Buying

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Buying your first home can be tedious and overwhelming.

While it’s exciting to visit properties and daydream about your dream home, getting over the financing hurdles is another story. But don’t fret.

This comprehensive guide for first-time homebuyers will walk you through the entire process from start to finish.

Benefits of Being a First-Time Homebuyer

As a first-time homebuyer, you may feel a mix of excitement and apprehension. While the home buying process can seem overwhelming, it’s important to recognize the numerous benefits that come with this milestone.

Financial Assistance

First-time homebuyers have access to several financial assistance programs that can make homeownership more affordable. These include down payment assistance programs, low-interest mortgage loans, and grants specifically designed for first-time buyers. Some of these programs are offered by state and local governments, while others are provided by non-profit organizations or private lenders.

Lower Down Payments

Several loan programs offer lower down payment requirements for first-time homebuyers. The FHA loan, for example, requires as little as 3.5% down if your credit score is 580 or higher. The USDA and VA loans even offer zero down payment options in some cases.

Access to Educational Resources

There’s a lot to learn when you’re buying a home for the first time, but fortunately, there are plenty of resources available. Many organizations offer homebuyer education courses that can help you understand the process and make informed decisions. Some lenders and assistance programs require you to take one of these courses, but even if it’s not mandatory, it can still be a valuable resource.

Check Your Credit

Not only will your credit score play a considerable factor in whether you’re approved for a mortgage, but it will also determine your interest rate.

A small increase or decrease in interest rates may not seem like a big deal. However, mortgage loans are for a hefty sum and for an extended period of time. So, a slight increase or decrease equates to thousands of dollars more spent or saved over the life of the loan.

To have the best chance of being approved for a home loan, you should aim for a credit score of at least 620. It’s possible to get approved for select home loan programs with a score as low as 580, but you may have fewer lenders to choose from.

Run the Numbers

It’s tempting for first-time homebuyers to start searching for homes when they know their credit score is up to par. But that’s probably not a good move until you determine how much home you can afford. Yes, the loan officer will give you a figure when you obtain a preapproval, but that amount isn’t always indicative of what you can afford.

Why so? Well, they focus on the debt-to-income (DTI) ratio to get an idea of a loan amount you qualify for. According to the Consumer Financial Protection Bureau, lenders prefer a DTI ratio of 43% or lower with your new mortgage payment. To illustrate:

CURRENT MONTHLY DEBT GROSS INCOME DEBT-TO-INCOME RATIO MAXIMUM MORTGAGE PAYMENT
(USING 43% RECOMMENDATION)
$1,000 $4,000 25% $720
$2,000 $6,000 33% $580
$3,000 $10,000 30% $1,300

Note: Debt-to-Income Ratio = Aggregate Amount of Monthly Debt / Gross Income

The problem is that it fails to consider any expenses unrelated to debt. And if you have hefty insurance, childcare, or even grocery bills, that could be a major concern.

So, your best bet is to look at your current budget and come up with a realistic figure for your new mortgage payment. But don’t forget to keep the recommended DTI ratio in mind.

Explore Mortgage Options

There are several mortgage options on the market for first-time homebuyers, but the most prevalent are:

Conventional Loans

A conventional mortgage is a type of home loan that is not insured or guaranteed by the government. It’s typically offered by a private lender, such as a bank or credit union, and is the most common type of mortgage used to purchase a home.

Conventional mortgages typically require a down payment of at least 3% of the purchase price of the home. Borrowers typically must have a credit score of 620 or higher and a DTI ratio of 36% or lower to qualify. If you have bad credit or are unable to make a large down payment may have a harder time qualifying for a conventional mortgage.

If the loan amount is over $726,200, it becomes a jumbo loan and requires a higher down payment.

FHA Loans

An FHA loan is a type of home loan insured by the Federal Housing Administration (FHA), a government agency within the U.S. Department of Housing and Urban Development (HUD).

FHA loans are designed to make it easier for people to buy homes, especially for first-time homebuyers. They offer lower down payment requirements and more flexible credit guidelines than conventional mortgages.

The minimum credit score required for an FHA loan is 500. If your credit score is between 500 -579, the down payment is 10%. However, if you have a credit score of 580 or above, the down payment is 3.5% of the purchase price.

VA Loans

VA Loans are insured by the Department of Veterans Affairs. They don’t require a down payment and are easier to qualify for than conventional loan products. However, you must be an active-duty member of the armed forces. Surviving spouses also qualify.

USDA Loans

A USDA loan is a type of mortgage offered by the U.S. Department of Agriculture (USDA) to low- and moderate-income borrowers who are looking to buy a home in a rural or suburban area.

See also: 14 First-Time Home Buyer Grants and Programs

Check Out Our Top Picks for 2024:

Best Mortgage Lenders

Most mortgages have a 30 or 15-year term. The latter will cost you more per month, but you’ll save a load of cash on interest.

You can also choose from a fixed or adjustable-rate mortgage (ARM). Fixed-rate mortgages have the same interest rate for the duration of the loan. But ARMs typically start with a lower interest rate for a set amount of time. In fact, they usually span from five to ten years and then adjust depending on the housing market.

