companies are best positioned to grow mortgage as a meaningful adjacency.
Zillow is the standout, doubling its MLO (Mortgage Loan Originator) headcount over the past 14 months – during a very difficult time to be in mortgage.
In a down market, it’s rare for a company to double its mortgage headcount.
But one other company has done so, seemingly back from the abyss: Better Mortgage.
After shedding over 1,000 MLOs during the dark days of 2022, Better is back – or at least investing for growth – by doubling its MLO headcount over the past year.
Redfin has slowly shed MLOs since its acquisition of Bay Equity Home Loans in 2022.
Like Zillow, its goal is to attach mortgage services to its core brokerage operation, but in contrast to Zillow, its headcount is shrinking (down 30 percent since acquisition).
More MLOs correlates to more funded loans: Comparing the two portals over the past year, Zillow has more than doubled its loan origination volume, while Redfin’s has slightly declined.
Redfin’s mortgage business is still larger than Zillow’s, but unlike Zillow, it’s not growing.
The bottom line: My latest podcast guest, Greg Schwartz, CEO of Tomo and former president at Zillow, summed up the situation well: “Growth is in our control.”
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Pacific Investment Management Co. expects more regional bank failures in the U.S. because of a “very high” concentration of troubled commercial real estate loans on their books.
“The real wave of distress is just starting” for lenders to everything from malls to offices, John Murray, Pimco’s head of global private commercial real estate team, said in an interview. His division sits within Pimco’s $173 billion alternatives business.
Uncertainty over when the Federal Reserve may cut interest rates has exacerbated challenges faced by the commercial real estate sector, where high borrowing costs have hammered valuations and triggered defaults, leaving lenders stuck with assets that are tough to sell. Contrary to some market expectations, larger banks have been disposing of some of their higher quality assets first to avoid deeper losses, according to Murray.
“As stressed loans grow due to maturities, however, we expect that banks will start selling these more challenged loans to reduce their troubled loan exposures,” he said, adding his team has been snapping up CRE loans offloaded by some large US banks for the past 18 months.
The turmoil has been particularly felt among regional banks, which boosted their CRE exposure that in many cases is now worth only a fraction of their value at their peak. Smaller banks have continued to worry investors ever since the collapse of a few last year. Earlier this year, US Bancorp, the largest regional bank by assets, increased its provisions for credit losses in the first quarter to $553 million.
Regional banks were also the only lenders that didn’t demand extra down payments from commercial-property borrowers in recent years, highlighting their vulnerability to falling values, according to a report released by MSCI Real Assets in March. Deposit-taking institutions face an estimated $441 billion wall of maturing property debt this year.
For larger banks, the property exposures aren’t expected to cause systemic failures as their CRE lending was curbed after the 2008 crisis, Murray said. But borrowers’ failure to repay means they’re lending even less compared with 2021 and 2022, he added.
Meanwhile, many mortgage real estate investment trusts have become more sidelined as they deal with problems of their own. That’s limited their ability to underwrite new investments. Starwood Real Estate Income Trust tightened its shareholders’ ability to pull money last month in an effort to preserve liquidity and stave off asset sales, while Blackstone Inc.’s $59 billion property trust saw an uptick in withdrawal requests.
Lending volumes for major public mortgage REITs have plunged 70% from 2021 levels, according to Murray.
While banks tend to hog most of the headlines, another area that needs close attention is the more than $200 billion of loans made by debt funds in the US that are set to mature through 2025, Murray said. Many of these loans were originated during the peak pricing era of 2021, often with a three-year term and a three-year rate cap.
“The first catalyst for stress at the asset level is occurring right now, as assets will struggle to meet extension tests in this higher rate environment,” Murray said.
The Newport Beach, California-based asset manager is also keeping an eye on how German banks deal with their commercial real estate exposure.
“The combination of rising rates plus recessionary pressures creates real challenges for commercial real estate, from both a capital markets and fundamentals perspective,” Murray said.
Inside: Learn what 25 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 $25 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is $25 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 $25.50 an hour annually?
When you finally start earning $25 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 $25 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.
Knowing 25 an hour salary is helpful for budgeting and allocating your spending.
