Funds intended to benefit rehabilitation, home ownership through down payment assistance and affordable housing development in Kentucky, Ohio and Tennessee
CINCINNATI , May 9, 2023 /PRNewswire/ — The Federal Home Loan Bank of Cincinnati’s Board of Directors has approved a $12.8 million contribution to support the Bank’s housing and community investment programs. These funds will increase amounts available in 2023 for the Carol M. Peterson Housing Fund (CMPHF), Welcome Home Program (WHP) and, if available, competitive Affordable Housing Program (AHP) offering.
The CMPHF will open June 1 with funding of at least $5.0 million, an increase of $3.5 million from previously announced levels. The CMPHF offers grants to fund accessibility rehabilitation and emergency repairs for low-income homeowners with special needs or persons over 60.
The WHP will open July 6 and will offer at least $7.0 million in grants, an increase of $4.0 million from previously announced levels. The WHP offers $10,000 in down payment and closing costs assistance to low- to moderate-income homebuyers and $15,000 to honorably discharged veterans, surviving spouses of military personnel, and active duty military.
Any remaining funds not used under the CMPHF and WHP will be allocated to the 2023 competitive AHP offering.
“The FHLB Board of Directors’ clear commitment to affordable housing is evident through this additional $12.8 million contribution. These funds will help supplement two of our most popular programs that address the specific housing needs of the areas we serve—access to home ownership and quality of housing stock. By getting more homebuyers into homes through our Welcome Home Program and keeping them there as they age through our Carol M. Peterson Housing Fund, these funds will make a difference in communities throughout Ohio, Kentucky and Tennessee,” said Andrew S. Howell, President and CEO, FHLB Cincinnati.
This allocation is in addition to the FHLB’s required 10 percent of net earnings set-aside to fund the organization’s AHP. Since the inception of the AHP in 1990, the FHLB has awarded over $849 million in subsidies towards the creation of more than 105,000 units of affordable housing. Details and program guides for all housing programs, including eligibility information, are available at www.fhlbcin.com.
About the FHLB
The FHLB is a AA+ rated wholesale cooperative bank owned by 614 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies and community development financial institutions in Kentucky, Ohio and Tennessee. The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services by raising private-sector capital from member-stockholders and, with the other Federal Home Loan Banks (FHLBanks) in the FHLBank System, issuing high-quality debt in the global capital markets. The FHLB also funds community investment programs that help its members create affordable housing and promote community economic development.
Working from home is here to stay after the COVID-19 pandemic, and if you’ve spent the past three years working from your kitchen table or makeshift office in your bedroom, you may be wondering how to decorate a home office that’s more suitable for your longer-term work.
Research from the Office for National Statistics’ Opinions and Lifestyle Survey found that 14 percent of adults continue to work exclusively from home long after lockdown restrictions lifted, while a further 24 percent have adopted hybrid working between their home and the office. With many employers set to keep homeworking as a permanent business model, there’s never been a better time to get your working from home setup in order.
Whether you have a dedicated home office or have a desk space within another room in your house, there is still lots of potential to create a home office that is practical, full of personality, and improves your productivity. We’ve rounded up 15 home office décor ideas to inspire you on how it should be done…
15 home office décor ideas
1. Subtle sophistication
If you’re lucky enough to have your own personal home office, make the most of your space and place your desk front and centre, sticking to sophisticated neutral tones for a workspace worthy of any CEO. Open shelving to display books and ornaments add a touch of character, while panelled walls and a sleek cream rug provide the perfect finishing touches.
SHOP: 14 best home office chairs that are stylish and comfortable
2. Bold and bright
If calming neutrals aren’t your thing, perhaps a splash of bold colour will inspire you. Go for all out maximalism with bright cobalt blue, pops of yellow and jewel-tone accents for a home office that’s full of personality and character.
3. Go for traditional heritage prints
Mixing prints across your curtains, blinds and wallpaper are a surefire way to ensure your work from home space is anything but boring. A stylish desk, ladder shelving and luxurious gold and velvet accessories combine to create an opulent feel in this home office.
If you’re easily distracted or working within your bedroom or another space, you may find that it’s best to keep things simple by decorating in muted tones, and allow your accessories such as an oversized vase or eye-catching desk lamp to add interest.
You can’t go wrong with black and white, and we love how this black wall panel and shelving contrasts against the plain white walls, providing a space to showcase your favourite wall art, books or work accolades.
For a more timeless and traditional home office, a brown leather chair and oak desk are the ideal choice. Accessorise with a vase or decorative items in complementing neutral and metallic tones to add a contemporary update to this classic aesthetic.