Some first-time homebuyers choose ARMs over fixed-rate mortgages because it gives them the option to make a smaller monthly payment in the first few years. It could also mean that you can qualify for a more expensive home. But, be careful not to get too overextended, as erratic market behavior could cause the rate to skyrocket.

Get Preapproved

This is one of the more time-consuming parts of the entire mortgage process for a first-time home buyer. The good news is you don’t have to settle for the first offer that comes your way out of fear that your credit score will take a hit.

“FICO Scores ignore [mortgage] inquiries made in the 30 days prior to scoring,” according to myFICO. So, you won’t be penalized for multiple inquiries.

So, start by researching mortgage lenders that you may be interested in working with. You could also solicit the help of a mortgage broker if you’re strapped for time or want someone to do the legwork for you.

Once you’ve settled on a few lenders, be prepared to provide the following to get preapproved:

  • Financial statements to confirm your assets, including retirement accounts and real estate
  • Recent bank statements
  • Last two pay stubs
  • W-2s from the last two years

They will also pull your credit report and credit scores. If you qualify, the mortgage lender will then provide you with a preapproval letter, valid for a certain time period, that specifies how much you’re eligible for.

Save Up for a Down Payment and Closing Costs

During the preapproval process, the lender should have discussed loan options that could be a good fit for you. They should also have communicated how much you will need for a down payment and closing costs.

While some sellers may be willing to cover closing costs, be prepared to provide earnest money to secure your offer. And you may need a large down payment if you’re taking out a jumbo loan, or don’t qualify for the FHA or VA loan program. If that’s the case, now’s the time to figure out a plan for it.

If the seller is not paying closing costs, expect to pay between 2% and 5% of the sales price. And if a hefty down payment isn’t required, it’s not a bad idea to bring money to the table. Doing so allows you to reduce the Loan-to-Value, which positions you as less risky to the lender.

You may also be able to avoid private mortgage insurance (PMI), which is required until you reach 20% in equity, and possibly qualify for a reduced interest rate.

How to Find the Perfect Home

Go Home Shopping

All squared away with a preapproval and planned to save up the cash you need? Now, it’s time to go home shopping. But before you go, you have to decide if you want to enlist the assistance of a real estate agent.

It’s possible to find a slew of listings within your price range on the web with minimal effort. However, real estate agents have access to a system that could expand your reach. Even better, they could be integral in helping you choose a home that’s a good buy and negotiating the final purchase price.

And the seller’s agent pays their commission, so no need to worry about forking over extra cash. Just be sure to hire a real estate professional that is seasoned and reputable.

Now for the fun part: home shopping. Be careful not to judge a home solely by its appearance. Some other important factors to keep in mind:

  • Taxes: are the property taxes affordable or beyond what you can comfortably afford? (You can roll property taxes and homeowners insurance into an escrow account, but they can easily make or break your budget if the figures are steep).
  • Location: is the home in an area that has historically held its value? Is the location optimal for your commute to and from work?
  • Crime: is it a high crime area or is it relatively safe?
  • Condition: how old is the property? Does it need tons of repairs, or is it close to being move in ready?
  • Floor plan: is the floor plan feasible or ideal for your situation? Would it be appealing to other buyers if you had to sell?
  • School district: how are the schools? Have they received a good rating, or do they struggle to stay afloat?

All of these factors can have an effect on the value of the property over time.

Submit an Offer

You’ve found the perfect home, and you’re ready to sign on the dotted. Before you can finalize the paperwork and move in, there’s one more important step. And that’s making the offer. Even if the sales price seems fair, you may need to make an offer that’s higher or lower to snag the home.

Why so? Well, there could be a slight or drastic bidding war going on, and the only way for you to win is to beat out the competition. Or maybe your real estate agent did some research and determined the asking price was a bit high based on similar properties in the area or the home’s current condition.

Either way, you want to submit an offer that stands out and gets accepted. Your real estate agent will be able to do so on your behalf. But if you don’t have a real estate agent, check out these letters from Trulia to get you started.

The Mortgage Process

Even after your offer is accepted, there’s still more work to do. You’re not done just yet! It’s time to move on to the mortgage process.

Remember that preapproval letter? The lender will make sure all the information you initially provided is accurate through a process called underwriting.

Depending on how long it’s been since you were preapproved, you may be asked to provide updated bank statements or pay stubs.

The faster you submit the requested information, the quicker you’ll get a response. So, don’t drag your feet if you want a closing date that’s sooner than later.

Home Inspections and Appraisals

Before you close on the home, you will need to have a home inspection and appraisal complete.

The home inspection shouldn’t cost you more than $500. It will give you an overall assessment of the property and identify any potential issues.

The appraisal also plays an integral role as it will give you a solid idea of the home’s fair market value. The lender will mandate it, but it’s not a bad idea to get an independent appraisal done to serve as a second opinion.

An inspection and appraisal may help you decide if you should lower your offer or walk away from the property.

Purchase Homeowners Insurance

Your mortgage lender will require that you take out homeowners insurance. So, you want to start shopping around for quotes and select a policy prior to closing.

