Renting an apartment is an exciting but crucial decision, as it often becomes your home for a significant period. To ensure you make an informed choice and avoid potential surprises, it’s essential to get the info beforehand, whether you need to know more about lease terms, amenities, responsibilities and more. We’ve gathered the top questions to ask when renting an apartment, empowering you to make a confident and well-informed decision for your future living space.
19 questions to ask when renting an apartment
Whether it’s top-of-mind questions or typically forgotten-about details, this list ensures you have your bases covered to learn about the living experience curated by an apartment.
1. What is the monthly rent?
This is arguably the most important question to ask when you’re renting an apartment so you’re aware of how much you’ll be expected to pay monthly for rent. Before you go into any apartment tour or even before you begin your apartment search, it’s a good idea to calculate how much rent you can afford. That way you can determine if the apartment you’re touring is within your budget.
2. Are utilities included in the rent? If not, what utilities am I responsible for and how much do they typically cost?
Standard utilities may include electricity, gas, water, sewage, garbage and internet/cable. The cost of utilities can vary based on factors such as apartment size, location and local rates. Knowing if utilities are included in the rent helps you accurately budget your monthly expenses. If utilities are not included, you need to account for those additional costs and accounts you’ll need to set up.
3. How long is the lease term and what are the penalties for breaking the lease?
Understanding the lease term length allows you to plan your living situation accordingly. You may have specific needs or future plans that require a shorter or longer lease term. It helps you determine if the apartment is suitable for your intended duration of stay. In the same vein, asking about the penalties for breaking the lease helps you understand the flexibility you may have in case of a situation where you need to relocate or move out.
4. Are there any additional fees or deposits required, such as a security deposit or application fee?
Most of the time, you can expect a security deposit and an application fee at the beginning of your apartment renting journey. The application fee, while it isn’t refundable, covers the cost of running the renter’s background checks and processing the application.
The purpose of a security deposit is to provide the landlord with financial protection in case the renter causes any damage to the apartment or fails to fulfill certain obligations outlined in the lease agreement.
5. Is renters insurance required?
Renters insurance isn’t always required. Some landlords or property management companies may require tenants to have renters insurance as a condition of the lease. They will include this requirement in the lease agreement and explicitly state the purpose of this coverage is for the renter’s personal belongings and liability. Sometimes renters can even purchase this insurance through a provider recommended by the apartment, making this process easy.
6. What is your subletting policy?
Subletting is a great option for renters if they are ever in need of their lease being covered. By asking about the subletting policy during a tour, you are aware of the potential to have this option in case your future plans change.
7. What should I know about parking? How many guest spots can I expect to get?
When touring an apartment, asking about parking is important because it directly affects your convenience. Parking is sometimes included in rent but there are also cases where there’s an additional fee you pay for parking. If you live in a city where parking is a little less accessible, you may have to pay for a parking garage pass.
Asking about guest parking helps you understand the availability and convenience of parking for your visitors. It is especially important to ask these questions when renting an apartment if you frequently have guests or expect to entertain visitors. This will typically either be a guest parking pass or designated guest spots/ guest floors in the parking garage.
8. Are pets allowed, and if so, do you have any weight limits or breed limits that I should know about?
Most apartments are furry-friend-friendly. You’ll most likely run into an additional pet fee you’ll pay monthly on top of your rent and monthly utilities. In conjunction with this question, asking about breed and weight limitations is equally as important. Apartment complexes often have specific policies regarding pets to ensure the well-being of both the animals and the other residents.
9. Is the apartment furnished or unfurnished?
If you’re someone who prefers convenience and doesn’t want the hassle of buying or moving furniture, a furnished apartment might be a better fit than a standard, non-furnished apartment. Knowing whether the apartment comes with furniture helps you estimate your expenses and plan your budget accordingly, or determine if the furniture is an expense you want to take on.
10. What appliances are included in the apartment?
It’s good to know what appliances are in the apartment and what appliances you’ll need to purchase depending on your individual needs. Some apartments will lack in-apartment appliances but have communal kitchen and laundry appliances that you’ll share with the rest of the building residents.
11. Is there a maintenance staff available for repairs and how quickly are maintenance requests typically addressed?
This question gives you an idea of how to handle any repairs or malfunctions that happen in your apartment and how long you may have to wait for repairs if something in the apartment needs reparation.
12. Is there a designated area for trash and recycling? How often is it collected?
Whether the apartment offers valet trash services, designated trash areas or coordinated trash pickups, it’s an often forgotten-about part of the renting process. Many apartments will have trash rooms, recycling collection and/or valet trash, giving residents options and designated areas to dispose of waste.
13. Are there any amenities available, such as a fitness center, pool or community room? Are there any additional fees to use these amenities?
A huge part of your apartment living experience is the amenities offered outside of your individual apartment walls. Different individuals have varying preferences and priorities when it comes to amenities, so asking about them helps you determine if the apartment meets your needs and lifestyle.
14. What is the policy on renewing the lease after the initial term?
By asking about a lease renewal, you can assess whether the apartment is suitable for your long-term needs. Most apartments will send out renewal offers months before your lease terms, giving you time to decide if renewing your lease is the best fit for your future living needs.
15. How secure is the building? Are there security measures in place?
Peace of mind is important. It’s a good idea to ask about the security measures the building and apartment staff are taking as well as apartment-friendly security measures renters can take, like installing a doorbell camera. Some apartments will even have security guards for late hours that you can contact in case of an emergency.
16. Are there any decoration restrictions like painting the walls or hanging artwork?
The goal of this question is to ensure you get your security deposit back as well as evade additional charges when moving out. Most rental agreements have specific terms and conditions regarding modifications to the property space or apartment. By knowing your restrictions, you can decorate in a damage-free way.
17. What is the policy on rent increases? How often do they occur and by how much?
Depending on the area you’re living in, rent increases can range from small to large increases. Normally, residents will see rent increases when renewal offers are given to residents. You’ll typically have a few months to decide and calculate your budget or negotiate the increase. Landlords may have different rent increase schedules, so asking before you’re contractually obligated is a safe bet.
18. What is the policy on package deliveries?
Typically, residents receive mail and smaller packages in assigned mailboxes or at their doors. More recently, apartments are starting to install package lockers where residents can register a locker for packages. Asking this question helps you know if your packages are protected or the options you have for your mail delivery.
19. Is rent payment online or in-person? Are there any late payment fees or grace periods?
Being familiar with this process helps renters know how they pay and the budget they need to personally make around payments. Grace periods and late fees can vary from one property to another, and being aware of them allows you to understand any flexibility in a worst-case scenario or money you’ll tack on if you pay late.
Asking questions and take note of the answers
By asking these questions during a tour, you can gain a clear understanding of the overall renting experience you would have living in that apartment. This knowledge will help you make an informed decision about the fit of the apartment and ensure a smoother experience during your tenancy.
There are many renting options so finding the right fit for you ensures the best living experience possible. Start your apartment-hunting journey today!
Inside: A biweekly budget is a budget that is broken into two-week periods. Learn how to create biweekly budgets and download your free template.
Many people create budgets, but only a few budget on a biweekly basis.
That is an interesting statistic because 43% of Americans are paid on a biweekly pay period (source).
So, the thought process is more people should be interested in learning knowing how to create a biweekly budget. But, in reality, most people give up on budgeting or move to a budget-by-paycheck method.
Recently, we moved over to a biweekly pay period. And thus, we quickly had to change how we focused on budgeting.
While most financial bloggers and gurus would agree, budgeting with biweekly paychecks makes the whole concept of budgeting hard.
While biweekly budgeting isn’t easy, it can be done!
This post will show you how to create an easy-to-manage and effective biweekly budget so that you can conquer your financial goals in the most efficient way possible!
We will go through the exact steps I use to create a biweekly budget to cover two weeks’ worth of expenses, get one month ahead on your bills, or adjust your planning to cover your monthly expenses.
This is a basic example, and you should use your own personal situation when developing your own budget.
Do you struggle to keep your finances on track? If so, here are some tips for creating a biweekly budget.
