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It’s no secret home prices aren’t cheap. They may not be expensive either, depending on how you look at it, but they certainly aren’t cheap. It doesn’t take an economist to figure that out.

At the same time, mortgage rates are marching toward new all-time lows and inventory remains tight, which is keeping demand red-hot for prospective home buyers.

That means sacrifices must be made, but just what are those sacrifices? Well, fortunately Redfin did the legwork for us here.

Let’s take a look at these compromises to determine if it makes sense to be in this potentially frothy real estate market right now.

Paying More than Expected

This is perhaps always the case in real estate, or in anything that requires you to pay money in exchange for an item. We always pay more than we anticipated, either for emotional reasons or simply because we underestimated the cost.

The problem with a home is that paying more isn’t always an option. You could be maxed out at a certain price thanks to lender limits on DTI, or you could lack the necessary down payment at higher price points.

Whatever the case may be, buyers are being asked to up their ask if they want to land their dream home, or even their right now home.

In fact, home buyers are apparently making multiple offers on several homes at once in order to get one accepted. Sounds like things are getting a little out of control…

[Do you need 20% down to buy a house?]

Buying in a Different Hood

The next biggest compromise is searching for a home in an entirely different neighborhood. This can happen even if the real estate market isn’t on fire, as it is now, but it should give you pause.

Buying a home is a major decision and you shouldn’t just look elsewhere if you can’t afford a home in your desired neighborhood.

Of course, if you started your search with unreasonable filters, you may want to adjust your expectations and search in a realistic area. Just be sure not to forego the basics like a good school district and a low crime area. You may also want to avoid buying a home near these many things…

Purchasing a Small Home

We’ve all heard of that tiny home trend where you live in what looks like a trailer. It’s some kind of hipster millennial thing that maybe went too far.

Even if you don’t take it to those lengths, buying a smaller home because you can’t afford a larger one might not be a smart move. It might simply mean it’s not the best time for you to buy.

This is the third most common compromise buyers are making, but it can be a big mistake, no pun intended.

If you plan to start a family, you could easily outgrow your pad in a hurry, especially if you have twins. Heck, even if you don’t, it’s always nice to have one more bedroom, or one extra bathroom.

Keep in mind that if you buy the smaller home for right now, you might be looking for a new larger home before you know it, when prices are even higher.

Looking in the Burbs

The next most common compromise is buying further out of town. Redfin refers to it as buying in a “less walkable or transit-friendly community,” aka the suburbs.

It seems everyone wants to live in the city these days, but if you are planning/starting a family, the burbs could actually be a great choice.

The schools tend to be a lot better in the less “cool” parts of town, and that will mean a lot more to you once you have your fun running around the city. Parking is also a good thing…

At the same time, there is a fine line here – if the home you can actually afford or get your offer accepted on is an hour commute each way, you might want to pump the brakes on the purchase.

Settling for a C+ School

The final compromise is purchasing a home in a lower-rated school district. I just touched on the importance of schools, and this decision will come back to bite you in several ways whether you have kids or not.

If you do have kids, you might have to pony up for private school, which could easily outweigh the costs of buying in a nicer part of town, especially if you have multiple children.

Even if you don’t have kids, when it comes time to sell, there’s a good chance the buyer will care about the school district and that can affect your bottom line. In short, the things that you think about now will be the same things future buyers of your home consider.

The takeaway here is that there will always be compromises when it comes to buying a home, but if you find the compromises really beginning to stack up, you might want to keep on renting.

Source: thetruthaboutmortgage.com

Apache is functioning normally

When you’re considering applying for a mortgage, one of your top questions is probably “What is the monthly payment going to be?”

For a 100K mortgage, the payment on a 30-year loan at 7% interest would be $665.30. For a 15-year mortgage loan term, the payment increases to $898.83, which helps you pay off the loan sooner and pay less in interest costs over the entire loan.

Your own loan will depend on a number of factors, including but not limited to fluctuating interest rates. Here’s what goes into a 100K mortgage, what income is required to get one, and what your payments would look like over the life of the loan.

Total Cost of a 100K Mortgage

The total cost of a 100K mortgage goes beyond the monthly payment. There are upfront costs and ongoing, long-term costs to consider, all of which affect how much house can you afford.

Upfront Costs

Upfront home loan costs can include:

•   Closing Costs: There are costs you need to pay to get a mortgage, but they are not a part of the original loan. These are known as closing costs and include things like the mortgage origination fee, the cost of an appraisal, attorney fees, title fees, taxes, prepaids, and other expenses. With the average closing cost on a new home adding between 3% and 6%, that works out to $3,000 to $6,000 on a 100K mortgage.

•   Down Payment: Unless you are able to obtain a 0% down payment loan, you’ll need some money to afford the down payment on a 100K mortgage loan.

The average down payment on a home is 13%, as per the National Association of Realtors®. This works out to $13,000 on a $100,000 home.

If you don’t quite have this amount, there are other types of mortgage loans that offer low down payment options. 3% and 3.5% are common, which would come out to $3,000 and $3,500 for the down payment on a 100K home.

Long Term Costs

Here are the ongoing costs of a mortgage loan:

•   Interest. The biggest expense you’ll have over the life of the loan is interest. Interest costs are huge, especially in an economy with higher annual percentage rates (APRs). You’ll pay more in interest than you do in principal if you keep the mortgage loan for the whole 30-year loan term.

For a $100K mortgage with a 30-year term and 7% APR, the interest costs total $139,508.90.That’s on top of the $100,000 original loan amount. Adding the two together, you’re looking at paying $239,508.90 for the original 100K mortgage. Take a look at our mortgage payment calculator or the amortization table further down if you’re more curious about this amount.

•   Escrow. You may pay for taxes and insurance through your escrow account every month. This expense doesn’t go away, even when you pay off your mortgage. The amount of tax and insurance varies by state and policy.

Estimated Monthly Payments of a 100K Mortgage

Payments on a 100K home will ultimately be determined by your loan term and interest rate. And the interest rate is determined by a number of factors. Of course, the Fed’s rate matters, but so too do such aspects as:

•   Credit score. A good credit score can afford you a lower interest rate on your mortgage.

•   Down payment. Generally, putting down a larger down payment affords you a lower interest rate.

