“Affordability concerns remain the primary driver of consumer housing sentiment, even as the topline findings from our monthly survey showed a modest uptick in optimism on both homebuying and home-selling conditions,” Mark Palim, Fannie Mae deputy chief economist, said in the report. The survey also indicated that more consumers expect both home prices and mortgage … [Read more…]
Mortgage rates dropped across all terms from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all dropped.
Rates accurate as of July 11, 2024.
These rates are marketplace averages based on the assumptions shown here. Actual rates listed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, July 11th, 2024 at 7:30 a.m. ET.
Market mortgage rates shift up and down as the economy changes, new data releases and lenders decide how much risk they’re willing to tolerate on a given day.
Historical mortgage rates: How do today’s rates compare to years past?
Thirty-year fixed mortgage rates remain around 7 percent mostly due to inflation, which has run hotter than the Federal Reserve’s 2 percent target for some time now. Those higher prices have prompted the Fed to keep the federal funds rate elevated.
“Inflation data will be the catalyst for movement in mortgage rates this summer,” says Greg McBride, CFA, chief financial analyst for Bankrate.
The Fed’s rate doesn’t outright determine fixed mortgage rates, however. Rather, they increase or decrease with the 10-year Treasury yield, the effective yield rate on 10-year Treasury notes. The 10-year yield rises when there’s less demand for notes — and this tends to happen when investors feel confident in the economy, including monetary policy.
Still, the Fed, inflation and yields shouldn’t necessarily drive your decision to buy or sell a home. There’s no surefire way to time the housing market, either. If you’re financially ready to move, check mortgage rates regularly to help find the lowest-cost lender.
Current 30 year mortgage rate dips, -0.09%
Today’s average rate for the benchmark 30-year fixed mortgage is 6.97 percent, a decrease of 9 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.00 percent.
At the current average rate, you’ll pay $663.29 per month in principal and interest for every $100,000 you borrow. That represents a decline of $6.05 over what it would have been last week.
There are various benefits to choosing a fixed-rate mortgage when buying new house, including predictable mortgage payments.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate trends down, -0.09%
The average rate for the benchmark 15-year fixed mortgage is 6.44 percent, down 9 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $868 per $100,000 borrowed.
5/1 adjustable rate mortgage drops, -0.08%
The average rate on a 5/1 adjustable rate mortgage is 6.38 percent, sliding 8 basis points from a week ago.
Monthly payments on a 5/1 ARM at 6.38 percent would cost about $624 for each $100,000 borrowed over the initial five years.
Current jumbo mortgage rate retreats, -0.03%
Today’s average rate for jumbo mortgages is 7.06 percent, a decrease of 3 basis points since the same time last week. Last month on the 11th, jumbo mortgages’ average rate was above that at 7.17 percent.
At the average rate today for a jumbo loan, you’ll pay a combined $669.34 per month in principal and interest for every $100,000 you borrow. That’s down $2.02 from what it would have been last week.
30-year mortgage refinance slides, -0.09%
The average 30-year fixed-refinance rate is 6.99 percent, down 9 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was unchanged at 6.99 percent.
At the current average rate, you’ll pay $664.63 per month in principal and interest for every $100,000 you borrow. That’s lower by $6.05 than it would have been last week.
When will mortgage rates go down?
Thirty-year mortgage rates could slip under 7 percent by end of year, according to Bankrate’s July 2024 forecast.
There won’t be a meaningful drop beyond that, however, if the economy continues its strong streak.
“Even if the Fed starts cutting rates this year, mortgage rates won’t get down to, or below, 6 percent unless there is a significant economic slowdown,” McBride says.
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Amazon’s Prime Day is just around the corner, but you don’t have to wait to start saving. Discover some of the best early deals on home decor items that combine style with functionality, all at prices that are easy on your wallet.
Featured early Prime Day home decor deals
These early deals are a great opportunity to upgrade your home decor before the official Prime Day rush. Whether you’re looking to revamp your living space or optimize your storage solutions, these items offer both quality and value.
Philadelphia, often referred to as “The City of Brotherly Love,” is a city steeped in history and brimming with cultural vibrancy. From its iconic landmarks and historic sites to its bustling neighborhoods and thriving arts scene, Philadelphia offers a unique living experience. However, like any major city, it comes with its own set of challenges. Whether you’re considering a historic row house in Old City or a modern apartment in Rittenhouse Square, you’ve come to the right place.
In this ApartmentGuide article, we’ll explore the various pros and cons of living in Philadelphia, helping you decide if the City of Brotherly Love is the right place for you.
Fast facts about living in Philadelphia
Population: Over 1.6 million residents
Average rent: $1,847 per month for a one-bedroom apartment
Median home sale price: $270k
Subway stations: 75, providing extensive public transit options
Public parks: More than 300 green spaces for recreation and relaxation
Languages spoken: Over 100, reflecting the city’s rich cultural diversity
Annual tourists: Approximately 45 million visitors each year
Restaurants: Over 7,000, offering a wide variety of cuisines from around the world
1. Pro: Rich historical significance
Philadelphia is a treasure trove of American history, offering unparalleled access to historic sites like Independence Hall, the Liberty Bell, and the Betsy Ross House. The city played a pivotal role in the American Revolution and the founding of the United States. Walking through its historic districts, residents can feel a deep connection to the past, which adds a unique charm and educational value to living in the city.
