Direct links to offers: Business Platinum | Business Gold | Blue Business Plus
Best offers used to be for 20,000 points but has been some time since we have seen those offers. Worth doing if you’re eligible and can easily meet the spend requirements.
Source: doctorofcredit.com
Even though mortgage rates have fallen quite a bit from their highs seen a year ago, they remain quite elevated relative to much of the past decade.
Sure, a 6% 30-year fixed is better than an 8% 30-year fixed, but it’s still a far cry from a 3 or 4% 30-year fixed.
This might explain why prospective home buyers haven’t exactly rushed back into the housing market in recent months.
And now we’re being told this is as good as it’s going to get for mortgage rates. That remains to be seen, but what’s interesting is I’ve seen quotes down into the high-4s for mortgage rates recently too.
So how are lenders able to advertise rates that low if the Freddie Macs of the world are telling us rates are still above 6%?
Well, the secret is a little thing called mortgage discount points.
After mortgage rates surged since beginning in early 2022, the secondary market where investors buy and sell mortgage-backed securities (MBS) got all out of whack.
Basically, uncertainty and volatility surged while volume plummeted. Long story short, MBS investors wanted more assurances, which generally meant borrowers had to pay points upfront.
This ensured a profit even if the mortgage was short-lived and paid off in a short period of time.
It also allowed lenders to keep mortgage rates from going even higher, completely decimating lending volume in the process.
Conditions have since improved, and it’s again possible to get a home loan today without paying points.
But you’re still seeing lenders offer rates with points attached. And the reason why is because you can offer a lower rate!
Obviously, it looks a lot better if you’re able to advertise a rate starting with a 5 instead of a 6, or a 4 instead of a 5.
And that’s exactly what some lenders do, at least the ones that lead on price as opposed to service or brand name.
Interestingly, I discovered over the weekend that this isn’t a new phenomenon. Back in the 1980s and 1990s this was also common.
Remember those super high mortgage rates in the 1980s? Well if you don’t, the 30-year fixed climbed as high as 18.45% in late 1981, per Freddie Mac.
Despite the rate being astronomically high, the average amount of discount points required at that time was a whopping 2.3.
In other words, on a $250,000 loan amount, you’d be talking about $5,750 in fees just to obtain that ridiculously high rate.
Did that mean a borrower who only paid one point would have been subject to a 20% rate? Perhaps, I don’t know, but that’s generally how it works.
If you opt to pay less or nothing upfront, your mortgage rate will be higher, all else equal.
This average amount of points paid by homeowners hit its peak in 1984 and 1985, when the average amount paid was 2.5 points.
So for every $100,000 borrowed, a home buyer would have to fork over $2,500. And again, to wind up with a mortgage rate around 12 or 14% (they came down a bit after peaking in 1981).
Now that brings me to modern day, where lenders still charge multiple points for the lowest rates.
While not obligatory, as I mentioned, you do typically have the option to pay points at closing.
The tradeoff being a lower interest rate if you do. This is essentially what home builders have been doing to draw in business with their permanent and temporary rate buydowns.
They’re buying the rates down to lure in home buyers, which allows them to keep their asking prices steady (or even rising).
Those who comparison shop mortgage rates may also find that some lenders are offering “below-market rates” versus what they see in the mortgage rate surveys.
The way lenders accomplish this is by asking you to pay points upfront, which are a form of prepaid interest.
So the rate offered might be 6% with no points or for a no cost refinance. But 5.25% if you’re willing to pay a point (or more than a point) at closing.
These are entirely legit rates, they just cost money to obtain them. And that cost is essentially an investment in the mortgage that you’ll only realize if you hold it long enough.
While the promise of a lower mortgage rate, especially something that starts with a 4 is enticing, it might not be worth it.
Let’s consider a quick example where you pay two points to get a rate of 4.875% versus a rate of say 5.75% with no points.
On a $500,000 loan amount that would set you back $10,000 at closing.
The monthly payment would be $2,646.04 versus $2,917.86, or roughly $272 per month.
While that’s a decent amount of savings, it would take about three years to breakeven on the upfront cost.
Now imagine then 30-year fixed falls to the mid-4s or even lower during that span. Or if you want to sell your home and move.
You’ve already paid for the lower rate and might not get the full benefit. This is not to say it’s a bad decision, since you, me, and everyone else doesn’t know what the future holds.
But you’re making a conscious choice when paying points and there are no refunds.