•   Home location. There are certain areas where you may be offered a lower interest rate just because of where you live.

•   Loan amount. If you need a larger loan, such as a jumbo loan, you’ll usually see a higher interest rate. The same can be true of much smaller homes, such as tiny homes.

•   Interest rate type. If you choose a loan with an adjustable APR, you may initially have a lower interest rate.

•   Loan type. You’ll see different interest rates based on what loan type you’re using. Examples include VA loans, FHA loans, and a USDA loan which may offer a lower (or no) down payment as well as lower interest rates.

•   Loan term. Choosing a mortgage term that’s shorter can help you score a lower interest rate.

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Recommended: First-Time Homebuyer Guide

Monthly Payment Breakdown by APR and Term

It’s helpful to see what potential mortgage loan payments on a 100K mortgage may be, adjusting for term length and APR variance. Keep in mind these costs do not include escrow items, such as taxes or insurance.

APR Monthly Payment on a 30-Year Loan Monthly Payment on a 15-Year Loan
3.5% $449.04 $714.88
4% $477.42 $739.69
4.5% $506.69 $764.99
5% $536.82 $790.79
5.5% $567.79 $817.08
6% $599.55 $843.86
6.5% $632.07 $871.11
7% $665.30 $898.83
7.5% $699.21 $927.01
8% $733.76 $955.65
8.5% $768.91 $984.74
9% $804.62 $1,014.27
9.5% $840.85 $1,044.22
10% $877.55 $1,074.61

How Much Interest Is Accrued on a 100K Mortgage?

Each month, your payment is split into principal and interest payments. Those interest payments go to the bank as payment for lending you money. Principal payments go toward the original loan amount and pay down the loan.

The longer the loan term, the more you’ll pay in overall interest. For a 100K mortgage on a 30-year term with a 7% APR, the interest costs total $139,508.90 on top of the original loan.

On a 15-year term with the same parameters, the interest costs are a more modest $61,789.09. Yes, your monthly payments are higher, but the difference between a 15 vs. 30 year mortgage with 7% APR is significant.

Recommended: Home Loan Help Center

100K Mortgage Amortization Breakdown

The amortization of a 100K mortgage shows how much of your monthly payment pays off the loan each month.

You can see in the early years of your mortgage, more of your monthly payment goes toward interest, and very little of your loan is paid off. In later years, more of the payment will go toward the principal.

Year Monthly Payment Beginning Balance Total Amount Paid Interest Principal Ending Balance
1 $665.30 $100,000.00 $7,983.60 $6,967.81 $1,015.79 $98,984.19
2 $665.30 $98,984.19 $7,983.60 $6,894.39 $1,089.21 $97,894.95
3 $665.30 $97,894.95 $7,983.60 $6,815.64 $1,167.96 $96,726.96
4 $665.30 $96,726.96 $7,983.60 $6,731.21 $1,252.39 $95,474.55
5 $665.30 $95,474.55 $7,983.60 $6,640.66 $1,342.94 $94,131.59
6 $665.30 $94,131.59 $7,983.60 $6,543.59 $1,440.01 $92,691.55
7 $665.30 $92,691.55 $7,983.60 $6,439.49 $1,544.11 $91,147.41
8 $665.30 $91,147.41 $7,983.60 $6,327.86 $1,655.74 $89,491.65
9 $665.30 $89,491.65 $7,983.60 $6,208.17 $1,775.43 $87,716.19
10 $665.30 $87,716.19 $7,983.60 $6,079.81 $1,903.79 $85,812.38
11 $665.30 $85,812.38 $7,983.60 $5,942.19 $2,041.41 $83,770.95
12 $665.30 $83,770.95 $7,983.60 $5,794.61 $2,188.99 $81,581.94
13 $665.30 $81,581.94 $7,983.60 $5,636.38 $2,347.22 $79,234.69
14 $665.30 $79,234.69 $7,983.60 $5,466.70 $2,516.90 $76,717.75
15 $665.30 $76,717.75 $7,983.60 $5,284.75 $2,698.85 $74,018.87
16 $665.30 $74,018.87 $7,983.60 $5,089.64 $2,893.96 $71,124.88
17 $665.30 $71,124.88 $7,983.60 $4,880.45 $3,103.15 $68,021.68
18 $665.30 $68,021.68 $7,983.60 $4,656.10 $3,327.50 $64,694.16
19 $665.30 $64,694.16 $7,983.60 $4,415.56 $3,568.04 $61,126.09
20 $665.30 $61,126.09 $7,983.60 $4,157.62 $3,825.98 $57,300.08
21 $665.30 $57,300.08 $7,983.60 $3,881.03 $4,102.57 $53,197.49
22 $665.30 $53,197.49 $7,983.60 $3,584.46 $4,399.14 $48,798.32
23 $665.30 $48,798.32 $7,983.60 $3,266.46 $4,717.14 $44,081.14
24 $665.30 $44,081.14 $7,983.60 $2,925.44 $5,058.16 $39,022.95
25 $665.30 $39,022.95 $7,983.60 $2,559.78 $5,423.82 $33,599.10
26 $665.30 $33,599.10 $7,983.60 $2,167.69 $5,815.91 $27,783.17
27 $665.30 $27,783.17 $7,983.60 $1,747.26 $6,236.34 $21,546.80
28 $665.30 $21,546.80 $7,983.60 $1,296.45 $6,687.15 $14,859.60
29 $665.30 $14,859.60 $7,983.60 $813.02 $7,170.58 $7,688.98
30 $665.30 $7,688.98 $7,983.60 $294.64 $7,688.96 $0.00

What Is Required to Get a 100K Mortgage?

When you’re applying to qualify for a mortgage, lenders look for a few key things to approve your application.

•   How much debt you will be carrying. Lenders look for your monthly payment to be lower than 28% of your gross monthly income. A 100K mortgage payment at 7% interest on a 30-year term is $665.30. For this payment to be less than 28% of your monthly income, your monthly income needs to be over $2,376, assuming you have no debt. This turns into a $28,512 yearly salary requirement to afford a 100K mortgage payment.

If you have debt, the calculation changes a little bit. Your lender will add your monthly debts to your projected monthly mortgage payment. These two numbers added together need to be less than 36% of your monthly income. This calculation a lender does is known as the debt-to-income ratio, or back-end ratio.

