Another week, another record low for mortgage rates. It’s all becoming rather humdrum at this point.
Really, how excited can you get about a record that repeatedly gets broken with relative ease in a short span of time?
The other side of the coin is mortgage lenders are busier than they’ve ever been, prompting a possible Quicken Loans IPO, and scores of homeowners are taking advantage of the lowest mortgage rates on record.
It’s a win-win for these two groups, but how do you approach this interest rate environment as a borrower? Let’s discuss.
Fresh Record Low for the 30-Year Fixed
The popular 30-year fixed fell to 3.13% this week per Freddie Mac
This is a new record low that stretches back nearly 50 years to 1971
It was 3.21% last week, so while lower, it’s not a major improvement
The big question now is how low will mortgage rates go?
This week, interest rates on the 30-year fixed mortgage hit a new low, falling to 3.13% from 3.21%, per the survey released this morning by mortgage financier Freddie Mac.
Their records date back to 1971, so we’re talking the lowest mortgage rates in nearly 50 years, which is certainly a big deal.
Of course, the previous record low for the 30-year fixed was 3.15% during the week ending May 28th, so it’s not like we had to wait long.
And the difference in rate is literally negligible, meaning it really wouldn’t affect a borrower’s pocket in one way or the other.
However, the Freddie Mac survey is just a survey, a composite of lender rates from a variety of companies collected throughout the week.
The important thing here is that mortgage rates are trending lower, and are expected to stay low for some time, likely throughout 2021.
That brings up an important question – if you’re an existing homeowner, do you refinance your mortgage today, or do you wait for a new record low, which is sure to come along?
Yes, There Will Be Another Record Low for Mortgage Rates Soon
Mortgage rates are clearly trending downward as they have been for some time
They will probably hit additional record lows in coming weeks and months
This includes the 15-year fixed mortgage, which is also very close to breaking a new record
That means you have to give a refinance some real thought to ensure it’s the right move
Here’s the deal – we know mortgage rates are at record lows, but that doesn’t mean they’ve hit their bottom.
As such, you’ve got to determine if now is the right time to refinance, or if it could pay to wait.
There are basically two schools of thought here. One could argue that rates are already rock-bottom, and likely won’t move much lower.
Even if they do get better, we might be talking about marginal improvements. Just look at the new record low achieved today, 3.13%, a paltry two basis points below the old record low.
Again, that would basically do nothing to change your mortgage rate or even your closing costs.
The other perspective is this mortgage rate rally could have a lot more in it, and the 30-year fixed could well be in the mid-2% range or even lower at some point in the next few months.
Assuming that’s the case, waiting to refinance could be quite beneficial, as a move from 3% to 2.5% is a lot more significant, especially if you’ve got a sizable loan amount.
If you don’t think such a low rate is in the cards, consider the fact that one lender already started offering a 2.5% 30-year fixed last month.
Those who aren’t sure could just refinance today and then keep their eye on rates for a second refinance in the near future (how soon can I refinance my mortgage?).
Just be conservative when it comes to paying mortgage points because you won’t want to sink a bunch of money into a mortgage that only lasts months as opposed to years or decades.
That would probably be my hedge at the moment – take the lower mortgage rate today, but don’t pay for that rate, or pay extra to buy it down even lower.
One last thing – the 15-year fixed mortgage is also rapidly approaching a new record low itself, having fallen to 2.58% this week, per Freddie.
It reached 2.56% at its lowest point in history on May 2nd, 2013, so chances are we’ll be talking about a new record in coming days or weeks.
Those who are interested in paying down their mortgage fast might want to also consider the 15-year fixed as an alternative to the 30-year fixed to avoid resetting the clock.
Of course, with interest rates so low and the dollar expected to suffer from some serious inflation, you might say what’s the rush?
Read more: Use These Mortgage Charts to Easily Compare Rates
Are you looking for ways to start improving your credit score?
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Whether you want to believe it or not, your credit score can play a major role in your family’s life.
While you shouldn’t go crazy and completely obsess over improving your credit score, it is important to learn more about them due to the impact they may have.
Your credit score can influence the interest rate you receive on a loan, buying a home, finding a rental home, attaining certain jobs, your insurance rates, and more.
Even though your credit score can impact your life in a big way, that doesn’t mean it’s hard to improve your credit score. Yes, it can be easy to wreck your credit score, but it can be easy to improve your credit score as well.
