Chase IHG Rewards Premier Business Credit Card is offering 165,000 points after $3,000 in purchases within the first three months
Card Details
$99 annual fee
This new cardmember bonus offer is not available to either (i) current cardmembers of this business credit card, or (ii) previous cardmembers of this business credit card who received a new cardmember bonus for this business credit card within the last 24 months.
Card earns at the following rates:
10x on IHG purchases
5x on gas stations, dining, social media and search engine advertising and office supply store purchases
3x on all other purchases
Automatic IHG Platinum status, earn Diamond Elite with $40,000 in spend
$50 United TravelBank cash each calendar year. Must register card in your United account
TSA PreCheck/Global Entry Credit
Spending bonus of 10,000 points + $100 statement credit after spending $20,000 within a calendar year. Additional free night after $60,000 in spend
Redeem three nights, get one night free
Our Verdict
This is the highest offer we’ve seen on this card, previous high was the base bonus of 140,000 points. The nice thing about this card is that it doesn’t count towards your 5/24 status as it’s a Chase business card. We will add this to our list of the best credit card bonuses.
Should You Become an Authorized User? – MintLife Blog
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establish credit history, consider becoming an authorized user and building your credit in other ways, like getting a secured credit card.
What Is an Authorized User?
An authorized user is someone who can make purchases on your credit card but isn’t legally obligated to pay the balance. It’s easy to sign someone up as an authorized user online or over the phone with a few pieces of information like their address, name, and birth date. You can order a separate card or have them use your credit card. You can have several authorized users on a single credit card, usually up to five. If the person is under 18, they can still usually be an authorized user on a parent or guardian’s account.
You get some privileges as an authorized user, but not the same ones as the cardholder. You can make purchases, find the available balance, and make payments. You can also report a missing card and dispute a fraudulent charge. Authorized users aren’t able to make changes to the account, though. For instance, they can’t close the account, add another user, or change the address.
Authorized Users and Credit
Becoming an authorized user could improve your credit score, but not always, and typically not in a drastic way. Check to see if the creditor sends authorized users’ activity to the major credit bureaus. Most do, but not all. If you’re trying to build your credit, you want to make sure being an authorized user will count toward your history.
When you’re a user on someone’s account who has a solid history of on-time payments and low credit utilization, it can help your credit. On the flip side, if you’re connected to someone with a lower credit score or a spotty payment history, your credit might suffer. For instance, if the cardholder misses a payment, your score could be affected, because it will also be reported on your history. That’s why it’s important to select someone you trust. Choose someone who you know will pay on time and not let their balance lapse. You can even have an upfront conversation about credit history and payments before being added as an authorized user to their credit card.
Just because you won’t be legally responsible for your charges, you may have a different arrangement with family. For example, Asher is an authorized user on his mom’s credit card. She pays for his groceries and utilities, but he is responsible for discretionary spending like going to the movies. Still, if the authorized user like Asher refuses to pay their portion, the cardholder remains responsible for covering it. If the cardholder doesn’t pay or can’t pay the balance, it could harm you more than help you.
Ways to Build Credit
Besides becoming an authorized user, there are other ways to build your credit. Try a combination of different approaches to build your history and show that you’re a responsible borrower.
Try a rent reporting service: Put your monthly payments toward your credit history by signing up for a rent reporting service. Proof of your payments is sent to the major credit bureaus. You’ll have to pay a small fee for the service, but it’s a low-risk way to create a credit history for payments you already make.
Apply for a secured credit card: Most credit cards are unsecured but require an established credit history. Secured credit cards allow you to put down collateral, such as a $500 cash deposit, in case you don’t pay your bills. These cards are for those without much credit history because the deposit guarantees payment to the lender if you don’t make payments. In most cases, secured credit cards carry higher fees and interest rates than normal unsecured cards.
Have someone cosign on a loan: Whether you’re purchasing a vehicle or need more funds for college, having someone cosign on a loan can help build your credit. Banks and lenders will often give out small loans to those without much credit history, as long as they have a solid cosigner backing them.
Choose a student credit card: If you’re in college, build credit with a student card. You may be approved even with no credit history. You might have a lower credit limit, such as $500 or $1,000, but the card allows you to spend on credit and build trust with creditors.
Practicing smart financial habits, like building your credit or having a personal budget, reaps rewards both now and in the future. Being an authorized user is one practical way to go about improving your overall financial health when done correctly. With a higher credit score and stronger finances, you can achieve bigger goals, like buying a home or saving for early retirement.
After the previous mortgage boom and subsequent crash, many questions were asked regarding what exactly went wrong.
There was plenty of finger pointing, from overreliance on credit scores, to endless investor speculation, to Wall St. packaging substandard mortgages and the government’s accommodative policies.
But one source of blame that kept resurfacing was the prevalence of high-risk loan products, such as the option arm.
Others blamed “subprime” for the housing crash, though that infamous eight-letter word was often used as a one-size-fits-all definition for any mortgage that went bad.
Regardless, it was clear that shoddy mortgages held some material amount of blame for the previous crisis.
After all, many of the loans were destined to fail, seeing that the teaser rates offered were the only way one could afford the property to begin with.
Today’s Mortgages Are Pristine
If you want to compare the previous housing run-up to that of today’s, you should consider the mortgages behind the properties being purchased.
Back during the mid-2000s, the quality of mortgages was awful. Scores of homeowners were purchasing properties with credit scores well below 620, which is the subprime cutoff.
Additionally, these borrowers were purchasing homes with zero down financing, or worse, with zero documentation. Not to mention many of the properties were non-owner occupied four-unit properties, often with second mortgages stuck at 12%.
One of the most common loan documentation types was stated income, which allowed borrowers (or their loan reps) to put any amount of monthly income they’d like in the box on the application.
This was all good and well in the eyes of pretty much everyone because it banked on home prices soaring ever higher, despite already chalking massive gains.
The idea, in short, was that it didn’t matter if the borrower was sound if the property was expected to surge in value.