If that is something you want too, then keep reading. You are in the right place.
$25 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $25 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $25 = $52000
$52,000 is the gross annual salary with a $25 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 $25 times 2,080 working hours, and the result is $52,000.
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 just above the $50000 salary threshold, but lower than the 60K salary, which is desired to become 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 $25 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 $25 times 1,040 working hours and the result is $26000 per year.
How Much is $25 Per Month?
On average, the monthly amount would average $4,333.
Annual Amount of $52,000 ÷ 12 months = $4,333 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 $20 an hour, you average an extra $866 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 $2,167.
How Much is $25 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 $25 = $1,000 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $500.
How Much is $25 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,000 and double it.
$1,000 per week x 2 = $2,000
Also, the other way to calculate this is:
40 hours x 2 weeks x $25 an hour = $2,000
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,000.
How Much is $25 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 $25 per hour = $200 per day.
If you work 10 hours a day for four days, then you would make $250 per day. (10 hours x $25 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $100.
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$25 Per Hour is…
$25 per Hour – Full Time
Total Income
Yearly (52 weeks)
$52,000
Yearly (50 weeks)
$50,000
Monthly (173 hours)
$4,333
Weekly (40 Hours)
$1,000
Bi-Weekly (80 Hours)
$2,000
Daily Wage (8 Hours)
$200
Net Estimated Monthly Income
$3,308
**These are assumptions based on simple scenarios.
Here are the jobs that pay $25 an hour.
Paid Time Off Earning 25 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 $52000 per year.
This is the same as the example above for an annual salary making $25 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 a family 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 $25 times 2,000 working hours, and the result is $50,000.
40 hours x 50 weeks x $25 = $50,000
You would average $200 per working day and nothing when you don’t work.
$25 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: $52,000
Federal Taxes of 12%: $6,240
State Taxes of 4%: $2,080
Social Security and Medicare of 7.65%: $3,978
$25 an Hour per Year after Taxes: $39,702
This would be your net annual salary after taxes. Less than $40000 per year!
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$39,702 ÷ 2,080 hours = $19.09 per hour
After estimated taxes and FICA, you are netting $19.09 an hour. That is $5.91 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.
$25 an Hour Budget – Example
You are probably wondering can I live on my own making 25 dollars an hour? How much rent or mortgage payment can you afford on 25 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $25 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated that $25 an hour was $19.09 after taxes. That would average $3,208 per month.
According to the Cents Plan Formula, here is the high-level view of a $25 per hour budget:
Basic Expenses of 50% = $1654.25
Save Money of 20% = $681.70
Give Money of 10% = $330.85
Fun Spending of 20% = $661.70
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 spending.
To further break down an example budget of $25 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $25 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$217
Savings
15-25%
$650
Housing
20-30%
$1,213
Utilities
4-7%
$217
Groceries
5-12%
$329
Clothing
1-4%
$22
Transportation
4-10%
$195
Medical
5-12%
$217
Life Insurance
1%
$22
Education
1-4%
$33
Personal
2-7%
$65
Recreation / Entertainment
3-8%
$130
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1,025
Total Gross Income
$4,333
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
25 an hour Salary
Many times, you don’t make exactly 25/hr. You may make $25.18 or $25.66. So, here is a handy calculator to figure out your exact hourly salary wage.
At this $25 hourly wage, you are more than likely double the minimum wage. Things should be easy to live off this $25 hourly salary.
Yet, 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, $25 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 $25 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 25 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 $25 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $25 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 $25.50 will add up over the year. Even better $26 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 $25 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.
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 $25 an Hour
In this last section, grasp these tips on how to live on $25 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 $25 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 $25 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 $25 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!
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.
Maybe changing your habits and not picking up takeout and planning meals.
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 that 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 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 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.
Here are resources now for you to pay off your debt:
Jobs that Pay $25 an Hour
You can find jobs that pay $25 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!
Freelance writer
Class A 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
Companies that pay more than $25 per hour: Costco, Wayfair, Amazon, Best Buy, Target, Wells Fargo, Disney World, Disney Land, Bank of America, JP Morgan, Cigna, Aetna, etc
$25 Per Hour Annual Salary
In this post, we detailed 25 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 25 dollars an hour annually…
$52,000
This is right between $51000 per year and $53k 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.