If we look back at those folks who paid 2.5 points back in 1984 for a 14% rate, only to see rates fall to sub-10% by 1986, it makes you wonder.
Source: thetruthaboutmortgage.com
Editor’s Note: For the latest developments regarding federal student loan debt repayment, check out our student debt guide.
If you’re a new dentist, you have plenty of reasons to smile about your profession. You can start practicing soon after completing dental school, and you stand to earn a healthy salary right off the bat. The average entry-level dentist in the U.S. earns $189,979 a year, according to ZipRecruiter.
At the same time, you also need to figure out how to pay off your student loans. According to the American Dental Association (ADA), the average dental school graduate leaves school with nearly $300,000 in education debt. By comparison, medical school graduates owe an average of $243,483 in total educational debt, according to the Education Data Initiative. That’s where budgeting for dentists comes into the equation.
Key Points
• Consider disability insurance to protect income.
• Establish saving and investing strategies early, leveraging a pay-yourself-first mentality.
• A good budgeting rule of thumb: Set aside 30% of income for savings, with 25% for retirement and 5% for other savings.
• Think about diversifying your investments and including HSAs, IRAs, and after-tax brokerage accounts.
• When tackling student loans, consider aggressive repayment strategies, as well as refinancing.
Starting a career with a six-figure loan debt may feel overwhelming, but budgeting for dentists can help. In fact, now is an ideal time to establish your saving and investing strategies, says Brian Walsh, CFP®, Head of Advice and Planning for SoFi. “When you’re right out of school and your lifestyle is already lean, you can more easily build a pay-yourself-first mentality without making any drastic adjustments,” he explains. “It’s significantly easier to do it at this point instead of when you have a house, a car, and a family and then need to start making cuts.”
Here are some strategies to help you create your budget and plan for the future.
With its repetitive motions and constrained work area, dentistry can be physically taxing work, especially on the back and joints. According to the ADA, dentists have a one in four chance of becoming disabled. To mitigate your risk, you may want to consider disability insurance, which covers a percentage of your income if you become unable to work due to an illness or injury.
If you purchased a policy during dental school, you have the option to increase your coverage now that you’re making more. If you don’t have a policy, you can buy one as part of a group plan or as an individual. Find out if your employer offers it as part of your benefits package; some do. Monthly premium amounts vary, but in general, the younger and healthier you are, the cheaper the policy.
Recommended: Budgeting as a New Doctor
Dropping a bundle on meals out? Clicking “add to cart” more frequently? Enjoy your hard-earned income, but don’t go overboard on splurges.
To help you focus on where you put your money, consider prioritizing your financial goals — saving for a home, for example, or paying off your debt. This is an important strategy in budgeting for dentists. Walsh also recommends that early-career professionals use cash or debit cards for purchases to build up good spending habits, and automate their finances whenever possible. For example, pre-schedule your bill payments and set up automatic contributions to your retirement account.
Tackling student loans is likely a top priority for you right now, but just as important is creating a savings plan.
Walsh recommends early-career dentists set aside 30% of their income for savings. Of that, 25% should be for retirement and 5% for other savings, like building an emergency fund that can tide you over for three to six months. The remaining 70% of your income should go toward expenses, including monthly dental school loan payments.
The sooner you start saving and investing, the sooner you can enjoy compound growth, which is when your money grows faster over time. That’s because the interest you earn on what you save or invest increases your principal, which earns you even more interest.
You may even want to consider buying a dental practice at some point, so that’s another reason budgeting for dentists makes sense.
As a high earner, you may need to do more with your money than max out your 401(k) or 403(b), though you should do that, too. Walsh suggests new dentists leverage a combination of different investments. This strategy, called diversification, can help shield you from risk. Here are some types of investments to consider:
• A health savings account (HSA), which provides a triple tax benefit. Contributions reduce taxable income, earnings are tax-free, and money used for qualified medical expenses is also tax-free.
• An individual retirement account (IRA), like a traditional IRA or Roth IRA, can offer tax advantages. Contributions made to a traditional IRA are tax deductible, and no taxes are due until you withdraw the money. Contributions to a Roth IRA are made with after-tax dollars; your money grows tax-free and you don’t pay taxes when you withdraw the funds, provided certain requirements are met. However, there are limits on how much you can contribute to an IRA each year.
