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Mortgage industry executives are on alert amid the global stock-market meltdown caused by fears that the Federal Reserve may have kept the federal funds rate too high for too long, which could bring the U.S. economy into recession.

Tensions in the bond markets have provoked a decline in mortgage rates, which is good news for originators since they could have more demand for loans. Operationally, leaders must decide when to add capacity — if they haven’t already — and how to manage the incoming volume. They will also monitor early payoffs (EPOs), the fees that investors impose whenever a borrower pays off their mortgage, usually within six months of funding.

When considering the servicing business, a sharp decline in rates reduces the fair value of mortgage servicing rights (MSRs), which can impact lender earnings if they haven’t protected their portfolio against these moves. If the answer is no, there is one caveat: The cost of hedging can go up in times of volatility. 

The market turmoil started when the jobs report released on Friday showed the unemployment rate at 4.3% in July, up from 4.1% in the previous month, while total nonfarm payroll jobs rose by 114,000, below analysts’ expectations.

Investors started a sell-off that resulted in the two-year Treasury yield shrinking from 4.12% on Friday to 3.87% at its lowest point on Monday, higher than the low level of 3.66% for the 10-year Treasury. When the curve is inverted, with higher short-term yields, it’s a signal of recession. On Tuesday, bond yields partially recovered, with the two-year at 3.93% and the 10-year at 3.83%. 

Melissa Cohn, regional vice president for William Raveis Mortgage, said the market reacted to weaker-than-expected economic reports that show the U.S. is likely headed into a recession. This means that Fed officials should have cut rates at their July meeting. Geopolitical realities, like tensions in the Middle East, only add to the volatility.  

“If you look at the jobs report, and that trend goes on for another month or two, the answer is yes: the economy will go into recession,” Cohn said. “Will the Fed come and do an emergency rate cut? I don’t know. I think we get a few more days of extreme volatility. We’re going to be very much in a rollercoaster. But we haven’t fallen off the cliff yet.” 

In the mortgage market, this was reflected by mortgage rates dropping to the “high 5s” on Friday for borrowers with strong credit and rebounding to the “low 6s” on Monday, according to Cohn. She added that conforming loans “have taken a much bigger drop than in the jumbo space, where some banks have reduced rates cautiously.” Meanwhile, rates are “slower to come down” in the nonqualified mortgage business. 

Getting ready for lower rates

William Chang, senior managing director and chief investment officer at Pennymac, said that Monday morning saw a “violent move both in the equity and bond markets at the open when there was a flight to safety trade, with investors loading up on Treasurys.”

“Mortgages were underperforming throughout early Monday morning, but the markets seem to have leveled out a little bit in the afternoon,“ mainly because data shows that the services sector expanded in July, Chang added. 

“If you do have a continued move down in the Treasury yield, you are going to see originators bring some capacity back on,“ he said. “It just depends on how quickly that move happens. If you have a big move and rates go down, the refinance bubble market will grow all of a sudden, but if you have a stairstep move in the rates, it’ll be more gradual. People will be able to adjust their capacity accordingly.” 

Chang said that a big move in the market to bring in more refinance business will “set up for potentially better margins” since some companies will be short on capacity. That’s when originators would grant their borrowers longer lock-in periods. Some lenders will wait to add capacity, but others may feel compelled to hire LOs. 

According to industry executives, early payoffs are a side effect of a refinance wave, which has yet to been noticed in the market due to the recent drop in mortgage rates. Another effect of lower rates is the impact on servicing portfolios, with a reduction in the fair value of MSRs. Lenders protect their balance sheets by hedging their books. 

“We want to help preserve our book value and minimize earnings volatility. But we also borrow against our MSRs, so if we’re subjected to a margin call, for example, we do want to have hedged gains that we can utilize to help offset the fair value decline and help us meet those margin calls if necessary,” Chang said. 

Pennymac will look at “basically 125 basis points higher and 125 points lower” when planning its hedging position, Chang said. He added that the company “went into this current period of market volatility having optional coverage,“ but if “we were to buy more options now, it would be very expensive.” 

At United Wholesale Mortgage, volumes increased over the past few days due to a reduction in rates, which the company expects to continue through the end of the year, according to chief strategy officer Alex Elezaj.

“People are locking in loans over the past couple of days in the high 5s because there are millions of consumers out there who have mortgages at high 6s, 7s or 8s,” Elezaj said. “Historically, what you see as rates go down, margins generally expand — but I think it’s hard to tell, especially because it’s only been a couple of days. The dust needs to settle before people get excited one way or another.”

Elezaj said UWM invested in technology, hired people and improved its processes so brokers could close loans within 14 days and remove the need to extend lock-in periods to borrowers. And when the refi wave hits, he said EPOs are a “good problem,” meaning “that’s part of doing business.” 

UWM has taken a different approach from other competitors, selling MSRs to focus on the origination business. According to Elezaj, loan production works like a “natural hedge” to the servicing portfolio.

Source: housingwire.com

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Living frugally doesn’t mean you have to sacrifice delicious meals. With a little creativity and smart planning, you can enjoy tasty, nutritious food while saving money.