What is a biweekly budget?
A biweekly budget is a budget that takes into account a person collecting a paycheck every 14 days. This type of budget is beneficial for those who are paid on a biweekly schedule, as it allows them to plan their spending more effectively.
However, many people find it difficult when bills are due on a monthly basis.
Difference between biweekly and semi-monthly paychecks
When receiving paychecks twice a month happens with two types of pay schedules either biweekly or twice-per-month. The difference between these two schedules is the number of checks per year.
Those who are paid biweekly receive 26 checks per year, while those who are paid twice-per-month receive 24 checks per year.
Making a budget on a biweekly income can be difficult because the total number of checks received in a year varies depending on the pay schedule you have.
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How does a biweekly budget work?
A biweekly budget divides your budget into two parts, one for each paycheck that is received. This can be helpful for those who want to better track their spending or for those who want to save money.
It can be helpful to think of your biweekly budget as two separate budgets – one for bills and one for everything else.
When you create a biweekly budget, you are essentially creating two budgets over the span of ten months. Then, in the other two months, you will receive three paychecks; thus, need to create three budgets.
Since many monthly expenses remain the same when switching from a month budget to a biweekly budget, knowing which expenses should be increased or decreased beforehand can make the process smoother.
Additionally, it is helpful to know how much money you will need for each check. That way, you won’t have to worry about bouncing checks or accidentally overdrawing your account.
How to create a biweekly budget
Creating a biweekly budget is a great way to start getting your finances in order. You can either create your own template or use one of the many templates that are available online for free.
One popular template is ours!
Money Bliss Biweekly Budget Template (see below to get your copy). This template is available as a free download and can be used in conjunction with our budget binder. The planner allows you to track your income and expenses, as well as financial documents such as bills and bank statements.
There are a few key things to keep in mind when creating a biweekly budget:
Adjust your budget as needed.
Be flexible when adjusting to this 2 week budget style.
Compare your regular expenses to your spending from the past month.
Now, here are the steps to creating a biweekly budget that works.
Step 1: Print out a calendar
You need to print out the dates you get paid from your employer. On the biweekly paycheck, Fridays are usually pay dates; you just need to know which Fridays!
So, print out a blank calendar. Write down when you get paid along with when your bills and expenses are due.
This will help you get an idea of where you are spending your money and where you can cut back.
Many people find it helpful to color code by category and add stickers. This will help you see your budget at a glance.
Step 2: Put in a buffer
This will help ensure that you don’t have to worry about going into debt if something unexpected comes up.
Ideally, you should try to save at least two weeks’ worth of living expenses so that you know you’ll be able to cover your costs even if something goes wrong.
For us, all of our income goes into an “income checking” account. Then, at the beginning of the month, we transfer money into our “bills checking” to cover our expenses for the month.
Then, we always have at least one month of expenses on hand – just in case.
Step 3: Organize expenses
The easiest way to do this is by category. There are a few different ways to categorize your expenses, but the most common are:
Fixed or recurring expenses: These are expenses that happen every month, like rent or utilities
Variable or occasional expenses: These are expenses that happen each month but vary in amount, like groceries or entertainment
Annual or quarterly expenses: These costs are less frequent, but take a good chunk of your budget like an annual insurance payment or kid’s sports fees
One-time only expenses: These are one-time only costs and you don’t anticipate them again.
For most people, the struggle happens when organizing expenses. The expenses you “forgot” about are what blow your budget. Honestly, these are not forgotten expenses – just something you forgot to plan for.
Step 4: Focus on Zero Based Budgeting
Additionally, it’s important to use a zero-based budgeting approach.
With this method, you start by assigning every penny of income a job, whether it be for rent, groceries, or savings. This way, you can make sure that you’re not overspending each month.
A zero-based budget is a type of budget that starts with the assumption that there is nothing in your bank account.
This includes both predictable and unpredictable costs.
In the next steps, you will lay out what paycheck will cover what bills.
For example, some costs, like your rent or mortgage payment, will likely stay the same from one biweekly period to the next. By taking into account both types of expenses, you can get a more accurate picture of how much money you will need each pay period.
Learn more about zero based budgeting.
Step 5: Write your first biweekly budget
Writing a biweekly budget is the first step to creating financial stability. It’s important that you set up a plan for each paycheck to make sure your bills get paid.
When creating your first biweekly zero-based budget, you’ll want to start by paying your immediate obligations. This includes any bills or fixed expenses like rent or car payments that are due during the first pay period. After that, focus on covering your variable expenses such as groceries, gas, or eating out.
To make sure every dollar has a job, you should consider these tips:
If you have any leftover money at the end of the month, send it to your savings or make extra debt payments.
Make sure that each category in your budget has a specific amount assigned to it.
Keep track of your spending so that you can stay on track and adjust as needed.
Paying your most important bills first is a crucial step in making sure that your finances are on track.
Step 6: Write Your second biweekly budget
The second biweekly budget is a budget that’s typically created for the 2nd paycheck of the month. This budget would cover the next two weeks and may need to cover expenses at the beginning of next month before you get paid again.
Just like creating a budget plan for the 1st paycheck, you will do the same again. Prioritize any fixed expenses first, then add in variable expenses or sinking funds to contribute to.
In order to make your budget as accurate as possible, you should account for fluctuations in your expenses. This is where the buffer comes in – you put a certain amount of money aside each month to cover any unexpected costs. Then, you can start planning for them in the upcoming months.
Once again, if you have leftover money after budgeting for the two weeks, you can either send it to your savings account or start paying down your debt. If you choose to save, make sure that the money is in a place where it will earn interest and grow over time. If you choose to pay down debt, make sure that the payments are more than the minimum amount due so that you can see results quickly.
Step 7: Start tracking
Now that you have your biweekly budget template set up, it’s time to start filling in the numbers and track your budget. This part can be a little tricky, but with a little effort, you’ll be able to save money and get ahead on your debt payments.
First, take a look at your income and expenses for the month. How does this compare to what you’ve budgeted? If you’re coming in under budget in some areas, great! You can either use this extra money to bolster your savings or make extra debt payments. However, if you’re over budget in some areas, don’t worry – we’ll work through that below.
Next, take a look at your sinking funds.
These are accounts where you save money each month to cover specific expenses. How much money do you need to save each month in order to cover your bills? If you’re not sure, take a look at your past bills and use that as a guide. Once you know how much money you need to save, divide it by two and put that amount into your biweekly budget.
This will help ensure that you always have the money you need saved when the bill comes due.
If you have any leftover money after filling in your budget, send it to savings or make extra debt payments.
You can also use this extra money to invest in yourself (by taking classes, for example), but be careful not to overspend!
Creating and sticking to a biweekly budget is a great way to start saving money and getting your finances under control.
Biweekly budgeting tips
When it comes to budgeting, biweekly budgets can be a helpful way to streamline the process. By taking an hour or so at the beginning of each month to set up your budget, you can avoid potential headaches down the road.
It’s also important to remember to write everything down! This includes both fixed and variable expenses.
Tip #1 – Change Due Dates of Bills
If you’re having trouble with your bills, don’t hesitate to call companies and ask them to change the due dates.
This is something I do whenever I open a new credit card. I want the credit card date to close at the end of the month.
Tip #2 – Age Your Money
You may also want to save up for one month’s worth of expenses so that you always have a cushion in case something unexpected comes up.
This is also the first step to stop living paycheck to paycheck.
When you have a cushion of savings, you’re less likely to fall into debt if something unexpected happens.
Tip #3 – Track Your 2 Week Budget
There are plenty of tools for budgeting out there. In fact, here are the best budgeting apps available.
It offers a variety of helpful tips for getting started, as well as ways to automate time-consuming tasks. With this tool, you’ll be able to improve your budgeting and financial insights in no time!
Many popular options include a budgeting app, Excel, or Google Sheets. Pick what works best for you
Tip #4 – Focus on Your Goals & Finances
In order to be successful, you’ll need to set financial goals for yourself and make plans to achieve them.
As with any other goal, it’s easier said than done! It can take a lot of time, work, and effort to reach your goal.