MORE: 30 home office must-haves that make the best working from home gifts
SEE: 12 genius dressing tables that double up as desks
7. Pick pretty prints
Feminine florals, scalloped details and pretty prints combine to create a beautiful home office space that will have you eager to get to your desk in the morning.
8. Think industrial
A wall desk is both practical and on-trend, providing space for you to store books and display photos, while creating a modern industrial vibe in your working from home space.
9. Light and bright
Avoid distractions and maximise light in any office by decorating all in white. Wooden panelling across one wall and the ceiling add interest to a monochrome room, while open shelving and storage will mean you always have everything you need close at hand.
RELATED: 10 real-life home offices of Instagram that will inspire you to work
10. Going green
Calming and cheerful, green is a great colour choice for a home office, whether you go for one statement wall or decorate your entire room in the perky hue. Paired perfectly with sleek black furniture and grey and white accents, this is a home office you’ll love to show off on your next Zoom call.
If your desk is located within your bedroom, creating a room divider with open shelving filled with lush plants and blooms is the perfect way to separate the two spaces and ensure your bedroom is still very much your sanctuary after a busy day of work.
12. Create a home office nook
You don’t need a lot of space to create a functional and fabulous home office; utilising an alcove or nook within your bedroom or living room can allow you to work from home without impacting on valuable floor space. Add shelving above your desk to store your books and display your favourite photos and ornaments.
13. Feeling neutral
Neutral tones never go out of style, so try mixing soft tones of cream, beige and grey for a classy and understated vibe. A glass-topped desk is a great way to make a statement, while plants and carefully-curated artwork finish the look to perfection.
There’s nothing mellow about this yellow and white home office – and we love everything about it. Neon signs, fairy lights and colour pop accessories add a playful touch to this workspace, while a grid or pegboard provides a great way to display photos and prints, and keep on top of your to-do list.
15. Make it modular
A modular desk system is great for smaller spaces, providing space for all of your home office essentials while giving you the flexibility to move it around as required and truly make it your own.
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Peter Anderson is a Christian, husband to his beautiful wife Maria, and father to his 2 children. He loves reading and writing about personal finance, and also enjoys a good board game every now and again. You can find out more about him on the about page. Don’t forget to say hi on Pinterest, Twitter or Facebook!
Interest rates for mortgage loans broke five straight weeks of declines caused by the bank crisis. This week, the 30-year fixed rate rebounded due to recent data indicating a still-resilient economy, the potential continuity of the Federal Reserve’s tightening monetary policy, and pressures in the secondary market.
“For the first time in over a month, mortgage rates moved up due to shifting market expectations,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Home prices have stabilized somewhat, but with supply tight and rates stuck above 6%, affordable housing continues to be a serious issue for many potential homebuyers. Unless rates drop into the mid-5% range, demand will only modestly recover.”
Freddie Mac’s Primary Mortgage Market Survey (PMMS) shows the 30-year fixed mortgage rate rose to 6.39% as of April 20, up 12 basis points from last week and 128 basis points from an average of 5.11% this time last year. The PMMS focuses on conventional, conforming loans for borrowers who put 20% down and have excellent credit.
At HousingWire’s Mortgage Rates Center, Optimal Blue’s30-year fixed conforming mortgage rate was 6.53% as of April 19, up compared to 6.33% the previous Wednesday. The rate is calculated using actual locked rates with consumers across 42% of all mortgage transactions nationwide.
“Mortgage rates are the product of the larger economic environment, including inflation and employment data as well as banking stability and the Fed’s actions,” Hannah Jones, economic data analyst at Realtor.com, said in a statement. “Recent data points to a still-resilient, though cooling economy, leading many to believe the Fed will elect to raise the target rate at next month’s meeting.”
Mortgage rates are following the gain in the 10-year Treasury, which moved from 3.2% in the first week of April to 3.6% this week, according to George Ratiu, the chief economist at Keeping Current Matters.
“Investors are weighing the softening consumer sector and inflationary pressures, along with the shifts in real estate markets, looking for more clarity on the outlook,” Ratiu said in a statement. “Inflation remains a concern, keeping the Fed in a hawkish position, poised to push the policy rate up by another 25 basis points at its May meeting.”
Logan Mohtashami, the lead analyst at HousingWire, said that the banking stress has “gone away” and the 10-year Treasury yield is now stuck at its technical level between 3.21% and 4.25%.
“We are just in a range with the 10-year yield until something breaks in the economy,” Mohtashami said during an interview.
Pressures from the secondary market
To Melissa Cohn, regional vice president of William Raveis Mortgage, the bank crisis still impacts mortgage rates, mainly through the secondary market.
