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Apache is functioning normally

March 24, 2024 by Brett Tams

The main differences between checking and savings accounts is that checking accounts are for spending and come with a debit card and checks, while savings accounts are a place to stash and grow your money via interest earned but your access may be more limited. These two kinds of financial products can form the foundation of how you manage your money day to day.

Read on to learn what the difference between a savings and checking account is, how they are the same, and the role each plays in your financial life.

Key Points

• Bank transfers move money from one bank account to another.

• These can be done by online transfers, checks, peer-to-peer services, wire transfers, third-party companies, or bank-to-bank money transfer services.

• There may be limits on how many bank transfers you can do in a specific time period and the dollar amount.

• The time it takes to complete a bank transfer may vary with the method.

Quick Comparison of Checking vs Savings Accounts

To help you understand the difference between checking and savings accounts, here is a chart summarizing some key points.

	Checking Account	Saving Account
Fees	Varies	Varies
Interest earnings	Minimal (if at all)	Yes
Debit card access	Yes	No
Check writing capabilities	Yes	No
Withdrawal limits	None	May be capped at 6 per month
Maintenance fees	Varies	Varies
Minimum opening balance	Varies	Varies
Best used for	Spending	Saving

There are similarities when you compare checking vs. savings accounts, such as varied minimum opening deposits, maintenance fees, and other monthly fees. Also, both kinds of accounts are typically insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration), which can give you peace of mind.

That said, there are also three major points of difference between checking and savings accounts: how account holders access their money, withdrawal limits, and interest earnings.

💡 Quick Tip: Make money easy. Open a bank account online so you can manage bills, deposits, transfers — all from one convenient app.

Three Major Differences to Know

Consider these three important ways that checking vs. savings accounts can differ.

Interest Earnings

When it comes to earning a bit of a return on an online bank account, savings accounts typically offer a higher interest rate than checking accounts. In many cases, checking accounts aren’t interest-bearing, meaning no interest is earned at all. Interest rates for savings accounts vary. The current average is 0.46% APY (compared to a current average of 0.07% APY for checking accounts), according to the Federal Deposit Insurance Corporation, or FDIC. That said, you probably will find higher rates at online banks instead of bricks-and-mortar ones, with rates ranging from 4.35% to 5.15%. By not having physical locations, online banks save money and can pass savings onto their customers.

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!

Liquidity

Here’s a key difference between a savings and checking account: Checking accounts are usually used by account holders to access their cash frequently, whether paying monthly bills or buying a latte. Checking accounts generally include a debit card, which can be used for purchases or ATM withdrawals. Checks, while not as popular as they once were, are also typically provided.

Savings accounts, on the other hand, don’t usually come with debit cards. Some financial institutions offer an ATM card for deposits and withdrawals to a savings account. Similarly, they lack checks. This reinforces the idea that these accounts are not for spending.

Withdrawal Limits

Checking accounts allow unlimited withdrawals, whereas savings accounts may only allow up to six per month. After that point, the transaction could be denied or the account holder charged a penalty. The bank might even convert the savings account into a checking account.

However, in April 2020, the Federal Reserve lifted this limitation of six transactions imposed through Regulation D. Financial institutions are no longer required to limit savings account withdrawals or transfers to six per month, but some may continue to do so. Check with your financial institution to learn the full story.

What Is a Savings Account?

A savings account is an account held at a financial institution such as a bank or credit union, and its primary purpose is to store your funds safely. Most savings accounts allow the account holder to earn interest on the account balance.

A few points to note:

• Savings account rates are generally higher than those offered with checking accounts (if those pay any interest at all). For this reason, they can be a good option as a savings vehicle for money that the account holder doesn’t need to access frequently.

• Common uses for savings accounts are emergency funds, short-term savings goals, and funds for occasional expenses. The cash can accumulate in the savings account and have an opportunity to earn interest.

• As mentioned above, banks can still impose a per-month transaction limit on savings accounts — they’re just not required to by the Fed anymore. There could be fees imposed on these excess transactions, which can add up.

• Some financial institutions may automatically close an account holder’s savings account or convert the savings account to a checking account if too many withdrawals are made each month on a regular basis.

• Other financial institutions don’t charge a maintenance fee or require account holders to maintain a minimum account balance, although they may require a minimum deposit to open an account. It’s wise to check with your financial institution to make sure you understand the ground rules.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

Benefits of Savings Accounts

Here are some of the upsides of opening and maintaining a savings account:

• Savings accounts are low-risk, which means you are unlikely to lose money. Rather, you are likely to make money, thanks to interest, especially when that interest compounds.

• Interest is a plus. By shopping around for high-yield accounts, you may be able to grow your money without the volatility of investing in, say, stocks.

• Savings accounts are usually insured by the FDIC for up to $250,000 per account holder, per account ownership category, per insured institution. In the highly unlikely event of your bank going out of business, you’d be covered. What’s more, some banks participate in programs that extend the FDIC insurance to cover millions¹.

• Easy access is another plus. Unless term or time deposits, in which your money can be locked up for a specific period of time, savings accounts allow for easy withdrawal of your funds.

• Peace of mind can come with savings. Having a savings account can help you feel more secure as you work toward your financial goals. For instance, you’ll know that you have funds available if an emergency cropped up.

Recommended: Guide to Using an ATM

What Is a Checking Account?

A checking account is also held at a financial institution, though its primary purpose is to be used for everyday spending. These accounts generally don’t have any withdrawal limits, so account holders can make as many transactions as their heart desires.

• Debit cards typically come with checking accounts, and can be used for purchases at bricks-and-mortar and online retailers and to withdraw cash from an ATM.)

• Checking account holders may also be able to use paper checks, either complimentary or purchased by the account holder, which can be used to pay bills and make purchases.

• Account holders may also access their funds by P2P platforms (such as Venmo or PayPal) and other means.

Checking accounts may not earn as much interest compared to savings accounts, if they earn any interest at all.

Many financial institutions charge the same types of fees for checking accounts and savings accounts, such as monthly maintenance fees. Additional checking account fees may include overdraft or non-sufficient funds fees and out-of-network ATM fees.

Having enough money in the account and sticking with in-network ATMs are good ways to avoid charges like these, but banks are required to disclose certain fees it charges. Take a look at the fee schedule for any particular type of account you are thinking of opening and get acquainted with the details.

Benefits of Checking Accounts

There are many advantages to having a checking account, including:

• You can pay bills and transfer funds online, in person, or by app; there’s no need to carry around cash for such transactions. Checking accounts can make money management very convenient.

• Checking accounts are typically insured by the FDIC (or, if you bank with a credit union, NCUA), so your money is safe. Even if the financial institution were to go out of business, you wouldn’t lose your money up to $250,000 per account holder, per account ownership category, per insured institution.

