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Big-city amenities, small-town comfort, and a quick commute to Salt Lake and Ogden can all be found in Davis County. If you’re looking to move into this cozy-chic area, we’ve got your guide!

Cities to Fall in Love With

Davis County is the state’s third-largest—home to Layton, Farmington, Bountiful, Kaysville, and Clearfield. There are also a few smaller communities including Fruit Heights, Sunset, Woods Cross, West Point, Syracuse, South Weber, Clinton, and Centerville. This diverse city has plenty to offer for everyone! From thrill seekers to history buffs, you’ll want to check out this northern attraction.

A History Worth Documenting

Davis County was founded back in 1850 and still pays homage to its roots in several places, whether you want to step back in time at Pioneer Village in Farmington or catch a history lesson at the Layton Heritage Museum, Bountiful Historical Museum, or The Whitaker in Centerville. The area is rich with learning opportunities and chances to learn more about your new neighborhood.

The Main Attraction

There are so many things to love about Davis County, but we have to say the thing we love the most is the family-centric feel.

Growing Together

Davis county has plenty to do for young families, and one of the biggest draws is the educational system. The Davis School District is a proud Best in State award holder. With over 50+ elementary schools and eight high schools, you’re sure to find the right fit for your children

After the K-12 years pass, there’s no need to go far for a post-secondary education. Weber State is nearby but so are Salt Lake Community College and the University of Utah. If you’re looking for something a little different, Davis Technical College is a great option!

Eat Your Heart Out

No, really. There are tons of places to visit for foodies of all kinds. Got a sweet tooth? Check out Mrs. Cavanaugh’s Chocolates and Ice Cream. If you’re into local dinner fare, check out Arella Pizzeria, Pace’s Dairy Ann, or Holy Smokes BBQ. Feeling adventurous? Visit Argentine Corner or Fuji Sushi.

Lunch anyone? Two stops that cater solely to midday meals include the county’s top rated restaurant on Yelp, Vitos, and Beehive Bakery and Cafe in Bountiful. If you have artisan breads (or donuts and pastries) on your mind, Bunbasketand Parson’s Bakeryare sure to please.

It’s a Davis County Thing

Some things happen only once a year. In Davis County, these include the annual bison roundup on Antelope Island(fall), baby animals day at the USU Botanical Center in spring, and summer’s Davis county rodeo and fair. Opportunity doesn’t stop in mid-winter either. While some people choose to huddle close to a fireplace in their own home, it’s equally as cozy watching migrating bald eagles at Farmington Bay. Just be sure to bundle up.

Drive Easy

Davis County may be one of the LEAST out of the way places in the world. With most communities positioned on the I-15 corridor, it’s a quick trip to work from anywhere in Davis County, whether you work in Salt Lake, Ogden, or somewhere in between.

Hate to drive? You’ll be covered with FrontRunner, and its stations in Wood Cross, Layton, Clearfield, and Farmington. Stop for a morning beverage on your way at the very local World’s End Coffee.

On top of convenience, the Farmington UTA stop is right next to one of the most innovative shopping/transit communities in the area, Station Park. There you’ll find shops, restaurants, and office space, all walking distance of Frontrunner’s Farmington Park and Ride.

The Great Outdoors

Someone tell you to take a hike? There are literally more than 500 miles of trails in Davis County. Favorites include Antelope Island (the first-day hike on January 1is a chilly blast of fun for the new year!) and Adams Canyon Trail and waterfall—or even the trail system bordering the Legacy Highway.

Like all of the Wasatch Front, skiing is a short drive away for Davis County’s 300,000+ residents. Best bets on a crowded day: Snowbasinand Powder Mountain. Reach the pair by heading east on I-84.

Utah’s top amusement park, Lagoon, calls Farmington its home. While you won’t find rides running mid-winter, Lagoon has spring, fall and summer hours. Best bet for residents: Get a season pass that gets you in all season long. You’ll want to go more than once.

You can also play a round of golf at a number of challenging courses in the area, including Valley View Golf Course, Oakridge Country Club (current home of the Utah Championship), Glen Eagle Golf Club, or eight others. Find a complete list of Davis County courses here.

Fun Doesn’t Have a Bedtime

Time of day doesn’t matter—in Davis County, you’ll find opportunities to relax day or night. For example, schedule a time to visit a Sego Lilyspa or ramp up the action with the kids at Classic Fun Center in Layton. As the sun goes down, take in a live performance at Kaysville’s Hopebox Theater or a big-name, outdoor concert at the (Foreigner, Styx and Chicago can’t be wrong). You can also wrap up a busy day with a movie at one of the seven theaters in the area, followed by a bite to eat and a drink at Rooster’s in Layton—with some of the most unique micro-brewed beers in the state.

Join the Davis County Family

Does one of the many thriving cities in Davis County speak to your soul? Start browsing homes for sale in the area now or learn more about how to buy with Homie!

Homes for sale in Bountiful, UT
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Homes for sale in West Point, UT
Homes for sale in Woods Cross, UT

Source: homie.com

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If you’ve been comparing mortgage rates for the purchase of a second home versus investment property, you’re already on a promising path: You’ll either have a place to go for vacations, or one that’ll generate income and put more money in your pocket.Either way, the opportunity to own more than one property is an enviable position to be in, but how you classify that property makes a difference in how much you’ll pay to finance and own it.

What is a second home?

A second home is like a vacation home — one you purchase for enjoyment purposes and live in or visit during part of the year. It is separate from your primary residence.

What is an investment property?

In contrast, an investment property is one you plan to rent out with the goal of generating income.

It might be confusing to differentiate between a second home versus investment property. That’s true especially if you’re thinking about occasionally renting out the property — using it regularly for vacation, for example, but also making it available on Airbnb for some of the time you’re not using the property.

Earning some money from your property doesn’t automatically make it an investment, however. Accurately defining the piece of property depends on how much time you spend in it.

