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Apache is functioning normally

Decent Data and Palatable Powell

By:
Matthew Graham

Wed, May 1 2024, 4:49 PM

Decent Data and Palatable Powell

Bonds managed modest to moderate gains after digesting all of the morning’s economic data and events.  None of the reports were too exciting and one might conclude that traders were slightly more interested in buying bonds regardless of the data.  Yields flat-lined in stronger territory ahead of the Fed.  The announcement itself was largely as-expected.  The same could be said of the press conference, but with the qualification that Powell definitely stopped short of expressing as much concern about inflation as the recent data justified.  Rate cuts aren’t likely any time soon, but the next move is still seen as much more likely to be a cut rather than a hike.  Markets also appreciated Powell’s reiteration that the Fed wouldn’t hesitate to do what it needed to do based on the data/economy without considering political implications.

    • ADP Employment 
      • 192k vs 175k f’cast, 208k prev
    • TSY refunding announcement
      • increases in shorter part of the curve
      • no increases in 10yr and up
      • small buyback announced
    • S&P Manufacturing PMI
      • 50.0 vs 49.9 f’cast, 51.9 prev
    • ISM Manufacturing
      • 49.2 vs 50.0 f’cast, 50.3 prev
    • ISM Prices
      • 60.9 vs 55.0 f’cast, 55.8 prev

08:59 AM

unchanged overnight and modestly stronger after ADP/Treasury.  MBS up an eighth.  10yr down 2.3bps at 4.66

09:46 AM

Slightly stronger leading up to S&P PMI.  No reaction afterward.  MBS up 7 ticks (.22).  10yr down 3.2bps at 4.65

10:05 AM

No major reaction to 10am data. 10yr yields are down 4bps at 4.643 and MBS are up nearly a quarter point.

02:18 PM

Modestly stronger after Fed.  10yr down 4.2bps at 4.462.  MBS up a quarter point

02:47 PM

Additional gains as Powell press conference continues.  MBS up half a point.  10yr down 10bps at 4.587

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Net asset value (NAV) is an important metric for knowing how much each share of an investment fund, like a mutual fund or ETF, is worth. However, NAV alone cannot tell investors everything they need to know about potential investments.

Calculating NAV is helpful for fund valuation and pricing. Still, there are times when it is more beneficial to look at other aspects of a fund, like total return, to determine investment opportunities. Nonetheless, investors need to know how to calculate NAV, when it makes sense to use it, and why.

What Is Net Asset Value (NAV)?

Net asset value, or NAV, represents the value of an investment fund. NAV, most simply, is calculated by adding up what a fund owns (the assets) and subtracting what it owes (the liabilities).

NAV is typically used to represent the value of the fund per share, however, so the total above is usually divided by the number of outstanding shares. This makes it easier for investors to value and price the shares of a fund. Mutual funds, for example, use per-share NAV to determine their share price.

The NAV will also change daily because an investment fund’s assets and liabilities change daily based on market prices.The assets of an investment fund include the daily market value of the fund’s holdings, which are usually securities like stocks and bonds. The liabilities of a fund are usually debts owed to financial institutions and expenses, like salaries, operating costs, and other fees.

The Securities and Exchange Commission (SEC) requires that mutual funds calculate their NAV at least once each business day. Most mutual funds perform their calculations after the major U.S. securities exchanges close for the day.

💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.

NAV Formula

Net asset value, as mentioned above, is calculated by taking a company or investment fund’s total assets and subtracting its liabilities. This figure is usually divided by the fund’s number of outstanding shares because NAV is generally represented on a per-share basis. The formula looks like this:

NAV = (Total Value of Assets – Total Value of Liabilities) / Number of Shares Outstanding

How NAV Is Used for Investments

NAV can be used for investments, and by investors, in a number of ways, often depending on the specific type of asset an investor is analyzing. It can give investors insight into a fund’s performance, but doesn’t necessarily tell the whole story.

Mutual Funds

Mutual funds are usually open-ended funds, meaning that investors buy and sell shares of the fund from the fund directly and not on an exchange like a stock. Because these funds don’t trade on an exchange for market prices, NAV is used to price the fund’s shares.

Mutual funds calculate their NAV per share daily, usually at the end of the business day, and that is the price an investor will pay to buy or sell shares in the fund. Every mutual fund company has its own cut-off time for buying and selling shares. After that time, investors buying or selling shares will get the fund’s NAV for the day after their transaction order is received.

💡 Recommended: Understanding the Different Types of Mutual Funds

ETFs

Exchange-traded funds (ETFs) and closed-end funds are similar to traditional mutual funds, but one big difference is that investors can buy and sell ETFs throughout the trading day for a market price and not the NAV per share. Investors can make buy and sell orders for traditional mutual funds once per day and only at their published NAVs.

ETFs are still required to calculate the fund’s NAV once per day, like a mutual fund. Additionally, an ETF’s NAV is calculated approximately every 15 seconds over each trading day and published on various financial websites.

Because ETFs tend to trade at a premium or a discount to their NAV, traders often compare market prices and NAV to take advantage of the differences and make investment decisions.

Example of Calculating Mutual Fund NAV

As an example of calculating mutual fund NAV, imagine that mutual fund XYZ has $100 million worth of investments in different securities, based on the day’s closing prices for each security, and $10 million in liabilities and expenses. The NAV for this fund would be $90 million. If the fund has 5 million shares outstanding, the NAV per share for mutual fund XYZ would be $18.

The NAV for mutual fund XYZ can be calculated using the above formula:

NAV = ($100,000,000 – $10,000,000) / 5,000,000 = $18

How to Interpret NAV Results

A fund’s NAV alone doesn’t tell investors much; a high NAV for one fund is not necessarily better than a low NAV in another fund. Similar to stock prices, a high stock price doesn’t necessarily mean the stock is a better investment than a stock with a lower price.

Looking at a fund’s NAV and comparing it to another fund does not provide investors insight into which fund is the better investment. It’s more important for investors to look at NAV alongside other factors, like the fund’s past performance, the allocation of securities within each fund, and how it performs compared to benchmark indices like the S&P 500 Index.

💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

Why Do NAVs Change?

A mutual fund’s NAV will likely change every trading day because the prices of securities in which the fund invests are likely to change every trading day, affecting the total assets in the fund. It’s also because the number of outstanding shares held by investors often changes daily, as new investors buy shares and existing investors sell.

Other factors can also impact a fund’s NAV. For example, the fund’s management fee and additional fees that add up to the fund’s total expense ratio will come out of the fund’s total assets, thus affecting NAV. In addition to management fees, expenses can include costs related to the administrative, compliance, distribution, management, marketing, shareholder services, and record-keeping of the fund. It’s common practice for mutual funds to assess this debit on the fund’s assets every trading day.

When NAV Isn’t Everything

If a mutual fund invests in dividend-paying stocks or fixed-income assets, these securities’ dividends and interest payments go to the investor. Additionally, a mutual fund may distribute realized capital gains to shareholders. These payouts reduce the fund’s assets and result in a lower NAV. Because these benefits lower a fund’s NAV, it shows that NAV may not be the only figure to pay attention to when analyzing the performance of a fund.

When analyzing the performance of mutual funds, it can make sense to look at metrics other than NAV alone, like investment yield and the funds’ total return. The total return considers capital gains and losses from all of the securities the fund invests in, as well as the dividends and interest earned by the fund, minus the fund’s expenses.