•   Credit score. It’s advisable to have a credit score of 620 or higher when applying for a mortgage loan.

•   Consistent work history. If you are unemployed, self-employed, or have recently changed jobs, lenders may be less likely to approve your loan. They may worry about your having a steady enough income to make your payments.

The Takeaway

A 100K mortgage will have a monthly cost that varies depending on such factors as the loan’s interest rate, the term of the loan, and whether it’s a fixed- or variable-rate loan. By understanding more about how the cost of a mortgage is calculated, plus the related costs, you can be better prepared for the milestone of being a homeowner.

When you’re ready to apply for a mortgage, SoFi will be there for you. Our rates are competitive, and we offer flexible loan terms and down payment options (as little as 3% for first-time homebuyers) to suit your needs. The online application simplifies the process, and our dedicated Mortgage Loan Officers can help you every step of the way.

See how smart and simple a SoFi Mortgage Loan can be.

Photo credit: iStock/AndreyPopov

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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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Source: sofi.com

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Replacing your policy

I currently have a life insurance policy – could I get a better price elsewhere?

Save more, spend smarter, and make your money go further

The short answer is yes – it is possible to get a better price. The long answer is that it depends on quite a few factors, and there’s no guarantee that your price will drop with a second application.

One of the biggest things to keep in mind is your age. The older you are, the higher your chances of dying naturally, which will slowly increase the baseline price of a policy. Applying for a policy at 45 will be more expensive than applying at 35, all other things being equal.

When in doubt, work with a life insurance agency. They’ll be able to give you some insight into how much your price could drop if you switch to another carrier.

If my health has improved since I got my last policy, can I reapply for a better price?

Depending on how your health has improved and the amount of time that has passed since your previous application, you could see significant price drops.

For example, smoking is one of the priciest things that you can do with regard to a life insurance application, and typically, you need to have kicked the habit at least one year ago before life insurance carriers are willing to look past your tobacco history.

My last agent sold me a policy from the company he worked for. Can I get a better price if I shop around?

If your agent was captive, meaning they only represented one insurance company, the first thing that you should do is get a quote from an independent source that represents many. Because carriers jockey for position to undercut their competitors’ prices in certain situations, it’s possible that another carrier beats your current carrier in price.

Sometimes the difference in price will be pretty obvious from the get-go. If you can’t find a dramatic difference in price, it’s often wise to talk to an independent agent or online company and tell them the facts about your case. An experienced agency can help point you in the right direction by shopping your case around for preliminary price checks with various carriers.

Natasha Cornelius is the content manager and editor for Quotacy. She has worked in the life insurance industry since 2010 and has been making life insurance easier to understand with her writing since 2014. A long-time Mint user, Natasha lives in Bozeman, Montana where she loves to garden, DIY anything she can, and explore beautiful Big Sky country. Connect with her on LinkedIn.

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Source: mint.intuit.com

Apache is functioning normally

The spring housing market music is playing, and purchase application data and active listing inventory rose together last week. The fear of not having an increase in inventory this spring should be put to rest. The other focus should be where mortgage rates go; only a little happened last week.

Here’s a quick rundown of the last week:

  • Active listing rose 8,260 week to week, down a bit from last week’s gain, but I’m not complaining — anything on the plus side is positive.
  • Purchase application data rose 5% weekly, keeping the streak of more positive data than negative for the year.
  • Mortgage rates, once again, didn’t move too much this last week; the bottom level range was 6.50%, while the top was 6.67%; we ended the week at 6.59%.

Weekly housing inventory

Since new listing data was trending at all-time lows in 2023, some feared we wouldn’t see the typical spring inventory increase. After the last few weeks, we can put that fear aside: we are finally getting the seasonal increase in active listing. The one thing that is different about this year is that it took the longest time in history to get the seasonal bottom in inventory, but better late than never.

Since 2020, the seasonal inventory bump has happened later than usual — not until March or April. I reviewed the reasons for this in the HousingWire Daily podcast in February. Now that I believe the seasonal inventory bottom is in, we can focus on the next stage: tracking the weekly data on how much inventory growth we can get this year before the seasonal inventory starts to decline.

  • Weekly inventory change (April 21-28): Inventory rose from 414,010 to 422,270
  • Same week last year (April 22-April 29): Inventory rose from 271,510 to 287,821
  • The bottom for 2022 was 240,194
  • The peak for 2023 so far is 472,680
  • For context, active listings for this week in 2015 was 1,070,493

New listing inventory hasn’t recovered since last year’s big mortgage rate spike and we have been trending at all-time lows in 2023. Even though it does appear that 2023 will have the lowest new listing data ever recorded in history, we are seeing the traditional growth in new listing data for the year, which is a big positive in my eyes.

We have to remember that a conventional seller is usually also a traditional buyer, so new listings growing toward their seasonal peak throws cold water on the idea that no one will list their homes because they already have a low mortgage rate (the mortgage rate lockdown theory).

New listings:

  • 2021: 67,137
  • 2022: 71,023
  • 2023: 64,769

For some historical perspective, back when housing inventory levels were normal, here are the weekly new listing numbers for 2015-2017:

  • 2015: 86,902
  • 2016: 80,940
  • 2017: 87,327

As you can see in the chart below, new listing data is highly seasonal, so we don’t have much time left before we should see a seasonal decline in the data line.

The NAR data going back decades shows how difficult it’s been to get back to anything normal on the active listing side since 2020. In 2007, when sales were down big, total active listings peaked at over 4 million. We had high inventory levels while the unemployment rate was still excellent in 2007. This proves that the mass supply growth we saw from 2005-2007 was due to credit stress, not because the economy was in a recession; the U.S. didn’t go into recession until 2008.

The total NAR inventory is still 980,000. As you can see in the chart below, there is a big difference between these two different historic housing economic cycles.

People often ask me why there is such a difference between the NAR data versus the Altos Research inventory data. This link explains the difference and is worth a read.

Finally, the significant observation I see with the inventory data this year versus last year is that last year’s new listing data was higher than in 2021. Also, the volume of active listings was higher in 2022 this week, even though we were working from a lower level. This shows me that while active inventory is growing, we don’t see the same growth volume this year versus last year. This can change as the spring inventory increase is still early, but that is the big difference I see for now.