• Checking accounts can be an affordable way to conduct financial transactions. For instance, your account is likely to come with checks, which can save you the effort and expense of using money orders or other types of payments in many situations.

• Your checking account may offer rewards, such as cash back opportunities, or if you apply for a loan at the same institution, you may get a better rate.

Recommended: Ways to Avoid Overdraft Fees

The Takeaway

Yes, there are significant differences between checking and savings accounts. They serve quite separate purposes (spending vs. saving) and can be useful in working toward varied financial goals. For many people, however, it’s not a question of which kind of account to open, but where’s the best place to open both.

When you’re looking for the best banks for checking and savings accounts, see what SoFi can offer.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

3 Great Benefits of Direct Deposit

It’s Faster

As opposed to a physical check that can take time to clear, you don’t have to wait days to access a direct deposit. Usually, you can use the money the day it is sent. What’s more, you don’t have to remember to go to the bank or use your app to deposit your check.

It’s Like Clockwork

Whether your check comes the first Wednesday of the month or every other Friday, if you sign up for direct deposit, you know when the money will hit your account. This is especially helpful for scheduling the payment of regular bills. No more guessing when you’ll have sufficient funds.

It’s Secure

While checks can get lost in the mail — or even stolen, there is no chance of that happening with a direct deposit. Also, if it’s your paycheck, you won’t have to worry about your or your employer’s info ending up in the wrong hands.

FAQ

Are interest rates variable on savings and checking accounts?

Savings and checking accounts virtually always have variable interest rates.

Are checking or savings accounts insured?

Yes, both checking and savings accounts are usually insured by the FDIC (or NCUA) for up to $250,000 per account holder, per account ownership category, per insured institution.

Is it better to have most of your money in a savings or checking account?

When comparing checking vs. savings accounts, know this: If you have a chunk of the money that will sit in the bank for a period of time, a savings account can be a wise choice since it will earn interest.

Photo credit: iStock/AleksandarNakic

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by banks in the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

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Source: sofi.com

Apache is functioning normally

March 24, 2024 by Brett Tams

The Brainy Insights

The home décor furnishing industry is anticipated to grow due to the growing influence of social media and the increase in the penetration of the e-commerce sector. North American regional market share is attributed to highly developed and varied design styles and offerings of home decoration products.

Newark, Jan. 01, 2024 (GLOBE NEWSWIRE) — As per the report published by The Brainy Insights, the global home decor furnishing market is expected to grow from USD 630.03 Billion in 2022 to USD 923.67 Billion by 2032, at a CAGR of 3.90% during the forecast period 2023-2032.

The Home Decor Furnishing market is growing as the demand for the product is growing, and consumers are looking for luxurious products to decorate their homes, especially with furniture, hardwood flooring, and wooden floors. Also, there is a huge opportunity for sustainable, economical, and environmentally friendly products.

Download Report Sample (230+ Pages PDF with Insights) at: https://www.thebrainyinsights.com/enquiry/sample-request/13879

Competitive Strategy

To enhance their market position in the global Home Decor Furnishing market, the key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.

• In January 2023: Mannington Mills, Inc. launched its new dwelling collections, including broadloom carpets that provide comfort to all living areas. This launching of collections expands the organisation’s market share in the flooring segment, which eventually expands its market share in the Home Decor Furnishing market.

Market Growth & Trends

Expensive and premium items provide spiritual and aesthetic satisfaction and also add value and decoration to the home and the people who are living in. Home décor product sales have increased, and consumers have gradually started preferring online channels for buying products, especially after the pandemic. It has opened the window for the small home décor furnishing brands. The market is becoming more in demand due to rapid industrialization and urbanization. The home’s decoration easily shows the buyer’s lifestyle preference, and these people thus want to buy good aesthetic products. These home decor products can be used for several purposes, such as enhancing the aesthetic appeal of a home, decorating the apartment, and furnishing. Due to globalization, the consumer can easily access a large array of products used in home decor. One of the factors which are expanding the market is the growing disposable income of the people due to the urbanization process, which also increased the number of households. There is also the demand for personalized and unique home interiors with changes in consumer lifestyles and preferences. The millennial and Gen-Z populations are tech-savvy, and most use social media. Recent trends suggest that social media culture will continue to be crucial in shaping home décor product trends. Social media has given platforms to interior designers to showcase their work all across the world. Leading social media platforms such as Pinterest, Instagram, and Houzz have led these designers to share their designs globally and inspire people to design their living spaces and homes.

Inquiry Before Buying: https://www.thebrainyinsights.com/enquiry/buying-inquiry/13879

Key Findings

• In 2022, furniture segment dominated the market with the largest market share of 45.55% and market revenue of USD 286.98 Billion.

The product segment is divided into furniture, textile, flooring and others. In 2022, furniture segment dominated the market with the largest market share of 45.55% and market revenue of USD 286.98 Billion. This market share is high because there is a high preference for wooden furniture with aesthetic looks and premium quality.

• In 2022, the indoor segment dominated the market with the largest market share of 86.42% and market revenue of USD 544.47 Billion.

The application segment is divided into indoor and outdoor. In 2022, the indoor segment dominated the market with the largest market share of 86.42% and market revenue of USD 544.47 Billion. Furniture that can be folded and of multiple uses is broadly preferred in the home’s indoor space.

• In 2022, the offline segment dominated the market with the largest market share of 70.56% and market revenue of USD 444.55 Billion.

The distribution channel segment is divided into offline and online. In 2022, the offline segment dominated the market with the largest market share of 70.56% and market revenue of USD 444.55 Billion. Customers are found to prefer shopping offline for furniture and home décor items.

Regional Segment Analysis of the Home Decor Furnishing Market:

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

The North America region occurred as the largest market for the global Home Decor Furnishing industry, with a market share of 33.21% and a market value of around USD 209.23 Billion in 2022. This market share is attributed to highly developed and varied design styles and offerings of home decoration products in the region. Most of the consumers in this region prefer functional and beautiful design elements for their décor items, and there is a growing demand for green and sustainable design. Asia Pacific region has shown the fastest growth for the Home Decor Furnishing market as there is rapid urbanization happening in emerging economies like India and China.

Browse the full report with Table of Contents and List of Figures: https://www.thebrainyinsights.com/report/home-decor-furnishing-market-13879

Key players operating in the global Home Decor Furnishing market are:

• Ashley Furniture Industries, LLC.
• Inter IKEA Holding B.V.
• Forbo Management SA
• Armstrong World Industries, Inc
• Mannington Mills, Inc.
• Kimball International Inc.
• Duresta Upholstery Ltd.
• Mohawk Industries, Inc.
• MillerKnoll, Inc.
• Shaw Industries Group, Inc.