The Takeaway

Net asset value, or NAV, is a daily calculation that can track the value of a mutual fund, ETF, or money market fund. But while this figure can be helpful to gauge a fund’s performance, it isn’t the only metric that investors should consider. Total return, yield, and fees are also important figures when making mutual fund investing decisions.

Remember that NAV itself doesn’t tell an investor everything that they need to know, but is just one metric or data point that can be used along with an array of others to analyze funds.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

Is net asset value the same as price?

NAV and share price are two different things. Net asset value is the value of the investments within a fund, or the value of a portion of the fund. The share price of a fund, though it may be related, is different from that value.

Why is net asset value important?

Net asset value is important for investors because it describes the total equity or value of a fund. It can help determine the value a share of a fund has, and can help investors evaluate the overall value of an investment.

Is high NAV good or bad?

NAV on its own doesn’t tell investors a whole lot, so whether NAV is high may not be good or bad. What’s more important is how high a fund’s NAV is relative to other metrics, which may include its market price.

Is it good to invest when NAV is down?

If a fund’s NAV is down, that could be a sign that the fund’s performance is suffering. But it doesn’t necessarily mean that it’s a good time to invest in that fund, or a bad time to do so – other metrics must be considered along with NAV, at any given time, to determine whether an investor wants to alter their position.

What is an example of a NAV?

An example of NAV could be $18, and that would be calculated looking at a fund’s underlying securities. You’d need to rope in assets and liabilities, and calculate accordingly to find NAV. Again, $18 is just an example, as NAV could be any dollar figure as it relates to the fund’s assets and liabilities.

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

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.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected]. Please read the prospectus carefully prior to investing.

Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.

SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.

Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN-Q224-1845962-V1

Source: sofi.com

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Borrower Outreach, Servicing Oversight Products; TPO News; Bank Merger Announced; Brokers and RESPA

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Borrower Outreach, Servicing Oversight Products; TPO News; Bank Merger Announced; Brokers and RESPA

By:
Rob Chrisman

Mon, Apr 29 2024, 11:52 AM

“I accidentally rubbed ketchup in my eyes. Now I have Heinzsight.” In terms of foresight, looking ahead, there are some interesting things going on out there in Mortgage Land! How ‘bout the CapitalW Collective non-profit for women in mortgage capital markets? And Beeline’s Miguel Vega has been in the press lately with, “The Dream of Owning a Piece of America is a Dominant Theme in the Latino Community” and the company launching a Spanish-language version of its home loan experience this week. Something else that continues to be “interesting” is the question, “Are brokers violating RESPA every day?” This question is asked because brokering is a referral of a customer to a lender, right? HUD identified fourteen services normally performed in the origination of a loan (Section II, subsection C of the link above), and brokers usually do five out of the fourteen services, including taking the application, to get around RESPA. Mortgage attorney Brian Levy addresses the broker/RESPA issue in “RESPA, a whole(sale) lot of trouble.” Brokers, be careful that you’re the person actually originating the loan in terms of regulations! (Found here, this week’s podcasts are sponsored by Essex Mortgage. Essex specializes in providing exceptional mortgage subservicing solutions tailored to meet your specific needs. Looking to capitalize on your excess servicing strip? Check out Essex’s servicing offerings today!)

Lender and Broker Products, Software, and Services

In today’s regulatory environment, audits seem to be nonstop: Is your team ready? Clayton’s Servicing Oversight specialists can support your associates as they prepare for regulatory, GSE and investor audits, including customer contact evaluations, yearly validation of PRCI and RCSA and focuses on loss mitigation and foreclosure. Whether you need staff augmentation or help with audit responses, our experts are there for you. Clayton’s Servicing Oversight team provides audit support services across the entire mortgage servicing lifecycle. Contact Clayton’s Samantha Shanaberger to learn more about how Clayton Servicing Oversight can help your team tackle audits.

Winning Agent Business: The lender’s guide to building a strong referral network, updated for 2024! In the aftermath of the NAR ruling, agents are more incentivized than ever to show their clients value. That means they’re actively looking to partner with top-tier lenders in their market. Want to take advantage and grow your referral business? Maxwell just updated its Winning Agent Business eBook with new tips straight from agents to help you better network to create a strong funnel of referral leads. Download your free copy to learn qualities agents value in their lending partners, networking dos and don’ts, ways to become a go-to lender, and more.

In today’s competitive purchase market, the lenders who stand out are providing excellent, personalized, and consistent communication. This approach is key to attracting new business, keeping your current borrowers happy and retaining clients for life. In our new blog, we’re sharing how the Surefire℠ CRM and Mortgage Marketing Engine can help you streamline and improve your borrower outreach even further, so you’re prepared to thrive in today’s competitive purchase market. And by leveraging both Surefire and Encompass®, you’re able to deliver targeted content to the right contacts at the right moment. Read the full blog to gain all the insights.

Mergers and Acquisitions

UMB Financial Corporation (Nasdaq: UMBF) and Heartland Financial, USA Inc. (Nasdaq: HTLF) announced today that they have entered into a definitive merger agreement under which UMB Financial Corporation (UMB) will acquire Heartland Financial USA, Inc. (HTLF), in an all-stock transaction valued at approximately $2.0 billion.

HTLF is headquartered in Denver and has $19.4 billion in assets, $16.2 billion in total deposits and $12.1 billion in total loans, as of March 31, 2024. The combination of companies will create an entity spanning a 13-state branch footprint, adding California, Minnesota, New Mexico, Iowa and Wisconsin to UMB’s existing eight-state footprint, which includes Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.

Within its 11-state footprint, HTLF does business as: Minnesota Bank & Trust, Wisconsin Bank & Trust, Dubuque Bank & Trust, Illinois Bank & Trust, Bank of Blue Valley, Citywide Banks, Premier Valley Bank, Arizona Bank & Trust, New Mexico Bank & Trust and First Bank & Trust.

UMB will host a call for the investment community on Monday, April 29, at 7:30 a.m. (CT) / 8:30 a.m. (ET). Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 397231. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link: UMB Financial Conference Call. A replay of the conference call may be heard through May 13, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 182605. The call replay may also be accessed at investorrelations.umb.com.

If Borrowers Opt Out of DU and LP…?

I ran this note on Friday, and it caused a bit of a stir given the implications so I thought it was worth mentioning again. If this bill passes, what will it do to your underwriter staffing and efficiency?

California, which accounts for 20-25 percent of residential lending in the U.S. is considering AB 2930, basically giving consumers the right to “opt out” of automated underwriting tools. It could massively disrupt lending because of the ubiquitous use of DU/LP. California MBA CEO Susan Milazzo writes, “California MBA has concerns with AB 2930 (Bauer-Kahan), a bill that would require lenders to perform impact assessments related to automated decision tools (ADT), provide borrowers disclosure notices on the use of ADTs, and provide alternative manual underwriting options to consumers upon request. The bill would disrupt the availability of credit for California residents by imposing potentially conflicting regulations upon lenders who are already highly regulated by existing federal and state consumer protection laws, and are subject to regulatory oversight for identifying, monitoring, and controlling the risk of discrimination or bias. (Reach out to Susan with questions or to lend support defeating it.)

TPO and Investor News with Planet Home Details

Pennymac updated Jumbo LLPAs, effective for all Best-Efforts Commitments taken on or after Monday, April 29, 2024. View Pennymac Announcement 24-38 for more information.

In conjunction with enhanced enforcement from the GSEs, Pennymac will begin the review and remediation of inaccurate or improperly executed 4506-Cs at loan delivery. In addition to the requirements and best practices that were provided in Announcement 23-37, new requirements are listed in Pennymac Announcement 24-39.