At worse, the borrower could refinance again or sell (for a profit) if they couldn’t keep up with their mortgage payments. We all know how badly that ended…
Just a few short years later, the quality of mortgages has done a complete 180. The average credit score for newly originated loans is north of 700. Additionally, average LTVs have dropped, meaning borrowers have home equity in case something goes wrong.
If anything, LTVs are going to keep dropping as bidding wars force new homeowners to put more down in order to get their offers accepted.
At the same time, more and more borrowers are opting for long-term fixed-rate mortgages, and with mortgage rates are at or near record lows, it makes for a pretty solid bet (even Buffett backs it).
The low rates are good for the housing market because it means homes are more affordable in payment terms, and it also means many previously stuck with higher rates can refinance.
Even those with underwater mortgages have benefited, thanks to HARP 2.0, which erased the LTV ceiling.
Yes, there will be consequences of this quantitative easing down the road, but for now, quality mortgages are being originated at rock-bottom rates.
And some banks are even compensating their loan officers based on loan quality, as opposed to loan volume.
Is This a Housing Boom or a Mortgage Boom?
You almost have to question whether this is a play on housing, or a play on getting a mortgage at a ridiculously low rate.
If mortgage rates were closer to historic norms, would prospective home buyers have the same voracious appetite?
My guess would be no, seeing that home prices have already returned to fairly high levels in many parts of country.
In fact, they aren’t too far off their previous bubble highs in some regions, meaning the low rates must be part of the equation.
Still, if and when rates do rise, it doesn’t mean home prices will plummet like they did before. It will probably result in a cooling off period, but that doesn’t equate to a bubble bursting.
[Mortgage rates vs. home prices]
The reason most people lost their homes or walked away during the previous crisis was due to a lack of home equity (and down payment), coupled with an unsustainable housing payment.
Today’s borrowers are a lot more qualified and invested, holding mortgages they can truly afford. This makes owning long term a lot more attractive, even if home prices have shot up recently.
These homeowners will be able to sit tight and enjoy their low, low fixed housing payments, even if home prices bounce around a bit. Why walk away from that?
Read more: How it became a bad time to buy a home.
Often times student loans get in the way of a mortgage because of the tremendous monthly debt, but fintech lender SoFi wants to create the opposite effect.
They’ve launched their so-called “Student Loan Payoff ReFi,” which as the name implies, is a way to get rid of student loan debt while refinancing the mortgage.
The general idea is that mortgage rates (at the moment) are lower than the interest rates on student loans, meaning borrowers can save money by shuffling debt to their existing mortgage balance.
Apparently 8.5 million households have student debt obligations, so this mechanism could equal a lot of savings, and a lot of originations for SoFi.
The program is being offered in conjunction with Fannie Mae, and is apparently cheaper than a traditional cash out refinance.
How the SoFi Student Loan Payoff ReFi Works
Say a student (or I suppose a parent) owns a home with a mortgage balance of $200,000 at 67% LTV, and there is also outstanding student loan debt of $40,000.
This hypothetical homeowner can combine the two debts into one and enjoy a lower interest rate, despite a higher LTV.
This example would push the LTV to 80%, likely the maximum under the program, but the rate would still be a competitive 3.75% or so on a 30-year fixed.
The payment would be even cheaper because student loans often amortize over a shorter period, such as 20 years. But the lower combined rate would offset the longer amortization period.
SoFi will actually disburse the funds directly to the servicer of the student loan debt, instead of just giving the borrower cash at closing.
Because the funds are going straight to the student loan company, instead of the bank account of the homeowner, there is less perceived risk.
After all, in general homeowners are welcome to tap equity to use for whatever they’d like, including paying off other loans. But lenders assume more risk if the funds can be used for any purpose, such as buying a Hummer.
This might explain why the interest rates on this product are more competitive than typical rates tied to a cash out refinance.
Still Explore All Options
Borrowers might get a rate closer to what they’d expect to receive via a rate and term refinance, the latter of which involves no cash to the borrower.
It might also be easier to qualify if the to-be-paid-off student loan debt no longer bumps up the DTI ratio to unacceptable levels.
This program works for both those who manage their own student debt and those who have a co-signer on the student loan such as a parent.
Per Experian data, the average homeowner with an outstanding co-signed student loan has a balance of $36,000, while those with Parent PLUS loans have $33,000 in outstanding debt.
The Parent PLUS loan is a private offering and apparently 90% of private student loans required a co-signer. They also tend to come with interest rates that are higher than current mortgage rates.
The one downside to a program like this is that the funds can only be used for one purpose. And your home loan debt will grow, which could potentially put your primary residence at risk.
As noted, a traditional cash out refinance allows you to tap equity and use funds for any reason. In a nutshell, you get more flexibility.
However, the interest rate might be higher than this product from SoFi. Of course, you’d still want to shop around to see if you can get the best of both worlds.
You might be able to snag a low rate without sacrificing any flexibility.
The Federal Home Loan Mortgage Corporation, or FHLMC, is known as Freddie Mac, the entity created by Congress for the purpose of buying mortgages from lenders to increase liquidity in the market. Freddie Mac was created in 1970 and expressly authorized to create mortgage-backed securities (MBS) to help manage interest-rate risk.
Because the FHLMC buys mortgages, lenders don’t have to keep loans they originate on their books. In turn, these lenders are able to originate more mortgages for new customers. The mortgage market is able to keep capital flowing and offer competitive financing terms to borrowers because of this system. In other words, the market runs more smoothly because of Freddie Mac and its sister company, Fannie Mae, the Federal National Mortgage Association (FNMA).
If you want to know more about how this government-sponsored enterprise works and how it affects your money, read on for details on:
• What is the FHLMC and what are FHLMC loans?
• What is the difference between Freddie Mac and Fannie Mae?
• What are Freddie Mac mortgages?
• How does the Federal Home Loan Mortgage Corporation work?