• A Simplified Employee Pension IRA (SEP IRA) can be a good option if you’re a solo practitioner. “Total contributions can be just like those with an employer-sponsored plan, but you control how much to contribute, up to a limit,” Walsh says. Contributions are tax-deductible, and you don’t pay taxes on growth until you withdraw the money when you retire.
• After-tax brokerage accounts offer no tax benefits but give you the flexibility to withdraw money at any time without being taxed or penalized.
Two investments to consider bypassing are variable annuities and whole life insurance. Neither is a suitable way to build wealth, Walsh says.
Whatever your strategy, keep in mind that there may be fees associated with investing in certain funds. Those can add up over time, Walsh points out.
Since new dentists tend to start earning money more quickly than other health care professionals, they are often better positioned to tackle loan repayments more aggressively.
But your repayment strategy will depend on a number of factors. To start, consider the types of student loans you have. Federal loans have safety nets you can explore, like loan forgiveness and income-driven repayment (IDR) plans, which can lower monthly payments for eligible borrowers based on their income and household size.
Once you’ve assessed the programs and plans you’re eligible for, figure out your goals for your loans. Do you need to keep monthly payments low, even if that means paying more in interest over time? Or are you able to make higher monthly payments now so that you pay less in the long run?
If you have multiple loans and/or other debts, there are two approaches you might consider for paying them down. With the avalanche approach, you prioritize debt repayment based on interest rate, from highest to lowest. With the snowball method approach, you pay off the smallest balance first and work your way up to the highest balance.
While both have their benefits, Walsh often sees greater success with the snowball approach. “Most people should start with paying off the smallest balance first because then they’ll see progress, and progress leads to persistence,” he says. But as he points out, the right approach is the one you’ll stick with.
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Paying down debt has long-term benefits, like lowering your debt-to-income ratio and building your credit. In order to help do this, you may want to include refinancing your student loans in your student loan repayment strategy.
When you refinance, a private lender pays off your existing loans and issues you a new loan. This can give you a chance to lock in a lower interest rate than you’re currently paying and combine all of your loans into a single monthly bill, which can be easier to manage. Some lenders, including SoFi, also provide benefits for new dentists.
The refinancing process is straightforward, yet some common misconceptions persist, Walsh says. “People overestimate the amount of work it takes to refinance and underestimate the benefits,” he says. A quarter of a percentage point difference in an interest rate may seem inconsequential, for instance, but if you have a big loan balance, it could save you thousands of dollars.
That said, refinancing may not be right for everyone. If you refinance federal student loans with a private lender, for instance, you lose access to federal benefits and protections, such as forgiveness programs and forbearance. Consider all your options and decide what makes sense for you and your financial goals.
Dentistry can be a rewarding career with the potential to earn a healthy salary right from the start. However, you’re likely to have a significant loan debt when you graduate from dental school. Fortunately, balancing your goals with some smart saving, investing, and loan repayment strategies can help you get your finances on firm footing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
Photo credit: iStock/5second
SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
SOSLR-Q324-025
Source: sofi.com
Asheville is known for its stunning Blue Ridge Mountain backdrop and world-class arts scene. With a growing reputation as a unique place to live, many are considering a move to this charming city.
Like any city, living in Asheville comes with its own set of advantages and disadvantages. Here’s a detailed look at 11 specific pros and cons of moving to Asheville, to help you decide if it’s the right fit for you.
Walk Score: 37 | Bike Score: 33 | Transit Score: 28
Median Sale Price: $500,000 | Average Rent for 1-Bedroom Apartment: $1,624
Asheville neighborhoods | Houses for rent in Asheville | Apartments for rent in Asheville | Homes for sale in Asheville
Asheville is scenically situated in the Blue Ridge Mountains, offering breathtaking views and abundant outdoor activities. The nearby Pisgah National Forest provides opportunities for hiking, mountain biking, and checking out the many waterfalls that wind through the park. The scenery changes with the seasons, showcasing stunning foliage in the fall and blooming wildflowers in spring.
While Asheville’s beauty is captivating, the cost of living has risen significantly in recent years. Housing prices have increased, rising above the national median of $434,050. This has made it more challenging for newcomers to find affordable options. Apartments in Asheville have followed a similar trend and go for $1,520 to $1,947 on average.
Asheville has a prolific arts community for its size, with galleries, studios, and performance spaces. The city hosts festivals celebrating music, art, and culture throughout the year. Whether you’re catching a show at The Orange Peel or spending the day at the Moogseum, there’s always something to do in Asheville.