Plaza Home Mortgage® has made updates in BREEZE: Appraisal Reconsideration new link, VVOE Fee Disclosed Upfront and New Buttons added.

Carrington Mortgage Services (CMS) added to its diverse non-QM lending offerings introducing Individual Taxpayer Identification Loans (ITIN) for its retail, wholesale, and correspondent lending customers. Although historically, borrowers seeking ITIN loans have sometimes been vulnerable to excessive interest rate loans, the ITIN loans offered by Carrington provide access to homeownership at fair interest rates for mortgages and normal terms. The product demonstrates the unique benefits of The Carrington Companies’ position as an asset manager gives homeowners, brokers, and sellers access to the company’s respectable liquidity as well as Carrington’s dedication to continually innovate as market conditions evolve.

ITIN borrowers can buy, refinance or invest in real estate with Carrington Mortgage Services.

Non-U.S. citizens who do not have a Social Security Number, but live and pay taxes in the United States and have an Individual Taxpayer Identification Number (ITIN) can now qualify for Carrington’s full suite of non-QM loan products. ITIN borrowers are now eligible for all four of our non-QM loan programs: Carrington Prime Advantage, Carrington Flexible Advantage Plus, Carrington Flexible Advantage, and Carrington Investor Advantage.

In accordance with the recently announced temporary enhancements the GSEs made to the HomeReady and Home Possible programs, Citi Correspondent Lending is accepting loan submissions for these programs with VLIP credit. View the complete announcement addressing both Best Efforts and Mandatory Desk loans.

Introducing a unique opportunity from Angel Oak Mortgage Solutions, a First Lien Business Bank Statement Home Equity Line of Credit (HELOC) tailored specifically for homeowners who own their homes free and clear. Compelling benefits for these homeowners: Competitive rates and terms, Convenient access to funds for various needs, Streamlined application and approval process. If you have clients who own their homes outright and are interested in leveraging their equity with a First Lien HELOC, Angel Oak Mortgage Solutions can assist.

Planet Financial Group, LLC, parent of national mortgage lender and servicer Planet Home Lending, LLC and Planet Management Group, LLC, had quite a first quarter. In the first three months of the year, Planet earned Fannie Mae’s coveted Servicer Total Achievement and Rewards (STAR™) Program recognition, brought to market a suite of proprietary home loan programs targeting the unique challenges facing today’s homebuyers, was awarded Top Workplace USA for the fourth year in a row, and became the #4 Ginnie Mae correspondent lender and #8 Ginnie Mae servicer. The company saw volume grow by 255 percent for the retail retention division, which continues to hold an 89 percent recapture rate, and sub-servicing AUM increase by 33 percent, $11B of non-agency assets.

Planet’s total servicing portfolio ended the quarter at $106.44 billion, up 2 percent from $104.69 billion in the fourth quarter of 2023. At quarter end, Planet was the #8 Ginnie Mae servicer, and #14 servicer overall, according to Refinitiv. Since 2019, Planet’s Servicing division has posted a compound annual growth rate (CAGR) of 42 percent. Residential sub-servicing volume ended the quarter at $10.8 billion, up 33 percent from $7.2 billion at quarter end 2023. Planet manages and services a diverse range of residential and commercial asset classes, including non-QM, Debt Service Coverage Ratio loans, Residential Transition Loans, small-balance commercial properties, multifamily and Single-Family Rental. Planet moved into the Top 10 nonprime servicers and the Top 20 non-agency MBS issuers. Over the past year, Planet’s market share in nonprime has more than doubled from 1.1 percent to 2.4 percent, the latest available Inside Nonconforming Markets data shows.

Planet’s residential origination volume was $4.39 billion for Q1 2024, down 6 percent from the prior quarter, on par with the MBA’s projection for overall origination volume. Recapture originations increased to $323 million in Q1 2024, a rise of 255 percent compared to $91 million in Q4 2023. Planet’s verified recapture rate continued to outpace industry benchmarks, rising to 89 percent for loans originated by the company’s retail branches and 62 percent overall.

Correspondent volume was $3.94 billion, down 11 percent from the prior quarter volume of $4.41 billion. Planet’s correspondent market share rose from 4.2 percent at yearend 2022 to 6.0 percent at yearend 2023, according to the latest data available from Inside Mortgage Finance. Since 2019, the Correspondent division’s CAGR was 32 percent.

The correspondent customer base held steady despite continuing M&A activity and exits in the retail market. Nearly two-thirds of Planet’s correspondent partners lock loans on a monthly basis. Ending the quarter, Planet was the #5 correspondent lender overall and the #4 government correspondent lender, according to data from Refinitiv.

Capital Markets

Last week we learned that in the first quarter Gross Domestic Product growth fell short of expectations at a 1.6 percent annualized pace despite strong consumer spending. Personal consumption increased by 2.5 percent, driven by a 4 percent rise in spending on services. Personal incomes rose by 0.5 percent, while personal consumption increased by 0.8 percent, driven by healthcare and housing. The Personal Consumption Expenditure (PCE) deflator reading rose to a 3.7 percent annualized rate, but March’s personal income report suggested inflation peaked in January and didn’t steadily rise throughout the quarter.

Accordingly, this news, and the news for some months now, suggests that the Fed is expected to remain patient in shifting to a less restrictive monetary policy, with markets adjusting expectations to fewer rate cuts later in the year. Separately and fortunately, home builders are still delivering completed homes despite higher rates, evidenced by new home sales being up 8.8 percent in March.

It’s a big week this week for scheduled economic news, as all eyes will be on the Federal Reserve on Wednesday and the jobs report on Friday. Investors will look for more direction on whether the economy is heating or cooling as well as the Fed’s updated thoughts on inflation. Other highlights this week include the Quarterly Refunding announcement, house prices, consumer confidence, PMIs, ADP employment, construction spending, productivity / unit labor costs, and factory orders. The week gets off to a quiet start with one data point due out later today, the non-market moving Dallas Fed Texas manufacturing for April. We begin the last week of April with Agency MBS prices better .125-.250 from Friday’s close, the 10-year yielding 4.61 after closing Friday at 4.67 percent, and the 2-year at 4.97.

Brokers Wanted

“Mortgage Brokers! 2024 is the year to grow and we want you to join our movement, the #KindMovement! Hear from subject matter experts and leaders about market trends, broker technology, and what’s happening here at Kind and within the mortgage industry. Join us on Friday, May 10th at noon PST (2 CST/3 EST) and hear from our very own Kind Ambassadors, Mary Malloy, EVP of Capital Markets, Mark Russell, CTO and technology visionary, and Delfino Aguilar, Chief Production Officer of TPO. Visit our events page to register and reserve your seat or click here! We hope to see you there!”

Don’t forget that anyone can post a resume for free at www.lendernews.com. Employers can view resumes for several months for the nominal charge of $75.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

The Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® are two of the most popular travel rewards credit cards on the market. To make sure they stay popular, Chase has repeatedly tweaked their benefits and features over the years. This page tracks some of the most significant changes, including their rewards rates, perks and bonus offers. Offers that have expired are marked.

First, here’s a look at what the cards currently offer:

Current benefits

Chase Sapphire Preferred® Card

on Chase’s website

Chase Sapphire Reserve®

on Chase’s website

Annual fee

Sign-up bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Travel℠.

Rewards

  • 5 points per $1 spent on travel booked through Chase.

  • 3 points per $1 spent on dining (including eligible delivery services and takeout).