Elliot Pepper, co-founder, CFP and director of tax at Northbrook Financial in Baltimore, says that you need to pay attention to what he calls “the 14-day limit rule.”

“Very broadly speaking, if you personally live in your second home for 14 days or fewer — or less than 10 percent of the days it is rented — during a year, then it would be considered a rental property and the income earned would be taxable,” Pepper says. “But you would also deduct the expenses associated with the property.”

On the flip side, if you use the property for more than 14 days or more than 10 percent of the time it’s rented, any rental income you receive isn’t taxable, but you also can’t deduct expenses, Pepper says.

Lender requirements for second homes vs. investment properties

Second home lender requirements Investment property lender requirements
Credit score minimum 620-680 or higher 700 or higher
Down payment minimum 5%-10% 15%-25% or more
Debt-to-income (DTI) ratio maximum 45% 45%

Making the distinction between a second home and investment property is important not only for tax purposes but also when you seek financing for the home.

Julienne Joseph, senior advisor for Homeownership, Office of the U.S. Department of Housing and Urban Development Secretary, says that credit score and loan-to-value ratio (LTV) requirements vary based on what the buyer plans to do with a property.

“Investment properties typically have more stringent underwriting guidelines than second homes and primary residences because there is an assumed [greater] risk of default on properties that borrowers don’t occupy,” says Joseph.

Put another way, if a borrower has trouble making mortgage payments, they’re more likely to keep up with the payments on their primary residence, which they live in more often, than payments for a second home — a riskier prospect for lenders.

The stricter standards for an investment property might also include a larger down payment requirement.

For instance, Navy Federal Credit Union requires a 15 percent down payment for an investment property, but if you’re looking at a second home, the down payment could be as low as 5 percent.

That’s a huge difference: For a home with a sale price of $500,000, second-home buyers might be able to put down just $25,000 (or 5 percent), while investment property owners would need to come up with $75,000 (or 15 percent).

Tax implications for second homes vs. investment properties

Second home tax rules

  • Mortgage interest is tax deductible if it falls within the $750,000 total debt limit
  • Cannot rent out your property for more than 14 days per year to deduct mortgage interest

Investment property tax rules

  • Mortgage interest is fully tax deductible
  • Can also deduct many expenses related to the property, including property taxes, maintenance, advertising to attract renters, materials and supplies used to maintain the property, utilities and insurance, as well as for depreciation.
  • If you rent out the home for more than 14 days per year, the rental income is taxable

Homeowners enjoy the ability to deduct mortgage interest, but Pepper points out that this can get a bit tricky if you own a second home, due to the $750,000 total debt limit for interest deductions. Essentially, if you have more than $750,000 in mortgage debt between the two (or more) properties, you’ve maxed out the amount you can use to deduct interest.

However, “interest on a mortgage related to an investment property is fully deductible on [Form 1040] Schedule E for a taxpayer and can therefore be used to offset any income generated from the property,” says Pepper.

Investment property owners can use depreciation to their advantage, as well.

“For a personal residence, the owner is not allowed to deduct the actual cost of the home for tax purposes,” says Pepper. “However, for an investment property, the taxpayer will be allowed to take a deduction every year for depreciation. This deduction is based on the price of the house purchased and will be used to offset any income from the property.”

Pepper notes that this deduction isn’t a permanent write-off, “as the amount of depreciation taken will reduce the basis in the house. When the taxpayer goes to sell, they may end up with a larger tax gain that year.” This gain, known as depreciation recapture, is taxed at higher rates than traditional long-term capital gains.

In addition, whenever the selling year arrives, an investment property owner can be subject to income tax if the sale results in a profit, Pepper says.

For more on the tax implications of second homes and investment properties so that you can calculate your eligibility for tax deductions, review IRS Publication 936 and Publication 527.

Mortgage rates for second homes vs. investment properties

As they have with primary residences, mortgage rates for second homes and investment properties have increased in recent months. You’ll also pay higher rates, in general, for investment properties and second homes than you will for a primary mortgage loan. That’s because second homes and investment properties are considered riskier prospects for lenders.

Can you call an investment property a second home?

Tempted to call your investment property a second home and take advantage of some of the second-home perks, like a lower down payment and interest rate?

Don’t be. In the mortgage world, you need to call it what it is — whatever “it” might be.

“It is absolutely imperative that borrowers are completely transparent when disclosing to their lender the intended use of the property to ensure that they receive the appropriate product and rate,” says Joseph.

Joseph adds that borrowers might be asked to sign a document verifying their intended use of the property, so they’ll have to indicate in writing what they plan to do with the home. Deceiving a lender otherwise could have serious consequences.

“Intentionally misleading a lender constitutes mortgage fraud,” says Joseph. “Not only is it unethical – it’s illegal and could result in criminal prosecution.”

Bottom line

Make sure you understand both lender requirements and tax implications before purchasing a property you intend to both use as a second home and rental. When in doubt, consult a real estate agent or broker and an attorney or CPA to learn what rules might apply to your individual situation.

Source: thesimpledollar.com

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Posted on: December 4, 2018

VA loans are a great mortgage option for many military families. We launched the MilitaryVALoan.com Show with our guest host Bernard Edwards to learn from real estate professionals that serve veterans and their families about what it’s like to use a VA loan when purchasing or refinancing a home.

In this episode, Bernard Edwards speaks with real estate professional Chad Vasquez who shares some of the lesser known details about home buying with a VA loan.

Get started on your home buying goals today.

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>>View first episode: Bernard Edwards interviews VA loan consultant William Doom

A VA loan requires no down payment, but you will be charged a VA funding fee.

“With the VA loan, many know one of the benefits is that it requires no money down,” says Vasquez, “but, what surprises them is being charged the VA funding fee.”

A VA funding fee is a one-time, upfront payment required for all VA home loans. This fee helps sustain the program as it is self-funded and doesn’t use taxpayer dollars or other VA program funding. Your funding fee will be determined by the loan amount, your service history, including length and time of service, and the type of loan. Funding fees vary from 0 to 3.3 percent of the loan.