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global Home Decor Furnishing market based on below mentioned segments:

Global Home Decor Furnishing Market by Product:

• Furniture
• Textile
• Flooring
• Others

Global Home Decor Furnishing Market by Application:

• Indoor
• Outdoor

Global Home Decor Furnishing Market by Distribution Channel:

• Offline
• Online

Inquire for Customized Data: https://www.thebrainyinsights.com/enquiry/request-customization/13879

About the report:

The global Home Decor Furnishing market is analysed based on value (USD Billion). All the segments have been analysed on global, regional and country basis. The study includes the analysis of more than 30 countries for each segment. The report offers in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining the key insight of the market. The study includes porter’s five forces model, attractiveness analysis, raw material analysis, supply, demand analysis, competitor position grid analysis, distribution and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company that provides actionable insights through data analytics to companies to improve their business acumen. They have a robust forecasting and estimation model to meet the client’s objectives of high-quality output within a short period. They provide both customized (client-specific) and syndicate reports. Their repository of syndicate reports is diverse across all the categories and sub-categories across domains. Their customized solutions meet the client’s requirements whether they are looking to expand or planning to launch a new product in the global market.

Contact Us

Avinash D
Head of Business Development
Phone: +1-315-215-1633
Email: [email protected]
Web: http://www.thebrainyinsights.com

Source: finance.yahoo.com

Apache is functioning normally

March 23, 2024 by Brett Tams

Options trading offers a complex yet potentially rewarding approach to the stock market, allowing investors to buy or sell assets at predetermined prices within specific time frames. Unlike direct stock purchases, these contracts grant the right without obligating the transaction, providing a strategic tool for managing investment risks and capitalizing on market predictions.

This guide will explore the fundamentals of options trading, including the differences between call and put options, the process of getting approved for trading, and strategies for minimizing risks while maximizing returns.

What is an option?

An option is a contract that grants you the option buyer, the right, but not the obligation, to buy or sell a particular asset at a set price on a particular date or within a select window of time.

It’s also classified as a derivative, with the associated value directly linked to the underlying asset. This price point is also known as the strike or exercise price, and the expiration date specifies when the contract terminates.

But how does this benefit investors? Well, it’s a cost-efficient way to manage risk because you’re only investing in the opportunity to purchase shares at another date, and not the stock itself. Options also allow you to sell your existing shares at a set price if the market tanks to limit your losses.

How does options trading work?

However, it’s a bit more complex than simply buying and selling shares. In essence, options traders are taking a gamble on the direction they think the stock price will go in. That way, they won’t have to buy or short the actual stock when they think the market is going to skyrocket or dip.

Furthermore, there’s a relatively extensive process to get approved as an options trader. You’ll also need to open a brokerage account and maintain a set amount of reserves to remain in good standing as an investor.

And should you decide not to exercise the option, you’re free to walk away with no strings attached. You can also rake in a little more cash by selling the option, or options contract, to an investor who’s interested.

Benefits of Trading Options

There are several benefits to trading options, including:

Flexibility: Options can be used to hedge against potential losses in other investments, or to generate income through the writing of options.
Leverage: Because options allow traders to control a large amount of underlying assets for a relatively small investment, they offer significant leverage.
Limited risk: The potential loss on an options trade is limited to the premium paid for the option.
Customization: Options can be customized to meet the specific needs and objectives of the trader.
Liquidity: Options are traded on organized exchanges, making it easy to buy and sell them.
Versatility: Options can be used in a variety of market conditions, including bearish, bullish, and neutral markets.

Types of Options

Still sold on the idea of trading options? There are two types to choose from:

Call Options: these are deposit rights to purchase the stock at a later date. If the call option is not exercised before the expiration date, you lose your investment in the option and the right to purchase the underlying stock at the strike price.
Put Options: these are premiums paid to hedge against the risk of a market downturn. They are similar to an insurance policy that protects your investment. If the price of the underlying stock plummets, you will still have your right to sell a set number of shares at the exercise price. But if the market stays intact or swings upward and you decide not to sell, your premium is lost.

You should also know that call and put holders are owners of options contracts. They absorb minimal risk as there’s no obligation to buy or sell, regardless of market performance. Instead, they are free to exercise the option when they see fit.

By contrast, call and put writers are sellers of options contracts. Unfortunately, they’re exposed to more risk because they must follow through on their promise to buy or sell if the holder exercises their option.

Options Pricing

Options pricing refers to the process of determining the value of an options contract. There are several factors that can impact the price of an options contract. These include the underlying asset’s price, the option’s strike price, the time remaining until the option’s expiration date, the option’s implied volatility, and the risk-free interest rate.

One of the most widely used methods for calculating the price of an option is the Black-Scholes model. This model takes into account the aforementioned factors to determine the theoretical value of an options contract. Other methods for pricing options include the binomial model and the Monte Carlo simulation.

Keep in mind that the price of an options contract can fluctuate significantly over time, and may be affected by a variety of market conditions. Therefore, options traders should carefully consider the potential risks and rewards of their trades and use appropriate risk management strategies.

Risks and Rewards of Options Trading

Options trading can be a complex and risky endeavor, but it can also provide the opportunity for significant profits. It’s essential for investors to understand the potential risks and rewards involved to make informed decisions and manage risk effectively.

One way to minimize risk when trading options is to use investment strategies like spreading. This involves buying and selling options at different strike prices and expiration dates to offset potential losses.

Another investment strategy is to use stop-loss orders. They allow you to set a certain price at which your trade will be automatically closed to prevent further losses.

Additionally, you should diversify your portfolio and not rely too heavily on options trading. That way, if one trade doesn’t work out, you won’t be left with all your eggs in one basket.

Investors can maximize their profits and minimize risks by understanding options trading and implementing risk management strategies.

Getting Started with Options Trading

Getting started with options trading requires more than a simple phone call to a broker or an online purchase. It demands a proactive approach and thoughtful preparation to set the stage for your trading activities.

Step 1: Select a Brokerage Firm

Like it or not, you’ll have to work with a brokerage firm to get screened and cleared to trade options. But don’t just settle for the first broker you find. Shop around and carefully analyze your options before making a decision. Remember, they’ll be evaluating your experience, so you should do the same.

Do a little research to determine if they’ll be a good fit. Pay attention to consumer reviews, services they offer, costs or commissions structure, account minimums, and educational resources they offer, just to name a few.

Furthermore, inquire about educational resources, including self-guided online courses and webinars, along with telephone, virtual, and live support designed to help you identify and understand the most strategic routes when trading options.

Finally, feel free to ask questions as they arise to ensure you have all the information you need to make a well-informed decision. The more access you have to support staff, the better.