When you’re applying for a home loan, your mortgage lender is going to be interested (understandably) in your ability to repay the likely six-figure sum you are borrowing. And that means providing proof of both your income and your existing assets — which may mean sharing some bank statements with the lender.
The number of bank statements you’ll need to provide depends on the lender you choose as well as the type of loan you’re applying for. You typically won’t have to submit more than two months’ worth of statements. In some cases, however, you may need to provide six to 12 months’ worth of bank statements. To know for sure how many bank statements you need to submit, the best move is to talk to your loan officer.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
How to Get Bank Statements
Once you know how many bank statements you need based on your lender’s mortgage requirements, the next question is: how and where do you get them? These days, bank statements can usually be downloaded from your bank’s online portal (you’ll probably be able to access your entire bank statement history). If you have trouble finding the documents, you can contact your bank’s customer service team.
It’s not unusual to wonder how long to keep bank statements and other financial documents, and banks are accustomed to receiving requests for old statements.
Why Are Bank Statements Needed for Mortgage Applications?
Bank statements are used by mortgage lenders in order to ensure you have the money it will take to fund the upfront costs of the loan, as well as to confirm that you have regular income. However, lenders may also use other documents to confirm these eligibility requirements, such as tax returns or W-2s. It can be a hassle to pull together all the paperwork for your mortgage application, but documentation is an important part of the lender’s defense against mortgage fraud.
What Underwriters Look for in Bank Statements
Mortgage underwriters may also be looking at your bank statements to ensure the funds you’re using for your down payment or closing costs are “seasoned money.” That is to say, the money has been in your possession for 60 days or more. This is because some lenders have restrictions against gift funds or family loans being used to pay upfront loan costs, such as the down payment on a home.
What Are Bank Statement Loans?
Bank statement loans are mortgages that use bank statements specifically, rather than tax returns, to qualify applicants for a mortgage loan. If you’re applying for a bank statement mortgage, you will likely need to submit substantially more of those statements — sometimes as much as two years’ worth.
Bank statement loans can make getting a mortgage possible for self-employed borrowers or others whose paperwork might not match the traditional required documentation. However, they can be harder to find, and may come with more stringent credit requirements and higher minimum down payments.
What Other Documents Are Needed for a Mortgage Application?
Of course, the best way to know exactly what documentation is required for your mortgage application is to ask your lender. However, documents that are often required for a mortgage application include the following:
• W-2 forms
• Pay stubs
• Tax returns
• Bank statements
• Alimony or child support documentation
• Retirement and investment account statements
• Gift letter, if you’re using gift funds
• Identification documentation
Depending on your specific circumstances, you may also need to provide proof of rental payments, a divorce decree, any bankruptcy or foreclosure records, or other specific documents. Again, your lender will have the full details.
The Takeaway
Depending on the type of loan you’re applying for, you may need to submit only a couple months’ worth of bank statements — or up to two years of banking history. Fortunately, bank statements are easy to generate in most banks’ online management portals, so all you’ll have to do is download and submit them.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Does FHA require 2 months of bank statements?
Lenders offering Federal Housing Administration (FHA) loans have their own specific requirements as far as how many months of bank statements you’ll need to provide. Some lenders offer FHA loans with just two months’ worth of statements, but you may be asked to submit more if the lender has specific requirements or some other part of your application creates the need (such as a lower credit score, for example).
How many months of bank statements do you need to refinance your mortgage?
Refinancing your mortgage is, in many ways, basically just like getting a mortgage in the first place — which means that you’ll again likely be asked to submit two months’ worth of bank statements. However, as always, specific lenders have different requirements, and if you have a nontraditional application, you may be asked to submit more.
What is a 12-month bank statement mortgage?
Also known as a bank statement loan, these mortgages use bank statements as the primary qualifying factor to approve you for a home loan (as opposed to other traditional documentation like W-2s or tax returns). For these loans, you may need to provide 12 or even 24 months’ worth of bank statements, since they’ll be such an important source of information for the lender.