Vasquez also notes: “The good news is that the amount can be added to your loan, so the fee isn’t out of pocket.”

>>Related: 2018 VA Funding Fee Chart

Appraisals may be harder to get for VA loans than conventional loans.

“The VA appraiser is going to make sure that the property is in a certain condition — it can’t have a hole in the roof or extreme peeling paint. This is to protect the veteran and ensure they’re purchasing something of good quality,” says Vasquez.

“The most unique thing I’ve seen required for a VA loan is that the door between the garage and kitchen must be a fire-rated door. This isn’t required for other home loans, but it’s a good safety feature.”

Edwards adds: “For some, it may seem that VA appraisals are a bit harder to pass, but that’s actually great for you as a homeowner. It’s extra assurance of what you’re purchasing that other loan types don’t give.”

Get started on your home buying goals today.

Bernard A. Edwards, the host of “The MilitaryVAloan.com Show” is the founder of Troops To Agents, which empowers veterans and spouses to become successful real estate professionals. He also is launching The Military Transition Camp, dedicated to helping military members design every aspect of their post-uniform life: mindset, health, purpose, career, money, fitness, emotion, relationships, and spiritual growth. Follow him on LinkedIn or Instagram for behind the scenes footage and insights from his interviews and travels. Service history: Technical Sergeant (E-6) Retired; 16 years of service; U.S. Air Force.

FULL VIDEO TRANSCRIPT:

Bernard Edwards: Hey everybody. It is the Military VA Loan Show and I’m here with none other than Chad Vasquez. We’re going to talk a little bit about real estate, about VA loans, and on this show, how we always do, about becoming a homeowner with your military VA loan. Chad, you’ve been in real estate working for how many years now?

Chad Vasquez: Coming up on three years in Hawaii, so I’ve got a little bit of knowledge on how things go here on the island.

Bernard: What was the first year, besides when you had your actual license, when you experienced using a VA loan?

Chad: Using VA loans to buy my first home was in Texas. Then, I actually came to Hawaii and started doing real estate. It’s a little different here, but using your VA loan is an incredible opportunity.

Bernard: Nice. When you first used it in Texas, you weren’t working in the business as much at

that time. You knew that you wanted to get into real estate, you wanted to be able to

invest. What was that experience like? What were some of the surprises that you had?

Chad: That’s a great question. With the VA loan everyone knows some of the benefits are that it’s no money down. That’s one of the fantastic things. One of the surprises in the VA loan is there’s actually a VA funding fee. That’s something that everyone pays so that the Veteran’s Affairs can actually insure those no money down home loans. It can be around 1.5% the first time. It actually goes up each time you use the VA loan. The good news is that actual amount gets put into your loan, so it’s also not out of pocket.

Bernard: Nice.

Chad: But that was a surprise.

Bernard: Nice. Yeah, and one thing that Chad just mentioned is that a lot of people get it, they have this idea that the VA is the one that’s actually giving you the loan, but the VA is actually insuring the loan and with that we don’t have to pay private mortgage insurance, which is something that’s common in the civilian sector.

Chad: Correct.

Bernard: And another thing that we’re able to save money each month. You’ve had quite a few clients, tons of clients each year that have that military background. For them, what’s the process been like as far as obtaining their VA loan?

Chad: Really good question. Usually we either talk to them first or a VA qualified lender does, but either way talking to a real estate agent to get some good advice. We’re always going to give you information, the knowledge that we have about the local housing market, so you can make the best choices for you and your family. That’s the most important. Equally to talking to a real estate agent, is talking to a good knowledgeable VA lender — somebody who does a lot of VA loans, somebody who can help you with that process.

Bernard: Yeah, it’s definitely, there’s some unique things to all different types of loans out there, conventional loans, FHA loans, VA loans, and you do, like Chad’s saying, you do want to have somebody that specializes in that, that’s shown proven success in your particular market because each market could be a little bit different. I mean here on island we have kind of different pockets of the island, and even the way that things might work on one corner of the island versus another may be a little bit different and you do want to work with someone who’s really versed. What are some of the unique things, say, when it comes to home inspections and appraisals that you’ve seen with the VA loan?

Chad: Nice. So here when the VA or Veteran’s Affair appraiser comes out to make sure the value of the home is equal to the size of the loan you’re getting, they’re going to make sure that the property is in a certain condition. That means it can’t have like a hole in the roof, it can’t be having really bad peeling paint, things like that they’re going to hit on the inspection just to make sure the veteran is protected, they’re getting something of a good quality. Some of the unique things we’ve seen is, for example, the door between the garage and the kitchen has to be a fire rated door for the VA. It doesn’t have to be for other home loans, but that’s a good safety feature as well.

Bernard: Great. That’s one thing I’ve noticed is that, yes, for some people they may seem that the VA appraisals and inspections are a little more harder to pass, but that’s great for you as a homeowner ,because that’s extra assurance that you’re getting versus one of these other loans that doesn’t do all that policing for you. You have to go out and find and add these things, whereas the VA loan process they’re really having your back and ensuring that that property that you’re going to get is an investment. There might be some minor things, carpet, cosmetic type things that aren’t able to pass, but really big items that are knocking down the value of your property, those things are not going to pass. That’s the VA having your back.

Chad: Yup.

Bernard: Now, for you, I get to interview real estate professionals from all walks of life, and one of the awesome things about you, you’re a veteran and you’re currently serving in the Guard. Can you tell us a little bit about your military career from active duty to now what you’re doing?

Chad: Absolutely. I was active duty Marine Corps infantry back in 2000 when I joined the first time. After I got out there was a break in service. When we moved back here to the island of Oahu in Hawaii there are all five military branches here, so I actually wanted to go back and do reserve time. So I’m now currently in the United States Air Force Reserve. That helps a lot too because I actually can keep a pulse on things that are changing with the military. There’s things that have changed even in the last 10 years that weren’t the same when I got out.