Close on Your Loan

At last! You’ve reached the finish line, and it’s time to close on your loan. During the closing, expect to:

  • Sign a load of paperwork.
  • Provide any amounts owed for the down payment.
  • Pay closing costs, which could include property tax obligations, premiums for homeowner’s insurance and association dues, title insurance, and any other costs associated with finalizing the loan.
  • Pay discount points or prepaid interest that can reduce the interest rate.

But before you show up at closing, it’s a good idea to speak with the lender, so you’ll know what to expect. You can also request a copy of the final closing document, or Closing Disclosure, to see a detailed breakdown of expenses.

A Few More Tips

Here are a few more suggestions for first time home buyers to help you get approved for your first loan:

  • Refrain from applying for new credit before you close. This could throw off your DTI ratio, lower your credit score, and ultimately prevent you from closing on the loan.
  • State and local programs may be available to assist with down payments. If you’re low on funds, be sure to explore options that may be available to you.
  • Several builders offer buyer incentives, like allowances for upgrades and closing costs. So if you haven’t considered new construction, it may not be such a bad idea to take a look if the price points are within your budget.

Should You Rent, Instead?

Perhaps you’ve done a little legwork, ran the numbers, and are on the fence about home buying. You will typically find that it’s cheaper to make monthly mortgage payments than to pay rent.

You can also take advantage of tax deductions and build up equity as you’re making monthly payments. The equity can be borrowed against for a loan or put some extra money in your pocket should you decide to sell before the repayment period ends.

However, renting a home gives you the flexibility to move to a new location if the home isn’t quite what you expected, don’t like the neighborhood, or want something more affordable.

Furthermore, renting allows you to pass the costs of maintaining the home on to the owner. But as a homeowner, you’ll be responsible for costs associated with maintenance and repairs.

Another reason why some choose to rent over buying is the upfront costs. Most landlords require a security deposit. However, it could be substantially lower than the money you may have to bring to the table for the down payment and closing costs.

Ultimately, you have to decide which is the better fit: investing in an asset that could build wealth or continuing to pay rent until you feel the time is right. There is no right or wrong answer; it just depends on your personal preference and financial situation.

Bottom Line

By taking the time to learn about the home buying process, you’ll be well-prepared and save yourself time and headaches. Best of all, you’ll increase your chances of landing your dream home with the most competitive mortgage product on the market.

Frequently Asked Questions

What is the process for buying a home?

The process for buying a home typically involves the following steps:

  1. Determine your budget and get preapproved for a mortgage.
  2. Find a real estate agent and start looking for homes.
  3. Make an offer on a home and negotiate the terms.
  4. Get a home inspection and address any issues that are found.
  5. Get a mortgage and close on the home.

How much house can I afford?

When determining how much house you can afford, there are several factors to take into account. You should consider your income, expenses, down payment, credit score, and mortgage type before making a decision.

A larger down payment can help you get a lower mortgage rate, and a higher credit score can qualify you for better rates and loan terms. Shopping around for mortgage rates and considering different types of mortgages, such as fixed-rate or adjustable-rate, can also help you find the best deal.

Keep in mind that owning a home involves more than just the monthly payments. You will also need to factor in property taxes, insurance, and maintenance costs. You should create a budget that includes all of these costs and leaves room for unexpected expenses.

How much money do I need for a down payment?

The amount of money you need for a down payment will depend on the type of mortgage you get and the price of the home you are buying.

Some mortgage programs, such as FHA loans, allow for down payments as low as 3.5%, while others may require a higher down payment. It’s a good idea to speak with a mortgage lender to determine how much you will need.

Can I buy a house if I have a low credit score?

It’s possible to buy a house with a low credit score. However, it may be more difficult to get approved for a mortgage, and you may have to pay a higher interest rate. Before applying for a mortgage, work on improving your credit scores, as this will help you qualify for a better loan and save you money over time.

How much will closing costs be?

Closing costs are fees that are paid at the closing of a real estate transaction. These costs can vary widely and may include things like mortgage origination fees, title insurance, and appraisal fees. On average, closing costs can range from 2% to 5% of the purchase price of the home.

What is a mortgage preapproval?

A mortgage preapproval is a letter from a lender that indicates how much you are qualified to borrow for a mortgage. The preapproval letter is based on a review of your financial information, including your credit score, monthly income, and debts. A mortgage preapproval can help you understand how much you can afford to borrow and can make you a more competitive buyer in the real estate market.

What is a mortgage rate?

A mortgage rate is the interest rate that you will pay on your mortgage. The mortgage rate will determine the amount of your monthly payments and the overall cost of your loan. Interest rates can vary depending on the type of mortgage you get and your credit scores.

What is PMI?

PMI, or private mortgage insurance, is insurance that is required by lenders for certain types of mortgages when the borrower has less than a 20% down payment. PMI protects the lender in the event that the borrower defaults on the mortgage. The cost of PMI is typically added to the borrower’s monthly mortgage payment.

Source: crediful.com

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If you are wondering how often you can apply for a credit card, the right pace will vary based on the person, their credit score, and the card issuer’s restrictions. While there’s no single hard number when it comes to that query, once every six months is a good pace.

If you have good credit, a more frequent pace can be fine. If you have poor credit, however, you might want to slow things down. Read on to learn the ins and outs of how often you can apply for a credit card.