2. Con: The housing market can be competitive
While Philadelphia’s real estate market is more affordable than many other major cities, it can still be competitive, especially in desirable neighborhoods. The average rent for a one-bedroom apartment in Philadelphia is $1,847 per month, and the median sale price for a home in Philadelphia is around $270k. While these prices are lower compared to cities like New York, finding the perfect home can still be a challenge due to high demand. Renters and buyers may need to act quickly and be prepared for bidding wars in popular areas.
3. Pro: Thriving job market
Philadelphia has a diverse and robust job market, with opportunities in various industries such as healthcare, education, finance, and technology. Major employers in the city include the University of Pennsylvania, Comcast, and Children’s Hospital of Philadelphia. The city’s economy is bolstered by its numerous universities, research institutions, and a growing startup scene, providing ample career growth potential.
5 of Philadelphia’s top employers
University of Pennsylvania
Comcast Corporation
Jefferson Health
Children’s Hospital of Philadelphia
Temple University
4. Con: Higher taxes
Pennsylvania has relatively high state and local taxes, including income, property, and sales taxes. The combined state and city income tax can be substantial, and property taxes can also be burdensome. For example, the city wage tax for residents is around 3.75%, and property taxes can add significant expenses to homeownership. Residents often find themselves paying more for everyday expenses, such as groceries, utilities, and transportation, which can strain budgets, with utilities being 9% more, groceries 2% more, and transportation 8% more than the national average.
The cost of living in Philadelphia is further impacted by the 8% sales tax on goods and services can add up quickly, affecting daily living costs. For businesses, the high corporate taxes and regulatory costs can impact overall profitability and growth, potentially making it more challenging to thrive in the competitive urban market.
5. Pro: Extensive public transportation system
With a transit score of 86, Philadelphia offers a comprehensive public transportation system, including buses, trolleys, and subways operated by SEPTA (Southeastern Pennsylvania Transportation Authority). With 75 subway stations and extensive bus routes, getting around the city is convenient and affordable. The city’s walkability and bike-sharing programs like Indego also make commuting without a car feasible for many residents.
Additionally, regional rail lines connect Philadelphia to the surrounding suburbs and cities like New York and Washington, D.C., making it easy to travel for work or leisure. SEPTA’s 24-hour service on some routes ensures that residents have access to public transportation at all times, enhancing the city’s accessibility and reducing the reliance on personal vehicles.
6. Con: Aging infrastructure
Philadelphia’s aging infrastructure can be a challenge, with issues such as potholes, outdated public transit systems, and older buildings in need of maintenance. Frequent water main breaks and electrical grid issues can cause disruptions, impacting daily life for residents. While the city is making efforts to modernize and improve its infrastructure through initiatives like the Rebuild program, which focuses on renovating public spaces and facilities, residents may still encounter inconveniences related to these issues. Upgrading infrastructure is a slow and costly process, often requiring significant investments and causing temporary disruptions during construction phases.
7. Pro: Diverse neighborhoods
Philadelphia is known for its diverse and distinct neighborhoods, each offering its own unique character and charm. From the historic streets of Old City, with its colonial-era buildings and cobblestone streets, to the vibrant energy of Fishtown, known for its hipster vibe and creative community, there’s a Philadelphia neighborhood for everyone. Explore the artistic scene in Northern Liberties, home to numerous galleries and studios, or enjoy the culinary delights in South Philadelphia, famous for its Italian Market and authentic eateries. Relax in the green spaces of Fairmount, which offers easy access to the Philadelphia Museum of Art and scenic Fairmount Park.
This diversity also means a wide variety of cuisines, festivals, and cultural experiences are available year-round, such as the annual Philadelphia Flower Show, the Odunde Festival, and numerous ethnic food festivals.
8. Con: Weather extremes
Philadelphia experiences all four seasons, which means hot, humid summers and cold, snowy winters. While some enjoy the variety, others may find the weather extremes challenging to handle. Snowstorms can disrupt daily life, affecting transportation and causing school and work closures. Summer heat waves can be uncomfortable, leading to increased energy costs for cooling. The transition seasons, spring and fall, can also be unpredictable, with sudden changes in temperature and weather conditions.
9. Pro: Access to quality education and healthcare
Philadelphia is home to some of the best educational institutions in the country, including the University of Pennsylvania, Temple University, Drexel University, and Thomas Jefferson University. The city also boasts top-notch healthcare facilities such as Jefferson Health, the Children’s Hospital of Philadelphia (CHOP), and the Hospital of the University of Pennsylvania (HUP), which are renowned for their cutting-edge medical research, specialized treatments, and high-quality patient care.
This access to quality education and healthcare is a significant advantage for residents, contributing to a strong community of lifelong learners and well-cared-for individuals. The presence of these institutions also fosters a robust job market in education and healthcare sectors, further enhancing the city’s appeal.
10. Con: Limited nightlife options
While Philadelphia has a vibrant cultural scene, its nightlife options can be limited compared to larger cities like New York or Los Angeles. The city’s nightlife tends to be more low-key, with a focus on local bars and smaller music venues. For those seeking a more bustling nightlife with a wide variety of clubs and late-night entertainment, Philadelphia might feel a bit underwhelming.