Bernard: That’s awesome. Well, Chad thank you so much for stopping by.

Chad: My pleasure.

Bernard: Thank you for your service. Check us out on militaryvaloan.com where we’ll be coming at you with more questions and answers.

Chad: Thank you very much. Aloha.

Bernard: Thank you.

Source: militaryvaloan.com

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The number of people enrolled in TSA PreCheck just set a record high — as did the number of people applying to join.

The Transportation Security Administration said in March that TSA PreCheck surpassed 15 million active members, marking an all-time high since the program launched in December 2013.

And the number of people applying seems to be growing. The TSA said that on Feb. 21, 2023, a record 19,200 people applied for TSA PreCheck membership on a single day.

TSA PreCheck is one of the U.S. Department of Homeland Security’s Trusted Traveler Programs, which includes others like Global Entry and Nexus. If approved for TSA PreCheck, travelers can pass through airport security without taking off their shoes or belts. They can also leave electronics and compliant liquids inside their bags.

And without all that fumbling around of clothes, shoes and laptops, TSA PreCheck tends to improve security wait times. Across airports that have separate PreCheck lanes, the TSA says, 92% of members wait less than five minutes for security screening.

Why more TSA PreCheck members could be good news for all

“If everyone had TSA PreCheck, overall wait times would be shorter because travelers wouldn’t be required to take off shoes or remove electronics,” Scott Keyes, founder of travel deals site Going, said in an email.

TSA PreCheck enables more people to funnel through security in the same period of time.

“If there are 20 people in the regular line and even 30 in the PreCheck lane, those 30 are probably still getting through faster,” says Daniel Green, co-founder of Faye Travel Insurance.

It’s not unlike the express checkout at the grocery store, reserved for people with, say, 10 items or fewer. Thirty shoppers with just five items almost always check out faster than 20 customers each with a cart full of groceries.

But if more people end up with TSA PreCheck, will that just shift those long queues to the TSA PreCheck line?

Harriet Baskas, who runs a blog called Stuck at the Airport, has that exact worry.

“Now that more people have PreCheck … the PreCheck lines at many airports are getting longer,” she says. “Sometimes it feels as if — and in some cases it really is the case — that PreCheck lanes are longer than regular lines.”

But this concern assumes that airports will continue to maintain the same number of PreCheck lines as they have had, even as enrollment figures grow.

“My guess is, if more people had PreCheck, they would convert more lanes to PreCheck lanes,” Green says.

His theory is founded on one of the strongest motivations of them all: money.

“Let’s not forget that there’s an incentive for having more people in PreCheck, as travelers pay for this perk,” he says, in reference to the fee needed to apply for membership.

How to apply for TSA PreCheck (and skip paying the application fee)

Apply for TSA PreCheck by filling out an online application on the TSA website. It takes about five minutes to complete and requires you to enter personal information such as name, gender, email address and phone number. After that, you’ll schedule an in-person interview at an enrollment center where you’ll go through a background check and fingerprinting.

The application fee is $78. If approved, you’ll get TSA PreCheck membership for five years, upon which you must pay $70 to renew your membership online.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com


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Ask Metafilter is one of my favorite sites on the internet; I’ve been an active member there for years. It’s a great place to get advice on many subjects, including money. And careers. Recently a user named Entropic asked a question about “finding your passion”, which received an awesome reply from my pal Grumblebee. Here, with permission (and a tiny bit of editing), is that Ask Metafilter exchange.

Entropic
How did you find your passion?

How have you figured out what your passion(s) is/are in life, and how have you translated that into a successful career involving your passion(s)? I am intentionally not including details about myself and my situation because I don’t really want specific suggestions about what might be good career directions for myself or what interesting areas I might pursue. I’m looking more for concrete examples of what steps you’ve taken to find out what drives you, and how you were able to make a career out of that.

Grumblebee
Is there a difference between “discover your passion” and “discover what you want to do”?

I ask because I hear people talk about their Passion (with a capital P), as if everyone has one whether they know it or not. As if it’s a special glowing ball inside each of us. Yet I see no evidence that this ball necessarily exists.

Defining passion
To me, it’s more likely that we have things we like and things we dislike. A like becomes a passion when it repeats with regularity. For instance, I like peaches, but I don’t constantly crave them. So I wouldn’t call peaches a passion. On the other hand, whenever I see a book, I want to read it. I like reading… I like reading… I like reading… So I’d call reading a passion.

Is there anything like this for you, even if it’s something “stupid” (e.g. watching TV or eating poptarts)? If so, that’s a passion for you. If it repeats with great rapidity (and if the urge is very strong), then it’s an obsession. (I can’t keep my hands off my iPod. I think about it all the time. If I lose it, I panic.)

You don’t get to choose your passions. Since passions are just intense likings, choosing a passion would be like choosing to like eating eggplant. You either like eating eggplant or you don’t. Perhaps, if you don’t like it, you can learn to like it. But right now, you either like it or you don’t.

Finding and feeding passion
I’ve met some people who don’t seem to have any strong passions. Some admit to this. They certainly have likes and dislikes, but nothing specific crops up over and over. In fact, some people dislike anything that repeats too often (you could say such people have a passion for novelty). Other people do have passions (defined as I’ve done so, above), but they don’t think of them as such. For many people, their passion is other people: passion for their kids, passion for their families, passion for helping others in need, etc….

Many people think they’ve discovered a passion when if fact they’ve only found a surface activity that lays atop their real passion. For instance, I love working in the theatre. At the risk of sounding holier-than-thou, I believe my passion is pretty “pure.” In other words, my passion for theatre doesn’t hide a deeper passion. I love theatre because I’m fascinated by the specific mechanics of telling stories on stage. When I’m not rehearsing a play, I will choose to read a book about theatre mechanics just for fun (for another dose of my obsession).