Remember, it’s your hard-earned money that will be used to buy options, so you want to make sure you derive the greatest benefit in exchange for your investment.

Step 2: Get Screened

Once you’ve selected a brokerage firm, the next step is to get screened. This is a prerequisite to being assigned a trading level. Before screening can begin, the broker will want to get an understanding of your investment goals and which types of options you’re most interested in. They will also inquire about your trading experience and will request additional information about your finances.

Your information will be compiled by the broker and analyzed to determine the optimal trading level. Levels range from 1 to 5 and will dictate the types of transactions you’re able to engage in.

Furthermore, you’ll need to maintain a minimum balance of $2,000 in your account at all times, per industry requirements. Additionally, purchasing a call option may mandate a margin account or line of credit to serve as security. Check with the brokerage firm to confirm minimum reserves and additional details regarding margin accounts.

Step 3: Start Trading Options

Now that you’re in the clear, you have to use your knowledge and judgment to make some critical choices that can boost or dent your wallet. Some important considerations:

How you think the stock will perform – Anticipating an increase in price? A call option is best as it allows you to turn a profit if the price surpasses the strike price within the window of time allotted by the option, and. In this case, you will be in the money. But if the market price drops below the strike price, you’ll be out of the money.

By contrast, if you already own shares and are expecting a dip in the price, you would purchase a put option. You’ll be in the money if the market price drops below the strike price, and out of the money if the market price ends up exceeding the strike price.

The length of the option – Stock options are only valid for a set period of time. Some options last for several days or months, while others span several years.

Optimal strike price – It’s difficult to determine where the stock price will end up, so you’ll have to make an educated guess regarding the strike price before purchasing an option.

Thinking the price of a share currently trading for $50 will increase to $75? Let’s assume you purchase a call option with a strike price below $75. (You want a call option that leaves a little wiggle room to account for the cost of the option). If the share price exceeds the strike price, you will be in the money or turn a profit.

Now assume you owned these shares and expected the share price to drop to $25? By purchasing a put option with a strike price that is above $25 and accounts for the cost of the option, you’ll be in the money if the price does drop below this point.

Bottom Line

Options trading is a sophisticated tool for seasoned investors, offering strategic depth to portfolio management. However, it’s not the sole method to mitigate risk or seek returns. Stock trading presents a more accessible alternative, with its direct approach and fewer entry barriers.

While options can leverage market movements and offer protection, they demand a solid grasp of market intricacies. In contrast, stock trading provides a straightforward path to investment growth. Choosing between them depends on your risk tolerance, investment goals, and willingness to explore market complexities.

Source: crediful.com

Apache is functioning normally

March 23, 2024 by Brett Tams

Maximize your mortgage business with Gen Z | Mortgage Professional White Papers In an ever-evolving real estate landscape, Gen Z stands out as a promising demographic. As they enter the mortgage arena, expert guidance is needed to point them in the right direction. This can lead to a host of opportunities for mortgage brokers. Our … [Read more…]

Apache is functioning normally

March 23, 2024 by Brett Tams

National mortgage rates rose for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans increased.

While it’s expected that rates will gradually come down this year, it may not be a straight downward path.

At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates, but could cut rates in the future. When the Fed meets on March 20, we may get more information on when rates will be cut. Rate hikes and cuts affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.

“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”

Rates last updated March 21, 2024.

The rates listed above are averages based on the assumptions shown here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, March 21st, 2024 at 7:30 a.m.

30-year mortgage rate goes up, +0.12%

Today’s average 30-year fixed-mortgage rate is 6.96 percent, up 12 basis points from a week ago. Last month on the 21st, the average rate on a 30-year fixed mortgage was higher, at 7.11 percent.

At the current average rate, you’ll pay a combined $662.62 per month in principal and interest for every $100,000 you borrow. Compared to last week, that’s $8.03 higher.

15-year mortgage rate rises, +0.07%

The average 15-year fixed-mortgage rate is 6.49 percent, up 7 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $871 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

5/1 ARM rate rises, +0.16%

The average rate on a 5/1 adjustable rate mortgage is 6.51 percent, up 16 basis points over the last week.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 6.51 percent would cost about $633 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage rises, +0.12%

The average rate for a 30-year jumbo mortgage is 7.06 percent, up 12 basis points over the last week. Last month on the 21st, the average rate for jumbo mortgages was greater than 7.06 at 7.11 percent.

At today’s average rate, you’ll pay $669.34 per month in principal and interest for every $100,000 you borrow. Compared to last week, that’s $8.06 higher.

Refinance rates

Today’s 30-year mortgage refinance rate moves upward, +0.13%

The average 30-year fixed-refinance rate is 6.97 percent, up 13 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 7.09 percent.

At the current average rate, you’ll pay $663.29 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $8.70 higher.

Where are mortgage rates going?

With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.

“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”

The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.

These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.

What today’s rates mean for you and your mortgage

While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

Keep in mind: You could save thousands over the life of your mortgage by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.

“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

More on current mortgage rates

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

Source: bankrate.com

Apache is functioning normally

March 23, 2024 by Brett Tams

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.

What Is a Put Option?

In options trading, a put option is the purchase of a contract that gives an investor the right, but not the obligation, to sell a specific security at a certain price by a certain date. Put options are different from call options, the purchase of which gives buyers the right, but not the obligation, to buy a particular security at a certain price by a certain date.

Investors can use put options to trade a variety of securities, including stocks, bonds, futures and commodities. Trading options can potentially lead to greater returns, but it can also amplify losses, making it a potentially riskier strategy.

Understanding certain options terminology — including what a put option is and how it works — can be helpful if you’re thinking about incorporating options trading strategies into your portfolio.

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Options Basics

Before digging into the details of put options, it’s helpful to understand a little about how options trading works in general. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying security at a certain price — this is called the strike price. Options must also be exercised by a specific expiration date.

An investor who buys an options contract pays a premium to do so, which can be determined by the volatility of the underlying asset and the option’s expiration date. If the option holder does not exercise the option by the expiration date, they lose their right to buy or sell the underlying security and the option has no value.

Options are derivative investments, since they derive their value from the underlying assets. They can be bought and sold on an exchange, just like the underlying assets they’re associated with.

Finally, user-friendly options trading is here.*

Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.

How Does a Put Option Work?

A put option is a specific type of options contract. Here’s an example: The buyer of the put option has the right, but not the obligation, to sell shares of an underlying asset at the agreed-upon strike price up until the option’s expiration date. Meanwhile, the seller of the put option has an obligation to buy those shares from the buyer if the buyer chooses to exercise the put option.