The 10-year yield and mortgage rates

Last week, mortgage rates didn’t move too much, which might seem strange given that another bank, First Republic, was on its way to failure. The market is a bit calmer now than when Silicon Valley Bank failed, evident in how the stock and bond markets traded this last week. 

The growth rate of inflation from the PCE data released Friday morning wasn’t a big deal in my view, it’s more of the same as service inflation has been firm recently, but looking out for 12 months, the growth rate of PCE will be below 4%. When that happens, the fear of breakaway 1970s inflation should be put to rest.

New home sales beat estimates while pending home sales slipped month to month. The 10-year yield tested the Gandalf line once again, to bounce off that level and only go back toward the end of the week.

In my 2023 forecast, I said that if the economy stays firm, the 10-year yield range should be between 3.21% and 4.25%, equating to 5.75% to 7.25% mortgage rates. If the economy gets weaker and we see a noticeable rise in jobless claims, the 10-year yield should go as low as 2.73%, translating to 5.25% mortgage rates.

Of course, the banking crisis has put a new variable into this year. However, even with that, the labor market, while getting softer, hasn’t broken yet. 

As you can see in the chart below, the 10-year yield has stayed in its firm economic range 100% of the time. We can also see how hard it’s been for the 10-year yield to break below the 3.37%-3.42% area with any conviction. Mortgage rates have been in a range between 5.99% – 7.10%.

My line in the sand for the Fed pivot has always been 323,000 on the four-week moving average. This has been my big economic data line for the cycle since I raised my sixth and final recession red flag on Aug. 5, 2022. While the labor market is getting less tight, it’s not broken yet.

From the Department of Labor: “Initial claims for unemployment insurance benefits decreased by 16,000 in the week ending April 22, to 230,000. The four-week moving average fell to 236,000.”

Purchase application data

Purchase application data has been the main stabilizing data line for the housing since Nov. 9, 2022, with 16 positive prints versus six negative prints, after making some holiday adjustments to the data line. For 2023 we have had nine positive prints versus six negative prints. This data line has been very rate sensitive, and we are working from the lowest bar ever in this index. This past week we saw 5% week-to-week growth in the data line.

The year-over-year decline in purchase application data was  28%, the smallest year-over-year decline since September of 2022. However, the year-over-year data will improve independently even if the data line stands flat for the rest of the year.

The year-over-year comps will get noticeably easier as the year progresses, especially in the second half. This data line looks out 30-90 days for sales, and we are almost done with the seasonality of this data line. I always weigh this report from the second week of January to the first week of May. Traditionally after May, volumes will fall; this hasn’t been the case post-2020.

After May, I will address this issue with seasonality and a possible growth push later in the year, as seen in previous years.

The week ahead: Jobs and the Fed

It’s jobs and Fed week; jobs data is the one economic data line the Fed wants to slow down. Not only do they want to see the unemployment rate get to 4.5%-4.75%, they also want to see wage growth slow down even more. This week we have the job openings report, the ADP jobs report, jobless claims, and the BLS jobs report on Friday.

This can be a big week for mortgage rates and the bond market if the economic data does get softer on the labor front. Already, we see a cooldown in the labor market, but it’s not fast enough for the Fed.

Continuing claims have been rising for some time, meaning the labor market isn’t tight enough for these Americans to find work quickly after filing for unemployment benefits.

Job openings as high as 12 million in 2022 are now below 10 million. We are still at historic highs here, but the labor market is getting less tight. Job openings getting to 10 million early in the recovery was a huge call of mine.

For me, the one data line that shows that we don’t have 1970s entrenched inflation is the wage-growth data tied to the BLS jobs report. It has been cooling down even though we have had a tighter labor market, as I wrote about in the last jobs report.

The Fed is also meeting this week and the market has already priced in another quarter-percent rate hike; this will happen while the government finds a buyer for another bank on life support.

With the Fed meetings, it’s not their actions as much as their words. Since the Fed has now publicly said they believe a recession will happen later this year, based on their models, their actions during the recession matter more than what is left to do here. I believe that is where the discussion around the Fed should go since this might be the last rate hike of the cycle.

So, the week ahead has a lot of juicy economic data lines for us to keep an eye on because, to me, the housing market moves with the 10-year yield this year; when it goes down, the market acts better, and when it rises, demand gets softer.

Source: housingwire.com

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Washington, DC
CNN
 — 

Mortgage rates rose this week, after five weeks of falling.

The 30-year fixed-rate mortgage averaged 6.39% in the week ending April 20, up from 6.27% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.11%.

“For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s chief economist.

“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,” he said. “Unless rates drop into the mid-5% range, demand will only modestly recover.”

Mortgage rates went higher than 5% for the first time since 2011 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, and had been trending down since early March.

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.

Rates climbed up this week as 10-year Treasury yields climbed higher. As investors responded to economic indicators, bond yields ticked higher, taking mortgage rates with them.

“Mortgage rates are the product of the larger economic environment, including inflation and employment data as well as banking stability and the Federal Reserve’s actions,” said Hannah Jones, economic data analyst at Realtor.com. “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.”

The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

Home buyers remain very sensitive to weekly changes in mortgage rates.

“Last week’s jump in mortgage rates led to a pullback in mortgage applications, as homebuyers remain sensitive to rate movements,” said Bob Broeksmit, CEO of the Mortgage Bankers Association. “The lack of housing inventory this spring buying season is also keeping many prospective buyers on the sidelines.”

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, he said.

Last year’s persistent mortgage rate climb, combined with inflation and home price growth, led many buyers to retreat from the housing market, said Jones.

“While spring is typically a season marked by a lively housing market, this year is proving to be less energetic than previous ones,” she said.

Nevertheless, Jones added, buyer demand shows signs of improvement with each gain in affordability.

As a result, she said, “housing demand remains largely stifled as many buyers wait on the sidelines until the cost of purchasing a home becomes more doable.”

Source: cnn.com

Apache is functioning normally

If you’re in need of a VA loan, one mortgage company that deals almost exclusively in them goes by the name “ClearPath Lending.”

Roughly 99% of the home loans they originated last year were VA loans, and they were pretty much all refinance loans as well.