This post will share the best food frugal living ideas to help you cut costs without compromising on flavor. From meal planning and bulk buying to using leftovers wisely, these tips will make your grocery budget stretch further and help you build a more frugal, sustainable lifestyle.

Grocery Shop Less Often

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Shopping less often helps you save money. Instead of frequent trips, plan your meals and buy only what you need. This reduces impulse buys and helps you stick to your budget.

To learn more: 20 Simple Ways on How to Save Money on Groceries

Meal Plan Based on Cheap Ingredients

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Save money by planning meals with affordable ingredients. Check your pantry and fridge, then create a plan using what’s already there. This makes budgeting easier and reduces food waste.

To learn more: Meal Planning 101 (plus save money each week)

Always Use a Shopping List

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A shopping list helps you stick to your budget. Write down what you need before going to the store, and avoid impulse buys. This simple habit can save you a lot of money.

Avoid Convenience Foods

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Convenience foods may be easy, but they often lack nutrients and can be pricey. Save money and eat healthier by cooking at home. You’ll avoid added sugars and unnecessary costs.

Learn More: 10 Simple Tips on How to be Frugal with Food

Eat at Home

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Eating at home is cheaper than dining out. Cook your meals to save money and have control over your ingredients. It’s a simple way to manage your budget.

Learn More: Become a Pro at How to Meal Plan for a Month

Make Your Own Coffee

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Make your own coffee at home to save money. Use an electric French press or a reusable cone to brew delicious coffee without spending much.

Make as Many of Your Dinners as Possible at Home

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Cooking dinner at home saves you money and time. It eliminates the need for takeout trips and helps you manage your budget better.

To learn more: 100+ Frugal Meals for When You’re Broke or on a Budget

Maybe Use a Meal Delivery Service

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Meal delivery services can help you eat fresh and organic food without the hassle of shopping. They make healthy eating more accessible and can sometimes be cost-effective.

Learn More: Are Meal Plan Subscriptions Worth the Cost?

Buy Produce from Large Supermarkets

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Large supermarkets often have better prices on produce than stand-alone farmer’s markets. This can help you save money on fresh fruits and vegetables.

Eat Out Smart

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Choose affordable local restaurants and look for specials or happy hours. Eating out smartly helps you enjoy meals without overspending. Find happy hour specials or kids eat free nights!

Use Your Own Coffee Mug

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Bring your own coffee mug to cafes to get discounts on hot drinks. This simple habit saves money and reduces waste.

Learn More: How to Be Frugal Green: 91+ Tips to Save Money and Environment

Pack Lunch for Work or School

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Packing lunch saves money compared to buying it. Prepare meals at home and bring them with you to cut down on daily expenses.

Shop Grocery Ads

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Check weekly grocery ads to plan your shopping. Look for sales and loss leaders to save money on your grocery bill.

Slashing Grocery Bills

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Save on groceries by shopping at discount stores, buying in bulk, and choosing generic brands. These strategies help you slash your grocery bills significantly.

Figure Out Food Habits

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Identify where you spend the most on food and cut back on processed items. Focus on buying healthier, more affordable options to reduce your grocery costs.

To learn more: What is the Best Cheap Food to Buy When Broke?

Cutting Coupons

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Use coupons to save money on groceries. It might take some effort, but the savings from cutting coupons can add up quickly.

Buy Store Brands

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Store brands are often cheaper than name brands. Stores like Costco, Wal-Mart, and Kroger offer quality products at lower prices.

Don’t Shop Hungry

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Shopping while hungry leads to impulse buys. Eat before you shop to avoid unnecessary purchases and stick to your budget.

In-Store Grocery Apps

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Use in-store grocery apps to find the best prices and discover new recipes. These apps make it easier to save money and plan meals.

Learn More: Best Cash Back Apps: How to Earn Money and Save Money

Eat Meatless Meals

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Try eating more vegetarian meals to save money. Meatless meals are often cheaper and can be healthier, providing more fiber and protein.

Don’t Eat Out

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Eating out costs more than cooking at home. Save money by preparing your meals at home instead of dining out.

Use Cash Back Apps

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Cash back apps offer rewards for purchases. They provide discounts and coupons that help you save money on groceries and other items.

Learn More: Best Cash Back Apps: How to Earn Money and Save Money

Use Ibotta Every Time You Shop

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Ibotta rewards you with cash for shopping. Scan barcodes and complete tasks to earn money back on your purchases.

Stop Buying K-Cups

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K-Cups are expensive and wasteful. Switch to a reusable alternative for a cost-effective and eco-friendly way to enjoy your coffee.

Now, Make Sure You Check out these Frugal Home Must Haves

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Incorporating frugal home must-haves into your daily life can lead to significant savings and a more efficient household. These tips and items are designed to help you stretch your budget further while maintaining a comfortable and functional home. Start implementing these strategies today and watch how small changes can make a big difference in your finances.

To learn more: 25 Frugal Home Must Haves To Save Money for Clean and Organized Home

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

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Over the years, there’s been a popular argument that it’s better to buy a home when mortgage rates are high.

The logic is that home prices should be lower if rates are high, and thus you get a property for less.

And the cherry on top is that if/when mortgage rates fall, you can get a lower interest rate too!