On April 6, the Federal Deposit Insurance Corporation(FDIC) announced a “gradual and orderly” move to sell a portfolio of $114 billion in mortgage-backed securities (MBS) it retained after seizing control of failed regional banks Signature Bank and Silicon Valley Bank (SVB).
According to Cohn, the fact that MBS portfolios are “being dumped into the system” and the Fed is not acting as a buyer or seller is sending rates in the wrong direction.
“We’ve seen signs of a weakening economy, but we’ve also seen a couple of data points showing stronger than expected data,” Cohn said during an interview. “Combined with the fact that there’s so much mortgage debt being sold onto the market, that’s just pushed rates up.”
Cohn explained that it’s all about supply and demand in the secondary market: “If you have more sellers than you have buyers, then that’s going to push prices down and push yields up basically.”
The spring season
Higher rates in the housing market are reducing hopes for a productive spring season.
“While spring is typically a season marked by a lively housing market, this year is proving to be less energetic than previous ones,” Jones said. “Nevertheless, buyer demand shows signs of improvement with each gain in affordability. However, housing demand remains largely stifled as many buyers wait on the sidelines until the cost of purchasing a home becomes more doable.”
According to Jones, a recent Realtor.com survey showed that 82% of homeowners feel locked in by their current mortgage rate. These borrowers got mortgage loans when rates were 2-3% during the Covid-19 pandemic.
Another challenge to the market is the lack of inventory.
“The lack of housing inventory this spring buying season is also keeping many prospective buyers on the sidelines,” Bob Broeksmit, Mortgage Bankers Association (MBA) president and CEO, said in a statement. “While MBA expects mortgage rates to fall to around 5.5% by the end of this year, more housing supply is needed to improve affordability and meet demand.”
Government officials can’t predict exactly when inflation will go down, but representatives of the International Monetary Fund expect the U.S. inflation rate to reach its 2 percent target by the end of 2023.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Consumers around the world are currently grappling with rising costs, making many people wonder how long this high rate of inflation is going to last. Although the U.S. inflation rate has nearly quadrupled since 2020, inflation is even worse in other countries. In Israel, for example, the inflation rate has increased by 25 times in the last two years.
When inflation is high, consumers have less purchasing power, making it more difficult to afford housing, food, utilities and other necessities. Some consumers have even changed their spending habits to account for rising costs. So, how long will inflation last? No one knows for sure, but it’s possible to make an educated guess based on what the Federal Reserve is currently doing to reduce spending.
What is inflation, and how does it work?
The Federal Reserve defines inflation as an increase in the overall price level of an economy’s products and services. This refers to a general increase in prices, not an increase in a single product or service category. For example, it’s possible for the cost of dairy products to increase without the rate of inflation increasing.
When inflation is high, many consumers have less purchasing power. This is because their income doesn’t buy as many products and services as it did when inflation was low. Inflation also has a negative impact on banks that loan money at fixed interest rates. If a bank makes a loan at 6 percent interest, an inflation rate of 7 percent would reduce its real income, or the amount of money it earns after taking inflation into account.
In the United States, the Consumer Price Index (CPI) helps estimate inflation by tracking the average change of prices over time. This index doesn’t include the price of every good or service. Instead, it uses a market basket of goods and services typically purchased by consumers in urban and metropolitan areas. In July 2022, the U.S. Bureau of Labor Statistics reported that the CPI rose by 1.3 percent in June, bringing the total increase for the last 12 months to 9.1 percent.
Why is inflation so high right now?
Although many Americans are feeling the pinch of higher prices, inflation is a global problem. In response to the COVID-19 pandemic, government officials around the world implemented mandatory lockdowns to prevent the spread of the disease. With so many businesses closed, the demand for goods and services declined.
Once businesses started reopening, demand soared. With the unemployment rate falling to 3.5 percent in July 2022, job seekers have more bargaining power, driving up wages and giving many consumers more money to spend on goods and services. Consumers also saved more money than usual in 2021 due to concerns over how the ongoing pandemic would affect their finances.
Although demand has increased, many companies are unable to fill orders due to manufacturing and shipping backlogs associated with the pandemic. When demand exceeds supply, firms increase their prices, contributing to higher rates of inflation.
Finally, many consumers are spending more on services than goods, increasing demand in the service sector. As a result, it now costs more to rent an apartment, dine at a restaurant or hire someone to perform housekeeping or landscaping services.
The government’s response to inflation
The Federal Reserve is currently implementing contractionary monetary policy to reduce demand and give the economy a chance to cool off. This involves raising interest rates to decrease consumer spending and business-related investment spending.
The Biden-Harris administration is also focused on lowering costs for low-income and middle-class families. President Biden signed the Inflation Reduction Act of 2022 into law on August 16, 2022, and this act aims to reduce energy costs and make healthcare more affordable for Americans.