Although Asheville has a growing economy, job opportunities can be limited in certain fields. Many residents work in tourism, hospitality, and healthcare, but other industries may not be as fruitful. Those seeking specialized positions may find the job market competitive.
Food lovers will appreciate Asheville’s restaurant scene, featuring everything from farm-to-table restaurants, like Posana to food trucks. The city is known for its craft breweries, with over 30 options to choose from, including the legendary Hi-Wire Brewing. Local farmers’ markets also provide fresh produce and artisanal goods year-round.
Asheville is a popular tourist destination, especially during peak seasons. Visitors flock to the city for a number of different reasons, which can lead to crowded streets and longer wait times at popular restaurants. This influx of tourists may detract from the local experience, particularly during the summer and fall.
The residents of Asheville are known for their friendliness and community involvement. Numerous organizations host events that foster connections among locals, making it easy to get involved. Whether it’s volunteering or attending community gatherings, it’s not uncommon for residents to feel a strong sense of belonging shortly after moving here.
Asheville experiences a full range of weather conditions throughout the year, which may be a drawback for some. Winters can be cold and snowy, while summers are often hot and humid. The unpredictability of the weather can affect outdoor plans and activities.
Living in Asheville means easy access to some of the most pristine nature in the Carolinas. The Blue Ridge Parkway is just a short drive away, offering scenic views, maintained hiking trails, and perfect picnic spots. Whether you enjoy kayaking, skiing, or simply exploring nature, the options are plentiful in Asheville.
Asheville’s public transportation system is not as extensive as those in larger North Carolina cities. While there are bus services available, they may not cover all Asheville neighborhoods or operate frequently. This limitation can make it challenging for those who rely on public transit for daily commutes.
Asheville hosts festivals and events that celebrate local culture, food, and music throughout the year. Annual events like the Asheville Beer Week and the LEAF Festival draw crowds from all over and foster a strong community spirit. These gatherings offer a chance for locals to connect with others and enjoy the best of what the city has to offer.
Source: rent.com
In late 2017, San Francisco couple Riley Adams and his wife stumbled upon the Halley’s comet of airline credit card welcome offers. For a limited time, the card was advertising a companion pass on top of a large sign-up bonus.
“We knew we had a lot of spending in one specific area coming up, and we wanted to try to shop around to get the best value for those needs,” says Adams, a certified public accountant, financial adviser and owner of the blog Young and the Invested. “If you plan for it, you can really offset those costs [with a sign-up bonus].”
If you’re considering a new credit card, the bonus-friendly season from October through December is an ideal time. Your expenses on Black Friday, holiday travel and meals, end-of-the-year charitable donations and more may easily meet a large spending requirement for a juicy sign-up bonus.
Here’s what to know about such offers.
A sign-up bonus is a one-time incentive offered by rewards credit cards on top of any ongoing cash back, points or miles on purchases. Snagging a bonus typically requires spending between $500 and several thousand dollars within a certain time — often three months — after you’re approved for the card.
That level of spending may not be difficult during the holiday season. In 2023, consumers planned to spend $875, on average, on gifts, decorations, food and other key seasonal items, according to the National Retail Federation’s annual survey.
Even if your expenses aren’t entirely holiday-related, a little planning can still help you reap a windfall that you can use the following holiday season. You can earn a sign-up bonus toward travel or use it toward other expenses.
The Adamses, for example, mapped out a budget before applying for that airline credit card with the generous bonus. They met its spending requirement primarily by paying for Riley’s wife’s work-related expenses in 2017; they then put what they earned toward holiday travel the next year.
“We used it all of 2018 to visit family for holidays — Fourth of July, Thanksgiving, Christmas — plus two domestic trips for [our] own purposes, and then flying to a major hub for an international flight on our one-year anniversary,” Adams says.
It’s not worth spending money you don’t have just to chase a large bonus. If you can’t pay your credit card bill in full each month, interest charges will eat away at any rewards you accrue.
But if you’ve saved up a holiday fund, you can gift yourself a rich introductory credit card offer while you’re at it.
As you size up a rewards credit card and its sign-up bonus, ask yourself these questions:
Can you meet the card’s credit requirements? You’ll generally need good credit (a FICO score of 690 or higher) to qualify for a rewards card with a big bonus.