If you’re not sure where to begin or what goals are right for you, here are some examples:
This is just a sample of the types of goals you can set. If you’re not sure where to start, just think about what’s important to you and your family.
What are some financial goals that you have? Write down your goals and make a plan to achieve them.
What to avoid when you’re paid biweekly
When you’re paid biweekly, there are a few things you should avoid in order to make the most of your money.
You need to learn which payment type is best if you are trying to stick to a budget.
Since biweekly budgeting can be more difficult, you need to know the pitfalls to avoid.
Pitfall #1 – Spending All your Money Too Quick
First, don’t spend your money as soon as you get it. This will leave you with nothing left for the following two weeks.
When having to use one paycheck to cover most of your big expenses like mortgage/rent or insurance, that leaves very little money for groceries or gas
Try to have a savings goal and save for that.
For example, don’t wait until the end of the month to spend all your money. This can help you save more money and have something left over at the end of the month.
Pitfall #2 – Forgetting Bills
Second, don’t forget to budget for bills and other expenses. Make sure you have enough money to cover your costs, especially those non-frequent bills like car registration.
By doing this, you’ll be able to ensure that you have enough money each week to cover what you need.
Pitful # 3 – Quit Bi-Weekly Budget Completely
Yep, I get it budgeting your paycheck over a 2-week budget is difficult. It may feel like pushing a square through a circle. It takes a different mindset and a little more planning to make it happen.
If anything, try to avoid impulse buys. Wait until the next paycheck and see if you still want the purchase. That will help you not to overspend on unnecessary items.
What to do when you have a third paycheck?
This is the BEST benefit of a biweekly paycheck. Twice a year, you will receive 3 paychecks in a month instead of just two.
Looking forward to having a third paycheck, you can either save it or spend it.
If you save it, you can use it as a down payment on a house or invest it in a retirement fund. If you spend it, you can use it to pay down debt, remodel a house, buy a new-to-you car, or go on a vacation.
There are a few things you can do when you have an extra paycheck:
Use it to pay down debt: If you have high-interest debts, using your third paycheck to pay them off can save you a lot of money in the long run.
Invest it: If you’re comfortable with taking on some risk, investing your extra paycheck could lead to bigger returns down the road.
Sinking Funds: Those yearly expenses can weigh heavily on your budget. So, set extra money aside for those payments.
Put the money towards your goals: Whatever your ambition is, here is money to help you get there faster.
Spend it on something fun: Obviously, this isn’t the smartest option, but if you’ve been working hard and deserve a little treat, go for it!
Just make sure that you’re not spending more than you can afford.
Free Printable Bi weekly Budget Templates
There are a number of different printable 2 week budget templates that can help you get your finances in order. Most of them are simple and easy-to-use, and they’re not scary to look at. In addition, many of them have templates that you can download and/or punch holes into so that you can use them as binders or notebooks.
One great option is the budget tracking worksheet. This cute template is simple yet effective, and it will help you track your spending each month.
How do you make a monthly budget with biweekly pay?
There are a couple of ways to make a monthly budget if you receive biweekly paychecks. You can either budget by paycheck, divide out your expenses between biweekly paychecks, or focus on a monthly budget.
If you choose to budget by paycheck, you’ll create a new budget for each pay period and then stick to it. This method gives you a better understanding of the flow of money in your bank account and will help you keep track of your bills more carefully.
The other option is to budget monthly, which is for people who live paycheck to paycheck. In this case, you would budget off 24 paychecks and make plans for your two budget paychecks. Then, two of your paychecks would be budgeted for the monthly budget.
However, many people argue the Budget-By-Paycheck method can help reduce stress since it allows for more flexibility.
In either case, it’s important that you track your spending throughout the month so that you can make adjustments as needed.
Time to Create Your Bi weekly Budget Calendar
This budget will be a little more complicated than your monthly budget because your paychecks are not always going to be paid on the same day of the month. However, most of your bills are usually fixed and don’t change from month to month.
So, you need to plot out which bills you will pay with each paycheck ahead of time in order to make sure you have enough money to pay them all and keep them organized.
It is important to remember that when creating your budget, you need to give yourself some grace to make sure it works for you while you work on perfecting your budgeting style.
For us, having a buffer of money in our “income checking” account takes away the stress of bills and anxiety that we will run out of money. We understand that we need to use sinking funds for those variable expenses.
However, it is important to note that a biweekly budget tends to forget events such as birthdays or vacations from being considered in spending plans. So, make sure to include them.
Now that you have a good idea of how much money you make and how much money you need to live comfortably, it’s time to start creating your biweekly budget.
Also, taking time to understand your personal financial statement is important.
From all of the free and paid budgeting apps, here are our top budgeting apps to check out!
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I’ve been doing what I call “investment banking” for a friend’s company (I say it that way because the work I do is almost definitely not what you probably think of when you hear the term), and I get this question almost every day:
“So, I guess you know a lot about investing!”
Well, I know more than perhaps most people about investing. But, again, it’s not what you think; I’m not doing any research into public companies, and I’m never, ever picking stocks professionally. Most of the work I do is with deals that have closed long before or deals that are only imaginary.
People ask me, often, “So, you’re an investment banker? What should I invest in?” My response isn’t what they’re expecting, even though I think it’s the best advice:
“Invest in companies you like.”
I’m going to make the usual disclaimers here: most people should be Sharebuilder. (Basically, you pick a dollar amount to invest each month — say, $50 — and it gets put into the stock of your choice, on the same day each month, in fractional quantities based on the stock price that day.)
So I have a list of things I look for in a stock. And the first one is that I like the company and most importantly the CEO.
“The CEO is the main character of a stock’s story.”
It’s not a coincidence, I don’t think, that I’m both a writer of stories and a lover of investment banking. I think of companies in much the same way I think of literature: driven, essentially, by the main character of the story. CEOs are interesting; of the companies whose CEOs I’ve either met or gotten to know by obsessively studying their interviews and public statements, I never once remember seeing a company whose long-term performance differed greatly from the personality of the CEO. That’s not extremely clear so I’ll give you a few examples.
1. Hospital management company number one. When I was a young investment banker, I had two hospital management companies whose deals occupied a lot of my time. In both cases I got to know the management teams fairly well. In both cases, I watched their performance for several years. Number one was run by a very ego-driven doctor whose tan was nearly orange and who often made startling pronouncements in bank meetings — predictions not supported by his financial team, say, or exaggerations of performance when we had the real numbers in our handouts. His employees seemed a little frightened of him. Hospital company number one bought too many urban hospitals outside of its management scope, got too deeply in debt and ended up having to liquidate a few hospitals, losing money.
2. Hospital management company number two. The second company’s management team was boring, boring, boring. The CEO was also a doctor, but he wore unremarkable suits and worked too much to spend any time tanning. He was careful and kind, and his management team followed him loyally. His VP of finance would call me in the middle of the night sweating over a small detail in the financial sheets. He did not, that I know of, drive a flashy car. This company made smart investments, slowly, and was ultimately purchased by a larger company for a good price.
No matter what sort of company it is, a CEO will set the tone. Many organizations are held together entirely by the force of the management team’s personality, and the CEO usually hires the rest of the team. If you think the CEO is stupid, ego-driven, mistake-prone, too likely to take risks, cripplingly risk-averse, unethical, or tending to make decisions on a whim; well, you might (as with, say, Enron) make money in the short term, but in the long term the company’s story will hew more closely to the CEO’s story than to any of the bit characters.
“Invest in sustainable market trends.”
Quick distinction: there is a difference between trends and fads. One is the way the sentiment of a large group or force is moving. For instance, our country is trending toward greater acceptance of gay marriage. The other is something that could be extremely popular today and a complete dud tomorrow. Silly Bandz were a fad. Invest in trends and not in fads.
One of the client companies I’ve been following is an end-of-life transition company. In other words, they own funeral homes and cemeteries. There is a sustainable market trend for you; death rates are increasing — any reversal of such would be slow and obvious — and we have not seen a major cultural shift away from funerals or burials. It’s sustainable, because we keep growing people, and they’ll have to die eventually.