Because the current inflation rate is associated with high levels of demand, there isn’t much more the federal government can do to bring prices down. The plan is to continue raising rates until the inflation rate returns to 2 percent.
When will inflation go down?
Government officials can’t predict exactly when inflation will go down, but representatives of the International Monetary Fund expect the U.S. inflation rate to reach its 2 percent target by the end of 2023. To reach this target, analysts believe the Federal Reserve will need to raise rates by another 2 to 2.5 percent before then.
Are we in a recession?
Although government officials, consumers and business owners are concerned about the prospect of a recession, the United States hasn’t entered a true recession yet. A recession is characterized by rising levels of unemployment, lower retail sales and negative growth of the gross domestic product (GDP), among other factors.
In July 2022, the Bureau of Economic Analysis reported that the U.S. GDP declined by 1.6 percent in the first quarter of the year and 0.9 percent in the second quarter. Although GDP declined, retail sales increased by 1 percent between May and June 2022. The unemployment rate also fell from 5.4 percent in July 2021 to 3.5 percent in 2022. Therefore, the United States doesn’t yet meet all the criteria for an economic recession.
Where is inflation the worst in the United States?
In the United States, cities tend to have higher inflation rates than suburbs and rural areas, due in part to their higher housing costs. On July 13, 2022, Bloomberg reported that several American cities had crossed the 10 percent mark. Urban Alaska is at 12.4 percent, the Phoenix-Mesa-Scottsdale metro area in Arizona is at 12.3 percent and the Atlanta-Sandy Springs-Roswell metro area in Georgia is at 11.5 percent. Baltimore, Seattle, Houston and Miami also have inflation rates above 10 percent.
Inflation isn’t quite as bad in the New York-Newark-Jersey City metropolitan area, which had a 6.7 percent inflation rate in June 2022. Overall, inflation tends to be higher in the South and Midwest regions than it is in the Northeast region of the United States.
How will inflation affect my 2022 and 2023 taxes?
Take a look at the top ways your upcoming taxes might be affected by inflation.
Taxable income
Federal tax brackets are adjusted for inflation, which means you may drop to a lower tax bracket in 2022 even if your income doesn’t decrease. If high rates of inflation persist, you may get the same tax benefit when you file your 2023 return.
The standard deduction is also adjusted for inflation, so high inflation rates may help you reduce your taxable income even more than in previous years. In 2021, the standard deduction for a single filer was $12,550; for the 2022 tax year, it’s $12,950. If the economy doesn’t cool down quickly, the standard deduction may be even higher in 2023.
Health savings accounts
The annual HSA contribution limit is adjusted for inflation, so high rates of inflation allow you to put aside more money for medical expenses each year. The limits have already been increased for 2022, allowing individuals to contribute $3,650 per year and families to contribute $7,300 per year. In 2023, the limits will increase even more, to $3,850 for individuals and $7,750 for families.
HSA contributions are deducted on a pre-tax basis, so higher contribution limits may leave you with less taxable income, reducing your tax burden.
Retirement contributions
High levels of inflation can even help you save a little more money for your retirement. The contribution limits for 401(k) accounts and individual retirement arrangements (IRAs) are adjusted for inflation, so you can typically save more when inflation is high. For 2022, the 401(k) contribution limit is $20,500, an increase from the $19,500 limit for 2021. The IRA contribution limit didn’t increase for 2022, but it may go up in 2023 if the inflation rate continues to be high.
Although you can’t save more in your IRA this year, the income limit for 2022 was increased to keep up with inflation. As a result, you can now participate in a Roth IRA if your income doesn’t exceed $144,000 ($214,000 for married couples filing jointly).
Social Security
If you have combined income of more than $25,000 in a year as a single filer, your Social Security benefits are subject to federal income taxes; the limit increases to $32,000 for married couples filing jointly. Combined income includes half your Social Security benefits, your adjusted gross income and your tax-exempt interest income. These income limits aren’t adjusted for inflation, but Social Security benefits are.
For 2022, the federal government implemented a 5.9 percent cost-of-living increase for Social Security beneficiaries, and the 2023 adjustment could be as high as 10 percent, or even slightly more—we’ll know for sure in October 2022. This increase could push your combined income above the $25,000/$32,000 limit, making your Social Security benefits taxable for the first time.
Capital gains taxes
When you sell certain assets, you must pay capital gains tax on your profit. If you sell when inflation is high, you could end up with a profit on paper even if the sale results in a real loss. This typically happens when high rates of inflation erode your purchasing power over time.