That means there’s a high likelihood ClearPath Lending knows what they’re doing when it comes to funding a VA loan quickly and competently.

Let’s learn more about this Southern California-based mortgage lender to see if they could be a good choice for your veteran home loan needs.

ClearPath Lending Fast Facts

  • Direct-to-consumer mortgage lender that offers purchase and refinance loans
  • Specializes in VA lending which comprises about 99% of their overall volume
  • Founded in 2012, headquartered in Irvine, California
  • Funded $5.57 billion in home loans during 2020
  • Currently licensed to do business in 29 states nationwide
  • Most active in California, Florida, and Texas

ClearPath Lending is a direct-to-consumer mortgage lender located in Irvine, California, which is basically the epicenter of the mortgage industry on the West Coast.

The operate a call center, but no physical branches, so you’ll be working remotely with their lending team to close your loan.

Last year, they originated a whopping $5.57 billion in home loans, which makes them almost a top-100 mortgage lender nationally.

While they originated a large amount of loans in over a dozen different states, they were most active in California, Florida, Texas, Virginia, and Arizona.

As noted, most of the loans they fund are VA refinance loans, likely Interest Rate Reduction Refinance Loans (IRRRL).

They are currently licensed in 29 states, with Minnesota, Missouri, New York, Utah, and Washington some of the more notable places where they don’t do business.

How to Apply with ClearPath Lending

  • Call them or fill out a short contact form on their website to get started
  • A loan officer will call you to discuss loan eligibility and pricing
  • If you like what you hear they’ll provide a link to a full mortgage application
  • Once submitted you can manage your loan via the online borrower portal

To get started, you can either call them up directly or visit their website to fill out a short contact form.

There doesn’t appear to be a way to formally apply for a mortgage on your own without human assistance.

While this is a slight negative, you might be better off speaking to someone first to determine eligibility and to get loan pricing.

If you like what you hear, they’ll provide a link to formally apply via their website. It’s unclear what origination software they use, but my guess is you can complete most tasks electronically.

Once your loan has been submitted, you can visit the ClearPath Lending Portal to check on loan progress, upload necessary documents, and message your lending team with questions.

Loan Programs Offered by ClearPath Lending

  • Home purchase loans
  • Refinance loans: rate and term, cash out, and streamline
  • Conventional loans
  • Jumbo loans
  • FHA loans
  • VA loans (their specialty)

ClearPath Lending has a decent menu of loan programs available, from conventional loans to FHA to jumbo.

But their specialty is clearly the VA loan, which makes up a staggering 99% of their overall loan volume.

They’re also decidedly a refinance shop, with just about every loan that passes through their doors a refi as opposed to purchase.

However, they do offer home purchase loans, along with FHA loans and loans backed by Fannie Mae and Freddie Mac.

The only major loan type missing is the USDA loan, which is a niche product for those buying or living in rural parts of the United States.

In terms of loan type, you can get a fixed-rate mortgage like a 30-year or 15-year fixed, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.

You can also get a custom loan term if you don’t want to reset the clock on your mortgage.

ClearPath Lending Mortgage Rates

You won’t find daily mortgage rates on the ClearPath Lending website, which is a shame. Nor will you see a list lender fees.

It’d be helpful to see these things to quickly determine how competitive they are relative to other lenders. But you’ll have to get a personalized quote to find that out.

The good news is they say they guarantee the best pricing for your loan.

If you obtain a better quote from a competitor, simply get in touch with your loan officer to discuss their “best price guaranteed policy.”

Either way, they claim their pricing is among the most competitive in the mortgage industry, so you should be able to obtain a decent rate.

Just take the time to shop competitors as well to be sure, and inquire about those lender fees while you’re at it.

Once your loan closes, they’ll also enroll you in their so-called “Loyalty Program,” which monitors interest rates and lets you know if you could benefit from a refinance.

They say no underwriting or processing fees will be added to the principal balance, but it’s unclear if these fees are completely waived the second time around.

The process may also be faster if they already have most of your prior documents on file, and you can keep your existing loan term if you wish to pay off your loan on schedule.

ClearPath Lending Reviews

On Google, the company has a stellar 4.8-star rating out of a possible 5 from nearly 3,000 customer reviews.

And on LendingTree, a 4.9 out of 5 from about 1,200 reviews with a 99% recommended score.

Additionally, they have a 4.7/5 on ConsumerAffairs from about 250 ratings, with the majority perfect 5-star reviews.

Over at Zillow, it’s more of the same, a 4.9-star rating from roughly 130 reviews. A good chunk of them indicate that the interest rate received was lower than anticipated.

They’ve also got a 4-star rating on Yelp from about 80 customer reviews

In terms of Better business Bureau rating and accreditation, those are in limbo right now because their business profile is being updated.

But they were an accredited business in the past, so there’s a chance they might be in the future and that will be reflected once the BBB website is updated.

To sum things up, ClearPath Lending seems to be laser-focused on VA lending, and specifically VA refinance loans.

So if you’re a veteran homeowner interested in refinancing your loan, they could be a suitable choice.

My assumption is they’re good at what they do, given their dedication to one specific product.

But if you’re looking for something else, such as home purchase financing or a conventional or FHA loan, they might not be the first choice.

ClearPath Lending Pros and Cons

The Pros

  • Can apply for a mortgage online
  • Online borrower portal to manage your loan
  • Say they have a best price guaranteed policy
  • Good selection of loan programs to choose from
  • Specialize in VA loan lending
  • Excellent customer reviews across all ratings sites
  • Free mortgage calculators on site
  • Loyalty Program monitors mortgage rates and notifies you if a better deal is available

The Cons

  • Not licensed in all states
  • No physical branches
  • Do not list mortgage rates or fees online
  • Do not offer USDA loans
  • No BBB rating at the moment

Source: thetruthaboutmortgage.com

Apache is functioning normally

After a years-long stretch of low interest rates, it’s hard to let go, but some homebuyers have figured out they don’t have to. Instead of selling one home, where their mortgage has an interest rate around 3%, so they can buy another one with a rate above 6%, they’re opting to hang onto the old address and rent it out.

“People who are hesitant to close out that 3% mortgage see that rents are going through the roof, and they see a possibility to make some money” on the spread between the mortgage payment and the monthly rent, said John Irwin, a Baird & Warner agent.