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There’s been a noticeable uptick in mortgage rate volatility over the past two weeks with a quick spike at the end of May, a nice drop in early June and then another spike last Friday following the jobs report. Of course everything’s relative, so in objective terms, it was roughly a 0.30% round trip for conventional 30yr firxed rates.
Today’s move is microscopic by comparison with the average lender only 0.02% higher from Friday. That’s not too surprising considering the lack of actionable data on the calendar for bond traders (bond market movement drives day to day mortgage rate movement).
All that is about to change. The event calendar ramps up quickly from here and Wednesday will be the most important day of the month due to the release of pivotal inflation data and an updated rate announcement and outlook from the Fed. While there’s no chance of a rate cut or hike at this meeting, we should get more clarity on the Fed’s interpretation of the very latest trends in inflation.
Average mortgage rates climbed appreciably last Friday following a surprisingly (if not shockingly) strong jobs report. That day’s rise all but wiped out the falls earlier in the week, sending those rates to their highest level so far this month.
First thing, it was looking as if mortgage rates today might barely budge. But that could change later in the day.
Current mortgage and refinance rates
Find your lowest rate. Start here
Program
Mortgage Rate
APR*
Change
Conventional 15-year fixed
6.565%
6.645%
+0.03
Conventional 30-year fixed
7.05%
7.1%
+0.02
30-year fixed FHA
7.009%
7.052%
+0.26
Conventional 10-year fixed
6.632%
6.713%
+0.02
Conventional 20-year fixed
6.88%
6.935%
+0.06
5/1 ARM Conventional
6.734%
7.896%
-0.03
30-year fixed VA
7.083%
7.126%
+0.24
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock your mortgage rate today?
I’m truly sorry that my predictions last week of higher mortgage rates imminently turned out to be correct. But my feeling is that markets aren’t ready to deliver a consistent downward trend for those rates and probably won’t be ready to do so until much later in the year. And possibly not even then.
In the meantime, of course, there will be periods of falls as well as rises. And, over time, we can reasonably hope they’ll roughly balance each other out.
I don’t see any point in betting (by floating your rate) when the chances of wining and losing are approximately equal.
So, my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
Of course, don’t lock your rate when mortgage rates look likely to fall. My recommendations are based on longer trends. And, within those, there will be rate-friendly days and longer periods that you can take advantage of.
With so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So, let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:
The yield on 10-year Treasury notes edged up to 4.46% from 4.43%. (Bad for mortgage rates) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were falling this morning. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices rose to $75.97 from $75.76 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices fell to $2,321 from $2,338 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Because gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — Edged down to 42 from 44 out of 100. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So, lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to hardly move. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Find your lowest rate. Start here
What’s driving mortgage rates today?
Super Wednesday looms
Two of the three events that are most likely to move mortgage rates are due this Wednesday. They’re:
The monthly consumer price index — A crucial inflation report
A six-weekly update from the Federal Reserve on how its plans for future cuts to general interest are evolving. This time, it could be particularly influential because it includes a quarterly Summary of Economic Projections, complete with a highly valued dot plot, as well as a news conference
I’ll brief you tomorrow on what to expect from those. Or, if you’re in a hurry, check out the weekend edition (link below). But they’d need to be exceptionally friendly toward mortgage rates to fully counteract the effects of last Friday’s jobs report.
Today and tomorrow
No economic reports are due today. So any significant change in mortgage rates is likely to be a result of either continuing momentum from last Friday or some unscheduled news story that affects the economy.
Tomorrow may be similarly uneventful. The only report due is an optimism index from the National Federation of Independent Business, and that rarely affects mortgage rates.
Later in the week
We’re due the producer price index (PPI) on Thursday and the import price index (IPI) on Friday. These forward-looking inflation indicators can sometimes affect mortgage rates but usually only temporarily and in a limited way.
And the same goes for two other reports:
Weekly initial jobless claims on Thursday
The consumer sentiment index on Friday
Indeed, I suspect all reports this week will be eclipsed by Wednesday’s events.
If you’re hungry for more information about what’s moving mortgage rates, do click through to the latest weekend edition of this daily report. It provides a deeper analysis together with a preview of what to expect in the coming week. It’s published each Saturday morning soon after 10 a.m. Eastern.