11. Pro: Abundance of green spaces
Despite its urban environment, Philadelphia offers numerous green spaces where residents can escape the hustle and bustle of city life. Fairmount Park, one of the largest urban parks in the country, provides ample opportunities for outdoor activities. Other popular parks include Rittenhouse Square, Wissahickon Valley Park, and Penn’s Landing. These green spaces provide a much-needed respite from the city’s fast pace and are perfect for recreation and relaxation.
Popular Philadelphia parks:
Clark Park
Schuylkill River Trail
Pastorius Park
Bartram’s Garden
Belmont Plateau
12. Pro: Iconic landmarks and cultural institutions
Living in Philadelphia means having iconic landmarks like Independence Hall, the Liberty Bell, and the Philadelphia Museum of Art at your doorstep. These sites are not only great for sightseeing but also contribute to the city’s unique character and charm. Residents can enjoy exploring historic sites, taking in the city’s rich history, and participating in various cultural and educational events.
Iconic landmarks in Philadelphia:
Independence Hall
Liberty Bell
Philadelphia Museum of Art
Reading Terminal Market
Eastern State Penitentiary
13. Pro: Rich cultural diversity
Philadelphia is known for its cultural mosaic of vibrant diversity, home to people from around the world. In neighborhoods like South Philadelphia, Chinatown, and Germantown, residents can experience a wide array of cuisines and traditions from different cultures. This blend of backgrounds creates a unique environment where diverse perspectives and traditions thrive. Cultural institutions, festivals, and parades throughout the city highlight this diversity, from the annual Mummers Parade to the Odunde Festival and the Italian Market Festival.
A federal appeals court ruled that the Consumer Financial Protection Bureau has broad authority to discourage discrimination to combat redlining, delivering a major victory to the bureau in a contentious case, CFPB v. Townstone Financial, against a Chicago mortgage lender.
A three-judge panel of the U.S. Court of Appeals for the 7th Circuit ruled that the Equal Credit Opportunity Act applies not just to credit applicants but also to prospective applicants.
The CFPB filed a redlining lawsuit against Townstone Financial in 2020 alleging that the company’s CEO Barry Sturner made disparaging remarks about Blacks on a talk-radio infomercial that discouraged minorities from applying for home loans. At issue in the case was whether Sturner had discouraged Black prospective applicants from applying for mortgage loans with Townstone, in violation of ECOA and Regulation B — which prohibits creditors from discriminating on the basis of sex, race, color, religion, national origin, age or marital status.
Congress had indicated that the law must be construed broadly to serve the purpose of ending discrimination in credit applications, the judges said.
“An analysis of the text of the ECOA as a whole makes clear that the text prohibits not only outright discrimination against applicants for credit, but also the discouragement of prospective applicants for credit,” the judges wrote in a 15-page opinion. “When the text of the ECOA is read as a whole, it is clear that Congress authorized the imposition of liability for the discouragement of prospective applicants. Regulation B’s prohibition on discouraging prospective applicants is therefore consistent with the ECOA’s text and purpose.”
The CFPB had cited as evidence of discrimination comments that Sturner made on the radio commercial in which he described a Jewel-Osco grocery store as “Jungle Jewel,” and claimed the South Side of Chicago between Friday and Monday was “hoodlum weekend.”
The CFPB had identified five instances in which Sturner and other hosts made statements that would discourage Black prospective applicants from applying for mortgage loans. In addition, the bureau alleged that from 2014 to 2017, Townstone received fewer mortgage applications from Black applicants, fewer mortgage applications for properties in neighborhoods with a high-Black population and fewer mortgage applications for properties in neighborhoods with a majority of Black residents.
Last year, the United States District Court for the Northern District of Illinois dismissed the case in the favor of Townstone by focusing on ECOA’s definition of a credit applicant. The lower court also rejected the CFPB’s argument that its enforcement and rulemaking authority allowed it to prohibit discouragement of prospective applicants. The CFPB appealed.
“The district court held that the ECOA does not authorize the imposition of liability for the discouragement of prospective applicants. We take a different view,” the judges wrote.
“The term “applicant” cannot be read in a crabbed fashion that frustrates the obvious statutorily articulated purpose of the statute,” the judges wrote. “Indeed, the ECOA’s scope of prohibition prohibits discrimination ‘with respect to any aspect of a credit transaction.’ ”
The case was reversed and remanded back to the district court.
“Discouraging applicants is the first tool in the book of redlining. A discriminatory lender may feel like using a ‘Whites Only’ sign is the best way to accomplish their goal,” said Adam Rust, director of financial services at the Consumer Federation of America. “I think it was common sense to read the law and come to this conclusion.”
The CFPB did not immediately respond to a request for comment.
The Pacific Legal Foundation, which represented Townstone, had argued that Sturner was protected under the First Amendment.
“We’re disappointed in the decision, which offered only a cursory analysis of the relevant statutes and ignored completely Townstone’s First Amendment arguments,” the public interest law firm said in a statement. “We are considering our options for further review.”
Townstone may appeal the case to the full 7th Circuit or to the Supreme Court, experts said.
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Are you ready to save money in advance for Christmas this year? Then, you are in the right place.