Put options increase in value as the price of the underlying security decreases. Likewise, put options lose value as the price of the underlying stock increases. Depending on where the underlying asset’s price is in relation to a put option’s strike price, the option can be one of the following:

• In the money: An in-the-money put option has a strike price that’s higher than the underlying asset’s price.

• At the money: An at-the-money (or on-the-money) put option has a strike price that’s equal to the underlying asset’s price.

• Out of the money: An out-of-the-money put option has a strike price that’s below the underlying asset’s price.

Of the three, the in-the-money put option is more desirable because it means a put option has intrinsic value. If you’re the buyer of a put option and that option is in the money, it means you can sell the underlying asset for more than what it’s valued at by the market.

Recommended: In the Money (ITM) vs Out of the Money (OTM) Options

Put Option Example

An example might make things even more clear.

Assume you own shares of XYZ stock. The stock is currently trading at $50 a share but you believe its price will dip to $40 per share in the near future.
You purchase a put option which would allow you to sell the stock at its current price of $50 per share. The options contract conveys the right to sell 100 shares of the stock, with a premium of $1 per share.

If your hunch about the stock’s price pays off and the price drops to $40 per share, you could exercise the option. This would allow you to sell each of the 100 shares in the contract for $10 more than what it’s worth, resulting in a gross profit of $1,000. When you factor in the $1 per share premium, your net profit ends up being $900, less any commission fees paid to your brokerage.

Difference Between Put and Call Option

It’s important to understand the difference between put and call options in trading. A call option is an options contract that gives the buyer the right, but not the obligation, to purchase shares of an underlying asset at the strike price by the expiration date. The seller of the call option is obligated to sell those shares to the call option buyer, should they decide to exercise the option.

Like put options, call options can also be in the money, at the money, or out of the money. An in-the-money call option has a strike price that’s below the underlying asset’s actual price. An out-of-the-money call option has a strike price that’s above the underlying asset’s actual price.

Here’s a simple way to think of the differences between put options and call options: With buying put options, the goal is to sell an underlying asset for more than its market value. With buying call options, the goal is to buy an underlying asset for less than what it’s worth.

Pros and Cons of Trading Put Options

Options trading may appeal to a certain type of investor who’s comfortable moving beyond stock and bond trading. Like any other investment, put options can have both advantages and disadvantages. Weighing them both in the balance can help you decide if options trading is something you should consider pursuing.

Pros	Cons
• Low initial investment required compared to trading stocks. • The option buyer has the right but no obligation to sell the underlying asset. • Higher return potential, on a percentage basis.	• Losses may be amplified. • The option seller has the obligation to buy the underlying asset at the strike price if the buyer decides to execute the contract, which could result in greater downside for the seller. • Unforeseen volatility may drastically affect price movements.

Pros

Cons

• Low initial investment required compared to trading stocks.

• The option buyer has the right but no obligation to sell the underlying asset.

• Higher return potential, on a percentage basis.

• Losses may be amplified.

• The option seller has the obligation to buy the underlying asset at the strike price if the buyer decides to execute the contract, which could result in greater downside for the seller.

• Unforeseen volatility may drastically affect price movements.

Pros of Trading Put Options

• Lower investment. When you purchase a put option, you’re paying a premium and your brokerage’s commission fees. When you purchase shares of stock, you may be investing hundreds or even thousands of dollars at a time. Between the two, put options may be more attractive if you don’t want to tie up a lot of cash in the markets.

Also, buying a put option gives you the right to sell a particular asset at a set strike price but you’re not required to do so. You can always choose to let the option expire; you’d just be out the premium and commission fees you paid.

• Return potential. Trading put options can be lucrative if you’re able to sell assets at a strike price that’s well above their actual price. That might result in a higher profit margin than if you were trading the underlying asset itself.

Cons of Trading Put Options

• Loss amplification. While trading put options can potentially lead to better returns, it can also potentially amplify your losses. If you’re selling put options, you’re obligated to sell the underlying asset at the strike price, even if that strike price is not in your favor.

• Volatility. Volatility can threaten returns with put options if an asset’s price doesn’t move the way you were expecting it to. So it’s possible you might walk away with lower gains than anticipated if you choose to exercise a put option during a period of heightened volatility.

How Do You Trade Put Options?

It’s possible to trade put options inside an online brokerage account that allows for options trading (not all of them do). When deciding which put options contracts to buy, it’s important to consider:

• Where the underlying asset is trading currently

• Which way you think the asset’s price is most likely to move

• How much of a premium you’re willing to pay to purchase an options contract

It’s also important to consider the expiration date for a put option. Keep in mind that options with a longer expiration period may come with a higher premium.

Different Put Option Styles

There’s a difference between European-style and American-style put options.

With European-style options, you can only exercise the option on its expiration date.

With American-style put options you can exercise the option at any time between the date you purchased it and its expiration date, offering more flexibility for the investor.

Put Option Trading Strategies

Different options trading strategies can be used with put options. These strategies vary in terms of reward potential and risk exposure. As you get more familiar with how to trade stock puts, you might begin exploring more advantaged techniques. Here are some of the most common put option plays.

Long Put

A long put strategy involves purchasing a put option with the expectation that the underlying asset’s price will fall. For example, you might want to buy 100 shares of XYZ stock which is trading at $100 per share, which you believe will drop to $90 per share. If the stock’s price drops to $90 or below, you could exercise your contract at the higher $100 per share price point.

Short Put

A short put is the opposite of a long put. In a short put strategy, you’re writing or selling the put option with the expectation that the underlying security’s price will rise or remain above the strike price until it expires. The payoff comes from being able to collect the premium on the option even if the buyer doesn’t exercise it.

Recommended: How to Sell Options for Premium

Married Put

A married put strategy involves holding a long position in an underlying security while also purchasing an at-the-money option for the same security. The idea here is to minimize downside risk by holding both the asset itself and an at-the-money put option.

Long Straddle

A long straddle strategy involves buying both a call option and a put option for the same security, with the same strike price and expiration date. By straddling both sides, you can still end up turning a profit regardless of which the underlying asset’s price moves.

The Takeaway

Options trading may be right for retail investors who are comfortable taking more risk in exchange for a chance to potentially earn higher returns. Getting familiar with put options and how a stock put works is the first step.

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.

Trade options with low fees through SoFi.

Photo credit: iStock/Drazen_

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

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

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

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

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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
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New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures.

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

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

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

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

SOIN0224038

Source: sofi.com

Apache is functioning normally

March 22, 2024 by Brett Tams

These are just pillow covers, so don’t forget the pillow inserts, if you need them. Tip: For optimal fluffiness, pick inserts that are 2 inches larger than your covers.

