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Georgia offers the best of both worlds—vibrant cities, charming small towns, and natural beauty from mountains to coastline, all without the hefty price tag found in some other states. While housing costs in Atlanta can be higher, especially if you’re renting an apartment downtown or looking to buy a home in Buckhead or other trendy neighborhoods, Georgia also has plenty of affordable areas. Cities like Augusta and Macon offer budget-friendly living while still providing access to culture, dining, and entertainment. If you’re considering a move to the South, here’s what you need to know about the cost of living in Georgia.

Housing costs: median home prices and average rent in Georgia

The cost of living in Georgia is appealing to many, particularly when it comes to housing. With the average rent in Georgia at $1,530, it’s a bit more affordable compared to the national average of $1,645. While rent in some areas may be higher, Georgia’s overall housing costs are lower than in many other states, offering potential savings for renters and homeowners alike. This affordability, paired with the variety of housing options across the state, makes moving to Georgia a popular choice for those looking to balance cost with quality of life.

GA housing costs: Average rents and median home sale prices

City in Georgia 1 Bed Avg. Rent 2 Bed Avg. Rent Median Home Sale Price
National Average $1,495 $1,725 $439,000
Alpharetta $1,966 $2,629 $745,000
Athens $1,485 $1,404 $330,000
Atlanta $1,830 $2,354 $394,000
Augusta $1,046 $1,177 $221,000
Brookhaven $1,865 $2,442 $688,000
Columbus $995 $1,195 $225,000
Decatur $1,563 $1,905 $445,000
Douglasville $1,492 $1,483 $336,000
Johns Creek $2,209 $2,624 $696,000
Macon $1,274 $1,348 $203,000
Marietta $1,395 $1,700 $435,000
Roswell $1,454 $1,683 $630,000
Savannah $1,650 $1,690 $325,000
Statesboro $880 $865 $263,000
Valdosta $1,000 $1,200 $225,000

Housing costs in popular Georgia cities 

Augusta

Known for its role as host of the prestigious Masters Tournament, Augusta combines Southern charm with affordability, making it a great option for those seeking a lower cost of living in Georgia. Average rent prices in Augusta are appealingly low, with one-bedroom apartments going for $1,046 and two-bedrooms at $1,177 – well below Georgia’s average rent of $1,530. And if you’re considering homeownership, the median price of homes for sale in Augusta is just $221,000.

Read more: Is Augusta, GA a Good Place to Live? | 7 Awesome Augusta, GA Suburbs

Atlanta

As Georgia’s bustling capital, Atlanta features average rents of $1,830 for a one-bedroom and $2,354 for a two-bedroom, significantly higher than the average rent in Georgia. Atlanta’s rich culture, robust job market, and renowned attractions—such as the World of Coca-Cola and the Georgia Aquarium—make it a magnet for those seeking a dynamic environment with ample opportunities and diverse neighborhoods. While the cost of living in Georgia’s largest city is on the higher end for the state, many find it’s worth the higher price tag.

Read more: 11 Affordable Atlanta Suburbs for Renters in 2024 | 9 Pros and Cons of Living in Atlanta

Discover popular Atlanta neighborhoods: Midtown Neighborhood Guide | Old Fourth Ward Neighborhood Guide | West End Neighborhood Guide

Brookhaven

Brookhaven is one of Georgia’s pricier areas, with average rents reaching $1,865 for a one-bedroom and $2,442 for a two-bedroom. The median home sale price of $688,000 in Brookhaven reflects its desirability, thanks in part to its lush parks and modern amenities. This upscale suburb offers a blend of tranquility and urban convenience, attracting those who appreciate its vibrant dining and shopping scene while being just a short drive from the heart of Atlanta.

Read more: What is Brookhaven, GA Known For?

Columbus 

In Columbus, average rents are incredibly reasonable, with a one-bedroom going for just $995 and a two-bedroom at $1,195. This affordability extends to homebuyers as well, with a median home sale price of $225,000. Known for its rich history and revitalized downtown area, Columbus offers a blend of cultural attractions and outdoor activities, including the scenic Chattahoochee Riverwalk. This charming city provides an excellent quality of life, making it an attractive option for those looking to enjoy a lower cost of living in Georgia without sacrificing access to entertainment and community amenities.

Macon

Macon is a gem for those seeking affordability, with average rents at $1,274 for a one-bedroom and $1,348 for a two-bedroom. The median home sale price of just $203,000 offers an inviting entry point for homebuyers. Known for its rich musical heritage and beautiful historic homes, Macon boasts a vibrant arts scene and a strong sense of community. This makes it an ideal place for those looking for a lower cost of living in Georgia while enjoying a laid-back lifestyle.

Savannah

In Savannah, where cobblestone streets meet coastal charm, average rents are $1,650 for a one-bedroom and $1,690 for a two-bedroom. Although this is slightly above the average rent in Georgia, it’s priced similarly to the national average rent of $1,645. Savannah’s unique blend of history and art, paired with its coastal beauty, makes it a coveted spot in Georgia—perfect for those who appreciate both culture and scenery.

Read more: Hidden Gems in Savannah, GA | 9 Popular Savannah, GA Neighborhoods

Georgia enjoys low utility costs across the state

When budgeting for the cost of living in Georgia, it’s important to factor in utility expenses. Compared to other areas of the U.S., Georgia residents pay less per month for basic utilities, such as electricity, heating, cooling, water, and garbage services. While costs can vary based on the season and location—cities like Atlanta may see higher rates due to increased demand or summer heat may lead to higher air conditioning bills—overall, Georgia’s utility prices tend to be on par with or slightly below the national average. This affordability adds to the state’s appeal, allowing residents to enjoy a comfortable lifestyle without overwhelming monthly expenses.

Monthly energy bills in Georgia compared to the national average

Data from Redfin’s Cost of Living Calculator, September 2024

Grocery costs in Georgia are slightly above the national average

Groceries in Georgia cost about 12% more than the national average. While Georgia has its share of affordable food options, particularly with its agricultural output, the costs can still add up, especially in urban areas like Atlanta where prices may reflect the higher demand and cost of living. In smaller towns, the prices for groceries are often a little lower, making it easier to fill your cart without breaking the bank.

For example, groceries in Macon cost about 3% less than the national average. The average cost of one loaf of bread here is $3.70, compared to the national average cost of $3.97. Meanwhile the cost of groceries in Savannah is 2% more expensive than the national average – so that same loaf of bread will cost you $4.20 in this area of Georgia.

Georgia transportation costs fall just under the national average

Transportation costs in Georgia can significantly affect your budget depending on where you live. Gas prices in the state are often close to or just below the national average, currently around $3.00 per gallon. Commuters in cities like Atlanta, where traffic is heavier and drive times longer, might spend more on gas and car maintenance compared to those in smaller towns like Valdosta or Macon. Car insurance rates also tend to vary across the state, with Atlanta residents likely paying higher premiums due to increased traffic and accident risk. In more rural areas, you’ll find both gas and insurance to be more affordable. Public transportation is primarily limited to larger cities like Atlanta, where options like MARTA can help offset transportation costs.