If you made a $100,000 investment in 1980 and sold it for $200,000 today, it would look like you made a profit of $100,000. The truth is that $100,000 in 1980 dollars is equivalent to about $359,600 today. Although you made a profit on paper, you really lost a significant amount of purchasing power. Unless you qualified for some type of exemption, you’d have to pay capital gains tax since the purchase price of assets isn’t adjusted for inflation.
How can I save money while inflation is high?
You can’t control the national economy, but there are a few things you can do to strengthen your financial position while inflation is high.
Eat more meatless meals. Meat, poultry and eggs are among the food products with the highest price increases in 2022. To lessen the effects of rising costs on your budget, try adding a few meatless meals to your weekly menu.
Track your spending. If you don’t keep track of your spending, it’s easy to spend much more than you realize. Keep a record of how much you spend on necessities as well as extras like streaming subscriptions and movie tickets.
Start meal planning. If you spot a good deal at the grocery store, you can take advantage by planning several meals around that ingredient. For example, if a store is advertising chicken for $2.49 per pound, you may want to plan on eating chicken salad sandwiches for lunch each day that week.
Cancel unused subscriptions: In June 2022, Sarah O’Brien of CNBC reported that more than 40 percent of consumers were paying for at least one subscription they didn’t use. Unused subscriptions leave you with less money in your pocket, so canceling them can help you weather this period of high inflation.
Maintain a high credit score. When you have good credit, you typically qualify for lower interest rates and other favorable loan terms. If you have to borrow money while inflation is high, maintaining a healthy score can help you save money.
Keep the faith
Inflation makes it a little tougher to meet your financial goals, but that doesn’t mean you should give up on managing your finances responsibly. You can save money by tracking your spending, canceling unused subscriptions and planning your meals according to what foods are on sale each week.
Maintaining good credit can help you save money in the long run if you have to take out a loan or otherwise buy on credit. If your credit is lower than you’d like it to be, work with the credit repair consultants at Lexington Law to identify inaccurate negative items on your credit reports and make sure outdated information isn’t being held against you.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Brittany Sifontes
Attorney
Prior to joining Lexington, Brittany practiced a mix of criminal law and family law.
Brittany began her legal career at the Maricopa County Public Defender’s Office, and then moved into private practice. Brittany represented clients with charges ranging from drug sales, to sexual related offenses, to homicides. Brittany appeared in several hundred criminal court hearings, including felony and misdemeanor trials, evidentiary hearings, and pretrial hearings. In addition to criminal cases, Brittany also represented persons and families in a variety of family court matters including dissolution of marriage, legal separation, child support, paternity, parenting time, legal decision-making (formerly “custody”), spousal maintenance, modifications and enforcement of existing orders, relocation, and orders of protection. As a result, Brittany has extensive courtroom experience. Brittany attended the University of Colorado at Boulder for her undergraduate degree and attended Arizona Summit Law School for her law degree. At Arizona Summit Law school, Brittany graduated Summa Cum Laude and ranked 11th in her graduating class.
Mortgage rates ticked down last week for the second week in a row, as progress on inflation is keeping rates calmer.
The 30-year fixed-rate mortgage averaged 6.35% in the week ending May 11, down from 6.39% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.30%.
“This week’s decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year,” said Sam Khater, Freddie Mac’s chief economist.
Mortgage rates topped 5% for the first time since 2011 a little more than a year ago, and have remained over 5% for all but one week during the past year. Since then they have gone as high as 7.08%, last reached in November. But over the last month rates have averaged about 6.37% and have been going up and down, but staying under 6.5%.
“While inflation remains elevated, its rate of growth has moderated and is expected to decelerate over the remainder of 2023,” Khater added. “This should bode well for the trajectory of mortgage rates over the long term.”
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.
Inflation is cooling
The rate for a fixed-rate 30-year loan held relatively steady at the lower end of the 6% range this week because the inflation picture is showing expected improvement.
“In light of a strong jobs report last week, April’s Consumer Price Index data reinforced that we are very likely at the end of the tightening cycle,” said Jiayi Xu, an economist at Realtor.com.
On Wednesday the Bureau of Labor Statistics said that headline CPI climbed by 4.9% in April year over year, slowing for the 10th consecutive month and hitting its lowest level in two years.
“While the US economy is moving in the right direction, the pace of improvement is likely slower than desired by the Federal Reserve, and inflation still remains significantly above the target of 2%,” said Xu. “As long as the economy continues to see progress on inflation, it is expected that mortgage rates will remain toward the lower end of the 6-7% range.”
Home sellers still “locked-in”
While mortgage rates have stayed under 6.5% for a month, they are about one percentage point above what some economists see as a tipping point of 5.5% rates that would motivate homeowners to sell.