  • 3 points per $1 spent on select streaming services.

  • 3 points per $1 spent on online grocery purchases (not including Target, Walmart and wholesale clubs).

  • 2 points per $1 spent on travel not booked through Chase.

  • 1 point per $1 spent on other purchases.

  • Through March 2025: 5 points per $1 spent on Lyft.

Points are worth 1.25 cents apiece when redeemed for travel through Chase.

  • 10 points per $1 spent on Chase Dining purchases.

  • 10 points per $1 spent on hotel stays and car rentals booked through Chase.

  • 5 points per $1 spent on air travel booked through Chase.

  • 3 points per $1 spent on travel and dining not booked with Chase.

  • 1 point per $1 spent on other purchases.

  • Through March 2025: 10 points per $1 spent on Lyft.

Points are worth 1.5 cents apiece when redeemed for travel through Chase.

Other benefits

  • A $50 annual credit on hotel stays booked through Chase.

  • Each account anniversary, cardmembers earn bonus points equal to 10% of total purchases made the previous year.

  • 1:1 transfer partners, including United, Southwest, JetBlue, Marriott and Hyatt.

  • $300 annual credit, automatically applied to travel spending.

  • 1:1 transfer partners (same as the Chase Sapphire Preferred® Card).

  • Access to more than 1,000 airport lounges worldwide through Priority Pass Select, including Chase Sapphire lounges.

  • Up to $100 reimbursement every four years for NEXUS, Global Entry or TSA PreCheck application fees charged to your card.

  • Access to “Reserved by Sapphire” restaurant-booking feature.

Learn more

Still not sure?

CHASE SAPPHIRE RESERVE® OVER THE YEARS

February 2023: New Peloton promotion

From Feb. 1, 2023, through March 31, 2025, holders of the Chase Sapphire Reserve® can earn 10 points per dollar spent on eligible Peloton purchases, up to a maximum of 50,000 points. Eligible purchases include equipment or accessories over $250, such as Peloton bikes, treadmills and rowing machines, as well as Peloton Guide, a strength-training program that uses a camera to help you work on your form. Purchases must be made directly through Peloton and paid in full at the time of purchase. (This means that financing equipment with Affirm will not result in extra points.) Apparel and app memberships also aren’t eligible.

November 2022: Lyft Pink All Access

Chase Sapphire Reserve® cardholders had previously been offered a free year’s membership in the “Lyft Pink” loyalty program. Effective Nov. 15, 2022, that offer was upgraded. Cardholders would then receive complimentary Lyft Pink All Access membership for two years and 50% off for their third year. All Access is the highest tier membership available from Lyft and retails for $199. It includes:

  • Faster pickups with Free Priority Pickup upgrades.

  • 10% off all luxury ride types.

  • Free ride cancellation, up to three times per month.

  • Free roadside assistance for your own car up to four times per year.

  • Free SIXT car rental upgrades.

  • Unlimited free 45-min classic bike rides.

  • Free unlimited e-bike and scooter unlocks, plus discounted rates.

  • 3 bike or scooter guest passes per year.

Cardholders continue to earn 10 points per dollar spent on Lyft rides, a promotion that began in 2020 and has been extended through March 2025.

October 2022: 80,000-point bonus

Expired offer: In mid-October 2022, the Chase Sapphire Reserve® offered a sign-up bonus of 80,000 points, which was available until Dec. 1, 2022. This was the biggest sign-up incentive on the card since the 100,000-point bonus it debuted with (to great fanfare) in 2016.

August 2021: Major overhaul

On Aug. 16, 2021, Chase rolled out the biggest set of changes to the Chase Sapphire Reserve® since the card’s debut five years earlier. Those changes included new bonus categories:

  • 10 points per dollar spent on Chase Dining purchases.

  • 10 points per dollar on hotel stays and rental cars booked through Chase.

  • 5 points per dollar on airfare booked through Chase.

The card continued to earn 3 points per dollar on dining and on travel not booked through Chase, and 1 point per dollar on other purchases. Other benefits of the card were largely unchanged, and its annual fee remained $550.

March 2021: Bigger bonus in effect

Expired offer: The sign-up bonus on the Chase Sapphire Reserve® got a temporary bump in March 2021. That offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. That was 10,000 points bigger than the standard bonus at the time.

March 2021: Extra points on Peloton

Expired offer: From March 2021 through March 2022, the Chase Sapphire Reserve® earned 10 points per $1 spent on each Peloton Bike, Tread and accessory purchase of over $1,800, for a maximum of 50,000 points.

February 2021: 10X on Chase Dining

Expired offer: In a limited-time promotion that began in early 2021, holders of the Chase Sapphire Reserve® could earn 10 points per dollar spent on Chase Dining purchases (including takeout and prepaid reservations), on up to $500 in spending. The promotion ended on June 30, 2021, but 10x rewards on Chase Dining purchases later became a standard benefit of the Chase Sapphire Reserve®. Also, through Sept. 30, 2021, Chase Sapphire Reserve® holders could redeem points for Chase Dining purchases at a rate of 1.5 cents per point.

November 2020: Boosted grocery rewards

Expired offer: Chase added another round of bonus grocery rewards as the COVID-19 pandemic lingered. From Nov. 1, 2020, through April 30, 2021, the Chase Sapphire Reserve® earned 3 points per dollar spent at grocery stores, up from the usual 1 point per dollar.

October 2020: Peloton promotion

Expired offer: Starting in October 2020 and running through June 2022, Chase Sapphire Reserve® cardholders could earn up to $120 in statement credits on Peloton Digital and All-Access memberships. Digital memberships cost about $13 a month at the time; All-Access memberships, $39 a month.

July 2020: More COVID-era benefits

Expired offers: From July 1 to Sept. 30, 2020, Chase Sapphire Reserve® cardholders could earn bonus rewards on spending that was soaring in the midst of the COVID-19 pandemic:

  • Instacart: 5 points per $1 spent on Instacart delivery and pickup orders, on up to $3,000 in spending during the three-month promotional period.

  • Gas stations: 5 points per dollar, on up to $1,500 spent at gas stations over the three-month period.

  • Streaming: 10 points per dollar, on up to $1,500 in purchases with select streaming services like Spotify and Netflix during the promotional period.

May 2020: Bonus rewards on groceries

Expired offer: As the COVID-19 pandemic took hold and Americans quarantined at home, Chase added bonus rewards on groceries to a host of travel credit cards that might have otherwise seen little use. Holders of the Chase Sapphire Reserve® would earn 5 points per dollar spent at grocery stores, on up to $1,500 a month in spending, from May 1 to June 30, 2020.

May 2020: ‘Pay Yourself Back’ added

Expired offer: With most travel on hiatus due to the COVID-19 pandemic, Chase gave cardholders new options to redeem points for statement credit against certain purchases. Notably, holders of the Chase Sapphire Reserve® were able to get the same 1.5-cents-per-point value as they received when redeeming points for travel bookings. Eligible categories for the “Pay Yourself Back” program have included grocery stores and gas stations. The program evolved as time went on, with categories and redemption options changing. Find the latest on Pay Yourself Back here.