Taxes in Georgia are more reasonable than most coastal states

Georgia’s relatively low tax rates play a significant role in maintaining an affordable cost of living in the state. The statewide sales tax in Georgia is set at 4%, but some localities add a small local tax that can bring the total combined tax to around 6-8%. On average, the statewide sales tax typically falls between 5%-7%, and 

Let’s take a look at the total combined sales tax in a few popular Georgia cities, from highest to lowest:

Georgia City Combined Sales Tax
Atlanta 8.9%
Augusta 8.0%
Athens 8.0%
Columbus 8.0%
Valdosta 8.0%
Statesboro 7.0%
Savannah 7.0%
Macon 7.0%
Douglasville 7.0%
Marietta 6.0%

Georgia’s income tax is progressive, with rates ranging from 1% to 5.75% based on income levels, providing a structure that can benefit lower- to middle-income earners. These tax policies help keep the overall cost of living in Georgia below the national average, making it easier for residents to manage their daily expenses. In comparison to states with higher taxes, Georgia offers a more budget-friendly environment, allowing for greater financial flexibility.

Healthcare costs in Georgia vary across the state

Georgia may have reasonable housing and utility costs, but the cost of healthcare tends to be on the higher end here. Of course, the overall costs depend on a number of factors and are different for each individual. Factors like insurance premiums, prescription prices, and out-of-pocket expenses can add up, especially for those with specific medical needs. While Medicaid is available for low-income residents, many still face rising costs for medical services. Depending on where you live in Georgia, your insurance coverage, and your medical needs, you may be spending more than the national average on healthcare.

Healthcare costs in Georgia compared to the national average

Dentist Visit Doctor Visit Optometrist Visit Comparison to National Avg.
National Average $115.50 $140.46 $128.65
Augusta $82.88 $92.49 $156.01 -20% less
Athens $123.20 $125.69 $89.40 -2% less
Atlanta $141.15 $129.99 $126.92 +7% more
Columbus $186.20 $179.78 $78.48 +28% more
Douglasville $116 $108.42 $88.66 -10% less
Macon $116.87 $131.32 $113.56 -8% less
Marietta $123.12 $111.52 $97.82 -8% less
Savannah $148.53 $138.87 $92.71 +10% more
Statesboro $159.46 $195.52 $138.39 +27% more
Valdosta $115.59 $118.04 $113.66 -3% less
Data from Redfin’s Cost of Living Calculator, September 2024

How much do I need to earn to live in Georgia?

To live comfortably in Georgia, it’s important to consider how much of your income goes toward housing. A common guideline is to spend no more than 30% of your gross monthly income on rent, leaving room for other expenses. With the average rent in Georgia at $1,530, you would need to earn about $5,100 per month or roughly $61,200 annually to stay within this budget.

However, your specific income requirements can shift based on location. Renting in bustling cities like Atlanta or Columbus will generally demand a higher income, while more affordable areas like Augusta or Savannah may allow you to live comfortably with a bit less. Factoring in housing costs across different regions helps ensure your overall cost of living in Georgia stays balanced and within budget. It can be helpful to use a tool like our rent calculator, which can help you determine the ideal rent based on your income and financial goals.

Methodology

Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.

Source: rent.com

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When it comes to investing, there are certain rules of thumb that investors are often encouraged to follow. One of the most-repeated adages in investing is to try and “buy low, sell high.”

Buying low and selling high simply means purchasing securities at one price, then selling them later at a higher price. This bit of investing wisdom offers a relatively straightforward take on how to realize profits in the market. But figuring out how to buy low and sell high — and make this strategy work — is a bit more complicated. Timing the market is not a perfect science, and understanding that implementing a buy low, sell high strategy is more complicated than it sounds is critical to investor success.

Key Points

•   Buy low, sell high is an investment strategy that involves purchasing securities at a lower price and selling them later at a higher price.

•   Timing the market and implementing this strategy can be challenging, as market movements are unpredictable.

•   Understanding stock market cycles and trends can help determine when to buy low and sell high.

•   Technical indicators and moving averages can assist in identifying pricing trends and points of resistance.

•   Investor biases and herd mentality can impact decision-making, so it’s important to make rational choices based on research and analysis.

What Does It Mean to “Buy Low, Sell High”?

“Buy low, sell high” is an investment philosophy that advocates buying stocks or other securities at one price, and then selling them later when they’ve (hopefully) gained value. This is the opposite of buying high and selling low, which effectively results in investors selling stocks at a loss.

When investors buy low and sell high, they may do so to maximize profits. For example, a day trader may purchase shares of XYZ stock at $10 in the morning, then turn around and sell them for $30 per share in the afternoon if the stock’s price increases. The result is a $20 profit per share, less trading fees or commissions. Of course, a price increase of that magnitude within a single day is highly unlikely.

Likewise, a buy and hold investor may purchase stocks, exchange-traded funds (ETFs), or mutual funds and hold onto them for years or even decades. The payoff comes if they sell those securities later for more than what they paid for them.

Recommended: How to Know When to Sell a Stock

4 Tips on How to Buy Low and Sell High

The following tips may help investors develop a buy low, sell high strategy (or avoid the buy high, sell low trap).

1. Investing with the Business Cycle

Understanding stock market cycles and their correlation to the business cycle can help when determining how to buy low and sell high.

The business cycle is the rise and fall in economic activity that an economy experiences over time. If the business cycle is in an expansion phase and the economy is growing, for instance, then stock prices may be on the upswing as well. On the other hand, if it’s become apparent that economic growth has peaked, that could be a signal for stock price drops to come as an economy slows or enters into a recession.

But like most strategies that aim to buy low and sell high, investing with the business cycle can be challenging.

It’s also important to remember that security prices typically don’t move in a straight line up or down in lockstep with a specific phase of the business cycle. Instead, most securities experience a level of volatility, where prices move up or down (or both) in the short term before reverting to the mean.

2. Look at Stock Pricing Trends

Investors who want to buy low may find it helpful to pay attention to pricing trends or technical indicators. Tracking trends for individual securities, for a particular stock market sector, or the market as a whole can help investors get a sense of what kind of momentum is driving prices.

For instance, an investor wondering how low a stock price can go can look at technical indicator trends to identify significant pricing dips or rises in the stock’s history. This could, potentially, help determine when a stock or security has reached its bottom, opening the door for buying opportunities. Conversely, investors may also use trends to evaluate when a stock has likely reached its high point, indicating that it’s prime time to sell.