Freddie Mac and Fannie Mae
These organizations, with their friendly-sounding nicknames, serve a very important purpose. Freddie Mac and Fannie Mae were created for the purpose of stabilizing the mortgage market and improving housing affordability. These government-sponsored enterprises (GSEs) do this by increasing the liquidity (the free flow of money) in the market by buying mortgages from lenders. Mortgages are then pooled together into a mortgage-backed security (MBS) and sold to investors. The process created the secondary mortgage market, where lenders, homebuyers, and investors are connected in a single system.
In the past, Freddie Mac and Fannie Mae operated as private companies, though they were created by Congress. Fannie Mae came first in 1938, followed by Freddie Mac in 1970. Freddie Mac’s addition in 1970 resulted in the creation of the first mortgage-backed security.
The federal government took over operations at both companies following the financial crisis in 2008. According to the National Association of Realtors, without government support of Freddie Mac and Fannie Mae, there wouldn’t be very much money available to lend for mortgages.
The Federal Housing Finance Agency (FHFA) has oversight of Freddie Mac and Fannie Mae. On a yearly basis, they assess the financial soundness and risk management of Fannie Mae and Freddie Mac.
What Is the Purpose of the FHLMC?
As mentioned above, the FHLMC, or Freddie Mac, makes the housing market more affordable, stable, and liquid by buying mortgages on the secondary market. When they buy these loans, the retail lenders they buy them from are able to originate more mortgages to new customers and keep the mortgage market flowing smoothly.
There are many types of mortgage loans; the ones that Freddie Mac buys are known as conventional loans. The mortgage loan must meet certain standards (such as loan limits) for Freddie Mac to guarantee they will buy these loans.
In general, the process of successfully obtaining a mortgage usually looks something like this once the buyer has made an offer on a house that’s been accepted:
• The consumer finds a lender, if they haven’t already done so, and will apply for a mortgage.
• The lender collects documentation required by the loan type and submits it to underwriting.
• The underwriter approves the loan.
• The homebuyer closes on the loan, and mortgage servicing begins
• The lender sells the loan on the secondary mortgage market to Freddie Mac (or Fannie Mae or Ginnie Mae, depending on what type of loan it is and from what type of lender it originated).
From a homebuyer standpoint, they will see the outward mortgage servicing, which is the entity to which they will send their monthly payment and who takes care of the escrow account. The mortgage servicer is the one who forwards the different parts of the mortgage payment to the appropriate parties.
Mortgage servicing can also be sold from servicer to servicer, but this is different from the sale of a mortgage to Fannie Mae or Freddie Mac.
Freddie Mac is also tasked with the responsibility of making housing affordable. There are specific mortgage programs guaranteed by Freddie Mac and offered by lenders.
• HomeOne®. HomeOne is a mortgage program that offers low down payment options for first-time homebuyers. There are no income or geographic limits.
• Home Possible®. Home Possible is a program for first-time homebuyers and low- to moderate-income homebuyers. It offers discounted fees and low down payment options.
• Construction Conversion and Renovation Mortgage. This type of loan combines the costs of purchasing, building, and remodeling into one loan.
• Manufactured Home Mortgage. For qualified buyers, Freddie Mac can guarantee mortgages when buying manufactured homes that meet their criteria.
• Relief Refinance/Home Affordable Refinance Program (HARP). For borrowers with a good repayment history but little equity, loans are available to refinance into a more affordable rate.
Recommended: What Is the Average Down Payment on a House?
Understanding Mortgage-Backed Securities
After a mortgage is acquired from a lender, Freddie Mac can do one of two things: either keep the mortgage on its books or pool it with other, similar loans and create a mortgage-backed security (MBS). These MBS are then sold to investors on the secondary mortgage market.
What’s attractive about a mortgage-backed security to an investor is how secure it is. Fannie Mae and Freddie Mac guarantee payment of principal and interest. Both Fannie Mae and Freddie Mac issue mortgage backed securities now.
Does the FHLMC offer Mortgage Loans?
Freddie Mac does not sell mortgages directly to consumers. You won’t see a Freddie Mac mortgage or an FHLMC loan advertised to consumers. Instead, the FHLMC buys mortgages from approved lenders that meet their standards.
Recommended: What Are the Conforming Loan Limits?
The Takeaway
The housing market in the United States arguably benefits from the role of the Federal Home Loan Mortgage Corporation. Lenders can essentially originate mortgages to as many borrowers as can qualify. The free flow of capital created by the FHLMC also means mortgages are less expensive for homebuyers all around. In short, the smooth operation of the housing market owes much of its success to Freddie Mac and Fannie Mae.
If you’re shopping for a home and looking for a lending partner, consider what SoFi has to offer. With dedicated loan officers, competitive interest rates, flexible terms, and low down payment options, SoFi Mortgage Loans can offer something for nearly every borrower.
SoFi Mortgage Loans: Simple, smart, flexible.
FAQs
What does FHLMC stand for?
FHLMC is an abbreviation of Federal Home Loan Mortgage Corporation. It is commonly referred to as Freddie Mac.
What type of loan is FHLMC?
Freddie Mac guarantees conventional loans that adhere to funding criteria, but it does not offer Freddie Mac mortgages directly to consumers.
What is the difference between FNMA and FHLMC?
Fannie Mae and Freddie Mac originated in different decades and initially had different purposes, but for the most part, they serve the same purpose today of helping to improve mortgage liquidity and availability.
Photo credit: iStock/Andrii Yalanskyi
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. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOHL0223008
Save more, spend smarter, and make your money go further
It’s often difficult for us to clearly picture where we’ll find ourselves in five to ten years. Opportunities and experiences that we never even dreamed of can pop up a year from now – or even next week – and completely change the course we’re currently on.
With that being said, it can seem downright silly to start planning for something as far off as retirement. For today’s 20- and 30-somethings, that can be multiple decades away. Fully retiring is so far in the future for most of us that it might as well be as far away as the stars in the sky.
When it comes to retirement planning, you have to be strategic.
But if you’re bringing in an income, the reality is that it’s never too early to start planning and saving for retirement. So how do you do that?