How Applying for a Credit Card Affects Your Credit Score

If you want to apply for a new credit card, you may be concerned about whether applying for credit cards hurt credit score. Applying for a credit card can affect your credit score in a few ways, including credit utilization, new credit inquiries, the average age of your accounts, and your credit mix. Here’s a closer look.

New Credit Inquiry

There are two types of credit inquiries: hard versus soft credit inquiries. During a soft inquiry, which is also called a soft pull or a soft credit check, a credit card issuer will check your credit, but it won’t affect your credit score.

However, when you apply for a new credit card, the credit card issuer will probably do a hard credit check. Hard credit inquiries do negatively affect your credit score. Every hard inquiry can drop your credit score by up to five points. However, this impact won’t last forever. Hard inquiries remain on your credit report for up to two years but they can only impact your score for 12 months.

Credit Utilization

Credit utilization is the amount of revolving credit you are currently using divided by the total credit available to you. Credit utilization is usually expressed as a percentage. When you open a new line of credit, like a new credit card, your total credit limit increases, and your credit utilization ratio decreases. This can help build your credit score. Experts recommend keeping your credit utilization below 30%.

Credit utilization can affect your credit score. And if you are approved for a new card, when that credit limit is added to your current credit limit, your total maximum will likely increase, which can lower your utilization percentage.

Average Age of Accounts

The longer the average age of your accounts on your credit report, the higher your credit score will likely be for that category. When you open a new account, it will reduce the average age of your accounts. If you have established credit with multiple accounts that are several years old, a new account opening may not have a significant impact. If all of your accounts are new, adding additional new accounts may have a greater negative impact.

Credit Mix

Lenders like to see that borrowers have a variety of different types of credit. This shows that they can handle different types of payments. The impact of opening a new credit card has on your credit mix will depend on your current credit array. If you already have several credit cards, it may not impact your credit score much. If you don’t have any other existing credit cards, opening up a new credit card could improve your credit mix and therefore help build your credit score.

Recommended: How Many Credit Cards Should I Have?

How Often Should You Apply for a Credit Card

Now, about the question of how often you can apply for a new credit card: While there is no hard and fast rule about how often to apply for a credit card, some experts recommend waiting at least six months between credit card applications.

•   Those with poor credit may need to wait even longer between applications to maximize their chances of getting approved for a new credit card.

•   Those with excellent credit can probably apply for a new card more often, like every three months.

Why You Should Wait Before Applying

Here are some reasons why you should think twice and delay before applying for a new credit card:

•   If you don’t know how to use a credit card responsibly, you may want to consider waiting before applying for a credit card.

Worth noting: If you have bad credit from a maxed out credit card, you may want to work on building your credit score first. Some tips:

•   If your credit utilization ratio is high because you don’t have a high credit limit, you could try implementing the 15/3 credit card payment method. The 15/3 credit card payment method is when you make two payments each statement period instead of one. You pay half of your credit card statement balance 15 days before the due date on your statement, and then make another payment three days before the due date. This additional payment can help lower your credit utilization ratio throughout the month, which can also help improve your credit score.

•   Other reasons you may want to wait before applying for a credit card include if you’re buying or refinancing a home currently, since applying for a new credit card can result in a higher mortgage interest rate or potentially being declined from the mortgage altogether.

•   You should also evaluate the credit card benefits and welcome offer to make sure it is the right fit for you and the best offer that you can get. Credit card sign-up bonuses fluctuate throughout the year. Before applying for a credit card, you should do some research to see what the highest offer has been. If the current offer is significantly lower, consider waiting to apply for that card.

How Many Credit Cards Can You Apply for at One Time

Technically, you can apply for as many credit cards at once as you want. However, you likely won’t get approved for all of them. And you could trigger a slew of hard credit inquiries. So putting in a load of applications likely won’t be worth the negative impact on your credit score.

Credit Card Issuer Restrictions

How many credit cards you can apply for at one time will vary based on the credit card issuer. Each card issuer has its own rules and restrictions about applications. American Express, Bank of America, Capital One, Chase, Citibank, Discover, U.S. Bank and Wells Fargo all have their own issuer restrictions regarding applications, cards and welcome offers.

Credit Card Tips

Once you have been approved for an additional credit card, you need to know how to manage multiple credit cards. Try these strategies to stay in good financial health:

•   Understand your obligations. There are several credit card rules to understand so that you maintain your credit score, while taking advantage of the credit card benefits. One of the more important ones is to always pay at least the minimum amount due on time.

•   When you are issued your credit card, it will have an expiration date. The credit card expiration date is usually three to five years after being issued. You can find the expiration date on the credit card itself. After the card expires, the issuer will usually give you a new card, as long as your account is still active.

•   However, what happens if you don’t use your credit card is that the issuer may close your account. So make sure you are using your credit card.

•   Also, make sure you are using your credit card responsibly. That means keeping an eye on your credit limit, your credit utilization ratio, and when your payments are due.

Recommended: What Is a Credit Card Expiration Date?