3. Use Moving Averages

Moving averages are a commonly used indicator for technical analysis. A moving average represents the average price of a security over a set time period. So to find a simple moving average, for example, an investor would choose a time period to measure. Then they’d add up the stock’s closing price each day for that time period and divide it by the number of days.

The moving average formula can help compare stock pricing and determine points of resistance. In other words, they can tell investors where stock prices have topped out or bottomed out over time. Moving averages can smooth out occasional pricing blips that temporarily push stock prices up or down.

Comparing one moving average to another, such as the 50-day moving average to the 200-day moving average, can also help investors to spot sustainable up or down pricing trends. All this can help when deciding when to buy low or sell high.

4. Beware of Investor Bias

An investor bias is a pattern of behavior that influences reactions to a changing market. For example, noise trading happens when an investor makes a trade without considering the state of the market or timing. The investor may follow pricing trends but make trades without considering whether the time is right to buy or sell.

Investors who give in to biases may find themselves following a herd mentality when it comes to making trades. If news of a pending interest rate hike sparks fear in the markets, investors may start panic selling in droves. This can, in turn, cause stock prices to drop. On the other hand, irrational exuberance for a specific stock or type of security can push prices up, causing an unsustainable market bubble.

Investors who can refrain from being influenced by the crowd stand a better chance of making rational decisions about when to buy or when to sell to either maximize profits or minimize losses.

Pros and Cons of Buy Low, Sell High

A buy low, sell high strategy can work for investors, but while it’s a worthy goal, the implementation can be difficult. Investors who are too focused on timing the stock market can run into difficulties.

Benefits of Buy Low, Sell High

Buying low and selling high can yield these advantages to investors.

•   Potential bargain-buying opportunities. If investor sentiment is causing fear and panic to take over the market and push stock prices down, that could open a door for buy low, sell high investors as they buy the dip. Individuals who ignore market panic could purchase stocks and other securities at a discount, only to benefit later once the market rebounds and prices begin to rise again.

•   Potential for high returns. An investor skilled at spotting trendings and reading the market cycle could reap sizable profits using a buy low, sell high strategy. The wider the gap between a stock’s purchase and sale price, the higher the profit margin.

•   Beat the market. A buy low, sell high approach could also help investors to beat the market if their portfolio performs better than expected. This might be preferable for active traders who forgo a passive or indexing approach to investing.

Disadvantages of Buy Low, Sell High

Attempting to buy low and sell high also holds some risks for investors.

•   Timing the market is imperfect. There’s no way to time the market and which way stock prices will go at any given moment with 100% accuracy. So there’s still some risk for investors who jump the gun on when to buy or sell if stocks have yet to reach their respective lowest or highest points.

•   Being left out of the market. Investors who want to buy low and sell high would not want to buy securities when the market is up. That practice, however, could lead to substantial time out of the market entirely, especially during bull markets.

•   Biases can influence decision-making. Investment biases and herd mentality can wreak havoc in a portfolio if an investor allows it. Instead of buying low and selling at a profit later, investors may find themselves in a buy high, sell low cycle where they lose money on investments.

•   Pricing doesn’t tell the whole story. While tracking stock pricing trends and moving averages can be useful, they don’t offer a complete picture of what drives pricing changes. For that reason, it’s important for investors also to consider other factors, such as consumer sentiment, the possibility of a merger, or geopolitical events, influencing stock prices.

Alternatives to Buy Low, Sell High

Buying low and selling high is not a foolproof way to match or beat the market’s performance. It’s easy to make mistakes and lose money when attempting to time the market unless, of course, you possess a crystal ball or psychic abilities.

There are, however, other ways to invest without trying to time the market. Take dollar-cost averaging, for example. This strategy involves staying invested in the market continuously through its changing cycles. Instead of trying to time when to buy or sell, investors continue making new investments. Over time, the highs and lows in stock pricing tend to average out.

A dividend reinvestment plan (DRIP) is another option. Investors who own dividend-paying stocks may have the opportunity to enroll in a DRIP. Instead of receiving dividend payouts as cash, they’re reinvesting into additional shares of the same stock. Similar to dollar-cost averaging, this approach could make it easier to ride out the ups and downs of the market over time and eliminate the stress of deciding when to buy or sell.

Investing with SoFi

A buy low, sell high investment strategy is fairly simple, in that it involves buying a security at one price, and selling it after, or if, it appreciates. Obviously, there’s no guarantee that any asset will appreciate, so it’s possible investors could lose money – but they could also see positive returns, too.

Further, the strategy can be challenging to implement. Executing a buy low, sell high plan successfully means researching and doing due diligence to understand how the market works.

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 buying low and selling high a good strategy?

Buying low and selling high can generally be a good strategy as it allows you to take advantage of price movements in the market. However, there is no guarantee that this strategy will always be successful, and you may end up losing money if the market conditions are not favorable.

Is it illegal to buy low and sell high?

There is no law against buying low and selling high. Most investors make money by buying a security at a low price and then selling it later at a higher price.

Why do you sell high and buy low?

Many investors sell high and buy low because they want to take advantage of market conditions to realize a positive return. When the market is high, investors may sell an investment they purchased at a lower price to make a profit.

Photo credit: iStock/katleho Seisa

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.

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-Q324-032

Source: sofi.com

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Epic Ski Pass holders get access to several Epic resorts and partner resorts around the world. Think of it like a membership: Buy it once, use it all winter.

Most participating resorts are in the U.S., but there are also a handful in Canada and Australia plus partner resorts in Europe, Japan and the Canadian Rockies (plus one in the U.S.) that offer limited access to certain pass holders. Depending on when you purchase your pass, you may even get summer lift access, too, which could include lift-accessed mountain bike parks or scenic lift rides.

If you’re planning to ski multiple days this season, the cost of a pass could be much cheaper than paying for daily access. But blackout dates and limits to when you can visit might apply. Make sure your favorite local resort is included in the pass before purchasing.

Where are Epic Pass resorts?

Epic Pass mountains and resorts are located all over the world, with the majority in the U.S.

  • Whistler Blackcomb, British Columbia.

  • Andermatt-Sedrun-Disentis, Switzerland.

Epic Pass costs and options

Epic Pass: $1,025

If you want nearly unlimited access to all Epic Pass resorts with no blackout dates during peak times (usually holidays), the classic Epic Pass is the one for you.

You’ll get unlimited access to most U.S., Canadian and international resorts. But Telluride in Colorado, several Canadian destinations and participating Japanese resorts still come with a cap on how many days in the season you can visit. Since it’s the most inclusive pass option, it’s also the most expensive.

Epic Local Pass: $762

Geared toward U.S. residents who may occasionally travel internationally to ski, the Epic Local Pass offers unlimited access to several resorts across the U.S. and limited days at international resorts. Some U.S. slopes don’t allow visits on peak days, though, so check to see if your favorite mountains come with limitations, especially if you’re planning to travel over the holidays.