Recent trends
According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.
Freddie’s Jun. 6 report put that same weekly average at 6.99%, down from the previous week’s 7.03%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures. Still, they’re a good way to track trends.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the last three quarters of 2024 and the first quarter of 2025 (Q2/24, Q3/24 Q4/24 and Q1/25).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on May 22 and the MBA’s on May 17.
Forecaster
Q2/24
Q3/24
Q4/24
Q1/25
Fannie Mae
7.1%
7.1%
7.0%
6.9%
MBA
6.9%
6.7%
6.5%
6.4%
Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Verify your new rate
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Verify your new rate. Start here
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
Check your refinance rates today. Start here
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also, pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
So, for the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
Indeed, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Verify your new rate. Start here
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account as evidence of their financial circumstances. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. And this gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders. And it could save you thousands in the long run.
Time to make a move? Let us find the right mortgage for you
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Those mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
In a market where every dollar matters, revenue retention areas like quality control and compliance are more critical than ever. Thus, keeping abreast of regulatory and investor updates and trends is vital to maintaining loan quality and compliance. Trevor Gauthier, chief executive officer at ACES Quality Management provides us with an update on the latest in QC and compliance.
HousingWire: Revenue retention is undoubtedly at the top of lenders’ concerns in the current market, and quality control plays a critical role in that effort. How are lenders managing loan quality these days?
Trevor Gauthier: Overall, lenders are managing loan quality quite well. While our quarterly Mortgage QC Trends Report did observe two quarters of extremely high, if not historic, critical defects, those occurred in mid- to late 2022 as the industry was dealing with the operational fallout from the market downturn. Once lenders moved past that period of volatility, the overall critical defect rate began trending downward and has continued to do so over the past five quarters. In fact, the critical defect rate for the fourth quarter of 2023 was 1.53%, which ranks amongst the lowest rates we’ve observed since the report’s inception in 2016.
We were fortunate enough to have Duane Gilkison, senior director of loan quality at Fannie Mae, present during our recent ACES ENGAGE conference in Tucson, and our findings seem to be in line with the downward trend in both initial and final defect rates Fannie Mae has observed in the 2023 loan acquisitions from its seller/servicers.
HW: Speaking of Fannie Mae, how are lenders responding to the QC policy updates Fannie issued late last year?
TG: Of all the QC-related updates to the Fannie Mae Selling Guide, the most significant for lenders were the mandatory 10% pre-funding sample review and the truncated timeline for post-closing selection, review, rebuttal and reporting. As Duane noted during his presentation, Fannie’s goal in all of these changes was to enable lenders to identify and remediate defects sooner, and with the advancements in QC auditing software, the team at Fannie felt lenders now had the tools and automation necessary to make that happen.
From our clients’ perspective, many felt that the writing was on the wall, so to speak, in terms of Fannie Mae’s expectations. The most significant issue we heard from clients was the timing of the change. With the market downturn, lenders shrank their operational staff across the board, and QC certainly wasn’t exempt from those cuts. Anytime you’re asked to do more with less, it’s going to create some level of strain, but I think for those that already had technology like ACES in place to automate QC sampling, reviews and reporting, the change was less of a burden than it might otherwise have been
HW: QC and compliance often go hand in hand. What are some of the current compliance issues/trends that could impact loan quality?
TG: One of the cases that our compliance team is watching closely is CFPB v. Townstone Financial, which addresses whether ECOA applies to redlining and other pre-application activity. This case is one of many that exemplifies the broad interpretations of existing rules and regulations the CFPB is using to cite lenders for non-compliance.
We’ve also seen the CFPB take an extraordinarily broad view of what can satisfy the “Abusive” prong of UDAAP via a proposed rule prohibiting charging non-sufficient funds (NSF) fees for declined payment transactions at point-of-sale. While this proposed rule doesn’t apply to mortgage lending specifically, it offers a glimpse into the CFPB’s current thought process and, therefore, is something lenders should pay close attention to moving forward.