When all is said and done, you basically get the best of both worlds. A lower purchase price and low mortgage rate.

But is this scenario actually reality? And do home prices and mortgage rates even have such a relationship?

Buying a Home When Interest Rates Are High

On the surface, buying a home when interest rates are high seems like a pretty bad deal.

After all, your monthly mortgage payment is going to be more expensive if the interest rate is higher.

For example, imagine a $500,000 home purchase with 20% down. That’s a $400,000 loan amount.

  • 7% mortgage rate: $2,661.21
  • 4% mortgage rate: $1,909.66

The difference in PITI payment each month is a whopping $750! That’s not a small amount by any measure.

*You can quickly compare other monthly payments on my mortgage rate charts page.

Anyway, this large difference in payment could make many would-be home buyers ineligible for a mortgage.

Remember, you have to qualify for a home loan, so if your income doesn’t cover that big jump in payment, you could be shut out completely.

For some, the argument to buy when rates are high stops right here. But shouldn’t home prices be cheaper if mortgage rates are higher?

Again, you would think so since expensive items might reduce demand and lead to increased supply.

But if you look at history, there isn’t a strong correlation between home prices and mortgage rates.

In other words, when one rises, the other doesn’t necessarily fall. Or vice versa. So if you’re looking for a bargain, don’t expect one simply because mortgage rates are “high.”

You’ll Get More Payment Relief with a Lower Mortgage Rate

Another issue is that a reduced purchase price doesn’t translate to much of a lower payment.

For example, let’s compare a $500,000 home purchase and $450,000 home purchase at 6% mortgage rates with 20% down.

  • $400,000 @6%: $2,398.20
  • $360,000 @6%: $2,158.38

In this scenario, the monthly payment is just $240 less per month. And that assumes you can get a home for 10% off.

Remember, there’s no inverse relationship historically between mortgage rates and home prices.

So you might not even see such a discount just because mortgage rates are high.

Instead, you could face both a higher mortgage rate and higher home price, as we’ve seen over the past few years.

This also debunks the idea that home prices will go up when interest rates fall. Again, no clear relationship on that front.

They could fall together if the economy tanks and lower rates become less helpful to prospective buyers now facing bigger issues, like unemployment or reduced wages.

Your Home Buying Decision Shouldn’t Be Dictated by Mortgage Rates

Simply put, a home buying decision goes well beyond available mortgage rates.

It doesn’t matter if the 30-year fixed is 3% or 8%, it matters if you can afford the home, if you can make payments consistently for the next decade, and if you love/want/need the home.

If you’re making the purchase based on the mortgage rate, you’re either trying to time the market or you’re potentially just squeaking by.

And you could face affordability issues if property taxes rise, or insurance premiums increase.

You certainly don’t want to bank on the marry the house, date the rate strategy, which hasn’t worked out great the past few years.

Some seem to think they can buy now and perform a rate and term refinance later to lower their payment.

But there’s no guarantee mortgage rates will fall by a large amount, or that you’ll qualify when that time comes.

So instead of focusing on the rate, look at the big picture. Is it the right home for you? Is the price affordable? Do you picture yourself living there for the next 5-10 years or longer?

Does it make sense financially based on your income, assets, and employment? If yes, great, proceed. If not, maybe take a harder look at the situation.

And remember not to make the false assumption that there’s a strong relationship between rates and prices.

Should You Sell Your Home When Rates Are High or Low?

Again, mortgage rates are just one piece of the pie. There are many different factors to consider when buying or selling a property.

One needs to study supply/demand, home price outlooks, and the wider economy. As noted, there isn’t a strong relationship between prices/rates historically.

So if rates are low, you can’t just assume prices are going to skyrocket and that it’ll be a great time to sell your home.

Sure, it could be a good time to sell if demand increases. But what if rates fall because the economy is in the dumps? Fewer prospective buyers, lower prices, right?

It’s not so simple. If you’re selling and buying a replacement property, that’s another consideration.

Will it be easy to find a replacement? At the moment, selling a home is somewhat scary because inventory is so low in most places.

You could find yourself renting until a suitable property comes along. And who knows where rates will be then?

I know several people who sold at the supposed “height of the market” a few years ago to lock in profits.

But since then haven’t been able to find a new home to purchase. In the process, they’ve missed out on years of ownership and they face significantly higher interest rates today.

Long story short, don’t try to time a home purchase or home sale based on mortgage rates.

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

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Flat tires are one of the top reasons motorists call roadside assistance. Even when you know how to change a tire yourself, calling roadside assistance can be a good move. If you’re stuck on a dark or busy road or you have kids in the car, roadside assistance is safe and fast.

Roadside assistance plans are available from your car insurance provider, car rental companies, and other sources. We’ll explain how roadside assistance works, how much it costs for them to change a tire, and what else the service covers.

What Is Roadside Assistance?

Roadside assistance coverage is designed to help motorists experiencing a range of problems, from a dead battery to an overheated engine. You can call a toll-free number or use an app to contact your provider, and a dispatcher will send a qualified technician to your location. Depending on what services you require, your plan may pay all or some of the costs involved in getting your car back on the road.