Epic Day Pass: Starts at $46 per day

This flexible option allows you to buy a day pass (for one day up to seven) for use whenever it’s convenient. You can choose if you want those days to give you access to all Epic resorts or just a selection and if you want the pass to include peak dates (which costs more). Which you choose will depend on when and where you plan to travel to ski or ride.

Purchasing a pass this way scores you lift tickets at a discount up to 65% off. Epic says that works out to between $46 and $135 per day depending on your selections, meaning you could score yourself a pretty decent discount depending on what resorts you plan to visit.

Military passes: Start at $181

Whether you’re active military, retired military, a dependent or a veteran, there are several discounted passes available with unlimited access to a wide selection of resorts.

Area- and resort-specific passes: Start at $334

For those who don’t plan to travel far to ski or snowboard, there are several resort- or region-specific passes available. For example, the Tahoe Local Pass offers unlimited access to a handful of California resorts, plus extra days at a few destinations in Western states.

The Northeast Value Pass gets you access to slopes in New England, Pennsylvania and the Midwest. Several dedicated resort-specific passes are available, too, if you plan to always ski close to home.

How to use an Epic Pass

To use an Epic Pass, download the My Epic app then scan your phone in lieu of a traditional lift ticket. That means you can skip the ticket line and head straight to the lifts at most resorts (except Telluride, which requires reservations).

The app also will keep track of days skied and any date restrictions associated with the pass you chose.

Other benefits of the Epic Pass

In addition to users getting access to often unlimited lift tickets by purchasing a pass before the season starts, the Epic Pass comes with a slew of other benefits at select resorts:

  • 20% off food at many on-resort dining establishments.

  • 20% off resort lodging.

  • 20% off group ski or snowboard lessons.

  • 20% off rental equipment.

  • 50% off a tune-up and one free wax a year.

  • Discounted single-day lift tickets or Buddy Tickets for friends or family (with select passes).

  • Discounts on transportation and experiences at a handful of locations.

  • Pass coverage: You may be able to get a refund or partial refund if you lose your job, a resort closes or you get injured, thus limiting your ability to use your pass.

Is an Epic Pass worth it?

For many skiers, yes. But it depends on several factors — mainly, how often you’ll be able to use the pass and if it’s convenient for when and where you ski or snowboard.

Here’s what to consider before purchasing:

  • Location. Are any of the resorts near you part of the Epic Pass program? If not, and you’re not planning to travel to any that are, then you probably want to pass on this pass. If, however, your favorite hometown slope is included, and you plan to spend more than a few days layering up and strapping in in search of fresh powder or want to travel for a ski vacation, a pass could likely save you money.

  • Frequency. The more days per season you ski or ride, the more the cost of a pass will be worth it. But even if you plan to ski or ride only a few days throughout the season, a day pass could likely save you quite a bit of cash compared to a full-priced lift ticket, so it’s worth considering, especially if you live near an Epic resort.

  • Blackout dates. Keep in mind, too, whether the pass and included resorts allow you to claim lift tickets on peak days like Thanksgiving and Christmas. If you’re hoping to ski during the holidays, this is extra important.

  • Finances: Don’t go into debt for a season-long ski pass. Whether you choose to pay in full or use Epic’s buy now, pay later option, make sure your finances are in good enough shape for large transactions or automatic withdrawals. If they’re not, stick with saving up and paying on just the days you want to ski.

For the best value, make sure you scan the list of passes available and choose one that makes the most sense for you. There’s no need to spend big bucks on a full-blown Epic Pass if a regional or local pass will suit your needs.

How to maximize your rewards

Source: nerdwallet.com

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The Offer

  • Earn $100 cash back on your Chase Travel purchase when you spend $500 or more, including taxes and after any discounts.

The Fine Print

  • Offer expires 10/31/2024.
  • Offer valid one time only.
  • Offer only valid on purchases made directly at chasetravel.com.
  • Offer valid online only.
  • Offer not valid on purchases made using third-party services or a third-party payment account (e.g., buy now pay later).
  • Complete payment for your Chase Travel purchase must be made by 10/31/2024.

Our Verdict

Less complicated version of the Ultimate Rewards offer we posted about yesterday.

Hat tip to reader Fin

Source: doctorofcredit.com

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Well, it’s been over a week since the Fed cut rates and mortgage rates went up.

While this may have come as a surprise to some, seasoned mortgage industry peeps didn’t bat an eye.

It’s pretty common for the Fed to do one thing and mortgage rates to do another.

Without getting too convoluted, the Fed adjusts short-term rates while mortgages are long-term rates, aka the 30-year fixed.

In other words, the cut (and future cuts too) were already priced in to mortgage rates. So much so that they actually increased over the past week in a sort of “sell the news” correction.

Are Mortgage Rates Still Dropping?

Fitch Ratings recently came out and said the 50-basis point Fed rate cut was already priced in to both the 10-year Treasury yield and 30-year fixed mortgage rates.

In addition, they argued that the 10-year yield, which tracks mortgage rates historically, has “less room to decline” because of that.

It basically already came down in anticipation and might be difficult to drop much lower. In fact, we’ve seen it rise since the Fed cut last week.

The 10-year yield was as low as 3.61% and now sits around 3.77%, putting some mild upward pressure on mortgage rates since then.

Rates actually looked destined for the high-5% range before pulling back and inching their way back toward 6.25%.

And with little economic data out this week, there’s been no reason for them to rally.

But next week we get the employment report, which could help rates resume their downward path if it comes in soft.

Maybe Low 5% Mortgage Rates By 2026

If the 10-year yield isn’t expected to get much better from here, mortgage rates will only be able to move lower with better spreads.

Currently, mortgage spreads are wide because of high prepayment risk, volatility, and general uncertainty.

Investors demand a premium to buy mortgage-backed securities (MBS) versus government bonds and recently they’ve asked for a lot more than usual.

Fitch puts the typical spread at about 1.80%, while I’ve long said it’s about 170 basis points. Either way, it’s markedly higher today.

It was nearly 300 bps at its worst in 2022. It has since shrunk to about 240 basis points, meaning it’s about halfway back to normal.

So if bond yields do indeed stay sticky where they’re at, you’ll need some spread normalization to get mortgage rates to move lower.

It’s certainly possible, and as I wrote a couple weeks ago, could result in mortgage rates falling about .50% from current levels.

That would put the 30-year fixed in the high-5% range, and even lower if a borrower is willing to pay discount points.

Mortgage Rates Unlikely to Fall Below 5% Before 2027

The rating agency also proclaimed that mortgage rates are unlikely to fall below the big 5% threshold before the year 2027.

That means at least another two years of “high rates” before mortgage rates are no longer a concern.

Again, that’s because the 10-year yield is expected to stay mostly level and only drop to around 3.50% by the end of 2026.

If the spreads are back to mostly normal by then, you can do the math and come up with a rate of around 5.30% (3.5+1.8).