It’s also relatively “sustainable” in another meaning of the word; it is not a company whose product uses very finite resources (or whose byproduct damages finite resources) that might disappear, increase greatly in price, or become heavily restricted in the near future. For instance, many human rights watchers have begun to voice concerns about some of the metals used in the components of most mobile phones, digital cameras, tablets and laptop computers. They are mined under dangerous conditions, they can provide funds for combatants in conflicts, and their disposal is tricky.
But you could see “sustainability” in a number of ways; maybe you wish to invest in companies engineering crops for drought tolerance and higher yield, or maybe you believe that such companies are forsaking economically sustainable practices (seed saving and soil preservation, for example) in order to obtain a higher price for their goods (the seeds). It’s important to remember that you still have to make your own judgment. A claim of sustainability is just that, a claim, and you have to determine how well you believe in it (return to the first point, likability and trustworthiness).
“Invest in companies whose future prospects are rosy.”
You don’t want the companies whose projections show 20 percent growth for the next five years. Those numbers may be impressive and awesome, but they’re expensive. Investment advisers say that a company’s future growth is “priced in”; in other words, you’ll be paying for the stock as if the company had already achieved the analyst-consensus growth rate. But that’s just a guess based on current market conditions and current information. You’re paying for a guess.
You’re better off not with companies whose futures are so bright (you gotta wear shades), but with companies whose future are just a little blush of pink. You want a company whose growth prospects are possible. Take McDonald’s, if you believe that fast-and-cheap-and-corn-fed model has a long future — I don’t — but we can all agree the company is pretty widely distributed. Even its international growth has been a part of pop culture for decades. Remember the “Royale with Cheese”? Anyway, it’s a crap shoot; there might be a big future for fast food, but then again, there might not. Better off with something small enough to leave room for growth but not so small as to be unproven. Rosy.
I like companies who are taking advantage of growing market trends in sustainable products, like Seventh Generation. (The company isn’t public, but if it was, I’d be a buyer!) Maybe you believe in the future of sub sandwiches. Maybe you believe in the future of Med-alert devices. Whatever it is, take a look at the future, and make sure you can see it — glowing but not blinding.
What stocks do you think make sense in these qualifications: likeability, following a sustainable market trend, and with a rosy future? Is there anything else you really focus on when picking a stock?
Mortgage rates fell slightly this week, staying almost flat ahead of the Federal Reserve’s closely watched interest rate-setting meeting next week.
The 30-year fixed-rate mortgage averaged 6.13% in the week ending January 26, down from 6.15% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed rate was 3.55%.
“Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the monthslong freeze that gripped the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.”
After climbing for most of 2022, spurred by the Fed’s harsh interest rate hikes to tame soaring inflation, mortgage rates have been trending downward since November, alongside data that continues to show inflation may have reached its peak. Last week’s mortgage rates hit the lowest level since September.
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less than ideal credit will pay more than the average rate.
All eyes on the Fed
The Fed is expected to continue its rate-hiking campaign at its two-day meeting on January 31 to February 1. The central bank is likely to announce a smaller increase in the fed funds rate, with a quarter-point hike, compared with the half-point and three-quarter-point increases in the meetings last year.
The Fed does not set the interest rates borrowers pay on mortgages directly. But its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions.
When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
“The Freddie Mac fixed rate for a 30-year loan rebounded slightly this week, following the trajectory of the 10-year Treasury,” said Jiayi Xu, an economist at Realtor.com. “While businesses and investors are watching the market closely, the recent large-scale layoffs in the tech sector combined with Monday’s stock market rebound have created mixed signals.”
On one hand, she said, many cash-burning tech companies are struggling with the Fed’s rate hikes. On the other hand, investors are happy about slowing inflation and anticipate that interest rate hikes may begin to moderate or stabilize in the months ahead.
Economic indicators like the low unemployment rate and the cooling inflation rate do not point toward a recession, Xu said. “However, it’s important to keep in mind that monetary policy takes time to have an impact, and these economic indicators might not yet show the full effects of the restrictive policy,” she said.
While the Fed may continue to raise rates this year, Xu said, the slower pace will help to create a soft landing for the economy by balancing the risks of bringing down inflation without pushing up the unemployment rate.
“Despite slowing inflation, the expected ongoing restrictive monetary policy may keep mortgage rates in the 6%-7% range in the short term,” she said.
Mortgage applications rise
The downward trend for mortgage rates since November has had a positive impact on home affordability for mortgage borrowers.
Homebuyer affordability improved in December, with the national median payment decreasing 2.9% to $1,920 from $1,977 in November, according to the Mortgage Bankers Association.
Many buyers are taking advantage of the relatively lower rates of the past few weeks: Applications for mortgages were up 7% last week from one week earlier, according to MBA.
“Borrower demand, thanks to lower mortgage rates, continues to rise in early 2023,” said Bob Broeksmit, MBA president and CEO. “Mortgage applications increased for the third straight week. Purchase demand is still below year-ago levels, but lower rates and improving affordability are favorable developments for the housing market heading into the spring.”
Buyer traffic is picking up in many markets, even if inventory is slow to improve.
“High costs and concerns about economic uncertainty had many buyers pausing their purchasing decisions and led to fewer transactions,” said Xu. “However, decreased competition may have presented opportunities for some first-time home buyers.”
Today we’ll check out “Compass Mortgage,” a direct lender based out of Chicagoland that is one of the top mortgage companies in Illinois.
They do nearly all of their business in the Land of Lincoln, putting them near the top-20 for all mortgage lenders in the state.
So if you’re a homeowner or prospective home buyer in Illinois, there’s a good chance you’ve heard of them.
What sets them apart is their dedication to customer service, with a big focus on creating a personal home loan experience, with you guessed it, real people.
That means being treated like family, instead of relying on a chat bot to get your loan. Read on to learn more.
Compass Mortgage Fast Facts
Retail, direct-to-consumer mortgage lender
Offers home purchase loans and refinances
Founded in, headquartered near Chicago, IL
Licensed to do business in 15 states
Funded $3.2 billion in home loans last year
Roughly 90% of total production comes from state of Illinois
Compass Mortgage is a retail, direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinances.
This means you can apply remotely via their website, or visit a physical branch if one is located near you (they’re mostly in the Midwest).
The company was founded by Dan Graham in 2002 and is located in Warrenville, Illinois, which is about 30 miles west of Chicago.
For the record, they are not affiliated with the Compass real estate brokerage, which is based out of New York City.
While Compass Mortgage is licensed in 15 states across the nation, roughly 90% of total loan volume comes from their home state of Illinois.
That made them a near top-20 mortgage lender in the state of Illinois, mostly beat out by the mega banks, Guaranteed Rate, Rocket Mortgage, and so on.
The other states where they’re licensed include Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
Last year, Compass funded $3.2 billion in home loans, with about two-thirds of volume consisting of mortgage refinances and the rest purchase loans.
That means they are probably well-suited for both existing homeowners and those looking to buy a property.
How to Apply with Compass Mortgage
To begin, you can either call them up, visit a physical branch, or simply head over to the website and go the self-serve route.
Your best bet might be to speak with a loan officer first to discuss loan pricing and eligibility, then apply.
Either way, it’s possible to apply without speaking to anyone if you’re a self-starter.
Once at the website, select your transaction type (e.g. refinance or purchase), then you’ll be asked if you know your loan officer by name or don’t have one/remember.
There is a loan officer directory on their website if you wish to read bios or if you simply need a reminder of who you were working with/referred to.
If you know the individual, you can select them from a drop-down list to ensure you’re paired with the correct person.
If not, you’ll be assigned a loan officer after you submit your loan application.
Their digital mortgage application is powered by Blend, a leader in the mortgage fintech world.
It allows you to complete the app electronically, link bank accounts using login credentials, eSign disclosures, upload paperwork, and more.
Once your loan is submitted, your loan team will guide you throughout the process. You’ll also be able to log on to the borrower portal 24/7 to check loan status and satisfy outstanding conditions.