Are you willing to pay an annual fee? The top cards — those with the highest bonuses, richest rewards and best perks — charge annual fees. If you don’t think you’ll earn enough in rewards and benefits to outweigh that fee, consider a no-annual-fee rewards card. Many of them also offer bonuses.
Do the card’s rewards categories match your expenses? A sign-up bonus can offer a chunk of upfront value, but the card won’t be useful long term if its ongoing rewards and perks don’t fit your habits.
Can you meet the spending requirement for the bonus with your current budget? If you know you can’t spend $4,000 in three months without going into debt, look for a bonus with a lower spending threshold.
Will you pay your bill in full every month to avoid interest? Rewards cards tend to have high ongoing APRs, meaning you don’t want to carry a balance month to month. If you’re already struggling with debt, a rewards credit card may not be ideal for you.
Source: nerdwallet.com
Venice is many things; a quintessential beach neighborhood, trendy foodie hotspot, hipster enclave, you name it. But most of all, it’s a unique slice of California that offers a completely different vibe — and its own take on waterfront living.
That’s why when it comes to real estate listings, Venice Beach falls into a category of its own. Every home that lands on our desk outdoes itself either in terms of unique architecture, picture-perfect interiors, or artsy features.
Today’s treat: a rare luxury waterfront home facing the Venice Canals that boasts interiors revamped by famed Italian design firm Boffi, that recently landed on the market asking $6,298,000.
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Recently listed with F. Ron Smith and David Berg of Smith & Berg Partners at Compass, the Venice Beach house is located just a few blocks from vibrant Abbot Kinney and key attractions like the Venice Boardwalk and the Marina.
Its prime location places it right at the heart of the Venice Canals, recognized as one of the most unique neighborhoods in all of Southern California.
The waterfront residence spans 3,816 square feet of luxuriously appointed living space, with a total of 5 bedrooms, 4 full baths, and 1 half-bath.
With several outdoor spaces and indoor-outdoor living areas to take in the Canal views, the home has quite a few standout amenities, including two rooftop decks — one with a cold plunge — and a canal-front deck that leads to a private barge.
Location aside, the Venice Beach house has elegant, refined interiors, thanks to an extensive 2021 renovation carried out by the esteemed Italian design firm Boffi — a globally renowned brand best known for its designer kitchens and bathrooms.
As a result, the home boasts sleek finishes balanced by rich textures like herringbone wood floors, a limestone gas fireplace, and metal accents, creating a space that looks like it was taken straight out of an interior design magazine.
The heart of the home is the expansive, open-plan main level, bathed in natural light from large windows and floor-to-ceiling glass doors that overlook the canal.
The gourmet kitchen with its clean, sleek design, comes equipped with high-end Gaggenau appliances, temperature-controlled wine storage, a walk-in pantry, European-style lacquer cabinetry, and Calacatta countertops.
Heading upstairs, we find another great space for the family to gather, a sunlit family room that also has a wet bar with a dishwasher.
The primary bedroom is a serene retreat with high ceilings, a spacious custom closet, and a lavish ensuite bath.
See also: LOVE, Art, and Cozy Living Close to the Venice Canals
A luxurious escape in itself, the ensuite bath comes with a marble-clad steam shower, a soaking tub, and an accent wall of Domenico Mori handmade clay tiles.
The house has a private elevator, as well as state-of-the-art home tech like the Crestron home automation system, surround sound, and a Lifesource whole-house water filtration system.
The Instagram-worthy outdoor space comes with 360-degree views, two rooftop terraces — one with a cold plunge — and plenty of room to lounge and entertain. The deck is surrounded by glass walls, so views are completely uninterrupted.
Acting as an extension of the main living area is a canal-front deck equipped with an automatic canopy, firepit, and ample al fresco dining space. The deck also provides access to one of the home’s most unique amenities: a private barge.
For future residents who want to take the party on the water, the waterfront home comes with a private, motorized barge that’ll allow them to cruise the canal and enjoy breathtaking sunsets.
The Venice Beach house is currently listed for $6,298,000 with F. Ron Smith and David Berg of Smith & Berg Partners, Compass.
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Source: fancypantshomes.com
The MBA’s Purchase Applications Payment Index (PAPI), which tracks how mortgage payments stack up against income, reflected a 3.9% decrease in August. This drop signals an improvement in affordability, with the national PAPI falling from 167.2 in July to 160.7. While mortgage payments decreased by 5.2%, a modest 3.2% increase in earnings further strengthened the … [Read more…]