Of course, this is all just a forecast and many of these forecasts have been wrong in the past. In fact, they’re rarely right. Most were wrong on the way down to 3% and the way up to 8%!

So who is to say they’ll be right this time around either?

I’m a bit more optimistic on mortgage rates because I think there are a lot of Fed rate cuts projected over the next 12 months, which haven’t all been baked in.

Similar to the ride up for mortgage rates, from sub-3% to 8%, the market was caught off-guard. This could happen on the way down too.

I can envision a 10-year yield dropping to the lower 3% range next year, when combined with some spread compression puts the 30-year fixed in the mid-5% range potentially.

And once you factor in points, lots of rate quotes in the high 4% range. For most home buyers, that would be acceptable.

But I’ve long argued rates are no longer the main sticking point. We’ve got home prices that are perhaps too expensive in many markets, along with sticker shock on insurance, taxes, and everyday goods.

Without a little home price easing, it’ll still be a tough sell for those looking to buy into the market, especially if the wider economy deteriorates.

Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Latest posts by Colin Robertson (see all)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Categories

Real Estate

September 27, 2024
by Mark Ferguson

In this post, I’ll dive into the state of the housing market. We’ll analyze trends in interest rates, housing inventory, and inflation, exploring how these factors interact and impact both buyers and sellers. While no one has a crystal ball, I’ll review the latest insights and provide my best estimates of what may happen in the future.

Table of Contents

Video: Is the Housing Market Seeing a Big Slow Down? 2025 Predictions

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A Complex Housing Market

As many of you know, I’ve been involved in real estate for a while—licensed since 2002, investing in rental properties since 2010, and flipping houses since 2003. This experience has given me the chance to observe a variety of markets, but this one stands out as particularly frustrating. Whether you’re trying to buy, sell, or refinance a property, the high interest rates are making things difficult for everyone involved.

If you’re in the industry, whether as an agent, lender, or working with title companies, fewer transactions mean it’s hard to make money. The root of this challenge?

Interest rates, which we’ll explore in greater detail below.

How Much Money Do Real Estate Agents Make Their First Year?

Housing Inventory: The National and Local Picture

Let’s start with inventory. Realtor.com’s data shows an 8% increase in the number of homes actively for sale compared to last year. This is a positive sign as more inventory should help stabilize the market. Additionally, the total number of unsold homes, including those under contract, has grown by 6.5%, and newly listed homes are up by 2.8%. However, these increases are small, and inventory levels remain well below pre-pandemic norms.

Locally, in Colorado, we see similar trends. The number of homes for sale has increased slightly, but it’s still far below the levels we saw before COVID-19. This is a national trend as well—active listings remain way down compared to the pre-crash era of 2006 when 5 to 6 million homes were for sale across the U.S., compared to just 1.15 million today.

The Impact of Interest Rates

Now, let’s talk about interest rates, which are arguably the biggest factor shaping today’s housing market. Historically, high rates haven’t always caused home prices to drop. For example, in the early 1980s, rates soared to 18%, yet home prices continued to rise. While today’s rates (hovering around 7-8%) seem steep compared to recent years, it’s worth noting that there are far fewer homes for sale, which keeps prices stable.

In fact, as Realtor.com’s data shows, median home prices increased by 1.4% year-over-year, despite high interest rates. Houses are also selling faster, with homes spending just 69 days on the market—a four-day improvement over last year.

How High Interest Rates Impact Real Estate Investments

The Role of Inflation and Predictions for 2024

Inflation has played a key role in pushing interest rates higher. If inflation continues to decline, there’s a chance we’ll see rates come down, which could stimulate the market again. However, it’s hard to predict exactly how much rates will fall. A small drop might make the market more competitive, while a significant drop could lead to a resurgence in demand, possibly driving prices higher again.

While we can’t predict the future, one thing is clear: the low number of listings and persistent demand have helped prevent any drastic price drops.

Future Value Inflation Calculator

Let’s zoom in on my local market in Greeley, Colorado. We’ve seen some fluctuations in pricing, but nothing too extreme. For example, the median sales price for November 2023 was $380,000, down 6% from November 2022, when it was $405,250. But if you compare December prices, you see an increase of 4%, with the median price rising from $405,970 in December 2022 to $423,373 in December 2023.

This variability highlights how easy it is to manipulate data to suggest a “crash” by selectively choosing specific months. Real estate markets are local and often volatile, especially when you’re dealing with small data sets. So, while headlines might shout about a 6% price drop, the reality is often more nuanced.

The Bigger Picture

Ultimately, the current housing market remains challenging, but it’s not on the brink of a crash. There are fewer homes for sale, but prices are staying relatively steady, even with high interest rates. Looking ahead, if rates drop, we could see a more competitive market, but it’s unlikely we’ll see significant price declines.

As always, be cautious of fear-mongering headlines that focus on short-term data points to predict disaster. The reality is more complex, and long-term trends suggest a market that remains stable, even in the face of rising rates and fluctuating inventory.

Thanks for reading, and if you have any questions about real estate or want more insights into the market, hit me up in the comments below.

Source: investfourmore.com

Apache is functioning normally

Do you want to learn how to start a book blog? Starting a blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my writing would lead to me being able to earn a full-time income doing what I love. Starting…

Do you want to learn how to start a book blog?

Starting a blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my writing would lead to me being able to earn a full-time income doing what I love.

Starting a book blog can be a great online business for you as well. By starting your own book blog, you can create a space to share book reviews, recommendations, and connect with a community.

The great thing is, starting your own book blog is more attainable than you might think. You don’t need to be a tech expert or have any special skills. With a little guidance from today’s article, you can set up your blog, choose your niche, and start creating content that reflects your unique voice as a reader.

Quick note: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.

My background with blogging

More than 10 years ago, I decided to start my blog, Making Sense of Cents, on a whim. I had come across an article about a blog, and it sparked an idea to share my own experiences. In the beginning, blogging was just something I did for fun.

At the time, I had no clue that blogging could actually bring in money. About six months in, a fellow blogger introduced me to an advertiser, and that was when I earned my first $100.

At that point, I realized how much I loved blogging, and it felt amazing that I could actually make money blogging.

Since then, the blog has grown in ways I never imagined, and I’ve made over $5,000,000 through blogging. It completely changed my life, giving me financial freedom and the chance to work from anywhere.And today, I want to help you start your own successful book blog.

What is a book blog?

A book blog is a website where people share their thoughts about books. Book lovers read books and then write reviews about them on their blogs. They also talk about book-related topics, like author interviews or upcoming releases.

A book blog can focus on a single genre, like mystery or romance, or cover a wide range of genres. You can choose what you want to write about based on your interests and passions.