You may be able to get roadside assistance coverage as part of your auto insurance policy. There also are auto clubs that sell subscription plans, or you may have a plan through your car warranty, credit card, car rental company, or another source.

If you’re one of many people who sit down annually for a personal insurance planning session, discuss this option with your insurer.

Recommended: Car Insurance Terms Explained

What Are the Benefits of Roadside Assistance?

Having a specific point of contact anytime you’re in need is arguably the top benefit of having roadside assistance coverage. This is especially important for first-time drivers. Instead of making multiple calls to find help from a nearby mechanic or garage, you can program your provider’s number into your phone or store it in your glove compartment with other relevant papers. If your provider offers an app, you can take advantage of that convenience.

With one call, you can get useful advice on what to do next. After assessing your situation, the dispatcher will get the appropriate service person out to help you. If your car can’t be fixed onsite, you can get a tow to a repair shop — and that cost may be covered as well.

Some plans offer benefits such as posting bond if you’re charged with a traffic violation or reimbursing you if you’re away from home and have to stay in a hotel overnight. Plans also may provide discounts on car maintenance, car rentals, hotels, and other perks. However, extra benefits may come at an extra cost.

Recommended: How Much Does Insurance Go Up After an Accident?

What Does 24-Hour Roadside Assistance Cover?

All roadside assistance programs are not the same, so it’s important to understand the coverage details and limitations of each plan you may be considering.

A plan may offer free fuel delivery, for example, for drivers who run out of gas — but typically there will be a charge for the gasoline received. Similarly, a plan may offer free lockout assistance, but a driver can expect to be charged if the locksmith has to make a new key. And there is usually a limit on how many miles a car can be towed for free.

Some plans limit the number of service calls you can make in a year. And plans also can have different rules regarding when a driver is or isn’t covered. With some plans, for example, you must be driving your own car when you call for assistance. But some plans will cover you even if you’re the passenger or driver in someone else’s car.

Programs generally include some type of coverage for:

1. Changing a Flat Tire

If you have a usable spare tire, your service provider likely can change a flat or blown tire onsite. If not, they can tow you to someone who can help.

2. Vehicle Towing

If your vehicle can’t be safely repaired or restarted onsite, roadside assistance can tow it to a nearby repair shop.

3. Battery Jump-Start or Replacement

Roadside assistance can give your dead battery a jump-start and, if that doesn’t work, tow you to a repair shop to get a new battery installed.

4. Lockout Assistance

If you’ve locked your keys in your car, roadside assistance can get a locksmith to help. Even if you’ve lost your keys, the service may be able to get you back in your vehicle and back on the road.

5. Winching Service

Your service provider may bring in a winch to extricate your car if it’s stuck in mud, ice, or a ditch.

6. Fuel Delivery

If you run out of gas, your provider can deliver fuel to your location. And if the battery in your electric car needs a charge, you can ask for a tow to the nearest charging station.

7. Quick Fix First-Aid

If you have a minor mechanical problem that can be fixed quickly, it may be possible to do so onsite. If not, the service can tow your car to a nearby repair shop.

Recommended: How to Lower Your Car Insurance

Auto Insurance Companies That Offer Roadside Assistance

Insurance companies that provide roadside assistance typically offer these services as an add-on to an auto policy. If you aren’t sure if you already have roadside protection, contact your agent or log in to your account on your insurer’s website to get information about your coverage. The information may also appear on your insurance card.

If your car is damaged after an accident or in a flood or fire, your auto policy’s collision or comprehensive coverage may apply to your towing costs. But this is not the same as having roadside assistance or “towing and labor” coverage.

Here are a few insurance companies that offer roadside assistance:

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car

Allstate

Allstate offers its 24-hour roadside assistance programs to both policyholders and non-policyholders. Costs and coverage vary based on the plan you choose.

Geico

Geico’s roadside assistance program is available to policyholders as an add-on, and it covers most of the basics other plans offer. The cost is determined by the number of vehicles you want to cover.

Liberty Mutual

To access Liberty Mutual’s 24-hour assistance program, which offers basic roadside services, you must purchase optional towing and labor coverage as an add-on to your policy.

Nationwide

Nationwide offers roadside assistance as an optional add-on for policyholders. The plan covers the same basic services offered by other insurers, but optional features and other program details may vary by state.

Progressive

Emergency roadside assistance for flat tires is available as an optional add-on for Progressive auto insurance policyholders. Progressive’s program covers service basics such as towing, jump-starts, flat tires, and lockout assistance.

State Farm

State Farm’s roadside assistance program is an add-on for policyholders. If you have this coverage and need assistance, State Farm will be billed directly for any basic services you receive, so you may not have to worry about turning in your receipts and waiting to be reimbursed.

How Much Does Roadside Assistance Cost for a Flat Tire?

The cost to get your flat tire fixed may depend on if you have a usable spare tire and other factors. If you have a good spare tire available, the roadside assistance technician may be able to change your tire onsite and get you right back on the road at no charge.

If, for some reason, the tire can’t be changed onsite and your vehicle must be towed to a repair shop, the tow charge will be based on mileage. Many roadside assistance plans will go 15 miles or to the nearest qualified repair shop for free. But if you ask to be towed to a shop that’s farther away, you may have to pay for any extra mileage.