With this Christmas Budget Challenge, you will be prepared for holiday spending and not be scrambling at the last minute.
Get prepared for a debt free Christmas!
Tired of overspending? This challenge is perfect for you.
Tired of the post-Christmas debt hangover? This is exactly what you need.
The Christmas Budget Challenge is wonderful for someone who wants to take control of their life both their time and their money. Plus enjoy a debt free holiday season!
In 2019, the average family spent $900 on Christmas, according to Statista. Do you have $900 lying around for just Christmas gifts, decor, food and any other miscellaneous Christmas items?
Be honest with yourself.
If the answer is no, don’t fret. That is probably 90% of society. Keep reading and you can change that.
In order to have a debt free Christmas, you must save up in advance and plan your Christmas budget.
If the statistics hold true, then collectively over one trillion will be spent on the holiday season. So, you need to be prepared for next Christmas.
Remember, saving money is setting money aside today to be used for a future purpose.
So, what are the tips and tricks on how to have a debt free Christmas?
We want a Debt Free Christmas!
In order to have less stress around Christmas, the goal is to fund your Christmas money envelopes the week of November 1st.
That way you have plenty of time to shop around, get the best deals, and be the first one with wrapped presents.
Let’s talk about Christmas money envelopes… They are the perfect place to put your cash so you have money saved when the holiday comes. No paying on credit cards and having the January debt hangover.
If you prefer an online option, then use a savings builder account.
We want a debt free holiday season!
Even a smaller holiday that you can afford is better than a huge holiday that you can’t afford. Period.
Please note… Just because you may finish your Christmas shopping early, doesn’t mean it is a free pass to keep spending on those last minute items. That will wreck every Christmas budget.
Download the Christmas Budget Tracker and Gift Planner now.
Celebrate a debt free Christmas
It’s that time of the year again. The Christmas budget is looming and you’re scrambling to find a way to pay for it, or at least limit how much it will cost.
Christmas is a time of giving, family fellowship, and memories.
Christmas is not an unexpected expense.
You don’t want to be stressed or worry about how you are going to pay for it.
Debt Free Christmas tips: Plan ahead and use these money saving tips.
How to have a Debt Free Christmas
Christmas is financial stress and debt, but there are ways to plan for it so that you can have a debt-free Christmas. By saving up now, you will be able to afford the things you want without having to worry about repaying loans in January.
You need these debt-free holiday tips in your life! This is exactly how to enjoy Christmas with no money – specifically NO DEBT.
A debt free Christmas!
Also, once you enjoy living a debt free Christmas, you have learned many of the millionaire habits that will help you all year round.
1. Save Up Money Early
The sooner you start saving for Christmas, the better off you will be when the holiday gets closer.
As with any of our money saving challenges, it takes a little discipline to set money aside for a specific purpose and only use it for that purpose.
Shortly, we will go into detail on how much money to save based on your budget for Christmas.
In our household, we have a sinking fund that each month we add a pre-determined amount towards. It is a lean $50 per month because we prefer a minimalist home and choose experiences over gifts.
2. Implement the 3 Gift Rule
This is the best way to make a minimalist Christmas a possibility by limiting the number of gifts each person gets – especially the kids.
Let’s be honest… so times, it is hard to limit ourselves to only buying a few items.
With the 3 gift rule at Christmas, you are able to stay with your Christmas budget. Plus you will be able to buy high-quality gifts instead of purchasing a bunch of small gifts (to make it seem like you are making Christmas gift-giving bigger and better).
For our household, our 3 gift rules follow this:
Something to wear
Something to read
And don’t forget the fun!
3. Plan Ahead
There are two ways to plan ahead.
First, use our Christmas Budget template to help you decide how much you need to spend and how much you can spend. This will help you to plan in advance the best gifts for your loved ones.
Second, to shop off-season or on clearance. Our perfect example was our oldest needed new snowpants, so I bought them in June for the upcoming winter. I paid pennies compared to the retail price and had an awesome much-wanted present.
By planning ahead, it will also take off much of the stress that you are experiencing around the festive holiday parties.
4. Pick Your Traditions
Have you ever considered which traditions are your favorites? Which do you do because they are your traditions even if you don’t enjoy them and they are costly?
One year, I decided to poll my own family on their favorite family traditions. Their top five list were all things that were frugal, didn’t cost much money, or were volunteering to help others.
This is where family politics can become friction between families.
You have to choose what works for you and your family and your budget. (Not theirs!)
5. Be Brave and Say No
Let’s face it. Saying no is hard and sometimes isn’t fun.
But, you desire a debt free Christmas more than anything else this year.
Your personal financial future is more important than spending money you don’t have.
Quick example: you are invited to 5 parties with family and/or co-workers. Each party has a $20 gift limit for each person attending. So, you are dropping $200 as a couple on parties that aren’t your first priority.
It is okay to opt-out of gift exchanges. Be clear with your reasons and tame their expectations of you.
Make it is time to find a community that shares some of the same money values as you!
Christmas Budget Challenge for a Debt Free Christmas
All of the Christmas Budget Challenges will be based on the average Christmas budget each year. (That number from above is based on average spending.) Just remember that number is a collective of gifts, food, decorations, and any miscellaneous holiday items.
Because every family and their personal finance situation is unique, we will break this Christmas Budget challenge up into various spending levels.