January 2020: Annual fee increase and new benefits

The annual fee on the Chase Sapphire Reserve® increased from $450 to $550 in January 2020. It was the first time the fee had increased since the card launched in 2016. For new applications, the higher fee took effect on Jan. 12. For existing cardholders, the new fee was charged the first time their account came up for renewal after April 1, 2020. Meanwhile, Chase also added two new perks for holders of the Chase Sapphire Reserve®:

  • Lyft: Chase announced that cardholders would earn 10 points per dollar spent on Lyft rides, a significant boost from the 3 points per dollar that cardholders earn for other travel purchases. (This 10x promotion remains in effect through March 2025.) Cardholders also got a free year of “Lyft Pink,” the rideshare company’s paid membership program, with benefits including discounts on rides, priority pickups and a number of free bike and scooter rentals. (The Lyft Pink offer has expired.)

  • DoorDash: Chase also announced that Chase Sapphire Reserve® cardholders would get a $60 statement credit in 2020 and 2021, for a total of $120, as well as a one-year subscription to DashPass. (This offer has expired.)

March 2019: Luxury hotel partnership

Chase announced that it had partnered with hospitality company SBE to provide benefits to Chase Sapphire Reserve® cardholders who stay at select SBE luxury hotels, including locations in the Bahamas, Istanbul, Miami and Las Vegas. Cardholders who book through SBE’s promotional reservation page using their Chase Sapphire Reserve® can qualify for certain benefits, including: the fourth night free for every four consecutive nights booked; a $30 hotel credit per room, which can be used toward food and beverage; complimentary room upgrades, when available; daily continental breakfast for two people; free Wi-Fi; and late checkout, when available.

August 2018: Perks tweaked (not for the better)

In May 2018, Chase announced three noteworthy changes to some of the signature perks on the Chase Sapphire Reserve®. These changes would take effect Aug. 26 of that year.

  • $300 travel credit: Purchases that qualify for this credit would no longer earn points. In other words, cardholders got an automatic statement credit for the first $300 in travel purchases each year. Once they’d spent $300, they’d earn 3 points per dollar on spending. Previously, you earned 3x points on all travel spending — including those purchases reimbursed via the automatic credit.

  • Price protection: Chase discontinued this perk, which refunded a portion of the purchase price of an item you had bought if you found it advertised for less.

  • Priority Pass: Cardholders who activated and used the card’s airport lounge benefit — a complimentary Priority Pass Select membership — would be limited to two guests per membership card. Previously, the card didn’t set a limit. Cardholders would be charged $27 per additional guest.

November 2017: Digital Priority Pass access

Chase Sapphire Reserve® cardholders who had activated the card’s complimentary Priority Pass Select membership gained the ability to set up a digital membership card on their phone. That reduced the risk that they would be unable to access airport lounges because they had forgotten to bring along their physical membership card.

August 2017: One Sapphire card per person

In a policy change that took effect Aug. 27, 2017, Chase prohibited consumers from holding more than one Sapphire-branded card. Cardholders who already had more than one Sapphire card were allowed to keep them, but the door was shut on new approvals for people already carrying one. So if you have only a Chase Sapphire Reserve®, you won’t be approved for a Chase Sapphire Preferred® Card, and vice-versa.

May 2017: Travel credit calendar redrawn

The $300 travel credit on the Chase Sapphire Reserve® originally operated on a calendar-year basis. The first $300 in travel purchases each calendar year would get reimbursed through statement credits. That created an opportunity for opportunists and optimizers: Apply for the card late in the year, get $300 in credit, wait just a few weeks for the credit to reset, then get another $300 in credit. Chase put a stop to that for applications received from May 21, 2017, onward. For those cardholders, the credit operates on a “cardholder year” basis. If you open your account on, say, Oct. 12, then that’s when the credit resets each year.

May 2017: Bonus points for mortgages

Expired offer: From about May until August 2017, holders of the Chase Sapphire Reserve® who closed a new mortgage with Chase were eligible to receive 100,000 bonus points. This offer was good only for new mortgages — not refinancings or home equity loans. The offer expired Aug. 6, 2017.

January 2017: Huge bonus cut in half

Expired offer: Five months after it debuted with an astounding 100,000-point bonus offer (which was worth $1,500 when redeemed for travel booked through Chase), the Chase Sapphire Reserve® came back to Earth a little. On Jan. 12, 2017, the bonus offer dropped down to 50,000 points for online applications. The 100,000-point offer remained available in person at Chase bank branches for a little longer — until March 11.

August 2016: Sapphire Reserve launches

Expired offer: The launch of Chase’s premium travel credit card was easily the biggest credit card story of 2016. The $300 automatic travel credit made up for a large chunk of the annual fee (initially $450), and the 100,000-point bonus offer at launch made up for the rest of it for years to come. The card proved so popular that Chase temporarily ran out of the special metal used to make the card. Chase CEO Jamie Dimon said in December of that year that the overwhelming interest in the card and the sign-up bonuses paid out would likely cut Chase’s profit by $200 million to $300 million in the fourth quarter of 2016, according to a Bloomberg article.

CHASE SAPPHIRE PREFERRED® CARD OVER THE YEARS

April 2023: 80,000-point bonus

Expired offer: For the second April in a row, the Chase Sapphire Preferred® Card offered an 80,000-point sign-up bonus in April 2023. The offer expired May 25, 2023.

February 2023: New Peloton promotion

From Feb. 1, 2023, through March 31, 2025, holders of the Chase Sapphire Preferred® Card can earn 5 points per dollar spent on eligible Peloton purchases, up to a maximum of 25,000 points. Eligible purchases include equipment or accessories over $250, such as Peloton bikes, treadmills and rowing machines, as well as Peloton Guide, a strength-training program that uses a camera to help you work on your form. Purchases must be made directly through Peloton and paid in full at the time of purchase. (This means that financing equipment with Affirm will not result in extra points.) Apparel and app memberships also aren’t eligible.

April 2022: 80,000-point bonus

Expired offer: The sign-up bonus on the Chase Sapphire Preferred® Card increased to 80,000 points in mid-April 2022, then returned to the previous amount (60,000 points) at the end of May 2022.

August 2021: Major overhaul

On Aug. 16, 2021, the Chase Sapphire Preferred® Card received the most significant upgrade to its ongoing benefits in years. Those included new bonus categories:

  • 5 points per dollar spent on all travel booked through Chase.

  • 3 points per dollar on dining (up from 2 points per dollar previously).

  • 3 points per dollar on select streaming services.

  • 3 points per dollar on online grocery purchases (not including Target, Walmart and wholesale clubs).

The card continued to earn 2 points per dollar on travel not booked through Chase and 1 point per dollar on other purchases. The card also added two significant benefits:

  • A $50 annual credit on hotel stays purchased through Chase.

  • Each account anniversary, cardmembers will earn bonus points equal to 10% of total purchases made the previous year.

Other benefits of the card were largely unchanged, and the annual fee remained $95.

June 2021: 100,000-point bonus sets new mark

Expired offer: The Chase Sapphire Preferred® Card rolled out its most lucrative offer up to that point on June 4, 2021. For a limited time, cardholders who spent $4,000 on purchases in the first three months could get 100,000 bonus points. That was a 20,000-point jump from the previous special offer and 40,000 points higher than the standard offer at the time.

March 2021: Bigger bonus in effect

Expired offers: The sign-up bonus on the Chase Sapphire Preferred® Card got a decent boost in March 2021. That offer: Earn 80,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. That was 20,000 points bigger than the standard bonus at the time. The $50 grocery credit for new cardholders that had been added in January 2021 remained in effect (although it has since expired).

March 2021: Extra points on Peloton

Expired offer: From March 2021 through March 2022, the Chase Sapphire Preferred® Card earned 5 points per $1 spent on each Peloton Bike, Tread and accessory purchase of over $1,800, for a maximum of 25,000 points.