You don’t need to be able to fully envision every detail of what your retirement days will look like to start laying the groundwork to build your nest egg. Here are some actionable tips you can put into place right now – even if retirement seems light years away.
Understand the Power of Compound Interest
Compound interest can turn a single penny into 10 million dollars (don’t believe it? Check out this post to see for yourself). Of course, it’s unlikely that any money you invest will provide a 100% return every single day, but it doesn’t need to.
Need more convincing? Here’s another example that talks about two people: person A maxes out their 401(k) for the first 10 years of their career and never contributes another cent, and person B doesn’t contribute anything for the first 10 years of their career and then maxes out for the next 33 years until they retire. Who do you think will come out ahead?
You guessed it: Person A wins by a couple hundred thousand despite contributing $400,000 less over their lifetime.
Explore Your Options
Knowing you need to start saving (even if it’s just a little bit) to take advantage of the combined power of time and compound interest isn’t enough to get started. You need to know where to actually put that money.
Make sure you’re enrolled in a retirement plan from your company if it’s offered, and contribute enough to secure any employer match that may be available. Next, open a Roth IRA and make regular contributions. It’s important that you start developing good savings habits now, so you can maintain them as your income grows.
Avoid Lifestyle Inflation
That brings us to another critical step you need to take in order to start planning for your retirement. If you can only save a little now because of a limited income, that’s okay. But as your income grows, your savings should increase along with it – not your spending.
You need to guard against lifestyle inflation if you want to build a significant nest egg that will see you through all your years after you quit actively earning an income.
You want to add eggs to this nest – not take them away.
Delve into Details
It might be obvious at this point, but planning for retirement starts with developing good habits. Once you have these habits in place, it’s time to start considering the details. While nailing down a precise figure for how much you’ll need in order to retire is difficult, you can start refining your estimations.
Consider what your future goals are. What does your ideal retirement to look like? What level of lifestyle would make you happy? When do you want to stop relying on work for your income and switch to living off your investments?
Your answers to these questions may change, so revisit them on a regular basis. They’ll help inform you about what that magical retirement number looks like for your unique situation.
Remember, it’s never too early to start planning for retirement. When you plan, you’re prepared – and when you know what you need to do, you’re halfway there to making your retirement dream into a reality.
There are different types of mortgage loans available to today’s consumers, each with slightly different guidelines. Some have inherent advantages so it takes some time to consider which loan type best suits your requirements.
Let’s take a look at the different programs to see what’s right for you.
Click here to check today’s VA loan rates.
VA Refinance
VA loans are available for eligible veterans, certain active-duty personnel, borrowers with six years’ service in the National Guard or Armed Forces Reserves, and other selected borrowers. VA loans offer two types of refinancing, a standard or a streamline — all backed by the Department of Veterans Affairs.
A standard VA refinance requires the borrowers to provide complete documentation of their loan file including a new appraisal, income and employment verification and fair credit. This loan is also known as a VA cash-out refinance, and is typically only used when getting cash out or paying off a non-VA loan.
Apply for a VA cash out loan here.
For those with a VA mortgage, there’s the VA streamline refinance, officially called the Interest Rate Reduction Refinance Loan (IRRRL). This refinance in essence allows eligible borrowers to drop their rate with very little documentation, time, or money. No income or asset verification and no appraisal are required.
Click here to apply for a VA streamline refinance.
The streamline program may be used to finance a property that was previously occupied and a VA loan used to finance the original purchase. Only an existing VA loan may be eligible for the streamline program. No cash out is allowed.
All VA loans require a funding fee which can be as high as 3.3 percent of the loan amount and may be included in the final loan. For the VA streamline, the funding fee is dramatically reduced to as low as 0.50 percent.
Non-VA Refinance Types
For eligible homeowners, the VA loan is usually the cheapest and easiest option. However, in some cases, those looking to refinance might choose another loan type.
Here are the main non-VA choices.
1. Conventional Refinance
Conventional mortgages are those approved using guidelines established by Fannie Mae and Freddie Mac and are by far the most popular program. Almost every lender offers them and guidelines are mostly consistent from lender to lender, with very few differences.
Mortgage rates on conventional loans are very competitive as lenders compete using the same programs. The best use of a conventional refinance occurs when the homeowners have at least 20 percent equity in the home. In this case, no private mortgage insurance is required.
A VA refinance requires an upfront funding fee, which ranges from 0.50% to 3.3% depending on refinance type. But conventional loans don’t require an upfront fee. This could save Veterans money, provided they have enough home equity for a conventional refinance.
Check your refinance eligibility here.
A conventional loan can also be used to finance an investment property. Other programs, VA, FHA, and USDA loans are only available to purchase an owner-occupied home while a conventional loan can be used to finance the purchase of a primary residence or a rental property.
Borrowers are also allowed to pull equity out of the home in the form of cash when refinancing, referred to as a “cash out” refinance. Most lenders allow for a cash out refinance up to 80 percent of the value of the property, although you’ll likely get a lower interest rate if you stay below 75 percent.
Conventional refinance loans are always “fully documented” meaning the borrowers must qualify in the same manner as during the purchase with paycheck stubs, appraisal, and income tax returns in addition to other standard requirements.
2. FHA Refinance
The FHA refinance also has a streamline program, very similar to the VA program.
No credit score requirement, no appraisal, and no income or employment verified. The FHA streamline is available for FHA-to-FHA transactions. In other words, you have an FHA loan currently.
It may also be used to finance a property that was previously occupied by the borrowers but is now rented out.
The new loan rate and mortgage insurance must drop. The refinance must benefit the borrower.
There can be no payments within the previous three months more than 30 days past the due date.
FHA loans require a monthly and upfront mortgage insurance premium. If the original FHA loan was opened prior to June 1, 2009, the mortgage insurance premiums receive a nice discount.
If you have a VA loan, however, your best option is the VA streamline.