You choose which will work best for your family.
Related Resource: 8 Simple Tips to Stay on Budget at Christmas
Let’s discuss how these numbers we decided on for the Christmas Budget Challenge. First, the average family spent $900 on Christmas in 2019, according to Statista. Regardless of whether you think that number is jaw-dropping high or way too low. That was the average amount spent. Those are the statistics.
So, for this challenge to have a debt free Christmas, we are going to break that into three different levels.
Christmas Budget Challenges Levels:
Average Christmas Budget – $900
Frugal Christmas Budget – $450
Luxury Christmas Budget – $1,800
Just a side note…The average spending of $900 at Christmas includes amounts put on credit cards that weren’t able to be fully paid off.
The goal is to save $900 by the week of November 1st. (Don’t worry about counting weeks. The key dates and weeks are listed below.)
That means saving money for Christmas weekly.
This challenge is about having a debt-free Christmas and holiday season.
Don’t think it is possible to have a fabulous holiday season without debt?
Let me tell you… IT IS POSSIBLE!
We have done it each and every year. There is no post-hangover stress or guilt on how much was spent.
Also, makes sure to check the end of the post for the dates for 2020!
Average Christmas Budget – $900
For the first challenge, we are going to be average. Plain, old average. Nothing fancy here. Also, we are assuming the average spending is the same as the average Christmas budget.
We are making the assumption that you plan to spend the average amount as each American family did in 2017.
Average Plan
Weekly Amount to Save
44 Weeks
$20
30 Weeks
$30
23 Weeks
$40
18 Weeks
$50
15 Weeks
$60
9 Weeks
$100
Frugal Christmas Budget – $450
Next, the frugal Christmas budget is half of the average amount spent on the holidays. A fabulous Christmas put together for under $450. Personally, we have always limited the number of gifts.
Think outside the (Amazon) box!
Or take on a frugal lifestyle or thrifty lifestyle.
Simplicity is key.
Frugal Budget
Weekly Amount to Save
44 Weeks
$10
30 Weeks
$15
23 Weeks
$20
18 Weeks
$25
15 Weeks
$30
9 Weeks
$50
Luxury Christmas Budget – $1,800
Lastly, the luxury Christmas budget is for someone who has the capability to spend more and wants to make sure it is done without debt. By saving in advance, there are so many more options available when the holidays roll around.
You plan to save $1,800 for the holiday season.
Luxury Plan
Weekly Amount to Save
44 Weeks
$40
30 Weeks
$60
23 Weeks
$80
18 Weeks
$100
15 Weeks
$120
9 Weeks
$200
Key Dates:
Based on when you are reading this post will determine how much to start saving by date.
Don’t just pin this post later… be prepared!!
52 Week Savings Plan: November 1st 40 Week Savings Plan: January 25th 30 Week Savings Plan: April 5th 23 Week Savings Plan: May 24th 18 Week Savings Plan: June 28th 15 Week Savings Plan: July 19th 9 Week Savings Plan: August 30th
Download the Christmas Budget Tracker and Gift Planner now.
Where to Save Christmas Money
Now, it is one thing to say, “I’m going to start saving money for Christmas this year.”
It is completely different to actually act on it.
The BIG recommendation is to get it outside your temptation to spend!!
There are two options on where to save your Christmas budget money.
Savings Option 1 –
The first option is an online account.
Personally, this is my favorite. Simple reason on why. It is harder to access the money (it takes 2-3 days for the money to be transferred back to your local bank account). Plus, it is simple to set up an automatic transfer and forget. Then, money is set aside in a separate account until you need the funds.
Every month, we add the same amount to our sinking fund.
Savings Option 2 –
The second option is to use a cash envelope.
This one comes with the temptation to dive into the money set aside for a debt free Christmas. Personally, I think the prettier the envelope, the likelihood to actually use it goes up, too.
Check out the list of Best Cash Envelopes. Pick up your Christmas money envelope now!
Large family: How to have a debt-free Christmas
In order to avoid a debt-free Christmas, you need to start the year by saving your first paycheck. The rest of the money from that point on went towards Christmas expenses and was budgeted for that holiday.
The key is you cannot spend money set aside for this purpose.
By doing this, you are able to have an exciting Christmas without any debts.
Still, stressed about giving the best gifts for your large family? Here are great gift ideas that are affordable and thoughtful.
Enjoy These Debt Free Holiday Tips?
That is a bunch of simple and easy tips to make sure you learn how to have a debt free Christmas!
Are you up for the challenge? Make this year your first debt-free holiday season.
Start saving now in order to have a debt free Christmas.
And enjoy a stress-free holiday!
More Christmas Resources for you!
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.
It has long been the norm in real estate transactions for the buyer’s and seller’s agents to be paid with a commission fee — typically 5% to 6% of the house price — that was split between the two agents and paid by the seller. But in early 2024, the National Association of Realtors®, a real estate trade association, agreed to settle a group of lawsuits that challenged this commission structure for violating antitrust laws and contended that commissions were artificially inflated.
NAR will pay out $418 million in damages. But more importantly for homebuyers, the fallout could trigger big changes in how homebuyers work with real estate agents to make their purchase — and maybe even save buyers and sellers a little money. NAR Realtors handle the majority of sales in the U.S., so this settlement could have a significant impact on real estate transactions going forward.