When your car arrives at the repair shop, you can expect to be charged if you need any parts or repairs, or a new tire.

Recommended: How to Get Car Insurance

How Much Does Roadside Assistance Cost Without Insurance

The most inexpensive way to get roadside assistance coverage is usually to have it included as an add-on through your auto insurance policy. Allstate, for example, offers its Roadside Advantage plan membership without an Allstate auto policy starting at $89 for the first year.

If your insurer doesn’t have 24-hour roadside assistance, or if you don’t like the plan your insurer is offering, you may want to check out online insurance companies to see what’s available based on your budget and needs.

How to Change a Flat Tire Yourself

Even if you have roadside assistance coverage, it can be a good idea to know how to fix a flat tire — just in case you forget your phone or can’t get cell service when you run into trouble.

If no one ever taught you how to change a tire, you might want to practice sometime when you’re in a safe place and you’re not in a hurry or wearing nice clothes. There are plenty of YouTube videos on the topic, or you can ask someone who knows their way around a car for a demonstration.

Here are a few tire-changing basics:

1. Drive Prepared

Make sure your spare is in good shape and your jack, lug wrench, and owner’s manual are always in your car. You might want to keep rain gear, work gloves, a flashlight, and wheel wedges in your trunk as well.

2. Safety First

If you suspect your tire is flat, turn on your hazard lights and pull off to the side of the road — as far as you can. Once you’ve stopped, you can put on your parking brake and get out to inspect your car. If you do indeed have a flat, secure your tires with wheel wedges or a couple of large stones.

To change a rear tire, place the wedges behind the front tires. To change a front tire, place the wedges behind the rear tires.

3. Remove the Hubcap/Wheel Cover

Consult your owner’s manual for instructions on removing the hubcap or wheel cover.

4. Loosen the Lug Nuts

Turn the lug nuts counterclockwise with your lug wrench. (Getting them started may require some effort!) Loosen the lug nuts about a quarter- to half-turn, but don’t take them off completely.

5. Put the Jack in Place

Check your owner’s manual for specific placement instructions.

6. Use the Jack to Raise the Vehicle

Carefully raise your car until the flat tire is about 6 inches above the ground.

7. Unscrew the Lug Nuts and Take off the Tire

Remove the lug nuts completely and put them in a safe place (a cup, envelope, hat, purse, etc.). Pull the flat tire toward you until it comes free and place it on the ground on its side.

8. Put on the Spare

Grab the spare tire and place it on the hub by lining up the rim with the lug bolts. Push gently until you can see the lug bolts through the rim.

9. Put the Lug Nuts Back in Place

Put the lug nuts back on the lug bolts and tighten them by hand.

10. Lower the Car and Tighten the Lug Nuts Again (and Again)

Lower the vehicle until the tire is touching the ground, but don’t let it down all the way yet. Tighten the lug nuts with the wrench, as tight as you possibly can, then lower the car all the way to the ground and remove the jack. Tighten each lug nut again with the wrench to be sure they’re all as secure as possible. Replace the hubcap (only if you can and want to), or put it in the trunk with the flat tire.

11. Stow Your Stuff

Congratulate yourself for being prepared, and be sure you put everything back in the trunk before you pull away. If you have a tire gauge, check to see if the spare has plenty of air (temporary spares typically require 60 psi). If the pressure is low, drive with caution to the nearest repair shop.

12. Get Your Damaged Tire Repaired

Spare tires aren’t meant to be driven on for long. Get your car to a tire shop or garage as quickly as possible to buy new tires or get your old tire patched.

Should You File an Insurance Claim?

It can be convenient and less expensive to purchase roadside assistance coverage as an add-on to your car insurance policy. But keep in mind that when you use your insurer’s plan — even for a flat tire — it can count as an insurance claim.

Though occasional use likely won’t cause your insurer to drop you or raise your auto insurance rates, if you make several roadside assistance claims over a short period, it could affect your overall policy. You might want to ask your insurance agent if multiple roadside assistance claims could be a problem. (And get it in writing if the answer is no.)

Do Insurance Policy Deductibles Apply to Roadside Assistance Claims?

Even with roadside assistance coverage, you could end up having to pay some out-of-pocket costs. And if your auto insurance policy has a deductible that applies to roadside assistance claims, you might have to pay that amount, as well. This could be another topic to cover with your insurance agent. (Read more about the different types of deductibles.)

Recommended: How to Lower Car Insurance

The Takeaway

Roadside assistance insurance can cover a range of problems you might have on the road — from fixing a flat tire to unlocking the car to jump-starting the battery.

Insurance companies typically offer roadside assistance as an add-on to an auto policy. Plans may look pretty much the same from one company to the next, but it can be a good idea to look beyond the basics to find the level of coverage and other benefits that are a good fit for your needs and budget.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

What should I do if my tire is flat?

If you know how to change a tire and you can pull off the road to a safe place, you might want to tackle the job yourself. But if you aren’t prepared to DIY, you can call roadside assistance instead. A technician may be able to change your tire onsite and get you back on the road for free.

Will 911 help with a flat tire?