“We have a unique opportunity right now for people to hang onto their tiny, tiny interest rate and their equity,” said Carmen Rodriguez, a Coldwell Banker agent. It’s fueled by the fact that “we have a lot of people renting because they can’t afford to buy at the higher rates,” which creates demand for the homes their former occupants don’t want to cut loose.

Irwin said three of his clients went this route in recent months. They were all people who could afford to buy the next home without pulling all their equity out of the last one for a down payment, which is the primary obstacle lying in the path of using this strategy, Irwin said.

There’s no data available on how many people have done the same, but in gathering information for this story, Crain’s learned of 16 recent Chicago-area deals that involved renting the old place. It’s admittedly a small number, but every agent interviewed said the strategy is catching on.

“It’s their opportunity to add real estate to diversify their investment portfolio,” said Jessica Coulson, a Compass agent. “They might not have been expecting to.”

Earlier this month, a pair of Coulson’s clients bought a house in Northbrook and rented out their two-bedroom West Town condo. The two properties are about 22 miles apart, and their mortgage rates are more than 2.5 percentage points apart. Coulson did not disclose her clients’ personal financial details, but said the condo rented quickly at a number that will be profitable for them.

In November, Bekah and Dan Carlson moved from an Andersonville two-flat where their mortgage, taken out in 2015, was at 3.75%. They bought a few blocks away in Ravenswood, at 6.5%.

Since 2015, it had been their goal to keep the two-flat after eventually moving, Dan Carlson said, and preserving the low payment that the two-flat’s mortgage has was a key part of making it work. But with home prices rising quickly last year, it looked like they might have to offload the two-flat in order to have enough cash for a purchase.

“If it had come down to leaving the neighborhood or selling the two-flat, we’d have sold the two-flat,” Carlson said. Ultimately, they were able to make the purchase and keep the two-flat, which “is a good source of extra income, a good use of our money,” he said.

There can be reasons other than money to take this route, Rodriguez said. Her client who has a child with specific needs at school is moving to a school district that suits those needs, but hopes to move back to the house she loves after the child finishes school.

The combination of a sweet mortgage rate and a hot rental market meant “she can hold onto it until she’s ready to move back,” Rodriguez said.

Besides needing the equity from one home to afford buying the next one, many people wouldn’t want to rent out the old address for a simple reason: They don’t want to be landlords.

Coulson said she suggested the rental plan to a pair of physicians who have a very low mortgage rate, but they said with busy jobs and little kids, “they weren’t interested in being property managers. They wanted to focus on their own home.”

It’s not only the unwillingness to take 2 a.m. calls about a broken furnace, Irwin said, but “there’s always the possibility that the renter might not take care of the home like you do, and when you go to sell that (home), the wear and tear may cost you.”

One big obstacle for people who need a mortgage on the new home is that without a history of rental income, the old property might get in the way of obtaining a mortgage for the new property, according to Jim Tausche, senior vice president of residential lending at Draper & Kramer Mortgage.

Despite the heat in the rental market, there’s no guarantee that the old property will land renters or that rental income won’t be interrupted by vacancy or by renters failing to pay.

Tausche said mortgage lenders would likely examine all the details of each scenario individually, making it as important as ever to talk to a mortgage broker before going house hunting.

If the property is a condo, it’s also important to check whether the homeowners association limits the number of rentals in the building.

Source: chicagobusiness.com

Apache is functioning normally

The impact of credit tightening by Fed officials has been unclear in the wake of both higher interest rates and turmoil in the banking system following the collapse of Silicon Valley Bank and Signature Bank in early March. Federal regulators also seized First Republic Bank and sold it to JPMorgan Chase Bank earlier this week.

Bonds rallied immediately after the news, sending yields down, as the market interpreted the Fed’s hints as an indication of a pause in tightening.

“The 2-year and 10-year US Treasury yields are down 2-3 basis points, which could help mortgage rates as the market digests the news and adjusts,” Jack Macdowell, chief investment officer at the Palisades Group, said.

On Wednesday afternoon, mortgage rates for 30-year fixed-rate mortgages were at 6.43%, according to HousingWire’s Mortgage Rates Center.

“If the economy picks up steam and the banking crisis doesn’t worsen, that might force the Fed to re-start rate hikes. However, for now, they seem OK to pause here,” Mohtashami said. 

Danielle Hale, chief economist at Realtor.com, was on the same page with Mohtashami about Wednesday’s rate hike decision, noting that it is unlikely to cause mortgage rates to shift dramatically. 

If economic indicators are lukewarm going forward, it should lead to a more sustained, gradual decline in mortgage rates — as the Fed is less likely to continue rate hikes, Hale noted. 

“However, above-expected hiring, price growth or other economic activity could lead to upticks in the mortgage rate in anticipation that tighter Fed policy will be needed,” Hale said. 

A hike in short-term rates is only indirectly impactful for mortgage rates, as mortgages are priced off of long-term rates. But when the Fed raises interest rates, it becomes more expensive for families to take out loans for home purchases.

The Mortgage Bankers Association (MBA) also expects the Fed to push a pause button on the rate hikes in June, noting that the Fed’s statement was consistent with a plan to pause rates at this level.

“Although recent speeches by Fed officials had indicated an increasing amount of disagreement regarding the next steps for policy, this was another unanimous vote,” Mike Fratantoni, chief economist at the MBA, said. 

The expectation of continued rate hikes has kept Treasury yields higher, even with expectations of an economic slowdown. This, in turn, has kept mortgage rates higher, Shampa Bhattacharya, senior director at Fitch Ratings, noted. 

“The home purchase market is more sensitive to a reduction in mortgage rates at current rate levels, with the refinance option still out of the money for a vast majority of homeowners (…).  Purchase mortgage application data as well as active listings have shown positive weekly growth recently in response to somewhat lower rates, though applications remain down 28-30% year over year,” Bhattacharya said.

Impact on housing and residential lending

It’s unclear what the Fed’s next decision will be, but the MBA is hoping for a rate hike pause. 

“If the central bank pauses its hike in June, potential homebuyers and their mortgage lenders may be breathing a sigh of relief,” Fratantoni said. 