February 2021: 10X on Chase Dining

Expired offers: In a limited-time promotion that began in early 2021, holders of the Chase Sapphire Preferred® Card could earn 10 points per dollar spent on Chase Dining purchases (including takeout and prepaid reservations), on up to $500 in spending. The promotion ended on June 30, 2021. Also, through Sept. 30, 2021, Chase Sapphire Preferred® Card holders could redeem points for Chase Dining purchases at a rate of 1.25 cents per point.

January 2021: $50 grocery credit

Expired offer: As an incentive to apply for a travel credit card at a time when travel was drastically curtailed by the COVID-19 pandemic, the Chase Sapphire Preferred® Card offered new cardholders an automatic $50 statement credit for grocery store purchases. The credit was available for 12 months from account opening, with no activation required or spending threshold to meet.

November 2020: Boosted grocery rewards

Expired offer: Chase added another round of bonus grocery rewards as the COVID-19 pandemic lingered. From Nov. 1, 2020, through April 30, 2021, the Chase Sapphire Preferred® Card earned 2 points per dollar spent at grocery stores, up from the usual 1 point per dollar.

October 2020: Peloton promotion

Expired offer: Starting in October 2020 and running through June 2022, Chase Sapphire Preferred® Card cardholders could earn up to $60 in statement credits on Peloton Digital and All-Access memberships. Digital memberships cost about $13 a month at the time; All-Access memberships, $39 a month.

September 2020: 80,000-point bonus

Expired offer: Chase temporarily sweetened the bonus offer on the Chase Sapphire Preferred® Card starting Sept. 15, 2020. Cardholders who spend $4,000 in the first three months could earn 80,000 bonus points — up from the 60,000-point offer that was standard at the time. The offer ended a few months later.

July 2020: More COVID-era benefits

Expired offers: From July 1 to Sept. 30, 2020, Chase Sapphire Preferred® Card holders could earn bonus rewards on spending that was soaring in the midst of the COVID-19 pandemic:

  • Instacart: 3 points per $1 spent on Instacart delivery and pickup orders, on up to $3,000 in spending during the three-month promotional period.

  • Gas stations: 3 points per dollar, on up to $1,500 spent at gas stations over the three-month period.

  • Streaming: 5 points per dollar, on up to $1,500 in purchases with select streaming services like Spotify and Netflix during the promotional period.

May 2020: Bonus rewards on groceries

Expired offer: As the COVID-19 pandemic took hold and Americans quarantined at home, Chase added bonus rewards on groceries to a host of travel credit cards that might have otherwise seen little use. Holders of the Chase Sapphire Preferred® Card would earn 3 points per dollar spent at grocery stores, on up to $1,500 a month in spending, from May 1 to June 30, 2020.

May 2020: ‘Pay Yourself Back’ added

Expired offer: With most travel on hiatus due to the COVID-19 pandemic, Chase gave cardholders new options to redeem points for statement credit against certain purchases. Notably, holders of the Chase Sapphire Preferred® Card were able to get the same 1.25-cents-per-point value as they received when redeeming points for travel bookings. Eligible categories for the “Pay Yourself Back” program have included grocery stores and gas stations. The program evolved as time went on, with categories and redemption options changing. Find the latest on Pay Yourself Back here.

January 2020: 5X points on Lyft rides

Chase announced that several cards would begin earning extra rewards on Lyft rides. Chase Sapphire Preferred® Card holders would earn 5 points per dollar spent on Lyft rides. The end date for this promotion has been extended, and it is now available through March 2025.

March 2019: Bigger bonus, no fee waiver

Expired offer: On March 19, 2018, Chase temporarily bumped up the sign-up bonus on the Chase Sapphire Preferred® Card, offering 60,000 points if you met the requirement of spending $4,000 in the first three months your account was open. That was 10,000 more points than the standard offer at the time. Keeping in mind that points were worth 1.25 cents when redeemed for travel booked through Chase, that made the bonus worth an extra $125. However, at the same time, Chase announced that the annual fee on the Chase Sapphire Preferred® Card (which was $95 at the time) would no longer be waived in the first year. So for new cardholders, the net effect was a $35 boost in value.

September 2018: Authorized user bonus eliminated

Holders of the Chase Sapphire Preferred® Card used to be able to earn 5,000 points by adding an authorized user and having that person make a qualifying purchase. As of Sept. 11, 2018, that opportunity was eliminated.

May 2018: Biggest bonus offer yet

Expired offer: A limited-time offer that took effect on the Chase Sapphire Preferred® Card in May 2018 dangled the biggest publicly available sign-up bonus the card had seen to that point. The offer was available only on Chase’s site, not through marketplaces like NerdWallet. New cardholders could earn up to 80,000 points, which were doled out in two chunks:

  • 50,000 bonus points after spending $4,000 on purchases within the first three months of account opening. This part was the same as the standard bonus on the card at the time.

  • 30,000 additional bonus points based on total spending within the first year. The amount a cardholder had to spend varied depending on the offer they were presented with on the Chase site. In some cases, it was $20,000; in others, $30,000.

August 2017: One Sapphire card per person

In a policy change that took effect Aug. 27, 2017, Chase prohibited consumers from holding more than one Sapphire-branded card. Cardholders who already had more than one Sapphire card were allowed to keep them, but the door was shut on new approvals for people already carrying one. So if you have only a Chase Sapphire Preferred® Card, you won’t be approved for a Chase Sapphire Reserve®, and vice-versa.

May 2017: Bonus points for mortgages

Expired offer: From about May until August 2017, holders of the Chase Sapphire Preferred® Card who closed a new mortgage with Chase were eligible to receive 100,000 bonus points. This offer was good only for new mortgages — not refinancings or home equity loans. The offer expired Aug. 6, 2017.

Source: nerdwallet.com

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Decent Recovery After Friday’s PCE Numbers Clarify Thursday’s PCE Numbers

By:
Matthew Graham

Fri, Apr 26 2024, 5:21 PM

Decent Recovery After Friday’s PCE Numbers Clarify Thursday’s PCE Numbers

Thursday’s quarterly PCE numbers were much higher than expected.  That meant an increased risk that Friday’s monthly numbers would follow suit.  While today’s PCE was higher than expected in places, the important month-over-month core PCE was in line with expectations (but only because last month was revised higher). In short, inflation is still higher than the Fed wants it and higher than the market expected, but not quite as high as yesterday’s report suggested–at least not for the month of March (Jan and Feb, however, were even higher than the market previously traded). There was a moderately good rally after the data and then a sideways grind in the PM hours with yields remaining higher than they were before all this fun began on Thursday morning.

    • Monthly Core PCE
      • 0.3 vs 0.3 f’cast, 0.3 prev
    • Annual Core PCE
      • 2.8 vs 2.6 f’cast, 2.8 prev

09:00 AM

A hair stronger overnight with additional gains after PCE data.  MBS up 6 ticks (.19) and 10yr down 4.5bps at 4.66.

11:08 AM

Best levels of the day.  MBS up 9 ticks (.28) and 10yr down 4.1bps at 4.662.

01:53 PM

Off the best levels, but very calm trading.  MBS up a quarter point.  10yr down 3.1bps at 4.673

05:16 PM

Out like a sideways little lamb.  MBS up 10 ticks (.31).  10yr down 3.9 bps at 4.665

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

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Trader Joe’s is a national chain of grocery stores with a bit of a cult following. There are dozens of social media accounts dedicated to Trader Joe’s shopping hauls and recipes using only items found at the store. Trader Joe’s even has its own podcast.