3. USDA Refinance
The USDA program is for properties located in rural or semi-rural areas and the borrowers must not exceed specific income guidelines. The USDA refinance is a standard refinance requiring a fully documented loan including an appraisal, credit, and income among others.
There is a pilot streamline refinance program available in 35 states and operates in a similar fashion as VA and FHA streamline programs. The USDA streamline is for a 30 year fixed rate only and the rate must be at least one percent lower than the existing one and can only be a USDA-to-USDA transaction. No cash out is allowed.
VA, FHA, USDA or Conventional: Which Refinance is Best?
It really all depends on your home equity. VA, FHA, and USDA loans all have some form of mortgage insurance or funding fees applied, increasing the loan amount as well as the monthly payment. If there is at least a 20 percent equity position in the property refinancing out of one of these three loan types into a conventional one is the better choice.
If there are loan to value issues and there isn’t at least 20 percent equity in the transaction then the applicable streamline should be considered.
There can always be additional lender requirements on top of any issued guidelines called overlays. Some lenders may ask for an appraisal for a streamline for instance. If you’re thinking about refinancing, consider all your options. Not only could you benefit from a lower rate, but you might also be able to get rid of mortgage insurance premiums as well.
Click here to check today’s VA refinance rates.
Let’s look at a comparison of the four major loan types for a $250,000 purchase price.
Head to Head – VA Compared to other Loan Types
VA
FHA
Conventional
USDA
APR*
3.721% APR
4.798% APR
5.192% APR
4.246% APR
Principle and Interest
$1146
$1102
$1168
$1163
Monthly Mortgage Insurance or Fee
$0
$269
$210
$84
Estimated Taxes and Insurance
$268
$268
$268
$268
Total Monthly Payment
$1414
$1639
$1646
$1515
Qualification:
Comparison of Qualification Requirements
VA
FHA
Conventional
USDA
Down Payment Percentage
0%
3.5%
5%
0%
Approx. Cash Needed**
$0
$8750
$12,500
$0
Typical Minimum Credit Score Needed***
620-640
620-640
680
620-640
Streamline Refinance Available?
Yes
Yes
No
Yes
**Assumes $6000 in seller-paid closing costs; ***Varies based on lender; All scenarios assume 700 credit score, property in WA
Additional Benefits of VA Home Loans
VA home loans have more lenient credit and debt ratio guidelines. You may qualify for a VA loan even if you can’t be approved for other loan types. Get your free rate quote.
You can refinance or sell your home at any time without penalty with a VA loan.
The seller is allowed to pay all of your closing costs up to 4% of the purchase price.
I’m Ready to Apply for This Great Benefit
The VA home loan program is a great opportunity for active-duty service members and veterans. Take advantage of your entitlement.
If you’re looking for a high-yield savings account online with no added or unexpected fees, Varo delivers. Varo is an online bank launched in 2017. In 2020, it became the first consumer fintech granted a national bank charter, which means deposits are FDIC insured by the Federal Deposit Insurance Corporation and backed by Varo Bank, not a third-party bank.
Since 2020, SoFi also earned the same distinction as a nationally chartered bank.
Is Varo Bank safe?
Varo is currently valued at $1.9 billion, which is down from its 2021 valuation of $2.5 billion. However, recent reports say the neobank is seeking $50 million in funding. In 2022, reports had said the bank might run out of money by the end of the year. However, it is still in business and still offering record high APYs for its high-yield savings account and tons of other perks for account holders.
It’s important to remember that whatever happens, Varo Bank is FDIC insured up to federal limits of $250,000 per account holder, per account category. Joint accounts are insured for $500,000 per account category.
If finding a checking account and savings account with no minimum balance, no minimum deposit, no overdraft fees, no monthly fees, early direct deposit and cash back is important to you, then you might want to give Varo a chance.
Varo Checking Account
When it comes to checking accounts, Varo has only one, simply called “the Varo Bank Account.” It is packed with features that you want from a top online bank, including:
Rewards Visa debit card
Early direct deposit
Free mobile deposit
Access to Zelle for P2P money transfers
No monthly fees
No minimum balance requirements
Plus, your Varo debit card gives you access to the nationwide network of 55,000 allpoint atms where you can access your money with no fees. Keep in mind, using out-of-network ATMs for withdrawals can result in a fee of $3 per transaction, plus any fees charged by the ATM owner.
You’ll also have no foreign transaction fees when you use your Varo debit card overseas. And if you happen to lose your card, there’s no replacement fee, as long as you ask for regular shipping through the U.S. Post Office.
Varo Savings Account
Varo often makes headlines for its high-yield savings account. The bank currently offers an annual percentage yield up to 5.0%. But you’ll start your Varo savings account with a 3.0% annual percentage yield and move up to 5.0% annual percentage yield the next month if you meet a few requirements.
If you receive direct deposits in either your Varo savings account or Varo checking account of $1,000 or more and end the month with a positive balance in both accounts, you’ll earn 5.0% on up to $5,000 of your savings account balance. Any part of your balance exceeding $5,000 will still receive the 3% APY on savings.
In addition to fee free ATM withdrawals and no monthly fee, your Varo savings account also comes with automatic savings tools that can help Varo customers manage money. and take advantage of the high interest rate your Varo account offers.
Save Your Pay
When you choose “Save Your Pay” with Varo Bank, you automatically transfer a percentage of any direct deposits straight into your savings account. Whether you are looking to “pay yourself first” by adding 10% of each check to your high-yield Savings with Varo or looking to bolster your emergency savings by adding 20% or more, Save Your Pay makes it easy – and automatic to have funds deposited into savings each time you get paid.
Save Your Change
Small change can lead to a bigger savings balance when you round up your purchases and put the difference in your Varo savings account. Set up this feature so that every time you make a debit purchase, the amount will be rounded to the nearest dollar, with the extra money placed in savings.
Other savings accounts through traditional banks, including Bank of America, also offer similar automatic savings tools. But few savings accounts deliver such a high APY as your Varo bank account.