Promising review: “I love these pillowcases! They are way nicer than I expected for the price. They are soft, wash well, and look more expensive than the price. I’m super happy with my purchase. I was kinda iffy on buying them, but I went ahead and did it because I knew I could return them if I didn’t like them, but I was actually pleasantly surprised.” —Amanda

Price: $11.99+ (available in 12 sizes and dozens of colors).

Source: buzzfeed.com

Apache is functioning normally

March 21, 2024 by Brett Tams

Your mind and body may be ready for a sunny beachside spring break in Cancun, but if you’re living that broke college kid life, you may imagine your spring break looking more like a week at home, scrolling through Instagram and binging Netflix.

However, it is possible to plan a spring break trip on a limited budget. And yes, even a college student’s budget can be stretched for spring break fun! If you’re wondering how to plan a spring break trip without living off instant noodles for the next month, we have some tips to help you get a well-deserved vacation from those long nights spent studying in your dorm room.

Keep reading for some of our best tips on making your spring break trip dreams happen on a budget.

1. Start Planning Early

Waiting until the last minute to plan a trip could mean missing out on cheaper flights, hotels, and even popular ticketed attractions. If you’re going to a hot destination during a peak travel season, which includes spring break for many destinations, then you could blow your travel budget on the flight alone, leaving you without enough money for food and lodging.

2. Make a Budget & Stick to It

Before you even leave for your destination, it’s smart to create a travel budget. What can you reasonably afford to spend on accommodations, transportation, entertainment, meals, and shopping? Having a budget could help you avoid splurging on expensive dinners or overspending at local shops.

Recommended: How to Save for a Vacation: Creating a Travel Fund

3. Find Off-Season Destinations

If Cancun for spring break is too pricey for your college student budget, don’t stress. There are a number of great destinations that are off-season in the spring, ranging from the more rugged Jackson County, North Carolina to the Big Apple.

4. Only Travel as Far as You Can Drive

It’s about the journey, not the destination, right? You can make that (semi) true by taking a road trip with a few friends. On a road trip, you don’t need to follow any set schedule. Since there’s no flight or train to catch, and often no hurry to reach a destination, you can make spontaneous decisions and discover hidden gems along the way.

5. Avoid Tourist Traps

Doing spring break on a budget generally means skipping touristy destinations like Miami, New Orleans, and Cabo. However, there are plenty of cheaper alternatives to these locations that can save you money and that will probably be far less crowded, too.

6. Reach out to Friends & Family

If you have friends or family in another city, reach out and ask if they’d be willing to host you. If they agree, you could get some free lodging and meals out of it. Plus, you’d be connecting with locals who could guide you through the city and give some tips on cool and free stuff to do that you might not have found otherwise.

Recommended: How to Balance the Urge to Travel and the Need to Save

7. Ditch the Plane Ticket

Planes and cars aren’t the only way to land at your tourist destination. You can do spring break on a budget by hopping on an Amtrak train or a Greyhound bus, both of which have destinations all over the country. The best part? You can catch up on some work, sleep, or relaxation while you enjoy the ride.

8. Don’t Forget about Cruises

You could spend a fortune going to just Miami or Los Angeles. Or, you could check out some cheaper cruise options that could potentially take you all over Alaska, the Caribbean islands, or a slew of other destinations for less. There are even cruise options designed specifically for college students.

9. Consider Pitching a Tent

Do you get motion sickness in cars or boats? With camping, your feet will be firmly planted on the ground, and your budget will also likely stay down to earth. You can camp out in many destinations across the U.S. and even abroad, be it under the stars near a national park or near a great fishing hole in the Carolinas.

10. Look For a Deal

Sites like Groupon and LivingSocial offer a number of travel and hotel deals both for individuals and for group travel. Checking out which hotels are offering promotions could help you save when booking accommodations. You can also find deals on attractions near where you’re vacationing, too.

11. Sign Up for a Spring Break Volunteer Experience

Many colleges offer a program called “alternative break,” which allows students to travel and volunteer during their spring break. If your college doesn’t offer any alternative break trips, you can still find some opportunities through organizations like Habitat for Humanity and United Way .

12. Be a Tourist in Your Own State

If airfare is out of the question for your spring break budget, a budget-friendly alternative could be touring your own state. You can take a spring break road trip around your state or even take multiple day trips, the latter of which could allow you to have most of your meals at home with no hotel needed.

13. Fly on Unpopular Days

No, it’s not just your imagination: There are some days that are cheaper to fly on than others. If you’re not tied to a set departure and/or return date, use the flexible date search on a travel or airline site. This can help you find the cheapest travel dates for your trip.

14. Sign Up for Price Alerts

One helpful way to ensure you’re getting the best possible deal on your trip is to sign up for price alerts, a free service offered by several travel companies, such as Kayak, Skyscanner, and Google Flights. These sites track prices daily and alert you in real-time when the price changes for a flight, hotel, or rental car you want.

15. Ask for Extra Snacks

If you’re flying to your destination, be sure to grab the airplane snacks. And if you like the snacks, ask for seconds! You may be able to snag a free snack to help tide you over between meals when you land. The worst thing that can happen is that they say no.

16. Consider Airbnbs or Hostels

For those looking for the best tips on how to plan a spring break trip, one not-so-obvious one may be skipping hotels altogether. Staying at an Airbnb or hostel could be a cheaper travel hack than even a budget motel, especially if you don’t plan on spending much time in your room anyway.

17. Use Public Transportation

While Uber may be one of the handiest apps to have while traveling, relying on ridesharing and taxis could end up costing you a small fortune, especially if you’re traveling in a big city. Using public transportation could cost you a fraction of the price of an Uber, plus it will allow you to explore more of your destination as you navigate around subway and bus stations.

18. Bring Your Own Food

Grocery costs may be on the rise, but the cost of dining out can really wreak havoc on your spring break budget. If you want to try the local cuisine, you can typically do so much cheaper by going to a local grocery store and buying premade meals there or, better yet, making your own meals using fresh, local ingredients. This option may only be available if you’re staying at an Airbnb or hotel with a kitchenette, though.

19. Eat Out for Lunch, not Dinner

Eating out for dinner will often cost you far more than eating out for breakfast or lunch. And if you decide to eat out for dinner still, skip the drinks and desserts. These items typically have higher markups than other items on the menu. Plus, when it comes to desserts, the quality (and quantity!) may not be worth it — many restaurants don’t even make the desserts they serve.

20. Ask About Complimentary Hotel Meals

Students looking for spring break trips on a budget won’t want to miss out on this tried-and-true travel budget saver: Before booking your hotel, ask if they have any complimentary meals, such as a continental breakfast. It may not be as fancy or Instagram-worthy as the hottest brunch spot in town, but it will likely be a lot better for your budget.