The Takeaway

How often you should apply for a credit card will depend on a variety of factors, like your credit history, the card issuer, the current offers available, and more. It can be wise to not apply for new credit cards more often than every six months. And once you have a new credit card, make sure to use it responsibly.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How long should I wait to apply for another credit card after being approved?

Some financial experts recommend waiting at least six months between credit card applications. However, there is no hard and fast rule about how often to apply for a credit card. It will vary depending on your credit score and the restrictions from the card issuer.

Do I have to wait six months to apply for another credit card?

Waiting six months between credit card applications is not a defined requirement. If you have poor credit, you may need to wait longer than six months between applications to maximize your chances of getting approved for a new credit card. If you have excellent credit, you can probably apply for a new card more often, like every three months.

How often can I apply for a credit card without hurting my credit?

Each credit card application results in a hard inquiry, which hurts your credit score temporarily. Keep that fact in mind as you consider applying.

Photo credit: iStock/Eva-Katalin

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

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Editor’s Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

Forex options, also called currency options, are contracts that give the purchaser the option to buy foreign currency from the exchange at a specific price on or before a specific date.

Like stock options, there are two different types of forex options: A call option gives the holder the right to buy currency at a specified price (the strike price), while the holder of a put option has the right to sell a currency at a predetermined price.

Those investing in foreign countries may use forex options as a way to hedge against unfavorable fluctuations of foreign currencies or to speculate on volatility.

What Is Forex Options Trading?

Like options in the stock market, currency options are a derivative instrument. In this case, the underlying asset is a foreign currency pair. Currencies (also known as FX or forex) are generally traded in pairs. One major currency pair, for example, is EUR/USD, which indicates the value of the euro against the U.S. dollar.

Foreign currency options are a way to invest in foreign currency markets without trading in the actual currencies themselves.
💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

How Forex Options Trading Works

If you understand how to trade options in the stock market, currency options work in a similar manner. Buying a currency call option gives you the right (but not the obligation) to purchase a particular foreign currency at a specified price (the strike price) at any time before its expiration date.

A currency put option works in a similar way, except that the buyer has the right (but not the obligation) to sell a currency at a given price before the expiration of the option.

You can also purchase combinations of both put and call options at different strike prices and/or different expiration dates, depending on how you think the market will move. You can always close out your position before the options expire. Owning options gives you exposure to movements in the exchange rate without having to actually purchase the currency.

Types of Forex Options Available

The most basic currency options come in two types: so-called ‘vanilla’ calls and puts.

Vanilla Call and Put Options

A forex call option gives the holder the right (but not the obligation) to purchase a given currency at a specific price, any time on or before the option’s expiration date. You would generally buy a forex call option if you have a bullish outlook on a particular currency.

A forex put option works in the opposite manner. If you hold a put option, you have the right (but not the obligation) to sell a specific currency at a particular price before the options expire.

Purchasing a put option is something that you would do if you have a bearish outlook on the underlying currency.

SPOT Options

Another type of currency option is single payment options trading (SPOT). With a SPOT option, an investor and broker can set more detailed conditions for the option to pay out. These conditions are either met, or not. Because there are only two possible outcomes upon the option expiring, these options are sometimes called binary currency options.

Example of Trading Forex Options

If an investor expects the value of a currency will fall, they may choose to buy a put option to earn the right (but not the obligation) to sell the currency in question at a predetermined price during a set timeframe.

For example, if a U.S. investor expects the euro will fall in value against the U.S. dollar, they may buy a EUR/USD put option. Essentially, the option can help the option holder protect themselves against depreciation of a given currency.
💡 Quick Tip: Options can be a cost-efficient way to place certain trades, because you typically purchase options contracts, not the underlying security. That said, options trading can be risky, and best done by those who are not entirely new to investing.

Benefits and Risks of Forex Options Trading

Here are some of the pros and cons of trading forex options:

Benefits

Using forex options can be a cost effective way to potentially help hedge an investors’ portfolio against currency risk. For example, an investor who owns foreign stocks may consider investing in local currencies via options to reduce currency risk. Investors may want to weigh the option’s premium, as well as risk against possible outcomes.

Risks

Like any investment, trading currency options comes with a set of risks. Options are complex, high-risk instruments that require investors to understand how they work.

Currency values may fluctuate based on macroeconomic events, economic data, or political events. This means that FX options investors must bear in mind the risk profile of particular countries, as well as that of their own portfolio. Because currencies react to interest rates, trading currency options also bears interest rate risk. Traders who use leverage to potentially earn higher profits with less money, also risk losing more than their initial investment.

Benefits Risks
Using forex options is a low-cost way to potentially hedge against adverse currency moves. The price of currencies can be extremely volatile.
Using leverage, there is the potential for higher profits with less money invested. Political risk as currency markets react to local governments’ policies.
You have many different ways to trade depending on your market outlook. Options may be less liquid than the currencies themselves.

The Takeaway

Trading forex options can be a way for you to invest in the foreign currency market without actually owning the currency itself. You can use call options, put options, or a combination based on how you think the market will perform.

Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.

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

What are some types of forex options?

The two kinds of forex options are call options and put options. A call option allows the holder to buy the specified currency at a given strike price, while a put option allows the holder to sell a given currency at a particular price. There are also SPOT, or binary currency options.

