As a business owner, you might find yourself asking, âDo I need a CPA for my small business?â This is because Itâs often not required to hire a certified public accountant (CPA) for your small business. But in many cases, ⦠Continue reading â
The post Do I Need a CPA for My Small Business? appeared first on SmartAsset Blog.
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
College is an exciting time for students to live on their own, make new memories, and create lasting friendships. Whatâs not exciting is the debt you might inherit once you graduate. In the last decade, student loan debt increased by nearly 70 percent, with over 43 million students facing outstanding student loan debt. What if
The post How To Get Paid To Go to College: 12 Tactics to Consider appeared first on MintLife Blog.
College is an exciting time for students to live on their own, make new memories, and create lasting friendships. Whatâs not exciting is the debt you might inherit once you graduate. In the last decade, student loan debt increased by nearly 70 percent, with over 43 million students facing outstanding student loan debt. What if
The post How To Get Paid To Go to College: 12 Tactics to Consider appeared first on MintLife Blog.
Besides comparing colleges based on their size and academic programs, high school graduates need to consider whether theyâll take advantage of in-state scholarships and grants or enroll in an out-of-state school. After, all some states do a better job of ⦠Continue reading â
The post The Best States for Higher Education in 2017 appeared first on SmartAsset Blog.
Besides comparing colleges based on their size and academic programs, high school graduates need to consider whether theyâll take advantage of in-state scholarships and grants or enroll in an out-of-state school. After, all some states do a better job of ⦠Continue reading â
The post The Best States for Higher Education in 2017 appeared first on SmartAsset Blog.
Autumn is a good time (and potentially your last chance) to review, repair and remediate any home issues that could end up breaking the bank account once winter arrives. Below weâve listed some expensive mistakes homeowners will want to avoid making every fall. Set yourself up for success by putting some time (and a little cash) aside to clean up your household act before the harsh weather sets in. Hereâs a rundown of potential financial follies to avoid in the fall: 1. Neglecting gutters â Both gutters and downspouts should be cleaned of last yearâs debris and this yearâs autumn leaves before the snow and rains arrive. Gutters clogged with leaves can lead to water invading your roof and exterior walls. Downspouts should direct water to flow away from the house, as water that isnât diverted can become a source of cracked driveways and ruined foundations (foundation repair could cost up to $11,200). In cold climates, gutters and downspouts can lead to ice dams, which can cause costly water damage to a homeâs interior. Loose gutters can also tear free from the weight of snow and ice. 2. Overlooking windows â Be sure to check out door and window frames for damage or gaps that can result in air leakage. Depending on your location, you may also want to take down your window screens and put up storm windows before the frost arrives, which can help to cut heating costs. Heat gain and loss through windows takes up 25â30 percent of residential heating and cooling energy use, according to the U.S. Department of Energy. Consider adding weather stripping, double-paned or Energy Star-approved windows, caulking, or heavy curtains to prevent heated air from escaping. Not doing so can result in an increase in your energy bills, not to mention a decrease in overall comfort in your home. Caulking should be done before freezing temperatures set in, says Tom Kraeutler, host of syndicated radio show The Money Pit. 3. Ignoring the chimney â Before kindling a cozy autumn fire, have your chimney examined and repaired, if necessary. Otherwise you may be risking a home-destroying fire, chimney collapse or carbon monoxide poisoning, according to Tom Kraeutler. However, hiring the wrong chimney sweep can also be a financial disaster, he points out, so be sure to research any prospective contractorâs reviews and reputation first. 4. Not checking the roof â Ensure the roof flashing (which covers gaps on roofs and near chimneys ) is solid and wonât permit water intrusion. And are any roof shingles missing? Now is the time to check â not after your upstairs bedroom becomes a waterlogged mess, or a leaky roof ruins your drywall. According to Homeadvisor.com, the cost of repairing water damage could run up to $8,000, while roof repairs only top out at $4,000 in extreme cases. 5. Skipping sealing â Autumn is the perfect time to seal your driveway and make any needed repairs. Youâll want to do this before freezing temps hit, because afterwards sealants may not work well. In some regions, winter will also bring additional exposure from deicing agents like salt, which are âcorrosive on your driveway,â Kraeutler says, and could lead to further cracking and deterioration. He points out that driveway sealing is often a DIY job. 6. Hesitating on the HVAC â Preventative maintenance or energy-efficient upgrades will lower your heating bills, spare you expensive emergency calls, and increase your heating systemâs lifespan. And if youâre considering selling your house in fall or winter, youâll want to show off a functional heating system to buyers. 7. Procrastinating on purchases â Sure, you can pretend winter isnât going to happen (maybe if you live in sunny Southern California), but most of us need shovels, salt for deicing the sidewalk (and avoiding costly lawsuits), ice scrapers, and possibly even a snowblower. If you have a snowblower, check out these tips from Consumer Reports on how to make it winter-ready before the first snow. 8. Putting off sale prep until spring â According to Consumer Reports, a host of issues can kill an upcoming home sale, including cracks in the foundation and hidden water damage. Donât let problems start or worsen in the next six months â instead, address potential concerns proactively now, while thereâs time. 9. Falling for fall scams â Your financial security may be at risk if you open your wallet for a scam targeting homeowners, such as lending deals a contractor might offer for making autumn upgrades. If you need to pay for home maintenance, remodeling or repairs, consider instead leveraging the equity in your home with a Cash-Out Refinance. By avoiding these expensive autumn mistakes, youâll save money – which will hopefully mean having more dough for the upcoming holidays, or perhaps even a trip in the new year. Want to learn about how you might be able to access your home equity to fund money-saving home repairs or improvements? Talk to a Pennymac loan specialist to explore your options.