21. Use The Free Hotel Coffee

Most hotels offer free coffee either in the lobby in the mornings or through small coffee makers in your room. It may not be as fancy as your usual Venti Coconutmilk Latte with two pumps of salted caramel, but it won’t cost you anything.

22. Look out for Free Samples

Looking to score some more free snacks? Add local farmers’ markets to your itinerary. Many markets are full of free samples, so you may even be able to scrounge together a free lunch. You may also be able to score free swag, like t-shirts and reusable bags, from local vendors and businesses, your hotel, or the local visitor’s center.

23. Prioritize Free Activities

Sure, you can spend $50 for a museum ticket. Or, you could search online for some free museums nearby. Many hot spring break destinations offer free walking tours, free museum days, and a plethora of other free activities, such as parks and beaches.

24. Find a Travel Buddy (or Four!)

You’ll find that going on a budget-friendly spring break trip can be a lot easier if you team up with friends. Pooling your college budgets together may even help you to afford nicer accommodations or a more far-flung destination.

25. Cash in Credit Card Rewards…

If you have a rewards or cashback credit card, you may want to save up your points to help fund your epic spring break. Having a travel rewards card can be an easy way to save on travel, especially if you’re able to use that card on purchases before heading out on vacation, which could help you build up even more rewards points.

26. …And Earn More Rewards While Traveling!

Using your rewards credit card on vacation may not help you save for your current trip. But if you rack up more rewards during your trip, you’ll already have a new vacation fund started before you even come back from spring break.

27. Research Student Discounts

Catching a movie or eating out during spring break? Ask about a student discount! You may be able to score some sweet savings even before your vacation, as companies like Expedia often offer student-only travel deals. You can also try StudentUniverse , which helps students get discounts on hotels, airfare, and more.

28. Ask About Membership Discounts

A ton of college discounts exist, but don’t rule out membership discounts you could get from family members. For instance, Costco, Sam’s Club, AAA, and AARP all offer travel discounts to their members. It may be worth asking some relatives about their memberships to save big on your spring break trip.

29. Avoid Transaction Fees

Transaction fees can be a real budget-killer if you’re traveling abroad. And even if you’re stateside, ATM fees can also put a dent in your spring break savings. So you may want to ask your card issuer about fees and plan accordingly to make sure you have enough cash on hand to avoid them.

30. Use Hotel Toiletries

TSA-approved toiletries can be overpriced, and buying them when you arrive at your destination may also mean overpaying for toiletries that you have loads of at home. The best alternative? Decant your own shampoo and conditioner into smaller bottles you can snag at The Dollar Store. Or, better yet, just use the hotel toiletries. They may not be what you’re used to, but your budget will thank you.

The Takeaway

Wondering how to plan a spring break trip on a budget? It may not be as hard as you think. If you’re willing to try off-peak destinations and hunt for discounts, you can save a ton of cash. Spring break trips on a budget don’t have to be a drag, either. You can still go to popular destinations if you create (and stick to) a spring break travel budget. Using rewards and cashback cards can also help you save on airfare and other travel expenses.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

Wherever you’re going, get there with SoFi Travel.

Photo credit: iStock/onurdongel

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Eligibility:
You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia’s website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.

Additional Terms:
Changes to your bookings will affect the Rewards balance for the purchase.
Any canceled bookings or fraud will cause Rewards to be rescinded.
Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger.
SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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

Apache is functioning normally

March 21, 2024 by Brett Tams

Ally Home, the residential mortgage lending arm of Ally Bank, is offering a $5,000 grant for eligible homebuyers in the select markets of Charlotte, Detroit and Philadelphia, the company announced on Tuesday. The upfront lump sum can be applied toward a down payment, closing costs or other expenses related to the homebuying process.

Ally is partnering with HouseCanary, an AI-powered residential real estate data and analytics firm, to help consumers identify grant-eligible properties using the Ally ComeHome search portal. Ally created a one-stop shop with all the tools, resources and products a homebuyer might need, its news release stated.

“Buying a home is an unattainable dream for more than half of U.S. residents, which is why we strive to make homeownership more accessible to a wider range of individuals and families,“ Glenn Brunker, president of Ally Home, said in a statement.

“By bridging the affordability gap and easing the burden of the upfront costs of purchasing, our grants will help more people realize their dream of being a homeowner with the ability to enter the market, build equity and create generational wealth.“

The Ally home grant will be available for prospective homebuyers who are purchasing a primary residence. It will target individuals with an income less than or equal to 100% of the area median income (AMI) in the Charlotte, Detroit and Philadelphia areas, with possible expansion to come in the future.

There is a possibility to combine the grant with other offerings from Ally, including the Fannie Mae HomeReady Mortgage program. It enables consumers to purchase a house with a 3% down payment. Ally is considering expanding the program to more markets in the future.

“By incorporating our ComeHome technology into Ally’s website, we’re equipping Ally’s customers with a user-friendly platform that makes finding grant-eligible properties a simple and efficient process,“ Jeremy Sicklick, co-founder and CEO at HouseCanary, said in a statement.

Ally launched its ComeHome platform in collaboration with HouseCanary in late 2023. The platform has 53,000 users and continues to grow.

Apache is functioning normally

March 21, 2024 by Brett Tams

The home buying process involves many steps, but it always starts with getting preapproved for a mortgage. A preapproval letter shows that a lender has checked your credit report and approved you to take out a mortgage.

It can be tempting to skip over the mortgage preapproval process and go straight to looking at potential homes, but this is almost always a mistake. Getting preapproved will ensure that real estate agents and home sellers know you’re a serious buyer. It will also give you more room to negotiate on your offer.

Plus, preapproval gives you a better idea of what kind of home you can afford to buy. Let’s look more closely at what mortgage preapproval is and how you can get started.

How does a preapproval letter work?

In the home-buying process, a preapproval letter serves as tangible proof to potential sellers that the borrower has secured financing. This letter is generated by a lender after evaluating a borrower’s financial information, including credit score, income, and assets. It’s an assurance to sellers that the borrower is financially capable of following through on the purchase.

The preapproval process starts with the borrower submitting an application to the lender, who then conducts a thorough evaluation of the borrower’s finances. Based on this information, the lender will determine the maximum loan amount for which the borrower is eligible and issue the preapproval letter.

Preapproval letters are valid for a specified amount of time – usually between 60 and 90 days. During this time, the borrower can confidently make an offer on a property, demonstrating their commitment and financial stability to the seller.

While a preapproval letter is not a guarantee, it’s an important step in streamlining the home-buying process. It can make all the difference in helping the borrower secure their dream home.