If your tire is flat and you’re in potential danger or blocking traffic, the safest move is to turn on your flashers and call 911 for assistance. The 911 dispatcher will then assess your situation and determine whether to send help. If you don’t feel you’re in danger or that your car has become a hazard to others, you can call your roadside assistance company’s toll-free number for help.

Can you drive a couple of miles on a flat tire?

Driving on a flat tire, even for a short distance, can further damage the tire and possibly the rim. If you can turn on your hazard lights and drive slowly to a safer location, that may be your best option, but you should try to limit the distance you travel.

How much does it cost to put on a spare tire?

If you have roadside assistance coverage, it may not cost you anything to have your flat tire replaced onsite with your spare.

Should you tip roadside assistance for a flat tire?

There’s no obligation to tip any service provider your roadside assistance plan sends to help you. However, just as with any service, if you feel that person went above and beyond, you may want to show your gratitude with a tip.

Photo credit: iStock/okugawa

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Need to free up some room in your room or get rid of appliances that you have replaced? Here are the 9 best places to sell used appliances to make extra money. Instead of throwing out your used appliances when you upgrade to new machines, you can sell them for extra money. These appliances usually…

Need to free up some room in your room or get rid of appliances that you have replaced? Here are the 9 best places to sell used appliances to make extra money.

Instead of throwing out your used appliances when you upgrade to new machines, you can sell them for extra money. These appliances usually have plenty of life left in them still and people will pay to take these from you, saving you the time and hassle to take these appliances to the dump.

In this guide, I’ll go over the best places to sell used appliances, ranging from Facebook Marketplace to local scrap metal companies. Whether it’s a refrigerator, dishwasher, or washer and dryer, you can sell your appliances for cash.

Best Places To Sell Used Appliances

Here’s a list of the best places to sell used appliances for cash.

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1. Facebook Marketplace 

Facebook Marketplace is a great place to sell used appliances online. It has lots of potential buyers (everyone uses Facebook these days!) and makes it easy to list your items.

To get started selling an appliance on Facebook Marketplace, log on to Facebook and navigate to Facebook Marketplace. Click “Create a Listing” and select a category like appliances or household goods. Make sure to add high-quality photos of the appliances from different angles and highlight any dings, dents, or imperfections. You’ll also want to include details such as make, model, age, condition, dimensions, and any unique features the appliance has.

I went on Facebook Marketplace and I saw a lot of appliances for sale, such as microwaves, stoves, dishwashers, refrigerators, ovens, washers, dryers, and more.

2. Local Facebook groups

Local Facebook Groups are a great place to sell used appliances. I’m in a few local Facebook buy-and-sell groups and they’re one of the quickest ways to sell things around my house.

These groups are an easy and quick way to sell used items because you’re targeting a local audience which means you can find a buyer in your town. There’s no shipping hassle, which means faster transactions. You’re also saving money on fees since local Facebook groups do not charge fees to buy and sell items.

To find a local buy/sell Facebook group, go to the Facebook search bar and enter keywords like “[your city] buy and sell”. 

I recently saw someone list all of the used appliances in their kitchen (they were doing a remodel), and they had a LOT of people wanting to buy their items.

3. eBay 

eBay is a great platform to sell used appliances online simply because so many people use this site. This means your items have the reach to people who are looking for what you’re selling. With eBay, you can reach people all over the country and even internationally. 

You also have the option of selling used appliances through auctions, allowing people to bid on your appliance until the auction ends. Or you can choose to sell the used appliance for a fixed price.

eBay has seller protections and policies in place, and can also help resolve disputes with buyers. This helps if you run into any issues with non-payment or fraudulent buyers. 

4. OfferUp 

OfferUp is an app that allows you to buy and sell items locally. This app functions the same as other online platforms, but is specially designed for mobile use. The app is super user-friendly making it easy to browse listings, message others, and arrange transactions. 

The app has millions of users in the United States, so you have a good chance of finding someone to buy your used appliance. Listing an item on OfferUp is fast and easy to do on your phone. The app also has safety features like user ratings, ID checks, and safe meeting spots.

There are no listing fees on OfferUp, however, there is a 12.9% fee for the item’s final price when you accept a buyer’s offer. OfferUp has seller protections in place including secure payment options and fraud prevention measures.

5. Craigslist 

Craigslist is a simple website where you can find jobs, housing, items for sale, and more. Selling a used appliance on Craigslist is a good idea because you can list items in your local area. This makes it easy to find buyers near you.

For items like large appliances, Craigslist is a popular place buyers look to get these items since people prefer to buy locally to avoid shipping costs. Craigslist has zero fees for selling used appliances, which means no listing fees or commissions. 

Listing an item on Craigslist is fast and easy. You can add photos, descriptions, and set a price in just a few minutes. People on Craigslist are always looking for things like refrigerators, washing machines, stoves, and other large appliances. So, you’re likely to find someone who wants to buy what you’re selling.

6. Local used appliance store 

You can also sell your appliance to local appliance stores. These stores usually have an easy selling process, allowing you to quickly sell your appliance without having to list it on an online marketplace and wait for a buyer to pick it up. Used appliance stores also pay immediately for these items, which means you can get cash on the spot.