How might real estate agent fees work in this new environment? If you plan to buy or sell a home, it’s important to understand. Let’s take a closer look at how homebuyers and sellers might be affected.
What’s Changing About Real Estate Commissions?
The NAR settlement, which was preliminarily approved by a judge in April 2024, means that as of August 2024, sellers’ agents will no longer be required to offer to share commissions with buyers’ agents. If a commission (paid by the seller) is compensating the seller’s agent but not the buyer’s agent, homebuyers will likely be responsible for paying their own agent.
This isn’t all bad news for buyers. Sellers might reduce home prices if their costs associated with paying a broker are lower. It’s also possible that buyers’ brokers will compete for customers by keeping their fees low. But it’s too soon to say what exactly will happen.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
What Does a Buyer’s Real Estate Agent Do?
If you’re a homebuyer, especially a first-time homebuyer, you may be wondering what services you would be paying for when you hire a real estate agent. Agents can perform a variety of services on behalf of their clients. If you’re buying a home, an agent can help you:
• Narrow your search to the most desirable properties for your budget
• View the homes in person or virtually
• Make an offer on a property
• Navigate the home inspection process
• Negotiate any contingencies you’d like to include in the home contract
• Prepare for closing
Who Pays the Agents’ Commissions?
It remains to be seen whether real estate agents will charge by the hour or bill customers a flat rate — or if some agents will continue to work on commission that is perhaps paid by the buyer.
Buyer’s real estate agents might begin to charge a fee (vs. a commission) for showing homes and shepherding clients through the purchase process. For buyers, this would add to the cost of a home purchase. Buyers have long suspected that sellers baked the commission fees into a property’s price, so that, in effect, buyers were already paying the commission. But while buyers could cover those baked-in costs out of their home mortgage loan, new fees paid by the buyer to the agent would come from the buyer’s pocket.
And they aren’t the only fees a buyer has to pay to finalize the purchase of a home. Closing costs can include:
Closing costs typically run between 3% and 6% of the home’s purchase price. So if you’re buying a $300,000 home, you might pay anywhere from $6,000 to $15,000 at closing, not including the down payment.
Closing costs are usually the buyer’s responsibility, but it’s not unusual for buyers to persuade sellers to share some expenses that are paid in advance.
All this may lead some buyers to consider shopping for a home without the help of an agent. If you’re thinking of going this route, be prepared to spend lots more time researching potential properties, reaching out to schedule viewings, and vigorously advocating for yourself if you’re in a seller’s market. And be ready to be your own best representative in negotiations.
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What Does a Seller’s Agent Commission Cover?
Real estate commissions compensate a seller’s agent for the work the agent puts into helping sell the home. What this specifically entails can depend on the agent you’re working with and your needs. But again, this often involves researching listings, preparing comparative analyses, guiding home viewings, and helping to negotiate offers.
Here is how the commission fee has typically worked in the past: Say a home sells for $366,000 (the average home price in Fresno, California) and the commission is 6%, or $21,960.
If the sellers owe $250,000 on the home’s mortgage, they’d be poised to pocket $116,000 in profit. But first they have to subtract $21,960 to cover the commission fee. It’s likely that the commission fees will be lower now that the commission is not shared between the buyer’s and seller’s agents. But exactly what percentage a seller’s commission fee will be is up in the air.
Commissions are paid out once the transaction is complete. This typically happens after the buyer and seller have signed their closing paperwork. The seller will receive a check for any profits due to them from the sale, while the agent receives a check for the commission. Exact amounts of commissions, like home sale prices, vary widely by state.
It’s worth noting that there are still other costs involved in selling a home. You may pay a separate fee for professional staging or photography to get it ready to list, for example.
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Flat Fee vs Real Estate Commission Fee
There are real estate brokerages that advertise listing services for a flat fee. Usually, the flat fee is very low and may only include a listing with photos on the MLS (the Multiple Listing Service, a list of available properties). Real estate agents who charge a flat fee usually don’t offer to schedule showings or manage the listing in other ways.
Are Real Estate Commissions Negotiable?
More than ever, thanks to the NAR settlement, real estate commission fees may be on the table for negotiations. A seller may be able to ask for a reduced commission if you’re working with an agent to sell multiple properties. The agent may be open to accepting a slightly lower fee per deal if there are multiple deals in play. This, of course, depends on how likely those properties are to sell at your desired price point.
As a buyer, how you might negotiate paying your agent in this new payment structure remains to be seen — and it will be up to you to start that conversation. Remember that you can also still negotiate a house price in other ways, such as by tailoring your offer price and asking the seller for help on closing costs.
Why Even Involve Agents?
You could buy a house without a Realtor® but having a professional’s help can be invaluable, especially if you’re a first-time homebuyer. (Realtors® are real estate agents who are members of the country’s largest trade association, the National Association of Realtors®. They subscribe to a strict code of ethics.)
A real estate agent or Realtor® can help you navigate the ins and outs of the homebuying process so that you can feel confident about your purchase.
Real estate agents are legally obligated to put their clients’ best interests first. They are trained to negotiate price and contingencies, handle legally binding documents, prepare and show properties for sale, and market homes through the MLS.