Why You Should Get a Preapproval Letter

The process of buying a home can be overwhelming and stressful, but obtaining a preapproval letter can help alleviate some of those worries. This letter serves as a crucial first step in the home-buying journey, providing potential sellers with the assurance that you are a serious and financially capable buyer.

By taking the time to secure a preapproval letter, you will have a much clearer understanding of your borrowing power and what you can afford. Not only does a preapproval letter give you a competitive edge in a crowded housing market, but it can also save you time and heartache in the long run.

With this letter in hand, you can confidently make an offer on a property. This is because you have taken the necessary steps to secure financing and increase your chances of having your offer accepted.

So, whether you’re a first-time homebuyer or an experienced real estate investor, getting a mortgage preapproval letter should be at the top of your to-do list.

Preparing for Preapproval

Getting preapproved alerts you to any potential problems with your credit or income. Many people have issues with their credit that they need to clear up before obtaining a mortgage will be possible.

If you know about these issues, you can take the necessary steps to clean up your credit first. It’s much harder if you go house hunting first, find a home you love, and then realize you’re not prepared to buy it just yet.

For that reason, preapproval will help you be taken more seriously by sellers and listing agents. Sellers want to accept an offer that they are reasonably certain will go through.

Home loan preapproval assures them that you’re in a position to be able to close on the home. This is especially important in a seller’s market where there could be multiple offers on one home.

And finally, being preapproved for a mortgage gives you more clarity when you start looking at different homes. Without a preapproval letter, you’re really just guessing when it comes to the type of home you think you can afford. Getting preapproved takes all the guesswork out of it.

Preapproval vs. Prequalification

Many people use the terms preapproval and prequalification interchangeably, but they are two different things. Getting prequalified is similar to preapproval, but it’s not quite as accurate or thorough.

When you get prequalified for a mortgage, your lender won’t pull your credit and won’t ask for as much information about your finances. This obviously makes it much less time-intensive for you, but it also means that the information you receive is an estimate that could change.

In comparison, with preapproval, your lender will check your credit and do a more thorough examination of your finances. Because this process is much more comprehensive, you’ll receive a more accurate estimate of how much you’re approved to borrow.

What You Need for a Successful Mortgage Preapproval

Your loan officer will require a lot of documentation before they preapprove you for a mortgage. This can be quite tedious.

But the good news is, you already have access to all the information needed. So, it’s really just a matter of gathering all the necessary paperwork to submit to your lender.

Here is an overview of the documents and information you’ll need to get preapproved:

A good credit score: Unless you’re applying for an FHA loan or VA loan, you’re going to need a good credit score to get preapproved for a mortgage. Most mortgage lenders require a minimum credit score of 620 to qualify. However, you’ll receive the lowest interest rate if your credit score is 760 or higher.
Employment history: Your mortgage lender will want to see proof of employment before they’ll be willing to preapprove you for a mortgage. You’ll need to provide copies of your tax returns as well as your annual W-2. Your lender may even contact your employer to verify your employment status and income.
Proof of assets: You’ll also need to provide evidence that you can afford to pay the down payment and closing costs on your new home. This can typically be done by providing pay stubs, tax returns, or bank statements. If you aren’t able to pay the standard 20% down payment, you must purchase private mortgage insurance (PMI).
Your debt-to-income ratio: Debt-to-income ratio (DTI) is the percentage of gross monthly income that goes toward debt payments, such as credit cards, auto loans, and student loans. You must let your lender know of your monthly debts, since this will affect your debt-to-income ratio. You can provide a list with all of your outstanding debt, as well as the loan balance and minimum monthly payments.
Additional documents: Your lender will likely want additional information, like your Social Security Number and your driver’s license. And if you’ve been through a divorce or owe alimony payments, you’ll need to provide documentation of that as well.

How to Get Preapproved for Your Mortgage

Hopefully, by this point, you understand what mortgage preapproval is and why it’s so important. Here are the five steps you’ll need to take to get preapproved for a mortgage loan.

1. Check your credit report

Before you even begin the preapproval process, it’s a good idea to request a copy of your credit report from the three major credit bureaus. You can receive your free annual copies at AnnualCreditReport.com.

That way, you’ll know where you stand when it comes to your credit history. And this will give you a chance to review your credit report for any errors or delinquent accounts. It’s a good idea to resolve these issues before applying for mortgage preapproval.

2. Gather the necessary documentation

Take the time to gather the necessary paperwork before you approach your lender. This ensures that you go into the mortgage process prepared, and will help things move along much more smoothly.

3. Submit your application

Now it’s time to apply for preapproval. Your loan officer may have you apply for preapproval online. Answer all the questions as accurately as you can, and submit all the necessary paperwork.

It may be a good idea to apply for preapproval with multiple lenders. This allows you to compare your options and get the most favorable terms possible.

4. Receive your offers

Once your lender has reviewed your credit score and financial information, you’ll receive several recommended mortgage options. At this point, you’ll see how much you’ve been approved for and your recommended loan types. You’ll also get an idea of what your estimated monthly mortgage payment and interest rate might be.

5. Receive your preapproval letter

Once you’ve chosen your mortgage option, your lender will send you a preapproval letter. You can take this letter with you as you begin shopping for your home.

Bottom Line

Applying for mortgage preapproval is probably the least exciting part of the mortgage process, but it’s an essential first step every new homebuyer should take. Getting a preapproval letter will let you know what kind of home you can afford, and it will give you an advantage when you’re negotiating with sellers.

However, keep in mind that a mortgage preapproval is not a guarantee. If you suddenly lose your job or your financial situation unexpectedly changes, then the previous offer will no longer stand. But it’s as close to a guarantee as you can get before finally closing on your home.

Frequently Asked Questions

Why does it matter if I receive a preapproval letter?

It’s essential to get preapproved for your mortgage for a couple of reasons. First, it gives you a realistic picture of the type of house you can afford. And sellers will take your offer more seriously if you’ve already been preapproved for a mortgage.

What is the difference between a mortgage prequalification and preapproval?

Getting prequalified for a mortgage is much less thorough than a preapproval. Your lender won’t run a credit check, and they won’t review your finances as carefully. This makes it much less accurate than receiving a preapproval letter.

If you go through the process of getting preapproved, then it’s likely you’ll be able to close on a home, unless something drastic happens. But if you’ve only been prequalified, your offer could change once the lender does a more in-depth credit check and financial review.

When should I get preapproved?

You should get preapproved before you start looking at homes. That way, you’ll know what kind of home you can afford before you start shopping for a new home.

Will getting preapproved for a mortgage hurt my credit score?

As part of the preapproval process, your lender will conduct a hard inquiry on your credit report. Typically, this can hurt your credit score slightly. However, multiple hard inquiries for a home loan shouldn’t hurt your credit score.

Source: crediful.com