What is a forex call option?

A forex call option allows the holder to buy a specific currency at a specific price, on or before the expiration date.

How are forex options settled?

If you hold a currency option that is in the money at expiration, there are two possibilities for settlement. You can settle the option with cash or by a physical delivery of currency. If you are short an in-the-money option at expiration, you may need to deposit cash into your account to settle your account.

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Source: sofi.com

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Deciding on a streaming service can be a difficult choice when there are so many companies and plans to choose from. Many households subscribe to popular platforms like Netflix and Prime Video, but there are a multitude of other options including Sling TV, which had about 2 million subscribers as of the fourth quarter of 2023.

Sling TV is a streaming platform owned by Dish Network that has live TV, including sports, and on-demand shows and movies. There are no contracts and you can cancel at any time.

You can stream for free or pay for upgraded services with a subscription. Read on to find out the features each plan offers.

How much is Sling Freestream per month?

As the name implies, Sling Freestream is free. You don’t even need an account to access it, though creating one will give you a more personalized experience like being able to create a favorite watch list.

While shows include ads, Freestream has over 500 live TV channels and a library of 40,000 on-demand shows and movies.

If you’re looking for a no-cost solution for streaming and you don’t mind watching ads, Freestream could be a good choice. If you want the most current live program selections, Sling TV’s paid subscriptions provide that.

How much is Sling TV per month?

Sling TV has several paid subscriptions for live TV: Sling Orange, Sling Blue and Sling Orange + Blue. All of the plans are ad-supported, but include 50 hours of DVR storage so you could record shows and fast-forward through commercials.

Prices vary based on location, and first-month price promotions are common. Input your ZIP code on Sling’s website to see pricing and features available for each plan in your area.

Sling Orange

Sling Orange typically costs $40 per month and comes with 32 channels, including seven sports and family channels like ESPN and Disney that can’t be found on Sling Blue’s plan. You’ll be able to stream on just one device at a time with the Orange plan.

Sling Blue

Sling Blue varies from $40 to $45 per month depending on your location. With Sling Blue, you won’t get the family and sports channels available on Sling Orange, but you will get other channels that Orange doesn’t have like Bravo and FX. You can stream on up to three devices at one time on this plan.

Sling Orange + Blue

Deciding between Sling Orange and Blue may not be a straightforward choice as each includes popular channels that the other doesn’t. Determining which one to go with comes down to what your viewing preferences are and the channels you want.

If you want access to all channels, you can get Sling Orange + Blue for $55 to $60 per month. This plan combines the Orange and Blue channel packages into one subscription. While you’ll pay a little extra for this plan, you won’t have to worry about missing a game on ESPN or not catching the latest reality shows on Bravo because you’ll have access to the full channel lineup.

Sling TV extras

One of the unique features of Sling TV is the ability to create your own add-ons, or Extras as Sling refers to them, to customize your viewing experience. Extras are mini-channel collections that can be added to your subscription.

There are specific offerings available for Orange and Blue plans so you’ll want to check Sling’s website to see which channel collections are available for your subscription type.

Extras range from $6 to $11 per month and include the following categories:

  • Entertainment Extra: $6 per month for extra entertainment channels such as Paramount Network and MTV.

  • Heartland Extra: $6 per month for outdoor sporting channels like Sportsman Channel.

  • Hollywood Extra: $6 per month for movie-focused channels like Sundance TV and TCM.

  • Kids Extra: $6 per month for children’s channels like Disney Junior and NickToons.

  • Lifestyle Extra: $6 per month for lifestyle content such as Hallmark Channel and Cooking Channel.

  • News Extra: $6 per month for national and world news channels like BBC World News and News Nation.

  • Sports Extra: $11 per month for sports channels like NHL Network and MLB Network.

You also have an option to buy more than one Extra for a small cost savings. For instance, for $13 per month, you can get a bundle that includes four Extras, which is a savings of about $10 per month compared with buying each Extra without the grouped pricing.

For subscribers seeking premium channels, like Showtime or Starz, those can be added for an additional monthly fee. There are currently about 35 premium Extras to choose from, depending on where you live; they range in monthly price from $1.99 to $10.

How Sling TV might fit into your budget

A helpful budgeting method is the 50/30/20 budget, where you allocate 50% of your income to needs and minimum debt payments, 30% to wants, and 20% to savings and debt repayment beyond those minimums.

A streaming service like Sling TV usually falls into the 30% wants category, meaning it would be nice to have but isn’t essential to your survival in the same way that needs are.

With hundreds of streaming services to choose from, knowing how much you can spend in your wants category — and what streaming features you value most — is a good starting point in making a selection.

You could look for ways to save money by reviewing Sling TV’s offerings to see if there are any deals you can score.

For instance, if you don’t want to commit to a paid subscription but Freestream doesn’t quite fit your needs, you could explore purchasing standalone channels. You don’t need a Sling base service to add Extras like Showtime or Starz. Standalone channels start at $3 per month.

You can also take advantage of Sling TV’s promotions, which we’ve seen with $10 to $25 off the first month.

If you need a streaming device, Sling TV currently gives new subscribers an AirTV Mini — a device optimized specifically for Sling — for free when you prepay two months.