Of course, “junk fees” is the latest buzzword out of the CFPB, and the Bureau seems to be taking particular aim at some of the fees charged by mortgage servicers and now lenders. The Bureau recently highlighted 10 specific compliance issues related to mortgage servicing in its Supervisory Highlights, Issue 33 (Spring 2024), four of which involved what it deemed as improper charging of fees. But most recently, the Bureau announced a Request for Information (RFI) into “Junk Fees in Mortgage Closing Costs.”
These are just a few of the compliance trends we’re tracking. For those interested in a deeper dive into these topics and others, like Fair Lending, I’d encourage you to watch the latest installment of our QC Now webinar series with our EVP of Compliance Amanda Phillips and Ballard Spahr Partner Richard Andreano.
Given the current landscape, what resources are available to lenders to better manage loan quality and ensure compliance?
TG: Fannie Mae offers numerous training and education resources to help lenders improve loan quality, which lenders can find online through its Loan Quality Learning Center. In addition, I’d also direct lenders to Fannie’s Beyond the Guide and Quality Insider publications, which feature a ton of insight, findings and best practices. Even though we have a vested interest in this area, ACES has always been committed to supporting all lenders – not just our customers – in their efforts to improve loan quality and mitigate risk and compliance issues. The Resources section on our website provides a wealth of free resources, including links to our quarterly Mortgage QC Industry Trends Report, on-demand webinar library and Compliance NewsHub.
Trevor Gauthier is the chief executive officer at ACES Quality Management.
Traveling abroad can be an exhilarating adventure, especially when you’re heading to Europe. Whether you’re in the mood for an eclair or want to take in the Colosseum, making your way over to Europe involves a lot of moving parts.
That’s why travel insurance can be so beneficial. With protections such as trip delay reimbursement and coverage for lost luggage, travel insurance can help make sure your trip stays smooth.
What’s more, several plans include travel health insurance in Europe, so you can worry less about whether that hike through the Alps is a good idea.
Let’s take a look at travel insurance in Europe as well as other coverage options for your vacations.
How travel insurance works
Because a lot of thought, money and effort go into planning and taking a vacation, protecting your investments (and yourself) with travel insurance can make the difference between an enjoyable memory and a disastrous anecdote you tell at mealtimes.
Travel insurance can cover a variety of things, including:
Common types of travel insurance
Trip cancellation, trip delay, trip interruption and lost luggage insurance are all sources of protection when you travel, especially on airlines. These can reimburse you for nonrefundable expenses you miss out on due to covered delays, and may pay you back for costs you end up incurring (including lodging, meals, toiletries and clothing).
🤓Nerdy Tip
Although it’s possible to get standard health insurance for trips abroad, it’s much more common to get coverage for emergency care, which includes protections for unexpected injuries and illnesses.
Health insurance for European travel is usually included with a standard travel insurance policy, but there are plan limits and there may be deductibles.
It’s also possible to purchase medical-only travel insurance from certain providers if you aren’t interested in other trip protections.
How to choose between travel insurance companies
Before you start shopping for travel and medical insurance in Europe, evaluate the level of coverage you need based on your age, health, trip duration, destination and planned activities (some adventure sports aren’t always covered). Compare plans from different providers, paying attention to coverage, benefits and prices.
Here’s a short list of factors to consider:
The cost of the policy.
The limits of the plan.
Whether there are deductibles.
Whether the benefits are primary or secondary.
Where you’re going.
How long your trip is.
Whether you already have insurance that’ll cover you.
The types of activities you’ll be doing.
An insurance aggregator like InsureMyTrip or Squaremouth (a NerdWallet partner) can streamline your shopping experience. Be sure to also read reviews and ratings of individual travel insurance companies to get an idea of customer service and claim resolution processes.
Best plans for health insurance while traveling in Europe
To figure out the best plans for travel and health insurance in Europe, we generated quotes from multiple travel insurance companies using a test scenario. For this example, we used a 37-year-old Nevada resident traveling to Germany for 11 days with a $4,000 trip cost. Here are the winners.
1. GeoBlue
GeoBlue’s Voyager Choice medical insurance for European travel sits head and shoulders above the rest for cost, at only $28.16.
That said, there’s a reason it is so affordable. This plan offers coverage only for medical emergencies and lacks other trip protections. It is a good option if you want to supplement existing travel coverage (say via your credit card) with more medical coverage.