Used appliance stores know a lot about appliances and can check the condition of yours. They will give you a fair price for it. You also avoid the risks of selling to individual buyers, like scams or not getting paid.

To find a local used appliance store near you, search on Google “used appliance stores near me” and you’ll likely find at least one store that sells used appliances near you. 

7. Pawn shop

Pawn shops are a great place to sell used appliances for cash. They are convenient, give you money right away, and have no listing or selling fees. You get cash on the spot, so you have quick access to your money. Selling at a pawn shop means you don’t have to worry about fees taking away from your profit.

Finding a pawn shop near you is easy, and you probably have a few nearby. To find one, just search “pawn shops near me” online. A list of pawn shops will show up based on how big or small your city is.

8. Garage sale

Selling used appliances at garage sales or yard sales is a great option because it allows for direct sales to local buyers in your community. Garage sales attract shoppers looking for bargains which can mean a quick sale for your used appliance. There’s also the great benefit of being able to declutter and sell all kinds of items around your house you no longer use.

The best time to have a garage sale is usually the weekends, when the weather is good (spring, summer, and fall), and when there are local events going on in your town. For example, my city has tons of garage sales on weekends where there is also a festival going on. This is because the festival brings in over 100,000 people, which means more people to check out your garage sale that otherwise wouldn’t be in the area. 

Recommended reading: 22 Ways To Make Quick Money in One Day

9. Local scrap metal company

Selling used appliances to a local scrap metal recycler is a good idea if your appliance is no longer in working condition. Scrap metal companies may accept appliances in their entirety, but others will want you to separate the metal components. Make sure to contact the scrap metal company to see how they accept used appliances.

You can find local scrap metal companies by searching “scrap metal company near me” on Google. Once you find a scrap metal company you like, contact them and share which appliances you have and their condition. Once you take the appliance to the scrap metal facility, the appliance will be weighed to determine the amount of metal it contains. You’ll be offered a price based on the current market value of the metal and payment is usually either cash, check, or via electronic transfer depending on the company. 

Frequently Asked Questions

Below are answers to common questions about how to sell used appliances.

What kind of used appliances can I sell?

You can sell all kinds of used appliances around your home, including:

  • Refrigerators
  • Washing machine and dryers
  • Stoves and ovens
  • Dishwashers
  • Air conditioners and heaters
  • Water heaters
  • Fans and air purifiers 
  • Vacuums 
  • Microwaves
  • Coffee makers
  • Deep freezers
  • Blenders
  • Toasters

The condition of the used appliances, age, brand, and other features will factor into the resale price. The appliance should be in working condition and reasonably cared for.

How can I make money with old appliances? 

There are many ways you can make money with old appliances, including:

  • Selling them on sites like eBay, Craigslist, Facebook Marketplace, etc.
  • Trade-in programs where certain appliance manufacturers will exchange your old appliance for credit towards a new appliance
  • Appliance resale shops where the business specializes in buying and selling used appliances
  • Selling the old appliance for scrap metal
  • Disassembling and selling individual components like the motor, control panels, and knobs of the appliance online 

How can I sell my washing machine? 

To sell your washing machine, make sure you clean and prepare it before posting pictures or handing it over. Gather any important manuals and take high-quality photos of the machine from different angles. You’ll also want to make sure to take pictures of any imperfections or damage, so buyers can see everything clearly.

Next, decide which selling platform you want to list your appliance. The most popular platforms include Craigslist, Facebook Marketplace, and eBay, and you’ll have to write a descriptive listing that highlights the key features of the appliance and share what kind of condition it is in. You should also share whether the buyer has to pick up the appliance or if you’re willing to deliver it for a fee. 

How can I make money with my old fridge?

You can make money with your old fridge by selling it online (such as on Facebook or Craigslist), placing ads in your local newspapers, or by selling it for scrap metal if it’s no longer in working condition. If your fridge has workable parts, you can sell the individual components online. Common parts that you can sell from your fridge include shelves, drawers, door handles, and compressors. Before selling your old fridge, make sure to thoroughly clean it for the buyer (no one wants to willingly buy an old, dirty, stinky fridge).

Where can I sell used appliances online?

There are many places where you can sell your used appliances online such as Craigslist, Facebook Marketplace, eBay, OfferUp, Letgo, Nextdoor, and appliance-specific websites such as Appliance Exchange and Used Appliances For Sale.

What is the best app to sell used appliances?

The best app to sell used appliances includes Facebook Marketplace and OfferUp. These apps allow you to list items for sale to users in your local area making it convenient to reach a large audience of buyers. These apps are easy to use and allow messaging between buyers and sellers.

What can I do with a used appliance if no one will buy it?

If no one will buy your used appliance, you may want to donate the appliance to a charitable organization (like the Salvation Army), thrift store, or community center that accepts donations of used appliances. You can also recycle the appliance by seeing if your city has an appliance recycling program (many do!). If you decide to throw away the used appliance, make sure to dispose of it properly. Your city likely has specific regulations for throwing away large appliances, so it’s important to follow guidelines to make sure you’re throwing them away properly. 

Best Places To Sell Used Appliances – Summary

I hope you enjoyed this article on the best places to sell used appliances to make extra money.