I’ve met others like me, but I meet far more theatre people who seem to be using theatre to feed some deeper passion. (Please note that I’m not saying that there’s anything wrong with this or that I’m better than these people. I believe neither of those things. And there are plenty of other activities — just not theatre — that I use as tools to feed deeper passions.)

Such people may be into theatre because they love attention and praise; they may love belonging to an open-minded group (many “misfits” find their way into theatre in high school and stay because they love belonging to such an accepting culture); they may even be operating on autopilot, doing theatre because for whatever reason, they got into it when they were younger and it never occurs to them to quit. (They probably enjoy having mastered something.)

Digging deeper
I think it’s useful to delve into your psychology and ask yourself why you like what you like. Sometimes (as with me and theatre), the answer might be “because I simply love the activity.”

How do you know if this is true? Try mentally removing orbiting aspects of the activity: Would I still want to direct plays if no one saw them? Would I still want to direct plays if I could only work with bad actors? Would I still want to direct plays if I hated the results? Would I still want to direct plays if I always got bad reviews? etc. For me, though I wouldn’t enjoy the activity as much in these cases, I’d still want to do it.

This is useful because if you learn what your true passion is (the underlying one, if there is one), you may be able to change your life for the better. You may be able to say, “Wow! It’s not theatre I like, it’s collaboration! Maybe I instead of continuing in theatre, I should look into all sorts of collaborative activities and get into the one that’s the most collaborative.”

Such psychological delving may also help you deal with a crisis: “Oh no! I’ve lost my voice. I can’t act anymore. Wait a minute: it’s not specifically theatre that I like, it’s storytelling! I could write a novel.”

There’s also nothing wrong (and a lot right) with realizing, “I love attention and praise, so theatre is a great activity for me.” In all of these cases, you’ll have learned something about yourself.

Turning passion into a career
Once you know your passion, you will be tempted to ask — as you did — “How can I turn this into a career?” I think that’s the wrong question. I don’t think it’s totally wrong. I just think it’s too specific. Instead, I recommend you ask yourself this: “How can I best arrange my life so that I can spend the most time engaging in my passion in its purest possible form and derive the least amount of pain doing non-passion activities?”

I am a director, but I’m not a working (as in “paid”) director. To pay my rent, I have a “day job.” I could work as a director, but I’d have to direct plays that I don’t want to direct. For some people, that would be fine. For me, it’s not a good trade off. I’ll be more happy with the day job and the ability to direct whatever I want — forgoing pay. It took me a while to come up with that “formula,” and it’s a personal one. Mine won’t necessarily work for you.

(If you realize you’re like me, find the least painful day job you can, getting yourself training if you have to. I actually like my day job. And I continually work to make it better and more interesting. The cliché of waiting tables to support your passion isn’t a necessity. If you commit to the idea of having a day job — I’ll likely have one for the rest of my life — it behooves you to make it a good one. Or at least the least painful one you can find.)

I see a lot of people working really hard to make their passion into a job, and — tragically — when they finally make it happen, they don’t enjoy the passion any more. (E.g. a lot of working actors, who got into the business to play Shakespeare or Chekhov, spend most of their time acting in commercials.) If this happens, it’s really worthwhile to do some soul searching. Would I be happier with a day job? Am I happy doing a compromised version of my passion? If I am happy doing a compromised version of my passion, does that (perhaps) mean that what I thought was my passion wasn’t really my passion? (“Hmm. I thought I wanted to act, but in order to do theatre for a living, I’ve had to become a producer. And — hey — I like it. Maybe acting isn’t my real passion. Maybe my real passion is being a key part of a big project.”)

I am not saying there’s anything wrong with figuring out a way to do your passion for pay. Often, that’s a great way to spend most of your time doing your passion. Just make sure that if you’re doing your passion as a job, it’s really your passion that you’re doing and not a perverted version of it that will fail to make you happy.

Putting it all together
So, go through this thought process:

  1. I’ve identified my passion as X. I am now going to define X as fully as possible. For X to be X, it MUST include A and B. C is optional. It can’t include D.
  2. I’ve realized that I won’t be happy unless I’m doing X for a living.
  3. Are there any jobs that will allow me to do X as I’ve defined it? (Or that will let me gradually work towards a pure version of X?)
  4. If not, then I need to either brainstorm other ways I could be happy (compromised X? doing X as a hobby?) or resign myself to unhappiness.
  5. If so, then I need to make sure that I can live with non-X aspects of the job. (Wow! I can do full time, paid theatre, but I’d have to work with the dreaded Mr. Y!)

Finally: I’ve noticed that people (myself included) have a strong urge to classify themselves. People really want to be able to say, “I’m a director!” “I’m an engineer!” “My passion is gourmet cooking!”

There’s nothing wrong with that drive, but putting yourself in a category is not the same thing as actually being in that category. In fact, categorizing yourself — since it’s so final — is a good way to thwart any attempt to discover your actual passions. Once you say, “I’m a director,” it’s hard to think, “Wait a minute: is it actually directing that I like or some other activity that directing helps me achieve?” Which is why, at the start of this long post, I suggested you de-romanticize the whole thing and, instead, think about what you like and dislike, rather than trying to pin down your Passion.

Maybe you don’t have a Passion. Maybe you have many likes:

  • You like playing in the sun
  • You like watching movies
  • You like hanging out with friends

If so, you’ll be much happier if you arrange your life to maximize your chances to do these activities than if you expend a ton of energy categorizing yourself.

I am fortunate to have been able to turn my passion — writing — into a career. But even so, some of what Grumblebee warns against is certainly present. As much as I love to write, I have a very different relationship to it now that it’s my job than I did when I simply did it for fun.

Source: getrichslowly.org

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When it comes to renting a garage, many consider it a luxury. Apartments with garages can actually be worth the “splurge,” and a worthwhile investment, however. Read on to learn why and how.

1. Weather protection

It is really inconvenient to scrape your car each morning in the winter. Wind can also send debris flying into your car. And time spent on de-icing can do a number on your clothes, your health and your attitude.