Many homeowners bought or refinanced into ultra-low interest rates during the past few years. The idea of giving that up and buying another house at 5.5% sounds a lot better to them than buying something at 6.5%.
But buyers are responding positively when rates tick down, and both refinance and purchase applications saw strong gains last week, according to the Mortgage Bankers Association.
“The decline in mortgage rates is good news for prospective homebuyers, but housing supply is still too low in many parts of the country,” said Bob Broeksmit, MBA President and CEO. “Housing construction has slowed, and some would-be sellers are delaying decisions because of economic uncertainty and an unwillingness to give up their low-rate mortgage.”
In addition to the “locked-in effect” of mortgage rates, sellers are facing another issue caused by high inflation: the increasing costs of home improvements prior to selling.
A recent survey from Realtor.com shows that improving homes before selling is one of the top concerns among sellers.
“In April 2023, the household furnishing and supplies index increased 4.8% over the prior year, a welcomed improvement compared to the preceding two months, during which the growth in household furnishing exceeded the overall inflation rate,” said Xu.
However, certain items, such as floor covering, still experienced a faster price growth of 9.9% higher than a year ago.
“While this issue primarily affects sellers, buyers may also suffer the consequences, as the high cost of home repairs are likely to be passed on to them in the end.”
Today we’ll review “Texas Trust Home Loans,” which refers to itself a leading, low-cost online mortgage company based in, you guessed it, Texas!
The company makes three big declarations: that they offer low rates, can close your loan in just 21 days, and are top rated based on customer reviews.
Let’s find out more to determine if they are living up to those lofty goals and ultimately making their clients happy.
Texas Trust Home Loans Fast Facts
Direct mortgage lender that offers home purchase and refinance loans
Founded in 2015, headquartered in Dallas, Texas
A dba of parent company American Heritage Capital, LP
Licensed to do business in five states nationwide
Low-cost online mortgage lender that aims to close loans in just 15 to 21 days
Texas Trust Home Loans is a Dallas-based direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinance loans.
This means they serve both existing homeowners and those looking to purchase a home, remotely via their call center in Texas.
If you apply, you’ll be working with a loan team online and/or by phone to close your loan, with their aim to fund loans in just 15 to 21 days, which is super fast.
The company got its start back in 2015 and is actually a dba of parent company American Heritage Capital, LP, which also operates brands like Lendova.
At the moment, they are licensed in just five states nationally, including Colorado, Florida, Texas, Virginia, and Washington.
How to Apply with Texas Trust Home Loans
Call or simply visit their website to begin your loan application
You can search real-time mortgage rates then apply if you like what you see
They offer a digital home loan experience from start to finish using the latest tech
Most tasks can be completed electronically including secure document upload and eSigning of disclosures
To get started with Texas Trust Home Loans, you can call them up directly on the phone or just head over to their website.
My preference is their website, where you can search daily mortgage rates, then compare the many loan options side-by-side to determine which is best for your situation.
Assuming you find something you like, there’s a “next” button located next to each option that leads you directly to a digital mortgage application.
At that point, simply sign up, fill out the online application, upload any required documents, review and electronically sign your loan disclosures online, and you’ll be off to the races.
They say their All Digital Mortgage could save you up to $4,250 due to lower overhead, with the savings passed onto their customers.
Once submitted, you can sign in 24/7 to check loan status, access your to-do list, or get in touch with your loan team if you have questions or concerns.
Texas Trust Home Loans appears to make it easy to apply for and close a loan quickly thanks to their use of the latest fintech.
Loan Programs Offered by Texas Trust Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
Fixed-rate loans: 10, 15, 20, 25, and 30 year terms
Adjustable-rate loans: 5, 7, and 10-year ARMs
Texas Trust Home Loans Rates
One advantage to shopping with Texas Trust Home Loans is the fact that you can view mortgage rates directly on their website.
No need to call anyone or reveal any of your personal information first. Simply head to their website and click on “Rates.” They also have some sample mortgage rates right on their homepage.
From there, you’ll be able to tailor your search by providing borrower and property details to get accurate, up-to-date mortgage rates.
You’ll see multiple options that vary in closing costs, with the cheapest interest rates displayed requiring discount points be paid, and the more expensive rates requiring nothing out-of-pocket thanks to lender credits.
This allows you to decide on a perfect combination of rate and fee, whether you want the lowest payment possible or the least amount of fees.
They also advertise on Bankrate, and from what I saw were charging a $1,495 loan origination fee.
It’s unclear if they charge this fee on all their loans, or only via third-party sites where they advertise.
Regardless, it appears that all their loans can be structured so borrowers don’t pay any fees out-of-pocket thanks to those credits.