If you’ve never shopped at Trader Joe’s before, it can feel overwhelming. Our guide can help you find the best things to buy at Trader Joe’s and ways to save money.

What you should know before shopping at Trader Joe’s

Trader Joe’s features a large selection of organic and specialty items, as well as seasonal products. Its private label items contain no artificial flavors or preservatives, MSG, genetically modified ingredients or harmful food dyes, according to the grocer’s website.

Seeing few recognizable brand labels on the shelf can be disorienting for some shoppers, but for others like Anna Lisa Abarca, author of “Trader Joe’s 5 Items or Less Cookbook,” the store’s smaller scale simplifies decision making. Larger grocery chains “are a little too big for me. There’s too many choices. I get analysis paralysis,” says Abarca, who is not affiliated with Trader Joe’s.

However, the store’s small profile means you might not be able to get everything on your list, and you may need to visit another store. For Abarca, a second stop typically includes buying baby diapers and some home and personal care items.

Before you build a budget

NerdWallet breaks down your spending and shows you ways to save.

What to buy at Trader Joe’s

Now that you know what to expect, you can make your list. Here are some categories to consider to get the most value.

Frozen food

At Trader Joe’s, the “frozen fruits and veggies are always at a really good price point,” says Abarca, who relies on frozen food to make quick and affordable meals. “You can still make a really good, healthy meal that’s cost effective, and it’s not going to go bad.”

Trader Joe’s frozen food section is also full of perennial fan favorites at lower prices than some other grocers. The Mandarin Orange Chicken, for example, costs $4.99, compared with a similar size bag of P.F. Chang’s Orange Chicken for $7.78 at Walmart, as of this writing.

Cheese

If you are a cheese lover, shopping at Trader Joe’s might offer savings. An 8-ounce block of feta cheese is $3.49, compared with $4.96 at Walmart. A 1-pound wedge of brie costs $7.99 at Trader Joe’s, versus about $9.75 at Walmart.

Wine

Trader Joe’s is known for its “Two-Buck Chuck,” the nickname for its $2 bottles of Charles Shaw wine. Although it has exceeded that price point in recent years, people still rely on Trader Joe’s for lower cost wine. Not every store sells wine, but if yours does, Abarca recommends looking for ones with the “reserve” label because they’re of a similar quality to wines offered at a higher price elsewhere.

Beauty products

Trader Joe’s offers a range of beauty and skin care products, and some reviewers say they compete with more luxury brands. The Daily Facial Sunscreen ($8.99 for 1.7 fluid ounces) made headlines for being a cheaper but comparable alternative to Supergoop! Unseen Sunscreen ($38 at Sephora and Amazon). The Vanilla Lip Mask ($5.99) is likened to the popular Laneige Lip Sleeping Mask ($24 at Sephora and Amazon).

Flowers and greeting cards

Flowers are typically the first thing you see when you walk into a Trader Joe’s store. A seasonal bouquet there is $9.99, less than similar arrangements found at Kroger (about $12) and Ralphs (about $18). Pair it with a 99-cent greeting card (compared with drugstore card prices that typically start around $4.99) and you have a thoughtful gift that’s easier on your budget.

Get more financial clarity with NerdWallet

Monitor your credit, track your spending and see all of your finances together in a single place.

How to stretch your dollar at Trader Joe’s

Some of the conventional wisdom about how to save money on groceries doesn’t apply to Trader Joe’s. There are no coupons to apply at the register, there’s no store app, and buying in bulk isn’t an option. But, there are other ways to get more value from Trader Joe’s:

Use online tools for meal planning. Websites like Pinterest can help you find free budget-friendly meal plans, some for which the food costs $50 or less per week, says Traci Williams, a certified financial therapist and clinical psychologist in Atlanta. Searching “Trader Joe’s” or #traderjoesrecipes on social media surfaces tons of posts dedicated to the store’s new products or ways to combine items for fresh meal ideas.

Subscribe to “The Fearless Flyer.” Trader Joe’s free newsletter offers updates on new and seasonal items and recipes. The digital option comes every few weeks while the paper newsletter comes less frequently.

Check your pantry first. Food waste is costly, as is buying duplicates, but there are some solutions. “There are apps that allow you to create meals based on the ingredients you already have,” Williams notes. Cooklist, for one, allows users to scan pantry items, find recipes using those ingredients and create grocery lists.

Leave room for a few impulse purchases. Seasonal items are part of the fun of shopping at Trader Joe’s, but “you can very easily get swept up in all the things you want to try,” Williams says. “Decide ahead of time how many new products you’re willing to pick out. … That way you’re not feeling too restricted by your budget.”

Source: nerdwallet.com

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Many people have student loan debt today… and lots of it. Americans owe a whopping $1.77 trillion (including federal and private loans), and the average balance is over $40,000.

Whether you’ve just received notice of your student debt for the first time or have been paying it down for years, it can be hard to live with a loan balance hanging over you. And it can be challenging to fit student loan payments into your budget. So, how do you live (and thrive) with the payments and the stress of student loan debt?

Keep reading, for starters. This guide will help you understand student loan debt solutions, how student debt impacts your financial situation, and how to budget well when you have student loans. You’ll also learn strategies for avoiding default and maintaining a healthy lifestyle. While it may feel tough right now, student debt doesn’t define you, and you can get through this.

Understanding Student Loan Debt

Your student loans can affect your financial present and your future. Right now, you might find it hard to make regular payments from month to month. Carrying student loan debt over time can also have a significant impact.

The Impact of Student Loans on Your Financial Future

Student loan debt could affect the following areas:

•  Your ability to qualify for a loan, such as a home loan, due to student loans affecting your debt-to-income ratio (DTI) — DTI is the relationship between your debt and income

•  Your ability to save for retirement

•  Your credit score (if you fail to make on-time student loan payments)

•  Your net worth (the value of the assets you own, minus your liabilities)

•  Your marriage or family life, possibly delaying your plans

Different Types of Student Loan Repayment Plans

As you focus on minimizing the impact that student loans have on your finances, it can be wise to consider the different types of student loan repayment plans. For federal student loans, they include fixed repayment plans:

Standard Repayment Plan: The Standard Repayment plan is a federal fixed repayment plan option. In this plan, you repay your loans for up to 10 years, or between 10 and 30 years for consolidation loans. (Consolidation loans mean converting your federal student loans into one payment.)

Graduated Repayment Plan: The Graduated Repayment plan begins with lower payments and increases every two years. You can make payments for up to 10 years, or between 10 to 30 years for consolidation loans.

Extended Repayment Plan: The Extended Repayment plan allows you to repay your loans over an extended period. You make payments over 25 years with this plan, which for many people is a valuable student loan debt solution.

Student loan servicers also offer income-based repayment, including the following plans:

•  Saving on a Valuable Education (SAVE); the SAVE Plan replaces the REPAYE program.

•  Pay as You Earn (PAYE)

•  Income-Based Repayment (IBR)

•  Income-Contingent Repayment (ICR)

Each option has different features, but generally, after you make payments for a certain number of months, the government will forgive the remaining balance.

Consider using the Federal Student Aid Loan Simulator to help you estimate your monthly student loan payments, which can help you find a loan repayment option that meets your needs and goals. You might find a program that feels like less of a financial stretch for you.
💡 Quick Tip: Some student loan refinance lenders offer no fees, saving borrowers money.

Take control of your student loans.
Ditch student loan debt for good.