Compass Mortgage makes it easy to apply for a home loan and stay abreast of what’s going on from start to finish.
If you’re a prospective home buyer, they offer their “Get Committed” mortgage pre-approval, which is a more robust loan commitment.
It is fully-underwritten and includes the ability to lock your loan before you find a property (pre-lock).
This shows home sellers you’re a serious, well-qualified buyer and can make your offer stand out in a bidding war or even compete with cash buyers.
Loan Programs Offered by Compass Mortgage
Home purchase loans
Renovation loans
Construction loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Down Payment Assistance (DPA) programs
Bridge loans
Lot/Land loans
Compass Mortgage offers a wide selection of home loan options to suit just about any borrower in any situation.
This includes home purchase loans, refinance loans, and construction and renovation loans, such as the FHA 203k program.
All the major loan types are available, including conforming, jumbo, government loans (FHA/VA/USDA), and even bridge loans.
Those who are short on funds can take advantage of their Down Payment Assistance (DPA) programs, including grants and forgivable loans.
They lend on all property types, including primary residences, vacation homes, multi-unit investment properties, and condos/townhomes.
Both fixed-rate and adjustable-rate mortgages are available in a variety of loan terms including the 15-year fixed and 7/1 ARM.
Simply put, you shouldn’t be limited when it comes to loan choice.
Compass Mortgage Rates
One area that’s light on information is their mortgage rates and lender fees.
Compass Mortgage doesn’t publicize these details on their website, so it’s hard to know how competitive they are on the pricing front.
As such, you’ll need to get in touch with a human first to discuss interest rates and inquire about any fees.
It’s unclear if they charge a loan application fee, loan origination fee, underwriting fee, and so on.
Be sure to get all the details and your mortgage APR so you can compare it to quotes from other banks, lenders, and mortgage brokers.
Compass Mortgage Reviews
On Zillow, Compass Mortgage has a 4.99-rating out of a possible 5 from about 400 customer reviews.
That’s pretty much as close to perfection as you can get, and a testament to their mission to provide a “Better Mortgage Experience.”
A good chunk of those reviews indicate that the interest rate and/or closing costs were lower than expected. So that at least provides a clue to their pricing.
They also have a 4.9-star rating on Google from nearly 800 reviews, another sign of their strength in the customer satisfaction department. And a 4.5-star rating on Yelp from over 50 reviews.
Lastly, while they’re not an accredited business, they hold an ‘A+’ BBB rating based on complaint history, of which there are none currently on file.
To summarize, Compass Mortgage seems to be really big on customer service, and could be a good choice for a first-time home buyer who wants hands-on service throughout the loan process.
They could also work for an existing homeowner looking to refi – just pay attention to rates and fees to ensure they’re competitive.
Compass Mortgage Pros and Cons
The Good Stuff
Can apply for a home loan online in minutes
Offer a digital, paperless loan application process
Also have brick-and-mortar branches in the Midwest
Lots of loan programs to choose from
Offer fully-underwritten pre-approvals to help you win a bidding war
Can pre-lock your rate before you find a property
Excellent customer reviews across ratings sites
A+ BBB rating
Free online mortgage guides, mortgage calculators, and mortgage glossary
Lindsay Mack earned her bachelor’s degree from Georgetown University in 2005. Nearly 15 years later, when she considered the best way to grow her business acumen, an MBA was not it.
Mack, who is from Philadelphia, grew her career without an MBA. When ready to advance her skills in platform strategy, she opted for a faster, lower-cost cohort program instead.
For students like Mack, the cost of a top MBA — averaging $225,605 in the U.S., according to a 2022 report by BusinessBecause, an online publisher of graduate business content — is daunting, and the value is questionable.
“I didn’t see how making such a significant investment (in an MBA) would really leapfrog me to the next level,” says Mack, now Comcast’s executive director of product management.
Cost isn’t the only barrier to attaining a graduate business degree. BusinessBecause reports that the average acceptance rate for the most competitive U.S. business schools is 16%, based on its analysis of data from U.S. News & World Report and other sources.
If you want access to business school education without the price of tuition or hassle of admissions, you have other options.
If you prioritize credentials
Consider a graduate business certification. A certification — offered by accredited colleges and universities — differs from an MBA degree primarily in how long it takes to complete the program.
For example, a graduate business certificate from the University of Nebraska–Lincoln College of Business requires 12 credit hours to graduate. An MBA from the same university needs 48 credit hours for completion.
Because you’re taking fewer credits compared to an MBA, you can expect to pay much less. For example — based on the 2022-23 academic year — tuition for a graduate certificate in strategic management from Harvard Extension School, a Harvard Division of Continuing Education, is $15,500. A Harvard MBA costs $73,440 in tuition, not including fees.
Certificate programs are often more specialized than graduate business degrees. This can be great for those looking to develop a specific skill set — like business analytics — to advance in their career, says Olivia Jobson, associate director of graduate recruitment at Oregon State University College of Business.
If you need a more flexible schedule
Consider a self-guided online course. Companies like MasterClass, Skillshare, Udemy and Coursera let you learn business skills at your own pace.
“Our central tenet is to meet learners where they are,” says Marni Baker Stein, Park City, Utah-based chief content officer at Coursera. The company offers individual courses, professional and credentialed certifications, and full degrees through university partnerships.
Many online companies allow you to access some courses for free, but the full libraries require a monthly subscription. MasterClass, for example, offers unlimited access to existing and new content for $180 annually.
Unless partnering with an accredited institution, these programs typically do not offer credits for completion. If you need credits to transfer to a university, consider enrolling in an accredited program.
If you want more of the MBA experience
Consider a business training cohort. Though it’s hard to replicate the two-year, in-person MBA experience, some companies creatively found ways to incorporate its key components into online learning.
Section, a New York City-based online business education company, for example, offers one- to two-week online sprints structured much like sections within an MBA program. Members participate in live classes online, group discussions and even team projects for $996 per year.
Similarly, the Invited MBA, by Texas-based corporate leadership development company Abilitie, offers a 12-week program that includes live virtual sessions, team business competitions, study groups and even online happy hours. Tuition is $1,850.
Companies like Section and Abilitie are not accredited universities. Graduating from these programs will not result in an MBA degree, but some graduates of the programs say it delivered exactly what they needed — practical business skills, a strong network and greater employability at a fraction of the cost of an MBA.
“I have folks who are at the exact same level as I am, who did full-time MBAs and have school debt, and I am now peers with them,” says Nicholas Schroeder, a Seattle-based graduate of Abilitie’s Invited MBA.
Upon completing the Invited MBA in May 2021, Schroeder, a former U.S. Army officer, transitioned into a career in consulting — the most coveted industry for prospective graduate management students, according to a 2022 survey by the Graduate Management Admission Council, an association of graduate business schools.
This article was written by NerdWallet and was originally published by The Associated Press.
How do you choose a mutual fund? But first, is it time for you to start investing? You may be asking the question – should invest while you’re still in debt? Or, perhaps – what is enough emergency savings before investing? These can be challenging questions to answer, but in general, you should invest as early as possible in life to maximize growth, especially if you can get a 401(k) match by your employer.
Priorities Before Investments
However, if you’re in debt and have minimal or no savings, you’ll want to work on those goals as a top priority. Only invest up to the point of getting an employer match if you can still make forward progress on these top priorities. Certainly you want to build emergency savings and get out of debt as quickly as possible to avoid missing out on investing and the magic of compounding.
Mutual Fund Investing
Now, assuming it’s the right time for you to invest, let’s talk about investing in mutual funds. Dave Ramsey always suggests buying a good growth stock mutual fund. But, is this advice enough for everyone?
Obviously, you can buy indivdual mutual funds, but most commonly mutual funds are offered as investment choices in your company 401(k) or IRAs. Some people prefer to using a broker or advisor to help them choose mutual funds. However, some more daring individuals who like some excitement prefer to choose funds on their own. Actually, these people, who invest well, invest the time to consider many aspects to mutual fund investing.