However, snow and ice are not the only elements that can do damage to your car. If you live in a tornado alley, hail damage or debris from a tornado could cost you your deductible. What if a tree falls on your car during a tornado? You’ll not only be shelling out your deductible amount — you’ll likely be looking for a temporary or even brand-new car. If you live in an area with extreme weather conditions, narrowing your search to apartments with garages for rent is a must.

2. Enhanced security

Typically, criminals don’t like to work hard. In order to loot a car in a garage, they would first have to break into the garage, usually more trouble than it’s worth for them. Statistics show that cars in a garage are less likely to be stolen. If your car is safely stored in the garage, it’s out of sight out of mind, along with its contents.

3. Protection from other drivers

Not everyone is a good driver, especially in the parking lot. People get distracted, and they park poorly or open their doors too quickly if they’re in a hurry. You shouldn’t have to suffer because someone else is careless.

Who’s got time to get dents and scrapes fixed? Apartments with garages eliminate that problem since your vehicle is carefully insulated from careless, inexperienced and aging drivers.

4. Shield your engine

Your engine doesn’t like extreme weather conditions. Keeping its fluid and oil warm is good for the lubrication of the engine and will ensure it runs well and doesn’t have to work so hard to warm up or cool down.

5. Cheaper insurance premium

Before you decide on a garage, ask your insurance agent how much you can save if you put your car in the garage. Renting a garage won’t feel like such a splurge if you can save some money on your insurance bill. This is especially true if you have a nice vehicle.

6. Higher car value

When you go to sell your car, you can ask (and get!) more for your vehicle, if you say it’s been garaged. Buyers love knowing that a car they’re considering hasn’t been exposed to the elements overnight.

Looking into apartments with garages for rent can save time, money and your sanity. Have a chat with your insurance agent and see how much you would save putting your car in a garage, then compare that to the rent. What may initially seem like a splurge on a tight budget can actually be a great long-term investment on many levels.

7. Convenience

In larger cities, parking can especially be a hassle. Having a garage attached to your apartment means you don’t have to search for parking on the street, especially during peak hours, saving you time and effort.

8. More preferred mode of transportation options

If you own a motorcycle or even a bicycle, a garage can provide a safe and secure place to store them, protecting them from theft and weather damage. There isn’t always allotted space for these modes of transportation, and a garage offers extra options.

9. Extra living space and storage space

A garage offers a private space that you can customize and build onto, such as adding shelves, cabinets or a workbench, to suit your specific needs. Along with decoration opportunities, this space can serve as a place for extra storage, which can be helpful for beautifying your apartment space.

10. Added guest parking

Having friends and guests over is an essential part of making an apartment feel like home. A garage can provide a dedicated parking space for guests, making it convenient for them to park their vehicles when they visit your apartment. By having a garage, you won’t have to worry about parking hassles, leaving you free to enjoy book clubs, wine nights and gatherings.

11. General peace of mind

Knowing that your vehicle is parked safely in a garage can provide peace of mind and reduce stress, with the peace of mind that your car is protected. This reassurance is priceless and allows you to focus on the things that matter most, like work, family and activities, without the added stress of worrying about your car’s safety.

An apartment with a garage can pay for itself

Apartments with garages offer a range of advantages that can greatly enhance a renter’s living experience. From convenience and security to storage options and preservation of your vehicle’s condition a garage can provide countless benefits while practically paying for itself.

When considering apartment options, it’s worth keeping in mind the many reasons to prioritize apartments with garages just like you would for other important amenities. Find your dream apartment with a garage today.

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Mortgage Q&A: “How much do mortgage brokers make?”

If you happen to use a mortgage broker to obtain your mortgage, you may be wondering how they get paid and what they make.

Mortgage brokers essentially work as middlemen between borrowers and banks/lenders, so they can actually be paid by either party.

Just to be clear, this article is about how much mortgage brokers make on the home loans they originate, not how much they make in the way of salary.

Of course, brokers typically aren’t paid a salary, so if we know what they’re making per loan, we’ll have a decent idea as to what they might take home each year as well depending on annual volume.

But you have to consider their costs to operate as well, which will vary based on how large their shop is, if they employ loan officers, how much they spend on advertising (if any), and so on.

How Does a Mortgage Broker Get Paid?

  • They can choose to get paid by either the lender or the borrower
  • They can charge an origination fee directly, which comes out of the borrower’s pocket
  • Or elect to get paid by the lender, which is indirectly paid by the borrower
  • The latter results in a slightly higher interest rate, meaning it’s paid over time via higher monthly mortgage payments

In the recent past (before April 1, 2011), mortgage brokers could make money on both the front and back end of a mortgage loan.

Simply put, they could charge a loan origination fee directly to the borrower and also get paid by the mortgage lender via a yield spread premium (YSP), which was the commission the bank or lender provided in exchange for a mortgage rate above market.

In short, the higher the interest rate, the more YSP the broker would receive from the lender.

YSP was also referred to as “par-plus pricing”, “rate participation fee”, “service release fee”, and many other variations.

Brokers had the ability to make several points on the back end of a loan, potentially earning thousands of dollars, sometimes without the borrower’s knowledge.

They could also collect money on the front end of a loan via out-of-pocket closing costs like loan origination fees and processing costs, which the borrower paid directly.

For example, back in the day it was possible for a broker to charge one (or more) mortgage points upfront for origination, receive another two points on the back from the lender, and also tack on things like loan processing fees.

All told, they could make three to five points on a mortgage, aka 3-5% of the loan amount. If we’re talking a $500,000 loan amount, that’s anywhere from $15,000 to $25,000 per loan!

And it could be even higher for jumbo loans. Prior to the housing crisis, it wasn’t unheard of for brokers to make massive commissions like this.

You’d hear about them asking for “max rebate” on the back end, which was the limit wholesale lenders would pay out, while still convincing the borrower to pony up an origination fee on the front end.

As a result, brokers could essentially be paid twice for the same transaction.