While tighter credit conditions are expected to slow the pace of economic activity, the housing sector is already operating under tight credit, Fratantoni noted.

The MBA doesn’t expect the tight credit headwind to outweigh the benefits from somewhat lower mortgage rates. The housing market is likely pulling the economy out of this slowdown, as it typically does, the MBA said.

Looking ahead, Hale expected the rest of May to be a rocky ride for interest rates, including mortgage rates. 

“The Fed continues to remain vigilant, watching for signs that financial sector stresses have impacted the real economy. Most likely, this factor will remain a wild card for the next few meetings, as data continue to roll in,” Hale said.

If the Fed does raise rates again next month, home buyers will be scared of purchasing for several reasons, Dutch Mendenhall, founder at RAD Diversified REIT, noted.

Because there is still a relative low inventory of houses for sale, higher interest rates with higher home prices mean buyers may not find the house they want in the current price range. 

“Additionally, higher rates create higher debt-to-income ratio calculation, resulting in qualifying for lower mortgage amounts,” Mendenhall said. 

However, a higher interest rate environment can provide more opportunity for cash buyers. 

“Without having to worry about interest rates, cash buyers can be very attractive to sellers, as they know they can go to closing quickly, and as a result, cash buyers can find themselves in a much better position to negotiate a better sale price,” he noted. 

Regardless of whether mortgage rates will trend down or enter into a recession, potential buyers have a window of opportunity, Jerimiah Taylor, vice president of real estate and mortgage services at OJO, said.

“The spring market has been hotter than expected in many markets, and if you add the fuel of lower rates on what’s already happening, expect prices and competition to increase quickly,” Taylor said.

Source: housingwire.com

Apache is functioning normally

Before I dig into this topic, let me just put this out there: Expiration dates are important and you should always consider them so you don’t get food poisoning and end up in the hospital or whatever. Please don’t interpret this post as my arguing that expiration dates are total bull.

That being said, expiration dates are total bull. Just kidding! Well, kind of. I recently came across an alarming study from Harvard, which found that Americans waste 160 billion tons [Editor’s Note: Kristin pointed out that she should have written 160 billion pounds] of food annually. A similar 2012 study from the NRDC calculated that waste in terms of dollars: We throw out about $165 billion worth of food and beverages each year. On average, that’s between $275 and $400 per household.

The Dating Game

The Harvard Food Law and Policy Clinic titled their study “The Dating Game,” and they came to the conclusion that many “sell by” dates don’t really have anything to do with safety. Companies mostly determine those dates based on taste tests.

Emily Broad Leib, who authored the study, told CBS, “The dates are undefined in law and have nothing to do with safety. They are just a manufacturer suggestion of peak quality.”

But of course, food does go bad. Despite the liberal expiration date on that cup of Dannon in the back of your fridge, you probably shouldn’t eat it if it’s been there since the ’90s. Okay, you definitely shouldn’t eat it if it’s been there since the ’90s.

But Leib urges consumers to be aware that when manufacturers determine expiration dates, they’re mostly thinking about protecting their brand rather than public safety. The purpose of the Harvard study was to push for a more reliable labeling system for food.

“Make an Assessment”

Until the system changes, what’s the solution? Are we supposed to simply turn a blind eye to expiration dates and pray against food poisoning?

Well, of course not. Here’s Leib’s suggestion:

“Consumers need to take that extra minute to actually look at their food and smell their food and make an assessment. When we just rely on these dates and throw everything away after the date, we’re leading to really high rates of food waste.”

Sounds like good ol’ common sense, but her study found that 90 percent of households throw out food that’s still perfectly good, thanks to inaccurate expiration dates.

Growing up, we always “made an assessment.” We were poor (I think I may have mentioned that once or twice?), so my mom didn’t just toss out food willy-nilly. She was very discerning; but if it didn’t emanate any strange odors and hadn’t changed color, we usually ate it. When she did have to throw something out — when it was, say, taken over by mold — she would still shake her head and mumble, “What a waste.”

On the other hand, I’d argue that my extended family goes a little overboard. My aunt, for example, once fed us cooked rice that she neglected to tell us had been sitting out for a few days. The aftermath was not pretty.

I use the “sell by” (or, the more charming “enjoy by”) date as an approximation. If the expiration date is really, really old, I’ll toss it, even if the item still looks and smells edible. If you’ve ever had crippling food poisoning that’s left you vomiting next to your boss in the middle of a work meeting, you know it’s just not worth the risk. However, if it’s at least somewhat close to the expiration date, I make an assessment, and, if it still looks and smells edible, I usually go for it. Although, I tend to be stricter when it comes to meat, milk or eggs.

How Long Does Food Really Last?

When it comes to assessing “expired” food, it’s probably better to rely on data rather than instinct. Ever heard of Eatbydate.com? I hadn’t, until I started researching this story. It’s a pretty cool website that seeks to answer the question, “How long does food really last?” It’s pretty extensive, and you can check it out yourself, but here are a few items I found interesting:

When properly stored,

  • Fresh whole mushrooms last 7-10 days.
  • An opened pack of cream cheese lasts 1-2 weeks (stored at or below 40° F)
  • Opened shredded cheese lasts 3-4 weeks (stored at or below 40° F)

The site also gives tips on how to tell if certain foods are spoiled. Their content is based on research from resources including the Department of Agriculture and the FDA.

Earlier this year, Get Rich Slowly staff writer Lisa Aberle wrote an article on food waste in general, and she pointed out some helpful ways that she avoids waste. In addition to the whole expiration date conversation, there are a couple of practical tactics I’d like to add:

Extend the Shelf Life of Your Food

I know how I make the most out of my food’s shelf life, but I’m no expert, so I thought I’d check with one. Jill Houk is a food consultant and cookbook author who was kind enough to offer a few tips:

  • “Don’t wash fruits or vegetables before storing them,” Houk says. “Even small amounts of water can start the molding/decomposition process.”
  • She adds that keeping your refrigerator temperature between 34ºF and 38ºF will help slow the bacteria growth that leads to food spoilage.
  • Most of us know to store our canned goods and jarred food in a cool, dry place. But Houk warns: “Even avoid storing food too closely to your dishwasher, toaster, or coffee maker. If food experiences wild temperature fluctuations, it’s more likely to spoil faster, even if it’s shelf-stable.”