If you choose to invest on your own you’re going to be faced with a lot to consider. So, the rest of this post serves to give you a brief overview of some considerations and hopefully, spark your interest in learning more before making what can be a costly investment decision.
Note: I’m not a broker or financial advisor, so I’m far from an expert when it comes to recommending investments or all the ins and outs. These considerations are some things I’ve learned along the way and have found in reading articles, so definitely conduct your own research.
What to Consider in Choosing a Mutual Fund
Your Goals and Risk Tolerance
The first thing you’ll want to do is to evaluate your investment goals. Ask yourself the following questions: How old are you and how long do you have until you retire? What is your risk tolerance? What is your investment objective – growth, income, preservation of assets?
Answers to these questions will help you decide on the right type of fund(s). Certainly, some funds offer more rewards, but have greater risk. Generally, speaking there are equity funds, bond funds and money market funds.
Money market funds are generally safe places to put your money, but don’t offer great rewards. However, as a short-term investment instrument, they will typically offer better returns than a savings account.
If you’re looking for income you might consider bond funds. Bond funds invest primarily in government or corporate debt. However, they aren’t without risk. If interest rates go up bond funds decline in value.
Equity funds invest in corporate stocks with an objective of longer term growth of your investment. You can understand there are many different types of companies, so there are also many types of equity funds based on investment styles and size.
Expenses
Mutual fund expenses may include management fees, administrative fees, distribution fees and other expenses. Obviously, it’s important to make sure you find funds that keep these costs to a minimum as they can eat into your return over time. Make sure you check the fund prospectus to learn about the fees. According to Motley Fool –
Index funds typically charge about 0.20% of the assets, and actively managed funds currently average about 1.5% per year. The average fee, by the way, has actually been climbing in recent years. Any fund that has fees above 1% per year can be expected to under perform the total returns offered by an index fund.
Sales charges
A sales charge, or mostly commonly known as sales load is a commission you pay to a broker when the broker recommends a mutual fund. You can pay a front-end sales load (when you purchase the fund) or a back-end sales load when you redeem the shares. You may have heard paying sales charges isn’t worth it. I’ve always been given this advice and according to Motley Fool this advice is accurate.
You should be aware that there is no real difference historically between the performance of load funds and no-load funds in terms of year-to-year performance.
As in the past, I’ll continue to avoid funds with a sales loads. Just be careful as I’ve found the whole process of understanding sales charges (and expenses) can be quite confusing.
Turnover
Just as you’ve probably heard it’s not wise to buy and sell your investments all the time, you don’t want your fund doing the same. You’ll want to know how much your fund is turning over investments each year. Look for funds with a lower turnover percentage. 100% means they sell everything and buy new stocks each year. More turnover usually means more expenses. Just like it costs you to buy and sell, it costs the fund too.
Management
Management of the fund is important. For example, you don’t want a fund manager who is inexperienced. Perhaps a brokerage company is trying to test a new fund manager and review performance. But, why would you want to let them conduct that experiment with your investments? You wouldn’t, so read up about the management, their history and how long they’ve been with the fund. Look at how long they’ve been managing the current fund and if they’re fairly new you may want to consider another investment.
Performance and Volatility
Basically, volatility is when your investment moves up and down. For some mutual funds it can be a roller coaster ride which may not be so much fun for you. It’s common for your investment to fluctuate, but at the same time, according to Forbes, you don’t want to see large swings. You can avoid volatility by diversifying with different types of mutual funds. For individual funds, take a look at the best years and worst years and decide if there is too much fluctuation for your liking. Obviously, a long-term perspective on investing may help lessen the emotions of volatility.
Don’t get hung up on looking at great returns over just a few years. They investments can be the next big thing, but not do so well after 5 years or more. Rather, I like looking at a funds performance over at least a 5 year span of time. 10 years is even better. You can also compare the fund to market indexes such as the S&P 500. Ideally, you want to perform at or better than such an index.
Study
Finally, if you want to do your own investing, you need to study. Read the prospectuses. If you’re going to choose a fund, you need to spend the time to know the information discussed in this post as a good starting point. Sure, mutual fund investing in itself is diversifying which helps reduce risk, but don’t fool yourself. Mutual fund investing still involves a lot of risk, so the best bet is to invest in different types of funds to stay well diversified and get a steady return on your money.
What do you think about these tips? Are there any you would add to the list?
Do you have HIV and need life insurance? Honestly, to save you a lot of time and energy please understand that your options are limited. Get in touch with someone who knows the limited number of life insurance companies that will offer a policy for someone being treated with AIDS.
Sometimes people ask me about HIV life insurance, and I tell them you don’t need to talk to 20 different agents or insurance company representatives, because you probably are aware that there are only a few options to buy life insurance if you have HIV and are being treated for it.
The Basics about Getting Life Insurance with HIV
Finding affordable life insurance can be daunting no matter what. But finding life insurance with HIV can be even more daunting due to the pre-existing medical condition that could trigger an early payout from an insurance company. Obviously life insurance companies are in the business of managing their risks and their business to a profitable level.
They must underwrite the applications they receive from consumers looking to buy life insurance. This means they have to have general guidelines for their agents and underwriters to decide whether they will issue a policy to a particular applicant.
If the life expectancy of a certain individual is shortened due to a medical condition like AIDS, then their options to buy life insurance just took a nose dive.
However, there is good news for AIDS patients who need life insurance.
Life insurance companies have been under Social Pressure for years to offer some type of HIV life insurance
Recent studies have indicated that the life expectancy for patients diagnosed with AIDS has increased. There has been more data available in the last few years that have indicated an improved mortality rate for those with HIV.
Life Insurance Options to Consider
Like I mentioned earlier, your medical condition is limiting the choices you have to choose between various life insurance companies. Listed below are the 4 most popular options when considering buying life insurance:
Group life insurance from your employer – generally the amount of death benefit available in this situation would be around $10,000 if you are the employee, and possibly only up to $5,000 if you are the Spouse, or Domestic Partner.
Action Point: If you work for a small employer, then you might be able to ask the business owner to see if they can increase the Death Benefit to up to $50,000 for employees and up to $25,000 for spouses or partners.
Voluntary life insurance from your employer – this might be your best bet to get a higher death benefit up to $75,000 or $100,000 without evidence of insurability. There are more and more life insurance companies that are promoting their voluntary life insurance program to employers. Some of these companies with even go down to 5 or 10 employees and still offer some type of Guaranteed Death benefit amount to employees. A few of these will also offer a guaranteed amount to spouses or partners.
Guaranteed Issue Life Insurance – The most common type of insurance coverage that someone can qualify for with HIV is guaranteed issue life insurance. This is the type of life insurance that does not require a medical exam or ask health questions.
Most of these companies have a maximum issue amount of around $10,000 of death benefit. Of course, these policies are more expensive than normal, but at least an individual with HIV could still get life insurance coverage.
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Underwriting Factors for HIV Positive People
There are various factors that life insurance companies consider when setting the premiums for individual’s that are HIV positive.
How advanced is the HIV disease?
There are three stages of HIV infection and the process is typically slow. The primary infection or the initial stage of infection is distinguished by flu like symptoms. The second stage is the longest typically lasting 8-10 years with no symptoms. The third stage is when the body’s immune system is weakened and symptoms are usually caused by other illness such as cancer or pneumonia that they have contracted.
So one of the items taken into consideration is how advanced the individual’s HIV is. They also do understand that medicine has advanced and there are now medications that slow the progression of the disease.
If the individual’s HIV turns into AIDS then it is probable that the life insurance company will no longer offer their traditional life insurance coverage to that individual.
What is the life insurance applicant’s age?
One of the insurance companies that will consider someone with HIV for a traditional insurance policy requires the patient to be between the ages of 21 and 49, while another company prefers the applicant to be at least 45 years old, and another one requires the person to be 50 years old to get insurance coverage. For the group life insurance and guaranteed insurance plans age mainly affects the life rates but not the underwriting.
What is the general health of the individual with HIV?
Life insurance companies also will want to know how active is the applicant from a daily lifestyle basis and are they able to work, hold down a job, etc. They want to see someone who obviously is not on their death bed, but can still function and can live a physically active lifestyle.