And if you’re thinking about selling your home on your own, it’s worth considering that homes for sale by owner usually sell for an average of $100,000 less than agent-assisted sales.
The Takeaway
Changes in the way that real estate agents are paid are underway, and while sellers will continue to pay their agents a commission, buyers may increasingly need to pay their agents themselves. Whether buyers come out ahead financially in this changed compensation structure remains to be seen. Bottom line? If you are in the market for a new home, make sure you discuss an agent’s fee structure and payment process before signing on.
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FAQ
Is commission and flat rate the same?
No. A flat rate is a specific rate negotiated for a certain service, while a commission-based fee is based on a price, such as the sale price of a home. For a seller, a flat rate typically covers only basic real estate agent services such as listing the property in a database.
What fee do most Realtors charge?
Historically, most real estate agents have worked on commission and would split an amount equal to 5%-6% of a home’s price, which was paid by the seller. Now, seller’s agents may still be paid on commission (albeit a smaller percentage) but buyer’s agents will increasingly be paid by the buyer. This means buyers will need to negotiate a fee with a real estate agent before agreeing to be represented by that agent in their home search. The amount of the fee will vary based on factors such as location, services provided, and time spent.
What is the difference between a flat fee and a fixed fee?
Yes, a flat fee and a fixed fee are the same when it comes to how a real estate agent is paid.
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Thinking of making the Lone Star State your new home? Texas offers residents diverse natural landscapes, lively urban centers, and a booming tech industry, making it a top destination for newcomers. Whether you’re browsing homes for sale in Austin, considering renting in Dallas, or exploring houses for rent in Houston, here’s what you need to know before moving to Texas.
Texas at a glance
Texas offers a blend of natural splendor and urban vitality. From the rugged beauty of Big Bend National Park to the pristine beaches of South Padre Island, the state caters to outdoor enthusiasts and city dwellers alike. The largest cities in Texas, Houston, Dallas, and Austin, are vibrant hubs of cultural activities and economic opportunities. Texas’s economy thrives on sectors such as energy, technology, aerospace, and healthcare, with major companies like ExxonMobil, Dell, and Texas Instruments headquartered here.
The state’s cultural scene is rich, featuring world-class museums, renowned music festivals like Austin City Limits, and a diverse culinary heritage with Tex-Mex and barbecue cuisine. Educational excellence is anchored by institutions like the University of Texas at Austin and Rice University, complemented by a robust job market. Affordable living options can be found in cities such as Amarillo and Lubbock, making Texas an enticing choice for those seeking quality of life and economic opportunity. Whether exploring the Texas Hill Country, hiking in Palo Duro Canyon, or experiencing the local culture, Texas offers a dynamic and rewarding lifestyle.
1. Texas is full of southern hospitality
In Texas, you’ll be greeted with genuine hospitality and friendliness. The phrase “Southern hospitality” rings true here, where it’s common for neighbors to welcome newcomers with homemade treats and invitations to local events. In small towns like Fredericksburg and Tuscola, and big cities like Houston and Dallas, people often greet each other with a warm “howdy” or “y’all.” This sense of community is especially evident during events like neighborhood BBQs and community fairs, such as Houston’s annual BBQ Festival and Dallas’s State Fair of Texas.
2. The Texan sports culture is thriving
Texas is a sports lover’s paradise, with a deep-rooted passion for football, both at the high school and college levels. High school football games draw massive crowds, with towns shutting down on Friday nights to support their local teams. College football is equally fervent, with teams like the Texas Longhorns and Texas A&M Aggies boasting dedicated followings. In addition to football, Texas is home to professional sports teams such as the Dallas Cowboys (NFL), Houston Rockets (NBA), and Texas Rangers (MLB), providing year-round excitement for sports fans.
3. Texas is known for its Tex-Mex and BBQ
Texas cuisine is a delightful blend of flavors, with Tex-Mex and BBQ being standout favorites. Tex-Mex dishes like enchiladas, fajitas, and tacos are staples, with places like Matt’s El Rancho in Austin offering iconic plates. Texas BBQ is renowned for its smoky, slow-cooked meats, particularly brisket. Renowned BBQ joints such as Franklin Barbecue in Austin and Snow’s BBQ in Lexington attract long lines of eager diners. The state’s diverse culinary scene also includes influences from German, Czech, and Vietnamese immigrants, adding to the rich food culture.
Insider scoop: When dining at Matt’s El Rancho in Austin, be sure to indulge in their legendary Bob Armstrong dip—you’ll be glad you did.
4. Texas is prone to weather extremes
Texas is prone to a variety of natural disasters, including hurricanes, tornadoes, and severe flooding. The Gulf Coast, particularly cities like Houston and Galveston, frequently faces the brunt of hurricanes, such as Hurricane Harvey in 2017, which caused catastrophic flooding and extensive damage. Tornadoes are common in North Texas, with the Dallas-Fort Worth area experiencing significant tornado activity, while central Texas often deals with flash floods, as seen in the devastating floods of the Blanco River in 2015.
It’s important to weigh the pros and cons of living in Texas to fully understand the potential downsides of residing in the state.