Establishing good credit takes time, and The U.S. Department of Veterans Affairs (VA) loan program is designed to help our service members and veterans achieve homeownership. With a government-insured VA home loan, eligible service members, veterans and their families can enjoy low interest rates and no down payments on qualified mortgages, while also eliminating the need to purchase private mortgage insurance (PMI). However, the VA loan program cannot exist without support. To help cover costs associated with insuring their mortgages, VA loan borrowers may be required to pay the VA funding fee. What Is a VA Funding Fee? The VA funding fee is a one-time administrative charge paid to the Department of Veterans Affairs. Due at the time the loan closes, this fee supports the VA loan guaranty program, helping VA mortgages remain low-cost and available to help future veterans attain homeownership. With support from the VA funding fee, lenders are able to provide service members or their survivors with some of the best rates and loan terms available. Although the VA funding fee is an additional expense and should not be overlooked, those who qualify often discover that the increased savings over the life of the VA loan make up for the amount paid upfront. In other words, eligible veterans and family members usually end up saving more on a VA loan than they would with a conventional mortgage. Still, there are some considerations to be familiar with before committing to a VA loan. What Is VA Funding Fee vs. Mortgage Insurance? Although the VA funding fee is sometimes called VA loan private mortgage insurance or VA loan mortgage insurance, it actually differs slightly from traditional PMI solutions. The VA funding fee is essentially a one-time service charge that is either paid in full at closing or may be financed into the loan to be paid off over time (allowing for no-money-down loans). This charge eliminates the need to purchase PMI. That said, VA loans are the only loans that include a funding fee, and the VA funding fee can be a significant expense. As such, veterans and family members who can pay at least 20% of the loan as their down payment may discover that a conventional loan is the better option â by paying 20% they can avoid buying PMI insurance and the VA funding fee. How Much Is the VA Funding Fee? As previously mentioned, a VA loan is one of the few zero-down options available for a home mortgage. By rolling the cost of the VA funding fee into the loanâs monthly payments, borrowers can effectively purchase a property without needing any cash in hand at the time of closing. On the other hand, paying more upfront as a down payment does have its benefits. The VA funding fee is determined as a percentage of the total loan. Without making any down payment, or by making a down payment of less than 5% of the total loan amount, first-time VA loan users in 2022 pay an additional 2.3% to the VA funding fee (and subsequent VA loan users pay 3.6%). However, by paying at least 5% of the loan total as a down payment, VA loan users only pay 1.65% of the VA funding fee. For those who are able to pay at least 10% of the loan total at the time of closing, the VA funding fee drops to 1.4%. The VA funding fee applies only to the loan amount, not the purchase price of the home. So, a first-time VA loan borrower on a $300,000 mortgage with no down payment will pay a VA funding fee of 2.3% of the loan total, or $6,900. A borrower on the same loan making a 10% down payment would only have to pay $4,950 as their VA funding fee. Other factors may also impact the amount paid towards the VA funding fee, including the loan type. For a VA Interest Rate Reduction Refinance Loan (VA IRRRL), the VA funding fee is 0.5% unless the borrower is otherwise exempt. For a VA cash-out refinance, the VA funding fee is 2.3% for first-time users and 3.6% for subsequent users. VA Funding Fee Exemptions Some veterans are not required to pay the VA funding fee. Exemptions include: Recipients of the Purple Heart Veterans who qualify for compensation for service-connected disabilities, or would qualify if they didnât receive retirement pay Veterans who qualify for compensation based on a pre-discharge exam or review Veterans who would qualify for compensation but are not receiving it due to being on active duty Surviving spouses who are eligible for VA loans. In situations where the borrowerâs exemption status is not entirely clear, the Department of Veterans Affairs makes the final decision on funding fee exceptions. Who Is Eligible for a VA Funding Fee Refund? If exemption status is not confirmed before closing the loan, lenders are required to collect the VA funding fee â although a refund on the fee may be issued if exemption status is confirmed after the loan closes. In these cases, the effective date of the borrowerâs VA compensation must be retroactive before the loanâs closing date. VA loans that are closed before the effective date of VA compensation are not eligible for refunds. Is a VA Loan Right for You? When weighing your mortgage options, there are many factors for you to consider. The VA funding fee may represent a major additional expense on VA loans. Even so, many veterans and their families find that VA loans are their best option despite the additional charge. If youâre a service member, former service member, or the surviving spouse of a service member, you may qualify for a VA loan. Contact a Pennymac loan expert today to learn more and see if a VA loan is right for you.
The increase in the conforming loan limits for 2023 pulled over 2 million homes out of the jumbo financing market, a Zillow Home Loans analysis found. On Jan. 1, the baseline single-family conforming limit rose 12% to $726,000, with the limit in high-cost areas approaching $1.1 million. The Federal Housing Administration’s high cost limit also … [Read more…]