Other Accounts and Services
Varo offers checking and savings accounts with no monthly maintenance fees, a high APY on savings, and an intuitive app to help you manage your account. It also has other programs to help consumers build their credit, cover emergency expenses, or catch up on bills. The following programs are available to users with an active Varo bank account.
Varo Advance
Varo Advance allows qualified customers to borrow up to $250 at a time and pay it back within 30 days from your Varo bank account when you get paid. You can avoid overdraft fees, buy what you need or pay bills, and avoid high interest charges. Any advances over $20 have fees associated.
Your cash advance account has no monthly subscription fees, and no late payment or return payment fees. Each cash advance, however, has a fee ranging from $0 (for advances of $20 or less) up to $15 for advances of $250.
Varo Believe
Varo Believe is a secured credit card with no minimum security deposit, no annual fee or interest charges, and no credit check to apply. If you are a Varo customer, you can apply for this secured account to build your credit.
Turn on Safe Pay to ensure you don’t miss a payment. You will pay your credit card from your Varo bank account balances.
On-time payments will be reported to the three major credit bureaus to build your payment history. You can even track your credit score in the Varo mobile app.
Varo Bank Best Features
There are so many great features about Varo Bank, it’s hard to pinpoint the best elements of Varo accounts. Here are some features that come up time and again in Varo Bank reviews.
Early Direct Deposits
Access direct deposit funds up to two days earlier than you could with a conventional bank. Varo releases qualifying direct deposits from your employers as soon as the bank receives them. Often, this is up to two days before the payer’s scheduled payment date.
How soon you receive direct deposit funds depends on when your employer releases the funds. Weekends and bank holidays could delay a deposit to the next business day. But you will typically get paid at least two days earlier than you would with a traditional bank.
You can also use your Varo checking account to receive tax refunds from the IRS or your state government agency through direct deposit. During the pandemic, many people had their government stimulus payments deposited directly into their Varo Bank checking accounts.
Cash Back Debit Card
Not many banks offer a cash back Visa debit card, but Varo Bank does. Earn up to 6% on purchases through select retailers online and in stores when you use Visa cash back card or your Varo secured credit card. Once your cash back balance reaches $5, the money will be accounted directly into your Varo checking account.
Zelle
Zelle allows you to send person to person payments easily with no fees. As one of more than 1,800 financial institutions in the Zelle network, Varo makes it easy to split checks at a restaurant, send money to family and friends, or receive funds directly into your Varo Bank account instantly.
Varo Bank App
The Varo mobile app puts all the functionality of the bank right at your fingertips. You can turn your Varo cards on and off with a simple click, apply for cash advances, and transfer money between your Varo bank accounts easily from your mobile phone.
Cash Deposits at Thousands of Locations Nationwide
If you want to make cash deposits into your Varo savings or checking accounts, you can do so at any Green Dot Network locations. You can deposit cash at the register at the following stores:
7-11
CVS
Dollar General
Family Dollar
Kroger
Rite Aid
Walgreens
Walmart
Stores charge a fee of up to $4.95 for cash deposits and up to $5.95 for a Green Dot MoneyPak. The MoneyPak is a prepaid card of $20 to $500 that you can link to your Varo Bank account. When you do, those funds will be deposited into your checking account.
Varo Pros
55,000 AllPoint ATMs (Fee-free)
Early Direct Deposit
Cash Back Debit Card
No monthly fees
No foreign transaction fees
Cash Advance options
No minimum deposit to open an account
No minimum balance requirements
Varo Cons
Must meet requirements to earn 5.0% APY
No brick-and-mortar branches
No money market account
Financial difficulties leave some concerned about the bank’s future
Limited customer service hours for phone support
Varo Fees
Varo doesn’t have many fees. The bank doesn’t charge monthly fees or overdraft fees. But the bank may decline transactions if you don’t have the funds to cover it.
Varo checking account fees include a $3 fee for withdrawals from ATMs outside the AllPoint network, and $2.50 per transaction if you withdraw money at a retailer using your Varo debit card. Additionally, if you make a cash deposit using a third party money transfer service, including wire transfers, you could pay up to $5.95 per transaction.
How does Varo Bank compare to other online banks?
More frequently today, online banks offer no monthly fee, no minimum deposit, and no minimum balance requirements. But it’s a little harder to find an online bank that offers cash back, a secured credit card with no minimum deposit for security, and cash advances with no interest charges.
Chime is one financial technology company that offers some of the same benefits as Varo with no monthly fee. How do they compare?
Varo vs. Chime
First, it’s good to know that Varo is a chartered bank, while Chime is a fintech backed by Bancorp Bank, NA and Stride Bank, NA, both Members FDIC. However, for security purposes, consumers should know that Chime offers the same protection as Varo. All accounts are insured up to $250,000, with joint accounts covered for up to $500,000.
Chime also has no monthly maintenance fees and no minimum deposit to open an account. Like Varo, you can access your direct deposit funds up to two days earlier than most conventional banks. Chime doesn’t offer cash advances, but with fee-free overdraft protection for up to $200 with the SpotMe program, you can make cash withdrawals or debit purchases even if your account is in the negative.
Like Varo, Chime offers a secured credit card, called the Credit Builder Visa. It has no annual fee, interest charges, or security deposit required and no credit check is needed to apply.
Where Varo really shines is its high APY on savings. Chime doesn’t offer any options for savings accounts or money market accounts to earn interest on the cash you keep with Chime.
Varo Bank Reviews
Varo Bank earns high marks from personal finance website reviewers and also consumer review sites. Varo received an average of 3.4 stars on TrustPilot, with 76% 5-star reviews. Varo mobile banking apps in the App Store and the Google Play store earned 4.9 and 4.7 stars, respectively.
Some of the reviews claiming horrible customer service noted that their account was closed without warning. Often, this relates to extra-vigilant fraud protection.
The good reviews outnumber the bad on TrustPilot and personal finance websites. For instance, one Varo review said the chat support is “very prompt” and “always friendly.” Another Varo Bank review on ConsumerAffairs.com called the online bank: “an amazing company and very good bank as long as you Yourselves do what is needed. Pay things on time, follow instructions and do the best you can.”