Some examples of topics that a book blog may cover include:

  • Book reviews – In-depth reviews of the latest books or classic favorites
  • Book lists – Listing book recommendations such as “Best Money Books of the Year” or “Top 10 Mystery Novels”
  • Author interviews – Conversations with authors about their writing process, inspiration, and upcoming projects
  • Book vs. movie comparisons – Reviews of how well a book was adapted into a film or series
  • Reading challenges – Hosting or participating in challenges like “Read 50 Books in a Year”
  • Upcoming releases – Highlighting new or upcoming book releases that readers should look out for
  • Book club discussions – Starting or participating in discussions for book clubs, with questions and analyses on books
  • Book merchandise – Reviewing or sharing book-related merchandise, such as bookshelves, bookmarks, book-themed clothing, posters, stickers, and tote bags

Recommended reading: What Is A Blog, How Do Blogs Make Money, & More

Why should you start a book blog?

Starting a book blog is a great idea for many reasons.

You can share your love for reading and connect with others who enjoy books too. This can lead to new friendships and interesting discussions about your favorite stories.

Other positives of starting a book blog include:

  • Make money – If your book blog becomes popular, there are ways to make money. You can earn through ads, sponsored posts, or affiliate links. Some bloggers even get paid to review books!
  • Creative outlet – Your book blog is a space to express yourself. You can write reviews, share reading challenges, and even post creative content like fan fiction or author interviews.
  • Helps authors – By reviewing and promoting books, you support authors and help them reach a wider audience. Your review might be what convinces someone to pick up a book they otherwise wouldn’t have read.

For me, I am so happy that I started my blog as it has led to so many good things in my life!

How To Start a Book Blog

Below is how to start a book blog and make money, step by step!

1. Choose your book blog niche

The first step in learning how to start a book blog is to decide what you want to write about.

Picking a niche for your book blog will help you stand out and attract readers. It’s important to find a specific area of focus that you are passionate about.

Choosing a niche helps narrow down your audience. Instead of trying to please everyone, you can focus on a specific group of readers who share your interests.

A niche also makes it easier to create content. When you know your focus, ideas for blog posts come naturally.

Plus, specializing in a niche can establish you as an expert. Readers will trust your opinions and keep coming back.

There are many popular niches in book blogging, these include:

  • Young adult fiction
  • Mystery and thriller novels
  • Romance novels
  • Fantasy
  • Science fiction
  • Historical fiction
  • Children’s books
  • Biographies
  • Books that have been turned into movies

And more!

I recommend starting a self-hosted WordPress blog through Bluehost.

2. Start a self-hosted WordPress blog

To start your book blog, I recommend that you use a self-hosted WordPress site for your blogging platform. This means you will own your blog and its content, unlike free platforms.

WordPress is where you write and manage your blog posts. Think of it as your blog’s home base. You can log in, create new posts, add pictures and links, and publish them for your readers. It’s a simple tool that helps you control everything, from writing to how your blog looks.

WordPress is great because you don’t need to know how to code to build your blog or website. It’s easy to use and has lots of options to customize your site.

I use WordPress for my blog, Making Sense of Cents, too!

Here are the steps to start a self-hosted WordPress blog:

  1. Get a web hosting service. A popular choice for new bloggers is Bluehost.
  2. Install WordPress. Most web hosts offer a one-click installation. It’s quick and easy.

You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions if you want more detail and/or want to see screenshots of the exact things you should click on.

Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name!

3. Pick a blog name and buy the domain

Choosing a name for your book blog can feel tough. Don’t let this stop you from starting, though.

Here are some tips for figuring out your book blog name:

  • Keep it simple. Make sure your blog name is easy to spell and remember. Avoid long or complicated words. You want people to find your blog with no trouble.
  • Think about your blog’s content. What will you write about? Who will read it? Write down words that describe your blog’s focus. This brainstorm can help you come up with a good name.
  • If you find it hard to think of names, use a thesaurus. This can give you new ideas and similar words that might work better.
  • To make your blog name stand out, try something catchy. Use humor, rhymes, or alliteration. A memorable name can help attract readers.
  • If you’re still stuck, consider using your own name. It’s easy and many bloggers do it successfully.
  • I highly recommend using “.com” for your domain and not any of the others. This is simply because most people are used to typing in “.com,” so it is easier to remember.

Once you have a blog name, you need to buy the domain. A domain is the web address people will use to find your blog.

By the way, your domain name (or blog name) is free when you sign up for Bluehost! Just click here to get your free domain name.

4. Design your blog layout

After you pay for your blog, the next thing you’ll want to do is design your site. Your site design is what readers see when they read your blog posts, and it is important.

You have three things you can do when it comes to designing your book blog:

  1. Designing your book blog yourself (this can be hard to learn but is definitely doable as there are free WordPress themes).
  2. Paying a web designer for a custom design (this can be expensive, though).
  3. Getting a premade blog layout – this is what I recommend new bloggers do!

My favorite option is getting a premade design.

They are more affordable than a custom design and look great. The premade blog design site that I recommend is Restored 316. Going the premade blog design route saves you a TON of time and lets you move on to the next step of making money blogging, which I highly recommend.

Lastly, make sure your blog is mobile-friendly (the blog designs sold on Restored 316 are usually mobile-friendly!). Many readers will visit your site from their phones, so test your layout on different devices.

Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).

Here’s what my About page looks like.

5. Make important pages for your blog

To make your book blog successful, start by setting up your important pages.

These pages are important because they help your readers navigate your site easily and find the content they’re looking for.

Your key pages should include:

  • Homepage – Your homepage is the first impression visitors get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about and gets them to explore your blog further. This should be welcoming and easy to navigate. Make it clear that your blog focuses on books, and include links to your main sections, such as book reviews, recommendations, or author interviews.
  • About page – This is where you tell your story. Share information about yourself, why you started your book blog, your favorite genres, and what your readers can read on your blog. This helps build a personal connection with your audience.
  • Contact page – Make it easy for readers to reach you by listing your email address. This allows readers, authors, and potential partners to contact you.
  • Privacy Policy page – Explain how you use data on your site. This is important for building trust and complying with legal requirements. For legal templates, you can search for these online or buy a premade privacy policy here.
  • Disclosure page – If you earn money through affiliate links, book promotions, or sponsored posts, let your readers know. This keeps your blog transparent and trustworthy.

6. Start social media accounts for your book blog

Creating social media accounts can help your book blog grow by making it easier for more people to find your book reviews and recommendations.

The social media platforms you can start with include:

  • Facebook
  • Pinterest
  • Instagram
  • Twitter
  • TikTok

You don’t need to be active on all of these platforms, but it’s a good idea to claim your blog name on each so no one else can use your name on them.

Once your social media accounts are set up, add the links to your blog’s homepage so your readers can easily follow you and stay updated on your latest book reviews, recommendations, and bookish content.

7. Create a blog post plan

A blog content plan is a way to organize and plan what you’ll write and publish on your blog. It helps you stay on track and makes sure your posts support your goals, like getting more readers.