Source: nerdwallet.com

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It’s time to nurture nature with an eco-friendly home life.

In our fast-paced modern world, where technology reigns supreme and convenience is king, it’s easy to lose touch with the natural rhythms of the earth. But as we become increasingly aware of the impact of our actions on the environment, many of us are turning towards eco-friendly living not just for the planet’s sake, but for our own well-being too. Let’s explore how adopting a more sustainable lifestyle can not only benefit the environment but also improve our sleep and energy levels.

Exploring the connection: Sleep, energy, and the eco-friendly home

Sleep is a fundamental aspect of our health and well-being, yet many of us struggle to get enough quality rest each night. Likewise, low energy levels have become a common complaint in our caffeine-fueled society. But what does this have to do with the environment?

The answer lies in the intricate connection between our bodies and the world around us. Our sleep-wake cycle, also known as the circadian rhythm, is regulated by environmental cues such as light and temperature. When we disrupt these natural cues with artificial lights, electronic devices, and erratic schedules, we throw our circadian rhythm out of balance, leading to sleep disturbances and fatigue.

Furthermore, our energy levels are closely tied to our overall health and vitality, which in turn are influenced by the air we breathe, the food we eat, and the products we use. By prioritizing eco-friendly practices, we not only reduce our carbon footprint but also create a healthier environment for ourselves to thrive in.

Sustainable sleep practices

One of the first steps towards enhancing sleep and energy levels is to create a sleep-friendly environment. This means optimizing our surroundings to promote relaxation and restfulness. Here are some eco-friendly home tips to transform your bedroom into a sanctuary for sleep:

  1. Natural materials: James Higgins, founder of Ethical Bedding, shares material matters. “Mindful purchasing and consumption means researching the companies you buy from,” Higgins notes. “Always choose organic (and plastic-free) wherever possible even if this means spending more. Spending a little more on higher quality products that are built to last will pay off in the long run.”
    Following Higgins’s advice and choosing organic bedding made from materials such as cotton, bamboo, eucalyptus, silk, or linen, which are not only gentle on the environment but also breathable and comfortable for sleep.
  2. Chemical-free products: Avoid harsh chemicals and synthetic fragrances in your bedroom cleaning products and personal care items. Opt for natural alternatives to reduce exposure to harmful toxins that can disrupt sleep.
  3. Mindful lighting: Embrace natural light during the day and minimize artificial light exposure at night, especially blue light from screens, which can interfere with melatonin production and disrupt sleep patterns.
  4. Indoor plants: Incorporate indoor plants into your bedroom decor to improve air quality and create a calming atmosphere. Plants such as lavender, jasmine, and snake plants are known for their sleep-promoting properties.
  5. Energy-efficient appliances: Invest in energy-efficient appliances and electronics to reduce energy consumption and minimize environmental impact. Hsin, with Nanani World, recommends this especially when it comes to lighting. “Switching to LED lighting from conventional incandescent bulbs can reduce energy consumption. LED bulbs last longer and are essential for lowering carbon emissions, which promotes environmental sustainability,” Hsin shares. Specifically, red LED lighting can enhance sleep quality and promote a quicker falling-asleep process, studies have found.
  6. Disconnect from screens: Power down electronic devices at least an hour before bedtime to allow your mind to unwind and prepare for sleep. Sharon Bonner with Bright Ideas Event Agency shares her biggest wind-down tips. “No screen time 90 minutes before sleep and when sleeping, put devices in a Faraday bag to remove potential distraction,” Bonner shares.

Energize your day with sustainable living

Beyond improving sleep quality, adopting an eco-friendly lifestyle can also boost your energy levels and overall well-being. Here are some ways to energize your day while reducing your environmental impact:

  1. Consider a plant-based diet: Incorporate more plant-based foods into your diet, such as fruits, vegetables, whole grains, and legumes. Plant-based diets are not only environmentally sustainable but also rich in nutrients that can increase energy levels and support overall health.Caroline James, with Envirolineblog.com, shares how to further make the most out of your meals. “Sometimes people think that being eco-friendly is more expensive. However, one of my favorite sustainable tips is to plan your meals and write a shopping list at the same time,” James explains. “Something as simple as writing a shopping list helps reduce food waste by assessing what you already have rather than impulse buying. Planning your meals also saves you money when you don’t overbuy and inevitably throw food away.”
  2. Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain optimal energy levels. Invest in a reusable water bottle to reduce plastic waste and minimize your carbon footprint.
  3. Re-read labels: A lot of household products are toxic and can negatively affect our health. Rachel Lincoln Sarnoff, former journalist and founder of Mommy Greenest, explains the dangers of certain household items. “When it comes to air freshening and candles (and cleaners, for that matter), avoid artificial fragrances, which can contain hundreds of chemical ingredients including phthalates linked to hormone disruption,” Sarnoff warns. “Unless a label lists the components of what scents the product — such as essential oils—then the word “fragrance” probably means it’s artificial.”Another household item to reconsider is non-stick pans. “[Non-stick pans] are coated with PFOAs that can be harmful to human health,” Sarnoff explains. “If you can’t afford to overhaul your set, start with those that are scratched, which are more likely to leach these toxic chemicals into your food, and replace pans with metal versions that don’t have a non-stick coating. You can have the pans sand-blasted down to a stainless steel base and either continue to use or recycle them.”
  4. Get moving outdoors: Take advantage of the natural world around you by engaging in outdoor activities such as hiking, cycling, or gardening. Spending time in nature can reduce stress, increase energy levels, and foster a deeper connection to the environment.
  5. Reduce, reuse, and recycle: Practice the three R’s of sustainability — reduce, reuse, and recycle — to minimize waste and conserve valuable resources. Valinda, founder of Green and Happy Mom, explains that opting for what you already own is the most eco-friendly choice. “Why buy a stainless steel bottle if your trusty plastic one still serves its purpose? The same principle applies to food containers, bags, and more. When considering a new purchase, explore secondhand options first, ” Valinda concludes. “Not only does this reduce the demand for new resources, but it also helps you save some money.” Emma Reed suggests finding reusable alternatives first and investing in them. “Whether that be reusable wipes for the home, a reusable coffee cup you can take out with you, reusable nappies/diapers for your baby, or beeswax wraps instead of clingfilm, there are many doable and handy options, Reed shares. “On top of being more environmentally friendly, they are also much kinder to your wallet too – it’s a win-win.”