As you can see there are many places to sell your used appliances ranging from Facebook Marketplace to a used appliance dealer. So whether your appliance is in working condition, needs a repair, or is no longer running, you may be able to find a way to sell the item for cash.

Many people let the appliance company take away the old appliance when they purchase a new one, even if it still works because it’s easy. I understand, appliances are big and heavy. But you could make some extra cash by selling it instead!

So, whether you have a laundry set, a stove, a fridge, or something else, you may want to list it or sell it online to see if you can make any extra money.

Have you ever had to sell used appliances in your home? How much money did you make?

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Source: makingsenseofcents.com

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More than 338,000 Americans moved for retirement in 2023, according to a January study from HireAHelper, a moving-services marketplace. And a quarter of them changed states, the study found.

Relocating in retirement isn’t simple. There are things to ponder, like whether you need new health insurance, how your new state taxes your income, whether a city has good health care and whether the culture is a match.

Kyle Newell, a certified financial planner (CFP) in Winter Garden, Florida, has a client who moved from Tampa, Florida, to Martha’s Vineyard in Massachusetts, where she lived for six months before deciding she wanted to move to Minnesota to be closer to family.

Thankfully, she made money on all the buying and selling, says Newell, who encourages clients to spend time where they plan to move to make sure it’s the best spot for them. It could be that you love the feeling of a certain place, he says, but it’s because you associate it with being on vacation, and living there is different.

Here are some things to think about before you start bubble wrapping your breakables.

1. Income taxes are just the starting point

Clients often ask David Berman, a CFP near Baltimore, about moving somewhere cheaper in retirement.

“It usually starts off very benignly: ‘Oh, you know, Florida doesn’t have an income tax and Maryland’s is eight and a half,’” Berman says. But when they do the math, taking into account things like property taxes, cost of living and even estate taxes, the difference often isn’t as large as clients expect.

Berman recommends talking to a professional before making a state jump, especially if you’re making other transactions before or after, such as the sale of a business. “Some states are more aggressive than others about chasing after their residents who are establishing residency elsewhere,” he says.

This also applies to people buying a second home and trying to declare residency there. If you live in a state like New York or New Jersey and try to establish residency at a second home in Florida, expect an audit, Berman says. “They are definitely looking for people who are fudging it,” he says.

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2. You could get a Medicare do-over

If you have Medicare Advantage and you move out of your plan’s service area, you get a chance to reset your Medicare coverage. You can choose another Medicare Advantage plan or return to Original Medicare and — here’s the kicker — get another shot to sign up for Medigap. You typically have to sign up during Medigap open enrollment, which only lasts six months after you’re 65 and have Medicare Part B. (And Medigap can be tougher to buy later if you have health issues.)

“We call this the nuclear option because this is one of the few ways to get out of a Medicare Advantage plan later in life if a Medicare Advantage plan is no longer working for you,” says Melinda Caughill, co-founder and CEO of 65 Incorporated, which offers Medicare guidance. “You will have a guaranteed issue right to get a Medigap policy.” This means companies must offer you a plan at the same pricing as everyone else, regardless of health issues.

If you have Original Medicare with a Medigap plan, in most cases, that Medigap policy will follow you and take on the policy pricing of your new area. If you have a Medicare Part D prescription drug plan, you will need to choose a new plan if you’ve left the service area. And don’t forget to notify all the companies involved in your health care and/or dental coverage, as well as the Social Security Administration, about your move.

3. Renting first might be smarter

Unless you are super familiar with a location — in all seasons — be cautious about buying a home right away. “We try like crazy to talk our clients into renting for a year,” Berman says.

If you buy a house and have to sell it a year and a half later because you made the wrong choice on a city or neighborhood, the transaction costs will be substantial, Berman says. You’ll also owe capital gains taxes on any profit on the home sale if you’ve lived there for less than two years.

Thomas Cook, a CFP in Knoxville, Tennessee, has retired clients who recently moved to the state but are thinking of leaving. “They ultimately decided that Tennessee was not the right fit for them,” he says. But since they bought their home and prices have climbed since their purchase, they face paying capital gains taxes if they sell too soon.

4. The health care system needs a look

Access to health care should be a variable on your list. Crystal McKeon, a CFP in Houston, has a retired client who moved abroad and was diagnosed with cancer six months later. The country in question is equipped to handle it, but “it could’ve been very bad,” she says.

It’s important to think about not just your primary care doctor but also the general medical facilities available to you. “Otherwise, you could end up traveling pretty far to get good health care,” McKeon says.

5. Culture is important

Retirement happiness is also about the intangibles. Retirees who consider themselves happy spend significant time on interactive and social activities, according to a March report from life insurance company MassMutual. What’s the culture like? Will you be around people you enjoy?

Berman recalls a client who moved from Maryland to Arizona about five years ago — and is moving back due to the weather and the social climate. “One of the things to consider is the political dynamic, because it’s so contentious in today’s world,” he says. “What makes life enjoyable? The people around you, and the environment, and feeling good and safe. It’s definitely an issue.”

Cook recommends that people use social media to help with this. “It could be helpful to join a Facebook group ahead of time to get a feel for the culture,” he says.

Source: nerdwallet.com