The beauty of it was the yield spread premium came in the form of a higher mortgage rate, so it didn’t even look like a fee or a cost to anyone – it just meant the borrower had a slightly higher mortgage payment for the entire loan term.

In other words, the borrower was saddled with a higher rate for the life of their loan and may have also paid a commission upfront, without realizing it.

Had the broker just charged the upfront fee and nothing else, the borrower may have received a mortgage rate of say 4% instead of 4.5%.

In hindsight, it probably didn’t matter because most of those loans didn’t last more than a few years (or months) before they were refinanced or foreclosed on. Eek.

How Mortgage Broker Compensation Works Today

  • Brokers can no longer get paid twice on a single loan
  • Instead they have to choose how they want to be compensated, by the borrower or lender
  • They may have a different compensation package with each lender
  • So depending on where the loan is placed their commission could vary from loan to loan

As noted, the controversial practice outlined above was outlawed in 2011.

The Fed came in and changed all that by effectively banning yield spread premiums, and now mortgage brokers can only get paid by the borrower OR the lender, not both.

That doesn’t mean they can’t still make a lot of money per loan, it just means the way they can get paid via the wholesale mortgage channel has been limited.

In other words, they either charge you directly to close the loan or they get paid by the lender and you pay for that commission indirectly (not out-of-pocket at closing) via a higher interest rate.

If charging directly, the borrower pays for the broker fee or origination fee, loan processing, and so on. Compensation can also vary from loan to loan.

If being paid by the lender, it’s similar to YSP, but brokers must now choose a compensation plan upfront with each lender they work with, as opposed to charging different amounts on each loan as they see fit.

And they usually must stick with that compensation plan for three months before they can change it again.

For example, they may choose to earn 1% commission on every loan they close with Bank A. So if the loan amount is $500,000, they’d earn $5,000. If it’s $300,000, they’d only get $3,000. And so on.

But they may select a higher compensation structure with Bank B that gives them 1.5% on each closed loan.

Assuming the loan terms and cost are the same, they can send your loan to Bank B for a higher commission, as it won’t affect what you ultimately receive.

However, a different broker may decide to set all their compensation levels at 2%, and if you happen to work with them your interest rates may be higher across the board to account for their higher commission.

So you kind of have to shop mortgage brokers too in order to find the one offering the lowest rate/costs.

In other words, you can still get a raw deal, or at least a not-as-good deal. The good news is they can no longer get paid on both the front and back end of the loan.

But you should continue to be vigilant and look over your loan documents to ensure you aren’t being overcharged.

In short, you’ll want your broker to send your loan to the bank that offers you the lowest interest rate, not the one that gives them the highest commission.

What Is the Mortgage Broker’s Commission? And How Do I Find It?


So you’re applying for a home loan and want to know the mortgage broker’s fee. I don’t blame you, it’s important stuff.

But if the interest rate and combination of closing costs are favorable relative to other banks/lenders/brokers, it doesn’t really matter what they make.

Still, you should know and you have a right to know. Here’s how to find out.

When signing loan disclosures early on in the process, look out for a “Loan Brokerage Agreement” form that spells out their commission, and whether it’s borrower- or lender-paid.

The screenshot above is an example where a broker earned $8,775 via the lender for facilitating the loan. Not bad for one loan, eh?

To figure out how much they’re making on a percentage basis, simply take the compensation amount and divide it by the loan amount.

The loan amount in this example is $780,000, making their compensation 1.125%. It’s reasonable as they could charge 2% or more depending on the wholesale lender they partner with.

You can also find the broker fee on the Closing Disclosure (CD) and the ALTA Settlement Statement when it’s time to sign docs and close your loan.

Okay great, so what do brokers make?

  •  A survey said they were paid 2.25 points per loan on average
  • On a $300,000 loan amount that would be $6,750 in compensation
  • While it sounds like a tidy sum, you have to consider their volume and operating costs as well
  • It’s pretty close to what real estate agents make, usually 2.5% of the sales price

A press release from 360 Mortgage Group detailing the compensation changes said mortgage brokers generate an average revenue of 2.25 mortgage points on a home loan.

For example, on a $500,000 mortgage, they’d make roughly $11,250 in revenue. That sounds pretty good, doesn’t it?

But as mentioned, we have to subtract the costs of doing business, which are variable. From there, you’d have your profit per loan.

Not a bad take for helping people get mortgage financing, depending on how many loans are closed each month, and what expenses are involved.

As you can see, mortgage broker salary will definitely vary based on the size of the loans they typically close. In more expensive areas of town (or the country), brokers might make six-figures or much, much more.

While those in lower-priced metros could make significantly less if costs are still relatively similar.

Additionally, brokers who focus on mortgage refinances might have higher loan volume than those who help home buyers purchase real estate, as the latter can be harder to come by and slower to close.

Of course, if they partner with a local real estate office or two, they have the ability to generate a ton of purchase loan business too, so it’s hard to say either specialty would be more successful universally.

Their average income will also depend on the financial institutions they choose to partner with, as compensation structures and points per loan will vary across different mortgage lenders.

One aspect of a mortgage broker’s job is linking up with lending partners that are good at quickly closing loans, while also offering competitive pricing. As such, these partners can greatly affect a mortgage brokers salary.

[How to get a wholesale mortgage rate?]

Will mortgage brokers still make the same money?

  • While it might be more difficult to make a ton of money on a single loan
  • Brokers still have the ability to make a very good living even with limited volume
  • A broker who closes just $2 million a month could earn over $500,000 annually
  • Very few other occupations pay anywhere close to that much

The 360 Mortgage Group believes brokers will be able to adapt to the compensation changes, and if you know anything about the mortgage business, new rules are typically circumvented overnight.

Many mortgage lenders are now publishing multiple mortgage rate sheets, with one version lender-paid compensation and the other borrower-paid compensation.

So brokers can simply pick up a specific compensation-based rate sheet they’d like and be on their way.