A good content plan usually has a list of topics, post titles, when you’ll publish each post, and the purpose of each post (like promoting something or solving a problem for your readers).

It can also include SEO keywords, image ideas, and how you’ll promote the posts.

Overall, it’s like a road map to keep your blog organized and productive.

You don’t need to make your blog content plan complicated. It can be as simple as a list of blog posts you want to write – it’s really up to how organized you want to be. For example, you can just write down the blog post ideas you have, like this:

  1. 10 Must-Read Books for Summer
  2. How To Start a Reading Habit and Stick To It
  3. My Top 5 Favorite Fictional Characters of All Time
  4. Beginner’s Guide To Starting a Book Club
  5. How To Read More Books on a Busy Schedule
  6. 10 Books That Changed My Life
  7. Book Review: [Insert Book Title]
  8. How To Organize Your Bookshelf Like a Pro
  9. Top 5 Audiobooks for Long Road Trips
  10. How To Get Free Books: A Guide to Book Swaps and Libraries
  11. 10 Underrated Books You Need To Read
  12. Books vs. Movies: Which Is Better?

8. Write your first blog post

Your first blog post is important. It’s your chance to introduce yourself and set the tone for your blog.

You can start with a catchy title. Something like, “Welcome to My Book Blog” or “Why I Love Reading” can work well.

Next, tell readers a bit about yourself. Share why you love books and why you started this blog. This helps readers connect with you.

Then, outline what your blog will cover. Will you review books? Share reading tips? Let readers know what to expect.

Wrap up your post with a call to action, such as by encouraging your readers to leave a comment or follow your blog.

9. Find ways to make money with your book blog

You can make money from your book blog by displaying ads, promoting affiliate products, writing book reviews, and selling your own products.

Each method can help you earn extra income (or even a full-time income one day!) while sharing your love for books.

Here’s more information on each way to make money with a book blog:

  • Display advertising – One way to make money is by placing display ads on your blog. You can sign up with ad networks like Google AdSense to place ads on your site. You get paid when visitors see or click on these ads. The more visitors you have, the more you can earn.
  • Affiliate marketing – Another way to earn is through affiliate marketing. You can sign up for programs like Amazon Associates. When you mention a book, you can use a referral link. If someone buys through that link, you get a commission. It’s a good way to earn by recommending books you love. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.
  • Book reviews – Writing book reviews can also bring in money. Authors and publishers may pay you to review their books. You can learn about the best places to get paid to write book reviews at 16 Best Ways To Get Paid To Read Books.
  • Selling products – You can also create and sell your own products. Think about items that book lovers would enjoy. You could sell bookmarks, book-themed mugs, or even your own writing.

Recommended reading: 13 Ways To Get Free Books Online and Sent to You

10. How to grow a book blog

To get readers to your book blog, you need to share it so that people can find it.

Below are some ways to grow your pageviews:

  • Share your book reviews and blog posts on social media platforms like Facebook, Pinterest, and Instagram. For example, I make a pin image for Pinterest for every single one of my blog posts, and it’s a great way to get new readers to my blog.
  • Write guest posts for other book blogs or websites. This can introduce you to new readers who are interested in books.
  • Email marketing is another great option. I recommend that you find ways to persuade your readers to subscribe to your newsletter and send them updates with new book reviews and recommendations. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
  • Respond to comments and emails from your readers. Building a relationship with them can encourage them to share your blog with others. I always respond to emails and comments because I know that I would like it if my comments/emails were replied to as well.
  • Use search engine optimization (SEO) techniques to help your blog appear in search results when people look for book reviews or related book topics.

My favorite guide that goes over many different strategies to grow a blog is 21 Strategies I Used to Increase My Monthly Page Views from 17k to 400k+ in 10 Months. This guide by my friend Lena is full of great information on how to increase your blog’s pageviews. If you are feeling stuck or if you are a new blogger, check out this resource! Lena went from 17,000 monthly pageviews to 400,000 and shares all of her best tips in this resource.

Frequently Asked Questions

Starting a book blog can be fun and rewarding. Below are some common questions people have about becoming a book blogger.

Do book blogs make money?

Yes, book bloggers can make money. You can earn through ads, affiliate links, and sponsored posts. Some bloggers also sell their own books or services like editing and consulting.

How to make a book blog for free?

You can start a book blog for free using platforms like WordPress.com, Blogger, or Wix. These platforms have free templates and hosting. You only need to sign up and start writing. But, if you want to make money with your book blog, I highly recommend that you do not use a free platform – I recommend that you use self-hosted WordPress.

What are some book blog examples?

Examples of book blogs include That Artsy Reader Girl, Pretty Little Memoirs, She Reads Romance Books, The Uncorked Librarian, Traveling Book Junkie, and Everyday Reading.

What’s the best way to use Instagram for sharing my book blog posts?

Instagram is a great place to share your book blog posts. You can do this by sharing pictures of books, reading nooks, or book quotes. Also, using popular hashtags like #Bookstagram to reach a wider audience can help a lot. You can also engage with other book lovers through comments and likes.

What makes a book blog interesting and how do I set mine up that way?

An interesting book blog has a unique voice and perspective. They typically share personal stories or insights about the books they’ve read, and they also engage with their readers by asking questions.

Is it worth starting a book blog?

Yes, it is worth it to start a book blog if you love books and want to share your thoughts on your favorite books. It can be a creative outlet and connect you with a community of fellow book lovers.

How To Start a Book Blog – Summary

I hope you enjoyed this article on how to start a book blog and make money.

I’ve been running this blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.

Starting a book blog is a great way to share your love of reading with others and connect with a community of fellow book lovers. With just a bit of guidance, you can create your own book blog, share reviews, and build a platform that reflects your unique voice as a reader.

Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Over 80,000 people have already taken the course. In this free course, I show you how to create a blog from the technical side to earning your first income and attracting readers.

Do you want to learn how to start a book blog?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

I know, I know, mortgage shopping is the worst. It’s not a fun thing to do.

It’s not like shopping for a new car or a new TV, or even a new house. But it’s a necessary evil unless you’ve got a boatload of cash.

The reason it’s not fun is because there’s lot of math, paperwork, and high-pressure salespeople involved.

Not to mention lots of mortgage lingo that will likely go over your head.

But there’s a silver lining to putting in all that time to shop; you’ll learn a lot about mortgages.

I Get It, Mortgages Aren’t Fun

Look, I’ll be the first person to tell you that mortgages are boring af. I’ve been writing about them for nearly 20 years now.

And before that, I was working on the frontlines with mortgage brokers and loan processors and underwriters.

None of it was fun, and it’s probably even less fun when you’re new to it and simply trying to get through it.

Conversely, you might have a blast shopping for a new car and doing test drives while checking out all the cool features.