Varo FAQs
Find out everything else you need to know about Varo bank accounts.
Does Varo have branches?
As an online only bank, Varo does not have branches for in-person service. However, Varo customers gain access to 55,000 AllPoint ATMs. You can withdraw money, check balances, and deposit cash
What happens if someone steals my card or card information?
If someone steals your card or you realize someone has your debit or credit card information, you will want to lock your card immediately in the Varo app. This prevents any purchases or withdrawals until you unlock the card. You should also do this if you’ve misplaced or lost your card.
Your direct deposit, ACH transfers and online bill payments will still process if your card is locked.
Once you’ve locked your card, reach out to Varo customer support through the Chat function in the app. Notify the representative that your card has been lost or stolen and you’d like to order a replacement card.
If you notice fraudulent charges on your account, you can reach out via Chat or call customer support at 877-377-VARO, Monday through Friday from 8 AM to 4:30 PM Mountain Time to dispute the charge.
How do I open an account?
You can find Varo Bank’s website at Varomoney.com. Click the purple “Open Account” button in the top right of the screen, choose the account you’d like to open, and apply for an account. There is no credit check required.
You will need a cellphone to open an account, as Varo may verify your personal information or account information via text messages.
Are checking and savings the only accounts Varo offers?
Varo offers a checking account, a savings account, a secured credit card (Varo Believe) and Varo Advance. Varo Advance allows you to use your Varo direct deposits and timely repayments to allow you to borrow up to $250 in cash advances. You pay it back within 15 to 30 days with no interest charges. You’ll pay a fee for every Advance over $20, up to $15 for a $250 advance.
Is Varo FDIC insured?
As a nationally chartered bank, Varo is FDIC insured up to $250,000 per account holder, per account category.
Published: by Crystal Paine on September 30, 2014 | This post may contain affiliate links. Read my disclosure policy here.
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In today’s world, it’s important to find a job that not only pays well but also lets you enjoy your life outside of work. To achieve this, it’s essential to have valuable skills that people need so much that they are willing to give you the conditions you need to live freely. In this article, we will share some high-income skills that you can learn to upgrade your career and improve your quality of life.
What Are High Income Skills?
High-income skills are specialized abilities that are in high demand in the job market and can potentially generate a significant income for individuals who possess them. These skills often require a high level of expertise and are usually transferable between industries.
High-income skills can include a range of abilities, such as those related to sales, marketing, software development, data analysis, project management, financial management, public speaking, and others. The specific skills that are considered high-income can vary depending on the industry and the job market at any given time.
Importance of High-Income Skills in Today’s Job Market
In today’s job market, traditional education and job skills are no longer enough to secure high-paying jobs. Many industries are undergoing rapid technological advancements, which means that jobs that were once secure and high-paying are now being automated. In contrast, high-income skills are in high demand and can help individuals stay relevant and competitive in their respective fields.
Furthermore, high-income skills offer individuals the potential to earn a high income, even if they do not have a traditional college education.
By mastering a high-income skill, individuals can become independent contractors, start their own businesses, or work remotely, all of which offer greater flexibility and earning potential than traditional 9-5 jobs
Differences between High-Income Skills and Traditional Job Skills
Traditional job skills refer to skills that are required for specific jobs or industries. For example, a doctor must have knowledge of medical procedures and healthcare, and a teacher must have knowledge of education and classroom management.
In contrast, high-income skills are often transferable between industries and can be used in multiple professions. For example, a person with strong project management skills could work in a variety of fields, such as construction, healthcare, or finance.
Additionally, traditional job skills often require a formal education, such as a degree or certification, while high-income skills can be learned through experience, mentorship, and practice. This means that individuals can acquire high-income skills without going into debt to pay for college or vocational training.
High-income skills are in high demand in today’s job market and offer individuals the potential to earn a high income and achieve greater flexibility and independence in their careers. Unlike traditional job skills, high-income skills are often transferable between industries and can be acquired without a formal education.
1. Copywriting
Copywriting is the art of selling by writing. It involves convincing people to take action through your writing. While it may be easy to persuade people verbally, writing to convince them to take action is a lot more complex. Copywriters are highly sought after because they are the ones who write promotional emails, home pages, and online product features.
To be a good copywriter, you need to be good with people, understand how they think, what they need, and how to best help them. You should also be skilled at structuring your paragraphs and words to make sense and sound compelling. The average salary for copywriters is around $55K, but depending on your niche, you can earn over $200K per year.
2. Sales
Sales is all about communication and convincing someone to do something. It’s not just about convincing people to buy a product they don’t need; it’s also about presenting an idea, interviewing for a job, or presenting a project to your boss. If you believe in the company you work for or the product you sell, then excellent sales skills are essential.
Average salespeople make around $50K per year, but those who work for businesses can earn six figures. If you’re good with people and passionate about helping them, sales could be the perfect fit for you.
3. Web Design
Web design involves designing beautiful websites that follow brand strategy and guidelines to develop a unique look. If you have a sense of design and creativity, web design might be the skill for you. The average salary for web designers is around $55K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, which is more than $135K per year.
4. Digital Marketing
Digital marketing is the practice of promoting products or services through digital channels, such as search engines, social media, email, and other online platforms. As technology has continued to advance, digital marketing has become increasingly important for businesses of all sizes.
Digital marketing involves a variety of different disciplines and specializations, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, email marketing, content marketing, and more. Each of these areas requires a unique skill set and approach, but they all share a common goal: to connect with potential customers online and drive business results.
One of the biggest advantages of digital marketing is its ability to target specific audiences with precision. Through advanced targeting options, businesses can reach the people most likely to be interested in their products or services. This can help to maximize the effectiveness of marketing campaigns and generate a higher return on investment.
Another benefit of digital marketing is the wealth of data and insights that it provides. By tracking website traffic, social media engagement, email open rates, and other metrics, businesses can gain valuable insights into how customers are interacting with their brand online. This data can be used to optimize marketing strategies and improve overall performance.