While Texas Trust Home Loans does not charge an application fee, they do require an upfront payment between $450.00 to $1200.00 (depending on the property type and location) for the cost of the home appraisal, which is non-refundable.
This is pretty standard practice, as all mortgage lenders tend to want some assurance that you won’t apply then go elsewhere for a better deal.
All in all, they seem to offer low rates as advertised, but do take the time to gather several mortgage quotes to ensure you snag a good deal.
Texas Trust Home Loans Reviews
On Bankrate, the company has a perfect 5-star rating from nearly 600 customer reviews, with literally only a couple not rated 5/5.
Additionally, 100% of those who reviewed the company would recommend them to others.
Over at Google, Texas Trust Home Loans has a similarly strong 4.7-star rating from about 300 reviews, so it’s clear they are earning top marks in customer satisfaction consistently.
Their parent company American Heritage Capital isn’t Better Business Bureau accredited, but does have an ‘A+’ rating based on complaint history.
Furthermore, they’ve only had one complaint closed in the past three years, and none in the past 12 months.
In summary, Texas Trust Home Loans seems to live up to their promise of offering low rates, fast closings, and stellar customer service.
I particularly like their transparency when it comes to mortgage rates and fees, and the fact that you can complete most tasks on a self-serve basis if you’re comfortable doing so.
Texas Trust Home Loans Pros and Cons
The Pros
Offer a digital home loan experience
Can apply for a mortgage online without any human assistance whatsoever
Openly display their mortgage rates on their website without need to login
Transparent about all fees including lender and third-party charges
Appear to offer low interest rates with limited or no lender fees
Plenty of loan programs to choose from
Their parent company has a A+ BBB rating
Online learning center where they educate on mortgages
Excellent reviews from past customers across different ratings websites
Since 44.4% of the Consumer Price Index is shelter inflation, it’s a massive deal in economics that rents took off in the last two years. Without rents taking off, the CPI data would look much more tame, like what we saw from the years 2000-2019.
As you can see in the chart below, core CPI wasn’t exploding at all this century until COVID-19 hit us. More supply of apartments coming on line will be good news for mortgage rates going forward. The history of global pandemics has always been inflationary early on, as the production of goods gets hit immediately. Then things tend to cool down over time from their inflationary peak level.
Over the next 12 months, the CPI data will account for the real-time cooling down of shelter inflation. And just like the data lagged early on when shelter inflation took off; the opposite will happen over the next year.
Tuesday’s housing starts data does show some promise on the front of attacking inflation and helping lowering mortgage rates, so let’s look at the report and find out what I am talking about.
First, however, remember that the housing market is still in a recession, which I wrote about on June 16, 2022. Housing permits have been falling as the builders simply have too much supply to be confident in building homes again. The housing market is still in a recession until housing permits rise in duration. Even though the builder’s confidence index has been rising recently, it still hasn’t led to a significant uptick in housing permits.
From Census: Building Permits Privately‐owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,413,000. This is 8.8 percent below the revised February rate of 1,550,000 and is 24.8 percent below the March 2022 rate of 1,879,000. Single‐family authorizations in March were at a rate of 818,000; this is 4.1 percent above the revised February figure of 786,000. Authorizations of units in buildings with five units or more were at a rate of 543,000 in March.
As you can see in the chart below, this looks nothing like the housing peak in 2005 and the crash toward 2008. Back then, housing permits were collapsing as new home sales fell 82% from the peak. Currently, new home sales have been trending better as the builders are taking advantage of low existing inventory. Of course, once we get lower mortgage rates, that should help the builders sell more homes.
The big difference in this housing recession versus other cycles is that housing completions are still rising, which is unusual. However, because of the COVID-19 delays, we are still working through a backlog of homes under construction.
From Census: Housing Completions Privately‐owned housing completions in March were at a seasonally adjusted annual rate of 1,542,000. This is 0.6 percent (±13.3 percent)* below the revised February estimate of 1,552,000, but is 12.9 percent (±18.6 percent)* above the March 2022 rate of 1,366,000. Single‐family housing completions in March were at a rate of 1,050,000; this is 2.4 percent (±12.4 percent)* above the revised February rate of 1,025,000. The March rate for units in buildings with five units or more was 484,000.
As you can see below, completions are like a slow-moving turtle, but they are still rising, so while housing permits are falling, consistent with the housing recession, housing completions are a different story.
Now the data line that excites me the most, of course, is shelter inflation, meaning the growth rate of rent inflation, because it’s cooling down already. This is something I talked about on CNBC last September on the day the CPI report was being reported.