For example, if they want to make 2.50 points, there’s a rate sheet for that. If they only want one point, there’s a rate sheet for that too.

But the rule change will probably reduce average incomes for loan brokers, since they won’t be able to take a little from both the front and back of the loan.

Receiving compensation from just one entity, as opposed to two, means it’ll be more difficult to charge an excessive amount per loan, though not impossible.

This is relatively good news for home buyers and existing homeowners looking for refinance who will hopefully enjoy lower mortgage payments, but bad news for mortgage brokers, who continue to lose market share. It could also dent their total pay.

It’s recommended that you shop for a mortgage by gathering rate quotes online, at your local bank/credit union, and also via a mortgage broker or two.

You’ll never know who might have the best rate/terms unless you actually take the time to shop around!

Read more: Why use a mortgage broker?

Source: thetruthaboutmortgage.com

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By Peter Anderson 7 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 26, 2017.

Sometimes the most powerful precepts in personal finance are the ones that are the simplest.  We all would love to think that the reason why we haven’t gotten further ahead in our financial lives is because saving and earning money are such complicated topics that have a myriad of secrets that are beyond our grasp.

The thing is, that while certain niches in finance may be complicated or require specialized knowledge, in order to succeed you really don’t need to have a degree in finance.  Some of the most powerful financial rules are the ones that are the simplest and easiest to grasp.

The Richest Man In Babylon


I have been reading bits and pieces of the 1926 book by George S. Clason called “The Richest Man In Babylon“.  The book, while it was written in the 1920s has a lot of insightful things to say about  saving, investing and the simple ideas behind wealth creation.  It gives those simple ideas via parables or stories.  One of those stories that I read today was the one the book is named for, The Richest Man in Babylon.

The parable tells us about a rich man named Arkad in Babylon who despite not having any special talents or family wealth was now known to be the wealthiest man in all the land.   His friends around him couldn’t understand how he had become so wealthy, or how he had become so successful, when they had all been afforded the same opportunities that he had.   So they asked him.

He responded by telling them how he had enough sense to know that he didn’t know everything, and that in order to become wealthy, he would need to ask someone who was wealthy what their secret was.  So when he found the opportunity one day, he asked a money lender who came to the hall of records where he worked.  The money lender told him:

I found the road to wealth when I decided that a part of all I earned was mine to keep. And so will you.

We all have the idea that everything we earn is ours to keep, but if we really think about it we all have things we need to pay for in everyday life.  We have to buy food, pay for clothing, purchase or rent a place to live and so on.  Much of what we earn is not ours to keep.  If we really want to succeed, however, we must realize that a part of all we earn is ours to keep, and that we must pay ourselves first. If we don’t the money will quickly disappear and none of what we earn will be ours to keep.    The teacher in the parable continues:

Every gold piece you save is a slave to work for you. Every copper it earns is its child that also can earn for you. If you would become wealthy, then what you save must earn, and its
children must earn…

A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first. Do not buy from the clothes-maker and the  sandal-maker more than you can pay out of the rest and still have enough for food and charity and penance to the gods.

Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade.

We must make our money work for us, and make savings and investment a priority.  We need to plant that seed as early as we can, and continue nourishing it so that the tree of wealth will grow and give us shade in the long run.

Lessons From The Parable Of The Richest Man?

This parable is rich in lessons and advice, and I probably won’t touch on them all. Here are the main lessons I gleaned from the story:

  • Seek out the wisdom of those who know and who have experienced success:  The richest man in Babylon knew that he needed to seek out the advice of those who knew more than he did. He sought out wise counsel and received good advice that helped him to prosper.
  • Pay yourself first:   In the parable the teacher tells the student that you must save at least a tenth of what you earn, no matter what you earn.  If you can afford to save more, you should.  Don’t forget to also give (I might put this before the saving part).
  • The law of compounding returns: The earlier you start saving and more faithfully you save, the sooner you’ll be well off and wealthy.  You must also invest your money and make a return if you want to become wealthy.
  • You won’t miss the money you pay yourself first: In the parable it talks about how if you make your saving a habit or automatic every time you get money, it won’t seem like you’re living on less money than before.  “Each time I was paid I took one from each ten pieces of copper and hid it away. And strange as it may seem, I was noshorter of funds, than before“.

The whole book is full of great lessons that we would all do well to heed.  Amazing how relevant the book is even today 85 years later.

Have you read the book “The Richest Man In Babylon“?  If so, what other lessons have you learned? 

Related Posts

Source: biblemoneymatters.com

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In a bid to perhaps “move things along,” Fannie Mae issued servicing standards for delinquent mortgages.

Under the new rules, servicers must achieve “quality right party contact” with homeowners during the first 120 days of delinquency.

In other words, meaningful contact must be made, and servicers must find out why the borrower is delinquent, assess their ability to make mortgage payments, and educate them about foreclosure prevention options.

“During the first 120 days of delinquency, homeowners will be contacted both verbally and in writing to complete a mortgage modification or other solution to remain in the home, or enter into an arrangement to exit the home without a foreclosure,” the release stated.

Foreclosure Timelines Will Get Quicker

You may have heard about some homeowners “squatting” in their homes for five years. Well, that’s about to get a whole lot shorter going forward.

Servicers will be required to follow clear timelines for referring delinquent mortgages to foreclosure status.

In short, once 120 days of delinquency have passed, the foreclosure process will begin, meaning loan servicers won’t be able to delay things to the detriment of mortgage investors.

(How long after foreclosure can I purchase a home?)

Of course, that could lead to a flood of foreclosures on the market, pushing already-fragile home prices lower, but it could also mean a quicker recovery.

Incentives for Early Resolution

Fannie Mae will also provide incentives to servicers who complete loan workouts early on and charge fees when servicers fail to make proper contact.

Additionally, fees may be charged for servicers who don’t process foreclosures in a timely manner.

Read more: How does foreclosure affect your credit?

Source: thetruthaboutmortgage.com