As for the salary range in digital marketing, it varies greatly depending on the specialization and level of expertise. According to Glassdoor, the average base pay for a digital marketing manager is around $77,000 per year in the United States, but this can range from $47,000 to over $117,000 depending on the location, company size, and years of experience. In specialized areas like SEO or PPC, the salary can be even higher. Freelance digital marketers can also earn significantly more by working with multiple clients and charging an hourly or project-based rate.
5. Computer Science
If you’re passionate about apps, algorithms, and online processes, then computer science might be the skill for you. This broad term can encompass many areas like data analysis, software engineering, or machine learning. The average salary for computer scientists is around $75K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, with some earning up to $150K per year.
Job Title
Salary Range
Software Developer
$70,000 – $150,000
Web Developer
$50,000 – $107,000
Database Administrator
$74,000 – $122,000
Information Security Analyst
$77,000 – $130,000
Data Scientist
$85,000 – $165,000
Cloud Architect
$120,000 – $200,000
Machine Learning Engineer
$110,000 – $190,000
Please note that these salary ranges are approximate and may vary depending on factors such as years of experience, location, company, and industry.
6. Consulting
Consulting involves using soft skills like communication, negotiation, and presentation to help clients find better solutions. It’s all about asking key questions, handling emotions, and understanding your clients to serve them better. While the average salary for consultants is around $75K, it’s not accurate due to the great resignation.
Independent consultants can earn between $90 to $150 per hour, but it’s not something you can learn online. You need to learn skills like negotiation, presentation, and sales to become a good consultant.
7. Content Creation
Content creation involves creating great content that will attract people to your business. You can do it for yourself or for others, like writing, content creation, and content management. If you do it for others, you can earn between $75-$150/hour.
Content creation is the process of developing engaging content that captures the attention of an audience. It can include creating written content, such as articles, blog posts, or e-books, as well as visual content, such as images, infographics, or videos. If you have a passion for creating compelling content and are skilled at storytelling, content creation may be a high-income skill worth pursuing.
Here are some points to consider when developing your content creation skills:
Writing: The ability to craft well-written and engaging content is a valuable skill in today’s digital age. If you’re interested in writing, consider taking courses on writing techniques, storytelling, and copywriting. Practice writing regularly to hone your skills and build your portfolio.
Video Production: Video content is becoming increasingly popular, and businesses are looking for skilled video producers who can create high-quality content. If you have an interest in video production, consider learning how to shoot and edit videos, as well as how to use video editing software.
Social Media: Social media is a powerful tool for businesses to connect with their customers and promote their products or services. As a content creator, you may be tasked with developing social media content that is engaging and shareable. Consider taking courses on social media marketing and developing your social media skills.
SEO: Search engine optimization (SEO) is the practice of optimizing content to rank higher in search engine results. As a content creator, you may be responsible for ensuring that the content you create is optimized for search engines. Consider taking courses on SEO and staying up-to-date on the latest SEO best practices.
Graphic Design: Graphic design skills are valuable for creating visual content, such as infographics or social media graphics. If you have an interest in graphic design, consider taking courses on design software, such as Adobe Photoshop or Illustrator, and developing your design skills.
Overall, content creation is a versatile skill that can lead to high-paying opportunities in a variety of industries. By developing your content creation skills and building a strong portfolio, you can position yourself as a valuable asset to businesses looking to connect with their customers and build their brand.
8. Writing
Writing is a versatile skill that can open doors in various industries. Whether it’s creating content for a blog, writing copy for a website, or drafting an important business proposal, writing is a skill that can help you communicate your ideas effectively.
Strong writing skills are especially important for those working in fields like journalism, public relations, marketing, and advertising. Good writers can earn an average salary of around $60K per year, but top earners can make well into the six figures.
9. Project Management
Project management involves overseeing a project’s planning, execution, and closing phases. It requires strong organizational skills, leadership abilities, and the ability to manage resources effectively. Project managers are in demand in various industries, including construction, engineering, technology, and healthcare. The average salary for a project manager is around $80K per year, but top earners can make over $150K.
10. Public Speaking
Public speaking is the art of delivering a message to an audience. It’s a skill that’s useful in various industries, including education, sales, and politics. Good public speakers can engage their audience, convey their message clearly, and leave a lasting impression.
Public speaking can be a lucrative skill, with top motivational speakers earning millions of dollars per year. However, even an average public speaker can make a comfortable living, with an average salary of around $60K per year.
“Public speaking is a skill that can be learned and mastered with practice. It’s not about being perfect, but about connecting with your audience and delivering a message that resonates with them.”
– Grant Baldwin, author and professional speaker
11. Graphic Design
Graphic design involves creating visual content, such as logos, illustrations, and layouts. It requires creativity, technical skills, and the ability to communicate a message visually. Graphic designers are in demand in various industries, including advertising, marketing, and publishing. The average salary for a graphic designer is around $50K per year, but top earners can make over $100K.
13. Accounting
Accounting is the process of recording, classifying, and summarizing financial transactions. It requires attention to detail, strong analytical skills, and the ability to work with numbers. Accountants are in demand in various industries, including finance, healthcare, and government.
The average salary for an accountant is around $70K per year, but top earners can make over $100K. Accounting is a great career choice for those who are organized and detail-oriented. With the right qualifications, you can open your own practice or work in a large organization.
Accountants must be prepared to stay up-to-date on changing regulations and industry trends. They also must be comfortable working with computer software and technology, such as accounting programs and spreadsheets.
The Bottom Line – Increase Your Income with High Income Skills
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In conclusion, acquiring high-income skills can lead to a more fulfilling career and a better quality of life. These skills can take time and effort to develop, but the financial rewards can be significant. Whether you choose to learn a new programming language, improve your writing skills, or become a better public speaker, there’s always room for growth and development in today’s job market.
By investing in yourself and developing valuable skills, you can position yourself for success and achieve your career goals.