As shelter inflation and wage growth cool down, we are adding more supply, not subtracting. This is key for mortgage rates looking out for years to come. As you can see in the chart below, we have a historic number of 5-unit construction in the works. This is the best way to fight inflation — with supply, with more choices, and landlords having to compete with more supply, preventing them from raising rents faster. The goal should be getting these units out as fast as possible.
One thing that will likely happen soon is that 5-unit builds under construction will start falling, such as we see with single-family homes under construction. With the Federal Reserve wanting a job-loss recession and banking credit getting tighter, apartment construction should fall like it did in the recession of 1974. I just hope it doesn’t collapse down like it did in the recession of 1974. As we can see in the chart below, the single-family units under construction are already falling as they should.
While the housing starts data doesn’t look like too much is happening and still has a recessionary vibe, we have some positive data in these reports.
As the cost to borrowers rises and credit gets tighter, we should be grateful that we have many apartments under construction. Just imagine if rental inflation wasn’t cooling down in real time, and we didn’t have these apartments in the works — it would look like the 1970s again.
That is the last thing the housing market and the U.S. economy need, rent inflation taking off as it did in the mid and late 1970s. This would mean mortgage rates have room to go higher and stay higher.
As you can see in the chart above, after the burst in housing inflation coming from the 1970s, things started to calm down. You can also see why and how inflation wasn’t a problem this century until COVID-19 hit us. That is the history of global pandemics, inflation data gets wild as supply chains are broken, and then things get back to normal over time.
There is more mortgage pain to come for the UK’s homeowners, many of whom are yet to feel the full impact of rising interest rates, according to a think tank.
The trend towards homeowners taking out longer fixed-rate mortgages has delayed the impact on some households, with two-thirds of the eventual £12 billion increase in annual mortgage costs still to be passed on, the Resolution Foundation said.
The Bank of England increased the base interest rate to 4.5% from 4.25% on Thursday – the 12th rise in a row since rates started going up in December 2021.
The average mortgage holder could see their monthly interest payments jump by around £200 a month if they fixed to a new rate this year, the Bank’s economists estimated.
Simon Pittaway, senior economist at the Resolution Foundation, said: “While interest rate rises might be coming to an end, there will be plenty more mortgage pain to come.”
Around four-fifths (81%) of outstanding residential mortgages in December 2022 were fixed-rate deals, according to UK Finance figures. This group will not feel the immediate impact of base rate rises until their deal ends.
The foundation said that, while the Bank’s rate-rising cycle has been sharp, the growing popularity of fixed-rate mortgages and longer-term deals means many borrowers are yet to see the impact on their mortgage outgoings.
Of the 7.5 million mortgagor households that will eventually be affected by the rate-rising cycle since the end of 2021, around half have yet to see a change in their mortgage rate, the foundation said.
It added that mortgage costs are expected to remain elevated for some time.
Richer households, which are more likely to be mortgaged than poorer homes and tend to be more expensive properties, will face the majority of the £12 billion rise in mortgage costs, the foundation said.
But it predicted that the scale of the living standards shock will be particularly high for those low and middle-income households who are affected.
Younger home-owning families, who tend to have lower incomes than older households and higher mortgages relative to incomes, will also face a sharp living standards hit, the foundation said.
The foundation is focused on improving living standards for people on low to middle incomes.
A spokesperson for trade association UK Finance said: “Lenders stand ready to help anyone who might be concerned about their mortgage payments. If you’re struggling, don’t put it off – speak to your lender as early as possible.
“Banks have a range of tailored options available to help. Your lender will work with you to find the best option for your individual circumstances.”
The Internal Revenue Service (IRS) has announced that it will resume issuing collections notices to taxpayers that were previously suspended during the COVID-19 pandemic. Here are some important points to note:
No date has been set for when the notices will be sent out, but the IRS has a detailed plan in place to stagger the issuance of different types of notices to avoid overwhelming the agency.
The IRS will communicate with taxpayers, tax professionals, and Congress on the timing of the plans to ensure that no one is caught off guard by the generation of notices.
The plan is to give most taxpayers a gentle reminder notice before sending a final Notice of Intent to Levy to avoid the appeals process and get taxpayers back into compliance.
The IRS will look at the totality of the 500-series of notices and taxpayers and their circumstances to see if there is a more efficient way of communicating and collecting past due amounts.
The agency has been working with National Taxpayer Advocate Erin Collins, who has offered input that the IRS is incorporating and taking into consideration every step of the way.
The staggered approach will help practitioners and the Taxpayer Advocate Service from being overwhelmed, as well as the IRS.
The IRS will start generating CP-14 notices, which are the statutory due notices, in the very near future, and these will be sent out to taxpayers around the end of May.
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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