The same goes for new clothes, a new TV, computer, etc. They call it retail therapy for a reason.

I’ve never heard anyone say mortgage shopping is therapeutic. In fact, it’s usually the exact opposite.

Typically, people say they’d rather go to the dentist than go through the mortgage process.

Okay, so what’s the point here? Well, as mentioned, you can learn a lot if you do shop around.

Learn About Mortgages as You Shop Your Rate

Most people don’t shop around for their home loan. They either just go with the lender their real estate recommended, or the first quote they come across.

Again, this is because mortgages are not at all fun. And not getting any funner.

Not only does this cost people (since studies prove multiple quotes leads to lower rates), it also means you won’t learn a whole lot.

Again, I understand. Most people are literally just trying to get through it so they can move into their new home. Or enjoy a new low rate on their existing mortgage in the case of a refinance.

But aside from potentially paying more, you’ll also learn less. And when you know less about something, the probability of a bad decision increases.

For example, you might pick the wrong mortgage product for your individual situation.

Or you might be told to pay discount points at closing, only to sell your home or refinance before the breakeven period.

You might even refinance even when it doesn’t make sense to do so. Or buy too much house and become house poor because the numbers were only presented to you one way.

Bringing it full circle, you might also get ripped off because you’ll be a novice and more easily taken advantage of.

If you actually make a few phone calls and speak to multiple loan officers, mortgage brokers, etc., you’ll learn more about the ins and outs of it all.

Each time you talk to someone new you’ll have a little bit more knowledge than the prior call.

And this will help you avoid the typical gotchas and perhaps allow you to come off more confident. That can lead to better mortgage rate negotiating and ultimately better odds of a lower rate.

Here Are Some Mortgage Shopping Tips to Make It Less Awful

If you’re stressed about it your credit scores, keep in mind that while mortgage inquiries can lower your credit score, it’s often not by much.

You also don’t need to let everyone run your credit. And FICO now combines multiple mortgage inquiries into one when made within a 14- to 45-day window.

Those who have heard of those annoying trigger leads can employ a strategy I laid out years ago.

Use a temporary phone number like Google Voice for free. Share that number with all the lenders, brokers, etc.

Then ditch it once you’ve found your match and carry on with your real number. Or just keep using the temporary one!

Even if you use a mortgage broker, take the time to compare mortgage brokers too. Because many of them just send all their business to one lender. So it’s not really shopping around.

In addition, they have varying compensation structures, meaning if you compare more than one you might land on the broker who earns less per loan and saves you money.

For example, one broker might earn 2% on each loan, while another is satisfied with just 1% loan origination fee in exchange for more volume. The broker earning less will likely have the lower rate and closing costs.

Lastly, if you already have average or poor credit, know that mortgage rates can vary even more, so shopping around is even more important!

Simply put, rates are priced in a tighter range for those with really high FICO scores. But even those folks should also gather more than one quote!

Read on: How to shop for a mortgage.

(photo: Alan Levine)

Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Latest posts by Colin Robertson (see all)

Source: thetruthaboutmortgage.com

Apache is functioning normally

I know, I know, mortgage shopping is the worst. It’s not a fun thing to do.

It’s not like shopping for a new car or a new TV, or even a new house. But it’s a necessary evil unless you’ve got a boatload of cash.

The reason it’s not fun is because there’s lot of math, paperwork, and high-pressure salespeople involved.

Not to mention lots of mortgage lingo that will likely go over your head.

But there’s a silver lining to putting in all that time to shop; you’ll learn a lot about mortgages.

I Get It, Mortgages Aren’t Fun

Look, I’ll be the first person to tell you that mortgages are boring af. I’ve been writing about them for nearly 20 years now.

And before that, I was working on the frontlines with mortgage brokers and loan processors and underwriters.

None of it was fun, and it’s probably even less fun when you’re new to it and simply trying to get through it.

Conversely, you might have a blast shopping for a new car and doing test drives while checking out all the cool features.

The same goes for new clothes, a new TV, computer, etc. They call it retail therapy for a reason.

I’ve never heard anyone say mortgage shopping is therapeutic. In fact, it’s usually the exact opposite.

Typically, people say they’d rather go to the dentist than go through the mortgage process.

Okay, so what’s the point here? Well, as mentioned, you can learn a lot if you do shop around.

Learn About Mortgages as You Shop Your Rate

Most people don’t shop around for their home loan. They either just go with the lender their real estate recommended, or the first quote they come across.

Again, this is because mortgages are not at all fun. And not getting any funner.

Not only does this cost people (since studies prove multiple quotes leads to lower rates), it also means you won’t learn a whole lot.

Again, I understand. Most people are literally just trying to get through it so they can move into their new home. Or enjoy a new low rate on their existing mortgage in the case of a refinance.

But aside from potentially paying more, you’ll also learn less. And when you know less about something, the probability of a bad decision increases.

For example, you might pick the wrong mortgage product for your individual situation.

Or you might be told to pay discount points at closing, only to sell your home or refinance before the breakeven period.

You might even refinance even when it doesn’t make sense to do so. Or buy too much house and become house poor because the numbers were only presented to you one way.

Bringing it full circle, you might also get ripped off because you’ll be a novice and more easily taken advantage of.

If you actually make a few phone calls and speak to multiple loan officers, mortgage brokers, etc., you’ll learn more about the ins and outs of it all.

Each time you talk to someone new you’ll have a little bit more knowledge than the prior call.

And this will help you avoid the typical gotchas and perhaps allow you to come off more confident. That can lead to better mortgage rate negotiating and ultimately better odds of a lower rate.

Here Are Some Mortgage Shopping Tips to Make It Less Awful

If you’re stressed about it your credit scores, keep in mind that while mortgage inquiries can lower your credit score, it’s often not by much.

You also don’t need to let everyone run your credit. And FICO now combines multiple mortgage inquiries into one when made within a 14- to 45-day window.

Those who have heard of those annoying trigger leads can employ a strategy I laid out years ago.

Use a temporary phone number like Google Voice for free. Share that number with all the lenders, brokers, etc.

Then ditch it once you’ve found your match and carry on with your real number. Or just keep using the temporary one!

Even if you use a mortgage broker, take the time to compare mortgage brokers too. Because many of them just send all their business to one lender. So it’s not really shopping around.

In addition, they have varying compensation structures, meaning if you compare more than one you might land on the broker who earns less per loan and saves you money.

For example, one broker might earn 2% on each loan, while another is satisfied with just 1% loan origination fee in exchange for more volume. The broker earning less will likely have the lower rate and closing costs.

Lastly, if you already have average or poor credit, know that mortgage rates can vary even more, so shopping around is even more important!

Simply put, rates are priced in a tighter range for those with really high FICO scores. But even those folks should also gather more than one quote!

Read on: How to shop for a mortgage.

(photo: Alan Levine)

Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
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Source: thetruthaboutmortgage.com