Does the person have other serious medical conditions?
This makes sense that if someone infected with HIV also has pneumonia or cancer, or some other disease that could be a result of a weakening immune disease, then the life insurance company may not offer an insurance policy. Another illness related to HIV that concerns life insurance companies is Hepatitis B and C.
Is the patient undergoing treatment?
Life insurance companies also prefer that the applicant is currently taking the antiretroviral medication to prolong the life of the individual. Even though there is no cure for the disease, promising results from this type of combination therapy is one of the reasons that life insurance companies began offering life insurance policies to people who are positive for the HIV virus.
What if you Already Have Life Insurance
If you happen to be one of the lucky ones that already had a life insurance policy prior to being diagnosed with HIV, then by all means do the best you can to continue to pay premiums and keep your life insurance policy in force.
Why Buy Life Insurance if you have AIDS
HIV or human immunodeficiency virus is a retrovirus that causes AIDS (acquired immunodeficiency syndrome). AIDS causes failure of the immune system which allows life threatening infections to thrive, and is a major contributing factor which can lead to a premature death.
HIV is primarily transmitted through sexual contact and the exchange of bodily fluids mainly blood to blood exchanges. Sharing needles and syringes from illegal drug use are common causes of blood to blood exchanges that result in HIV and eventually AIDS.
For an individual with AIDS who is confronted with the reality of death, buying or having life insurance can serve at least 2 purposes:
The first purpose of having life insurance is generally for the coverage of funeral and burial costs, which eases the financial burden that the survivors have to cover.
The second purpose for having life insurance is providing financial legacy for those left behind which can be used to pay for any medical debt incurred before death. Having trouble finding health insurance with HIV often leaves many families of HIV/AIDS patients with massive medical debt to pay.
Life insurance provides individuals with HIV and their families the safety of knowing that they will be taken care of in the event of death (whether from HIV or another medical reason).
Other Considerations with a Life Insurance Policy
Beneficiary – This can be a difficult decision for the policy owner for an applicant with medical problems. My recommendation would be to consider making the beneficiary the person most responsible for taking care of any debt obligations, as well as who will be responsible for making potential funeral arrangements. Keep in mind that life insurance proceeds do not go through probate, so the beneficiary will probably be dealing with the life insurance death claim, and not necessarily the Executor of the will.
By the way, if you don’t have a will – get one.
Accelerated Benefit Rider – If the insured is diagnosed with a terminal illness (terminal meaning within 12 to 24 months, depending on the insurer), then some policies will go ahead and pay out sometimes up to 50% of the death benefit. The one caution here is that it is actually sometimes paid out as a loan, and you are charged interest against the loan. If the insured then lives a long time beyond the 12 to 24 months, the ongoing interest will lessen the balance of the death benefit once death occurs.
Sell your life insurance policy if you need money now– This is known in the insurance industry as a Viatical Settlement. There are companies that will buy out your life insurance policy so the policy owner can benefit from the proceeds while still alive. This was more commonplace prior to insurance companies offering the Accelerated Benefit Rider.
HIV is a difficult illness to live with and finding life insurance with HIV can also be difficult. An individual that is diagnosed with HIV should look into getting life insurance as soon as they are able before the disease progresses.
Buying a house ranks among the biggest financial decisions of a lifetime. So when making an offer, it helps to have an escape hatch if something goes wrong. That hatch is called a real estate contingency.
What is a real estate contingency?
Typically included in the contract, contingencies aim to protect buyers and sellers should issues emerge in the period between accepting an offer and closing the sale.
“The transaction is typically 30- to 60- day process—it isn’t like walking into a store and buying an iPhone,” says Anurag Mehrotra, an assistant professor of finance at San Diego State University.
With properly worded contingencies, buyers can rescind their offer if, for example, they’re unable to get a home loan or an inspector flags a leaky roof. In short, they can walk away from the deal without losing their “earnest money,” the security deposit put down when the offer was made.
When the real-estate market is cooling, as it has been in many parts of the country over the past year, buyers are increasingly able to ask for contingencies and still remain competitive if there are other offers.
In theory, potential buyers can ask sellers for almost anything imaginable—like assurances that the house has “good vibes.” But in reality, there are five contingency clauses most commonly found in real estate contracts.
Contingencies to consider
Inspection contingency
Once an offer has been accepted, there is typically a 30-day period for due diligence, Mehrotra explains. A buyer can hire a third-party inspector or engineer to assess things such as the home’s foundation and structure, electrical wiring and plumbing, the heating/cooling system and kitchen appliances.
Many inspection reports reveal minor or cosmetic defects that are no cause for alarm, a ding on the refrigerator door, for instance. But when the report unearths major issues, an inspection contingency allows the buyer to tell the homeowner to rectify them or reduce the purchase price.
“This is a huge one,” Mehrotra says. “It helps with unforeseen problems.”
Indeed, Realtor.com found that the number of buyers asking for repairs after an inspection more than doubled between August 2021 and August 2022, with the majority of sellers saying the cash value of repairs was in the $10,000-or-less range.
(News Corp, parent of The Wall Street Journal, operates Realtor.com.)
Appraisal contingency
Before it provides a mortgage, the lender will have the home appraised to ensure that its value meets or exceeds its purchase price. If the property’s valuation comes in low, buyers with an appraisal contingency are able to quash the transaction without losing their security deposit. Without that contingency, buyers would typically be on the hook to pay the difference upfront.
When the inventory of available homes is low but the demand from buyers is high, purchase prices are more likely to exceed appraised values. That dynamic was at play after the onset of the pandemic, when throngs of buyers sought larger homes. In January 2020, just 7% of home sales had a contract price above the appraised value, an analysis by real-estate data provider CoreLogic found. By May 2021, the frequency increased to 19% of transactions.
Since then, however, the demand for homes has eased—partly because rising interest rates have made mortgage payments less affordable. When sales are slower, bidding wars that jack up prices are less likely, which in turn helps close gaps between a home’s purchase price and its appraised value.
Mortgage contingency
When buying a house, most people can’t exactly whip out their checkbooks. According to the National Association of Realtors, 78% of recent home buyers obtained financing to complete their purchase. A mortgage or financing contingency gives buyers some extra time to shop for the best lender and interest rate.
That time is especially essential today. In the early months of 2023, average mortgage-interest rates bounced around 6.5%—well above the 2021 lows of less than 3%. In general, higher interest rates lead to larger house payments, so some borrowers may have more difficulty qualifying for a mortgage. That’s because a key component of the lender’s decision is the borrower’s debt-to-income ratio, a measure of the applicant’s total monthly debt payments in relation to the total monthly earnings.
It’s helpful when potential borrowers are preapproved for a mortgage before house hunting begins, explains Vanessa Famulener, president of HomeLight Homes, a real estate technology company. That may be enough to assure sellers that the deal will go through even with a financing contingency in the contract.
Better yet is conditional approval from a lender before the home search begins, Famulener adds. With preapproval, the lender mainly looks at the borrower’s credit score, credit history, income and assets. With conditional approval, the underwriter has received and reviewed most or all of the documentation required to get a loan up to a certain amount. Assuming nothing changes—no job losses or change in marital status, for example—borrowers with conditional approval can feel confident about their creditworthiness, which may eliminate the need for a financing contingency entirely, Famulener says.
Home-sale contingency
Over 56% of buyers are also selling a home, Famulener notes. And for most of them, selling is necessary before buying. First, they likely need the equity in their existing home to qualify for financing on their new home. And second, they can’t afford to make two mortgage payments every month. For both of these reasons, home-sale contingencies are commonly used in tight markets, Famulener says.
When including the home-sale contingency, it is important to include a time limit. Typically, the clause gives buyers 30 to 90 days after the contract is signed to sell their home. Without a time frame, buyers and sellers are left in limbo.
Facing a home-sale time crunch, some buyers turn to companies that pay cash for their current home.Terms vary widely among these companies, with some requiring homeowners to pay service fees, broker commissions, taxes and/or closing costs.