$1 million in medical coverage.
$0 deductible.
Offers direct billing.
No trip protections.
Pre-existing condition coverage requires that you have domestic health insurance.
Can only purchase plans up to six months in advance of your trip.
2. IMG
IMG’s iTravelInsured Travel SE’s comprehensive plan includes both trip protections and health insurance for Europe travel and rings in at just $135.36.
At this price point, it provides excellent primary coverage for medical insurance, offers rental car insurance and includes superior trip interruption reimbursement.
Travel delay reimbursement kicks in after 12 hours.
Baggage loss is capped at $250 per item and $1,500 total.
More expensive than other options.
3. Detour Insurance
The Detour Insurance @The Edge insurance plan is aptly named. Costing $86.90, the plan offers a unique inclusion for the costs of search and rescue, which can provide peace of mind if you’re participating in backcountry adventures.
$1 million limit for medical evacuation.
Coverage can be extended.
$10,000 for search and rescue.
No rental car insurance.
Pre-existing conditions not covered.
$50,000 limit for 24-hour accidental death and dismemberment (AD&D) coverage.
4. Trawick International
Trawick International’s Safe Travels Protect plan includes primary medical coverage as well as a wide range of trip protections. At $100.03, it even covers cancellations for medical reasons.
$25,000 in emergency medical coverage.
100% for both trip cancellation and trip interruption.
Medical quarantine coverage included.
$100 medical deductible.
$500 lost luggage limit (not a great fit if you are packing several valuables).
Doesn’t cover pre-existing conditions.
Other tips for travel and medical insurance in Europe
Do you have a travel credit card? Many of these cards offer complimentary travel insurance as a part of their benefits.
The plan you select may offer secondary coverage, but this matters only if you have existing insurance. In its absence, secondary coverage becomes primary.
Look at your existing health insurance policy. Some plans will provide emergency coverage for you when traveling internationally.
Which credit cards offer Europe travel insurance?
If you’re looking for insurance when traveling to Europe, you may already have it without knowing. Many travel credit cards offer complimentary travel insurance.
Available types of insurance can include rental car insurance, emergency medical insurance, trip cancellation reimbursement, lost luggage protection and trip delay insurance.
Here are some of the best credit cards for travel insurance:
Top cards with travel insurance
Chase Sapphire Preferred® Card
on Chase’s website
Chase Sapphire Reserve®
on Chase’s website
The Platinum Card® from American Express
Capital One Venture X Rewards Credit Card
Annual fee
Travel protections (not a comprehensive list)
• Trip delay: Up to $500 per ticket for delays more than 12 hours.
• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Baggage delay: Up to $100 per day for five days.
• Lost luggage: Up to $3,000 per passenger.
• Trip delay: Up to $500 per ticket for delays more than 6 hours.
• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Baggage delay: Up to $100 per day for five days.
• Lost luggage: Up to $3,000 per passenger.
• Trip delay: Up to $500 per trip for delays more than 6 hours.
• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.
• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.
• Lost luggage: Up to $3,000 per passenger.
Terms apply.
• Trip delay: Up to $500 per passenger for delays more than 6 hours.
• Trip cancellation: Up to $2,000 per person for nonrefundable airline, bus, train or ferry tikets.
• Trip interruption: Up to $2,000 per person for nonrefundable airline, bus, train or ferry tikets.
• Lost or damaged luggage: Up to $3,000 per passenger.
Learn more
Terms apply.
Travel insurance for Europe recapped
Staying safe is important during your trip to Europe. Health insurance for travel can make a difference, especially if you’re planning on doing anything adventurous. The same can be said for other trip protections, which reimburse you for covered expenses that you incur.
To view rates and fees of The Platinum Card® from American Express, see this page.
Insurance Benefit: Trip Delay Insurance
Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
Underwritten by New Hampshire Insurance Company, an AIG Company.
Insurance Benefit: Trip Cancellation and Interruption Insurance
The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
Underwritten by New Hampshire Insurance Company, an AIG Company.
Insurance Benefit: Baggage Insurance Plan
Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g., plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one-way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on Baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.