Create a Budget to Manage Student Loan Debt

Another helpful step when you are dealing with student loan debt is to find a budget that works well for you. There are many different types of budgets out there, and likely more than one could help you create a realistic plan that leaves room for some fun little splurges now and then. Most budgets involve the following steps:

1.   Write down your monthly income. How much do you bring in per month? This doesn’t necessarily just apply to your salary — include alimony, freelancing (like dog-walking or driving a rideshare), dividends, and other income you make.

2.   Write down your monthly expenses. What types of expenses do you have during the month, including your student loan payments? How much are you spending on a car loan, rent, or mortgage payment? What about utilities, insurance, clothing, and entertainment?

3.   Subtract your expenses from your income. This is a good way to calculate whether you lose money through your expenses or whether you have enough income to cover your expenses.

4.   Create a budget. Develop a budget so you know how much you should spend each month, plus the expenses you can’t get around, including food, shelter, and, yes, student loan payments. You might try the popular 50/30/20 budget, which has you allocate 50% on your take-home pay to the needs in life (which includes minimum loan payments); 30% to the wants in life (dining out, gym memberships, travel…the fun stuff); and 20% to saving. When you are repaying student loans, that last 20% may need to be allocated to debt for a while. And that 30% towards wants might have to face a bit of belt-tightening, too.

Strategies for Avoiding Default on Student Loans

If you fail to make payments on student loans, you may default on them. The level of default depends on the type of loan you receive.

Why is defaulting on student loans a big deal? And how does defaulting on student loans affect your financial picture? Here are details:

•  Your entire unpaid balance, with student loan interest, becomes due.

•  You no longer receive deferment or forbearance, and you also lose eligibility for other benefits, including repayment plan options.

•  You cannot receive additional federal student loans.

•  Credit bureaus will hear about the default, which can lower your credit score and take years to repair.

•  You may not be able to purchase or sell assets (such as real estate).

•  The government may withhold your tax refunds or federal benefits.

•  You may suffer from wage garnishment, meaning your employer directs some of your pay to your student loan debt. In addition, you may be liable for attorney and collection fees associated with the process.

Yes, this can be frightening to think about, but remember that there are ways to move forward and avoid these scenarios. Among the solutions to student loan debt can be staying organized, managing what you owe, and keeping track of loan payments.You might use a tracking system such as Google Docs to keep track of your payments, or set up alerts in your phone. There are also apps and websites available to help you keep up-to-date on where you stand with your student loan debt and your payments due.

Let lenders know when you change your address so they don’t lose track of you and you lose track of your loans. You can also consider consolidating your federal student loans so you have just one simple payment to make each month. Keep in mind, though, these two points:

•  When you refinance federal student loans with a private loan, you forfeit access to federal benefits and protections, such as deferment and forbearance.

•  If you refinance for an extended term, you may lower your monthly payment but pay more interest over the life of the loan.

Utilize Resources for Managing Student Loan Debt

Here are some resources that may help you manage your student loan debt better:

•  Ask your student loan servicer for more information about solutions to student debt. They may help you learn more about smart ways to pay off student loans.

•  Tools and apps can help you track and manage student loans, often offering financial literacy and debt management educational resources. Test out a few options for solutions for student loan debt:

◦  DebtPayoffPlanner.com

◦  Chipper.app

◦  Changed at gochanged.com

•  If you are still feeling overwhelmed by your student debt, know that you don’t have to tough it out. Explore talking with a credit counselor who has expertise in the area of student loans. You might contact the National Foundation for Credit Counseling (NFCC) to start. Beware potential scammers who charge money upfront and/or promise to make your debt disappear with no strings attached.

Maintain a Healthy Financial Lifestyle with Student Loan Debt

You may at times feel frustrated or worse with the fact that you have student loans to pay back. Plenty of people do. But remember that this is a phase you are moving through, akin to paying down a mortgage on a house or a car loan.

Spend some time and energy on what you might call financial selfcare. Building a healthy financial lifestyle starts with taking time to establish your money goals. It can make sense to start in the short-term with what you want to accomplish regarding your student loans. For example, you may want to put these solutions to student debt in your sights:

•  Put together a budget

•  Balance student loan payments with other financial goals

•  Build an emergency fund while repaying student loan

•  Strategize to build your credit score with on-time student loan payments

•  Consider ways to make your student loans more manageable, as outlined above.

If you think you might want to pay off your student loans quickly, you can apply any additional funds available and use either the debt snowball (where you pay off the smallest student loan first) or debt avalanche methods (where you pay off the student loan with the highest interest rate first). Once you pay those off, you move to the loan that has the next-largest balance or interest rate, respectively.

You can then move on to longer-term goals, and build your financial literacy as you learn about, say, how to save for a down payment on a house or your retirement. Debt can be stressful, but remember that there is a long road ahead of you. There’s time to eliminate your student loans and put your other plans in motion. In other words, with some time and energy invested, you’ve got this.

The Takeaway

Having student debt can be stressful, but it’s important to remember that living with student loan debt doesn’t have to crush your dreams and plans. Millions of people work to pay off their loans every month. You have options in terms of how you budget your funds, how you repay your loans, and whether or not to look into refinancing, forgiveness, and other ways to deal with your debt.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How do you cope with student loans?

The first step in managing student loan debt is not to ignore it; that could hurt your credit score and force you to pay penalties and fees. Understand your loans — are they federal or private student loans? What is your current payment structure? Learn everything you can, and research the many repayment options you likely have. Also, explore different budgeting methods to take control of your finances. Meet with a reputable nonprofit credit counselor if you feel you’d benefit from further support.

What is the average student debt?

The current average balance per person for student loans is about $40,500.

How do people live on student loans?

Having a comfortable lifestyle while still making student loan payments is possible. However, budgeting well is important, so you know how much you can allocate toward expenses and areas of your life.

Photo credit: iStock/Rockaa

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Source: sofi.com

Apache is functioning normally

Bonds Rattled By Surprisingly Big Beat in Spending Data

By:
Matthew Graham

Thu, Apr 25 2024, 4:01 PM

Bonds Rattled By Surprisingly Big Beat in Spending Data

Today’s big surprise was the PCE price index component of Q1 GDP.  GDP itself was weaker than expected, but even that was explained away by components not related to private domestic consumption.  Focusing on the latter makes Q1 look just as strong as any of the past few quarters.  PCE did the most damage for two reasons.  It was MUCH higher than expected (3.7 vs 3.4) and that implies tomorrow’s PCE data (a monthly version of today’s quarterly report) is also at risk of coming in higher than expected.  This “sneak peek” effect is only a concern once per quarter with the “advance” release of GDP.

    • Jobless Claims
      • 207k vs 214k f’cast, 212k prev
    • Continued Claims
      • 1781k s 1814k f’cast
    • GDP
      • 1.6 vs 2.5 f’cast, 3.4 prev
    • Q1 PCE Prices 
      • 3.7 vs 3.4 f’cast
    • Wholesale Inventories
      • -0.4 v s +0.2 f’cast

08:41 AM

Bonds losing ground quickly after 8:30am data.  MBS down a quarter point.  10yr up almost 5bps at 4.691.

11:07 AM

Weakest levels at 9:30am and pushing back slightly since then.  10yr up 6.4bps at 4.706.  MBS down 10 ticks (.31).

01:28 PM

No reaction to 7yr Treasury auction.  10yr up 6.1bps at 4.703.  MBS down 11 ticks (.34)

03:35 PM

Increasingly flat at the same old levels.  10yr up 6bps at 4.702 and MBS down 10 ticks (.31).

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com