Meal Planning

It’s easy for me, because I only live with one other person, but I try to plan out my meals and groceries for the week. I cook about four or five times a week, and, as we near the end of the week, I take an inventory of what’s left over, and I try to make the most of whatever that is. If I have half an onion or a few potatoes left, I see if I can make a stew or something. Online meal planners like $5 Meal Plan are especially helpful. You type in whatever ingredients you have in your pantry, and they’ll pull up recipes that include those ingredients. I don’t want to sound like a commercial, but ever since I’ve started using their app, I find I throw out very little food.

Anyway, I’d like to know — how closely do you follow your expiration dates, and what do you think of them? Do they contribute to waste, or should we follow them strictly?

Source: getrichslowly.org

Apache is functioning normally

Last month, my boyfriend and I took a weekend trip to Seattle to celebrate our anniversary. We got a great deal on a hotel using a discount app. We’d stayed at this hotel before, and the view was gorgeous. The price was also reasonable and the room was clean. We checked in, unloaded our bags and pulled back the curtains, preparing to take in Seattle’s beautiful skyline, which we’d flown a thousand miles to see.

Lo and behold, the parking lot. A man getting into his car looked up at us, startled.

“Eh,” I said. “We didn’t come here to hang out at the hotel.”

“Yeah, but I want a view,” Brian said, drawing the curtains. “The parking lot? C’mon.”

He vowed to talk to someone at the front desk and see how much it would cost to get a better room. We were surprised when the hotel receptionist said it would be no problem to upgrade us free of charge. There was no hesitation. It was the easiest upgrade I’ve ever gotten. We went up to our new room, opened the curtains and took in a nice nighttime view of the Space Needle.

This experience reminded me of just how effective speaking up can be. I’ve always struggled with speaking up for myself. But the more I see how speaking up can get you discounts, upgrades, necessary help, jobs, etc., the more I’m trying to master it.

Why speaking up was hard for me

Embarrassment

I grew up learning to be very independent and self-sufficient, and it took me a while to understand the cliché: the squeaky wheel gets the grease.

That cliche began to make the most sense when I entered the working world. My outspoken co-workers would get the projects I wanted just because they made sure it was known that they wanted those projects. Luckily, my boss was nurturing. She recognized my meekness and encouraged me to speak up when I wanted something. I realized I was embarrassed to ask for things. I felt like if I had the guts to ask for a project, it meant I was full of myself, and that was embarrassing to me. (Weird, I know. I guess I had an odd cultural upbringing.) When I had to ask for help in school, I always felt it meant I wasn’t smart and couldn’t handle things on my own. As an adult, that embarrassment turned into feeling like I was just being a nuisance.

Lack of confidence

It took me a while to ask for a raise or promotion on my own. I felt like, if I deserved something, it would just come to me. Silly, right? Another example: When I was a financial mess, I got into problems with overdraft fees. It was totally my fault, but the bank definitely preyed on my financial irresponsibility, charging me $35 per transaction, and sneakily posting withdrawals before deposits that were made early that same day. A friend told me I could call and have the fees removed, but I resigned myself to the belief that I deserved to pay them because, y’know, bank fees are all about personal conviction and morals and stuff.

Laziness

It hurts to confess this, but when I was a financial mess, I also stupidly fell for a free credit score scam. The company charged my card an unauthorized $14.99 fee. After researching the scam online, I knew if I called my credit card company and told them the issue, the fee would most likely be removed. But at the time, I told myself, “Eh, it’s just 15 bucks.” Then I asked my lazy self, “If someone paid you $15 to have a five-minute phone call right now, would you do it?” I answered yes, and I picked up the phone.

Speaking up in action

It’s still hard sometimes, but I’ve learned to speak up for myself a lot more these days. And it’s been really effective in saving me money, or even helping me to earn more money. The other day, I randomly called my cell phone provider about lowering my bill. I saw a better, cheaper plan online. The only catch — there was some crazy $150 fee for activating this plan. It would take seven months before I would even start seeing savings. So I called and half-jokingly asked, “I don’t have to pay that, right?”

The customer service rep said, “Sure, we can waive that.”

Well, that was easy! By just asking, I was able to lower my phone bill by $15 a month.

“Just asking” is one of the simplest but most effective money hacks I’ve come across. And the more I see how effective it can be, the less shy I become about speaking up. But, of course, there are a few things to keep in mind for better results:

Be nice

Pretty simple. I think people are more apt to offer help when someone is kind. Sure, customers who raise hell might get what they want, and being too nice can certainly work against you. But I’ve been nasty to customer service reps, and then I’ve been patient and kind to them. I’ve learned that, most of the time, nice usually trumps nasty. Since making it a point to be nicer and more understanding, I’ve found that my customer service calls are quicker and more effective.

Get personal

I’ve found that it usually helps, when asking for something, to remind people that you’re human. When arguing for a raise, I reminded my boss that my financial situation was suffering due to inflation — rent increases and the like. When calling my Internet company about their price hikes, I reminded them that I don’t have the money to pay for such a huge increase. “Times are tough,” I told the rep.

She sighed, “Yeah, I understand.”

It took some work, but I was able to get an even better deal on my Internet because of some special promo or whatever they had going on.

Be persistent

Sometimes, however, it ain’t easy. While I wouldn’t be annoyingly persistent in asking for something like a free room upgrade, I was annoyingly persistent with those aforementioned bank fees (especially when they once were at $300). When I finally decided to call, I asked to talk to a manager, and it took nearly an hour of my time and a lot of headache in arguing my case for waiving the fees, but in the end, “just asking” won.

Of course, there’s a difference between asking for something appropriate and then asking for a handout. And this is kind of what I struggle with. Blatantly asking for a free flight upgrade, for example, seems so embarrassing, yet I still want to try it, because others have said it works. And then I’ve met people who aren’t afraid to “just ask” for damn near everything, to the point that their irreverence borders on cheapskate. When I’m asking for help or for a discount or something, I try to imagine how the other party feels when I’m speaking up — will they feel put out or taken advantage of? If so, then I think twice about asking.

But I’m not quite sure where to draw that line, so what do you think? Speaking up works, but where’s the boundary between being outspoken and just being cheap?

Source: getrichslowly.org