5. The cost of living is generally lower than other states
The cost of living in Texas is generally lower compared to many other states, making it an attractive option for those seeking affordability. For instance, the median home prices in cities like San Antonio, El Paso, and Fort Worth are significantly lower than in major cities like New York or San Francisco. Specifically, the median sale prices for homes are $269,900 in San Antonio, $256,000 in El Paso, and $339,945 in Fort Worth. Additionally, while property taxes can be higher in Texas due to the absence of a state income tax, overall expenses such as groceries, transportation, and utilities tend to be more budget-friendly.
The average rent prices also reflect this affordability, with rents averaging around $1,080 per month for a one-bedroom apartment in these cities. The state’s diverse economy and job market further contribute to a favorable balance between income and living expenses, allowing residents to enjoy a comfortable lifestyle without the financial strain seen in other high-cost areas.
For those looking for the best places to live in Texas, you’ll want to consider factors such as affordability, amenities, and lifestyle.
6. Traffic in larger cities can be daunting
Traffic congestion is a notable issue in Texas’s larger cities, with Houston, Dallas-Fort Worth, and Austin being particularly notorious. Austin’s I-35 and Houston’s I-610 are well-known bottlenecks, where traffic jams are common. Despite ongoing efforts to improve infrastructure and expand public transit, driving remains the primary mode of transportation, and patience is essential for daily commuters.
Travel tip: In Dallas, take advantage of the DART (Dallas Area Rapid Transit) system, which covers a wide area and provides a reliable alternative to driving.
7. You’ll experience urban sprawl
Urban sprawl is a defining characteristic of many Texan metropolitan areas, where cities expand into surrounding suburbs and rural land. The Dallas-Fort Worth Metroplex, for example, covers a vast area with numerous suburbs, resulting in long commutes and a reliance on cars. Houston’s growth extends outward with sprawling suburbs like Sugar Land and The Woodlands. While this expansion offers affordable housing options and larger properties, it also means that amenities and workplaces can be spread out, requiring significant travel.
8. There is no state income tax
One of the financial pros of living in Texas is the absence of a state income tax, allowing residents to keep more of their earnings. This can be particularly beneficial for high-income earners and those moving from states with high income taxes. However, Texas offsets this advantage with higher property taxes and sales taxes. In fact, many Texas cities rank among the top 50 most expensive places for property taxes nationwide.
9. Texan summers are generally hot across the state
Summers in Texas are characterized by intense heat, with temperatures often exceeding 100°F across much of the state. Cities like San Antonio and Dallas regularly experience scorching temperatures from June to September. The heat can be particularly challenging in areas with high humidity, such as Houston, where the heat index makes it feel even hotter. Many residents adapt by enjoying water-based activities like swimming at places such as Barton Springs Pool in Austin or Galveston Island beaches. They also frequent local rivers like the Guadalupe River for tubing and water recreation, or spend time at indoor, air-conditioned venues to escape the heat.
To combat the heat, here are ways to beat the heat in your apartment.
10. The economy in Texas is thriving
Texas has a diverse and robust economy, with significant contributions from industries such as oil and gas, technology, healthcare, and agriculture. Cities like Houston are global leaders in energy, while Austin has earned the nickname “Silicon Hills” due to its booming tech industry. Major companies, including ExxonMobil, Dell Technologies, and AT&T, have headquarters or significant operations in Texas. The state’s favorable business climate, with no corporate income tax and a skilled workforce, attracts companies and entrepreneurs from around the world.
11. There are plenty of rodeos to explore
Rodeos are an integral part of Texan culture, celebrating the state’s rich ranching and cowboy heritage. The Houston Livestock Show and Rodeo, one of the largest in the world, attracts millions of visitors annually with its thrilling rodeo competitions, livestock exhibits, and concerts. Smaller towns also host their own rodeos, such as the Fort Worth Stock Show and Rodeo, offering a glimpse into traditional Texan life. These events feature bull riding, barrel racing, and roping, providing entertainment and a connection to Texas’s past.
Insider scoop: For a unique twist, check out the San Antonio Stock Show & Rodeo, which combines rodeo events with a Texas-size fair, featuring a wide array of food vendors, shopping, and live music.
12. Cowboy culture is iconic here
Cowboy culture is synonymous with Texas, where the image of the rugged, independent cowboy is deeply ingrained in the state’s identity. Visitors can experience this culture firsthand by attending rodeos, visiting working ranches, or exploring Western-themed museums like the National Cowgirl Museum and Hall of Fame in Fort Worth. The annual Fort Worth Stockyards’ cattle drive is a living testament to the state’s cowboy traditions, attracting tourists and locals.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
The most recent sideways slide began just before noon last Friday. Bonds had rallied in response to the jobs report with 10’s closing at 4.29%. Since then, there hasn’t been more than 4bps of movement in either direction, and the range has been even narrower 95% of the time. Part of the reason is the absence of new inspiration. Since the jobs report, there haven’t been any massively actionable economic reports or calendar events. Today’s calendar is similarly light. The 2nd day of Powell testimony is unlikely to offer any new insights and the 10yr Treasury auction–while a bit of a wild card for short term volatility–won’t impact the big picture with the all-important CPI on deck tomorrow morning.
Mortgage rates fell in the week ending July 11, with fixed rates seeing their largest week-over-week drop since May.
The 30-year fixed-rate mortgage averaged 6.77%, down 17 basis points from the previous week’s average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point.