Title contingency
Before a home sale closes, a title search is performed to ensure there are no issues over ownership, such as liens against the property for things such as unpaid taxes, outstanding loans or overdue contractor fees.
A title contingency allows the buyer to back out of the deal if the title search flags ownership concerns. However, this contingency is less common because most purchase agreements already include a clause that voids the sale if title issues emerge, Famulener says.
Even if they waive a title contingency, buyers are typically required to purchase title insurance. This policy covers them—and their lender—if ownership issues arise down the road, such as an undisclosed heir. The premium is generally a one-time fee paid to the title company at closing.
Will contingencies hurt my chances in a bidding war?
While contingencies of all types give buyers some wiggle room when making an offer, contingencies can also hurt your chances of getting the house of your dreams.
In Milwaukee, first-time home buyers Drew and Lyn Buus, both 26, made offers on seven homes between March and mid-May—losing out each time to other buyers, most likely because of contingencies.
In one instance, the couple bid $303,000 for a three-bedroom, 1½ -bathroom house in Wauwatosa, Wis., that was listed for $273,000. They included inspection and appraisal contingencies, but also said they would cover up to $5,000 if there was an appraisal gap and up to $5,000 if the inspection showed necessary repairs.
After just one day on the market, the house had 33 offers, eventually selling for $293,000. “We offered more and it sold for less,” Buus says. “We never heard back [from the sellers], but we assume contingencies were waived” in the winning bid.
For now, he and his wife—and their dog Bailey—are staying put in a house they’re renting in Milwaukee’s Bay View neighborhood. “I feel strongly that you shouldn’t waive the inspection and appraisal contingencies,” says Buus, a supply-chain specialist for a medical manufacturer.
“It’s one of the largest financial decisions you’re going to make,” he says. “If something goes wrong, you’re on the hook.”
More on real estate
The advice, recommendations or rankings expressed in this article are those of the Buy Side from WSJ editorial team, and have not been reviewed or endorsed by our commercial partners.
Today we’ll take a hard look at San Diego, CA-based mortgage broker “Grander Home Loans,” which has some of the best customer reviews I’ve come across.
On all the major ratings websites, they have perfect 5-star reviews, which is a huge testament to their goal of putting the customer first.
At the same time, they say they offer the best combination of mortgage rate, monthly payment, and overall savings.
So it appears you can get the best of both worlds, responsiveness and a competitively-priced mortgage, without sacrificing a thing.
What’s more, they can shop your home loan on your behalf with their many wholesale lender partners so you don’t have to. Read on to learn more.
Grander Home Loans Fast Facts
Mortgage broker that offers home purchase loans and refinances
Founded in 2014, headquartered in San Diego, CA
Currently licensed in nine states nationwide
One of only seven LendingTree Certified Lenders nationwide
Grander Home Loans, Inc. is a mortgage brokerage that offers home purchase loans and mortgage refinances.
This means they connect home buyers and existing homeowners with their wholesale lender partners.
The company has been around since 2014 and is headquartered in San Diego, California in the Mission Valley area.
Their claim to fame, other than having perfect customer reviews, is the fact that they’re one of just seven LendingTree Certified Lenders.
Such lenders have proven that they consistently provide customer satisfaction that is absolutely top notch.
At the moment, they’re licensed in nine states, including Alaska, California, Colorado, Florida, Hawaii, Idaho, Montana, Oregon, and Washington.
It’s unclear if they plan to expand, or simply focus on the states they already do business in.
Aside from their San Diego headquarters, they have an office in Lanai City, Hawaii, which is located on the island of Lanai.
How to Apply with Grander Home Loans
Because they’re a mortgage broker, the loan application process may vary depending on which wholesale partner you wind up with.
But they’ll likely start by providing you with a mortgage rate quote and ask you to electronically complete a loan application and eSign disclosures.
They have a secure upload form on their website that allows you to submit supporting documentation, such as tax returns, bank statements, and so on.
Once submitted, you’ll be able to use this same portal to satisfy any prior-to-doc conditions that are required to close your loan.
They say they provide “regular loan updates and progress reports” throughout the loan process to keep you informed and in the know.
And because customer satisfaction is their number one goal, you should be partnered with a very responsive lending team.
To that end, Grander says it promptly responds to emails and returns phone calls, a common gripe in the mortgage space.
This is especially useful for first-time home buyers and those who have never refinanced, where a little hand-holding goes a long way.
Available Loan Programs at Grander Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
High balance loans (those that exceed conforming limit)
Jumbo home loans up to $5 million loan amounts
FHA loans
VA loans
Fixed-rate mortgages: loan terms between 8 and 30 years
Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARM
When it comes to product choice, Grander Home Loans has lots of loan programs to choose from, including the ability to choose a loan term from 8 to 30 years.
This could allow you to avoid resetting the clock when refinancing, a great way to stay on track if paying your mortgage in full is a priority.
They also offer core first-time home buyer programs, such as Fannie Mae and Freddie Mac’s 97% LTV offerings, along with the FHA’s 3.5% down product.
Those with not-so-great credit can take advantage of an FHA loan with credit score minimums of just 550.
If you’re active duty or a veteran, you can take advantage of a VA loan that requires no money down.
Those purchasing a home or refinancing a mortgage in a more expensive region of the country shouldn’t have any issues thanks to their high balance and jumbo loans, with loan amounts as high as $5 million.
For those sitting on a ton of home equity, they allow cash out up to $1 million.
They lend on all common property types, including single-family homes, vacation homes, condos/townhomes, and 2-4 unit investment properties.
The only major loan program they seem to be missing is USDA loans, which are reserved for home buyers and homeowners in rural areas.
Grander Home Loans Rates
The only area where I wish I knew more is their pricing and fees. They say right on their homepage that they “offer the best combination of rate, payment, term, and overall savings.”
But they don’t post daily mortgage rates on their website, or a list of lender fees that must be paid.
Despite this, my assumption is that they are very competitively priced because mortgage brokers often are, and they have stellar customer reviews.
I doubt they’d have incredible reviews if their pricing was high, or even just so-so.
They also have the advantage of shopping your loan with multiple wholesale lenders at once, instead of simply looking within.
Still, take the time to haggle and negotiate with them and gather mortgage rate quotes from other banks, lenders, and brokers.
Remember, you should compare mortgage brokers too, even if they can shop for you with their partners.
Also be sure to take into account any lender fees, such as a loan origination fee, or required mortgage points for a given rate.
The mortgage APR should give you the complete picture, which you can then compare with other companies during your home loan search.
Grander Home Loans Reviews
Over at LendingTree, where they are just one of seven Certified Lenders, they have a perfect 5-star rating out of a possible 5 from about 300 customer reviews.
Additionally, 100% of former customers recommend them to others, which is a great sign if you want a solid mortgage experience.
With regard to the Certified Lender status, one of the requisites is “providing exemplary service to LendingTree consumers,” while having at least half their staff certified with the company.
Grander Home Loans also achieved “President’s Club” status back in 2020, which is “presented to an elite group of loan officers” based on a commitment to customer excellence and LendingTree best practices.
They’ve also got a perfect 5.0-rating from about 250 Google reviews, which is quite impressive given the volume.
Beyond that, they also have a perfect 5-star ratings on Customer Lobby, Yelp, and Zillow.
On aggregate, they seem to have achieved perfection from a customer satisfaction standpoint.
To sum things up, Grander Home Loans is one of the highest-rated mortgage companies I’ve come across, so if you value customer service, they could be a great choice.
They also operate as a mortgage broker, which means they should offer a hands-on approach and a wide array of loan programs and mortgage rates to choose from.
This could serve both existing homeowners looking to refinance and prospective home buyers, the latter of which may need more guidance than a big bank can offer.
Grander Home Loans Pros and Cons
The Good Stuff
Say they offer competitive pricing
Can shop your loan with multiple lenders because they’re a broker
Lots of loan programs to choose from
Perfect 5-star customer reviews across all ratings websites
BBB accredited business since 2015
LendingTree certified lender (one of just nine nationwide)