Eco-friendly home: Other ways to cultivate a green oasis

Incorporating eco-friendly practices into every aspect of your home life can have a significant impact on both the environment and your well-being. Here are some overarching green living tips to help you reduce your carbon footprint and create a more sustainable living space:

  1. Simple swaps: Jennifer Young with What’s Good suggests starting with swaps that impact your health first. “For example, your skin is your largest organ and absorbs 70% of what it comes in contact with —  your feet absorb 100%!  This means the first change is laundry, like clothing, sheets, and towels. Ditch the big plastic bottle laundry detergent and start using concentrated laundry strips or powders,” Young shares. “Both are plastic- and liquid-free which hugely reduces fossil fuel consumption. Plus, there are no synthetic fragrances, dyes, or other harmful chemicals that might interrupt your endocrine system or aggravate your skin. You can further protect your health and save energy by using dryer balls instead of dryer sheets or fabric softener.”Yalu Xu, with Momo Lifestyle, echoes this sentiment that embracing eco-friendly living starts with reevaluating household essentials. “There’s room for sustainability in unexpected areas, like bath mats. Traditional fabric bath mats require weekly washes, using over 2,000 liters of water each year, ” Yalu Xu shares.

    “An innovative alternative is a product like Drytomita bath mat. Made from diatomaceous earth, these mats not only absorb and evaporate water quickly but also maintain their cleanliness and functionality like new for years, with simple sandpaper maintenance. It’s a testament to how sustainable choices can seamlessly integrate into, and enhance our daily lives.”Another simple swap, shared by Lamar with BRoadout is opting for reusable alternatives like cotton and choosing sustainable materials like bamboo. “Cotton and bamboo are both sustainable choices and both hold a pivotal role as one of our primary raw materials, featured in a wide array of products, Lamar explains. “Choosing sustainable cotton items for your home, like tents and chairs, or bamboo items like tables, is a thoughtful way to care for your loved ones and the environment.” Lastly, Alyssa Bolaños, founder and CEO of Oh-Eco.com, reminds us not to feel pressure to make all the swaps at once. “My number one tip for living more sustainably is to use what you have, then, get what you need – just the sustainable version,” Bolaños states. “As you run out of your household cleaners or items, swap them for a more sustainable version on your next shopping trip. So instead of a plastic toothbrush, switch to bamboo. Or instead of saran wrap, maybe reusable bowl covers or beeswax wraps. You don’t have to change everything overnight.”

  2. Consider air purifying measures: Jen Stout, co-founder of Healthier Homes, explains the importance of air purifying measures. “Adding a portable air filtration system with UV/ion purification in your living and bedroom areas is well worth the investment,” Stout exclaims. “Something many don’t think about either is paint – look for paints that seal the surface and are zero VOC, to add beauty and color to your space, while keeping the air condition pristine.” Houseplants can also help filter toxins, add oxygen to the air, and contribute to healthy sleep.
  3. Energy efficiency: Ecoclicky support team encourages homeowners to consider renewable energy sources. “Install solar panels to harness solar energy, reducing reliance on non-renewable power sources,” the team shares. “For those unable to install panels, choosing energy providers that offer green energy plans can be a great alternative.” The team also advises upgrading to energy-efficient appliances and LED lighting. “This cuts down on electricity usage along with remembering to unplug devices when not in use,” the Ecoclicky team notes.

By incorporating these overall green living tips into your home, you can create a more eco-friendly environment that benefits both your health and the planet.

Simplifying conserving and preserving the earth

As we reflect on our relationship with the planet, let’s remember that our actions not only shape the world around us but also impact our health and well-being. By embracing eco-friendly living practices, we can enhance our sleep and energy levels while safeguarding the environment for future generations. So, let’s commit to treading lightly on the earth and nurturing a sustainable lifestyle that benefits both ourselves and the planet we call home.

Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.

Source: rent.com