Due to this, I believe a credit score can be used to a person’s advantage.
Below is my complete guide to credit scores, so you can improve your credit score, receive your annual free credit report, learn how to use your credit score to your advantage, and more.
Check your credit score with Credit Sesame for free!
Here is how to start improving your credit score:
What is a credit score?
A credit score is a three digit number showing others your creditworthiness, and is often used as an indicator of how risky you are.
There are three main credit bureaus, which is why you may occasionally see different numbers. The main three (Equifax, TransUnion, and Experian) calculate scores depending on the information they have about you, and your file may be slightly different at each of them.
What is a good credit score?
Lenders and people who are checking your credit score usually have varying opinions about what a good credit score is.
In general, though, a good credit score is usually 720+. The higher your number, the better your credit score.
Is it easy to damage your credit score?
Improving your credit score usually takes a little more work than it does to damage your credit score.
You may be hurting your credit score if:
You have a high utilization rate. Keeping your balances below 20% of what you can borrow is important. For example, if your credit card limit is $1,000, try not to have a balance over $200. Lenders like to see a low utilization rate as it shows that you are not maxing out your debt.
You cancel credit cards that may be helping your credit history.
You pay your bills late or not at all.
You never check your credit report and have errors listed.
Read more at These 4 Mistakes May Be Holding You Back From A Good Credit Score.
Can my credit score impact buying a home?
YES!
This is a big reason why improving your credit score is so important.
Your credit score can impact whether or not you are approved for a home loan.
Your credit score can impact how large of a home loan you are given.
Your credit score can impact the size of the down payment you are required to put down.
Your credit score can impact your interest rate.
Read more at How Your Credit Score Impacts Your Home Buying Process.
Why is improving your credit score important? What else can it impact?
There are many instances in which your credit score and/or credit report may be looked at, and sometimes they have nothing to do with a loan. It is important to work on improving your credit score, because you never know when you may need it.
Plus, it’s something you can personally control, so why not work on improving your credit score?
Home and car insurance – If you have home or car insurance, your rate may be calculated on a factor you didn’t know about – your credit score. If your credit score isn’t good, then you may actually be paying more because companies consider you to be riskier.
Employer – This may be shocking to hear, but there are some employers out there who will check your credit report (with your permission). Industries that often check your credit report include those dealing with financial services, chemical, and defense. I recently read a statistic that around 30% of companies will check a potential new hire’s credit report before making a hiring decision.
Renting a home – If you have decided you don’t want to own a home, do not think you have escaped having your credit history checked. Your landlord will most likely check your credit history. They will want to know if you pay your bills on time or if you have ever skipped one completely. This will say a lot about you as a renter, whether you want to believe it or not. If your credit history is not up to their standards, you may be denied the rental altogether, you may be asked to pay multiple months at once, or you may be asked to find a co-signer just in case you fail to pay your rent.
Credit cards – If you don’t care about credit, then you probably will not care about this one. However, if you want a credit card, especially one with a good rewards system in place, then you will want to work on improving your credit score. The good reward credit card offers are usually only available to those with good or excellent credit scores.
Loans (home, car, etc.) – If you apply for a loan, your credit score and credit history will definitely be checked. Before you are approved for a loan of any sort, the lending institution is going to thoroughly check your financial history so they don’t end up losing money on your loan.
The interest rate you receive – A good credit score can mean you qualify for a good interest rate, and a bad credit score may mean that you get a very high rate. I have seen a 24% interest rate for a car loan for someone before! A higher interest rate can mean paying thousands of dollars extra, so it is always best to work on improving your credit score.
How can I check my credit score and my credit report?
My favorite site for checking my credit score is Credit Sesame. Credit Sesame makes it extremely easy to check your score and both me and my husband have active accounts.
You can also receive one annual free credit report from the three main credit bureaus mentioned above. Yes, this means that you get one from EACH, so three each year. I recommend spacing it out so you can get one every 4 months. You can read more about this here.
What makes up a credit score?
There are five categories that make up your credit score. Your payment history and amounts owed equate to 65% of your credit history, but don’t forget the others as they still have an impact.
If you want to work on improving your credit score, you will want to keep the below credit score breakdown in mind:
35% Payment History. Your payment history has the biggest impact on your credit score. This includes if you pay your bills on time, if you have missed a payment, if any of your bills have been sent to collections, and so on.
30% Amounts Owed. This is the next largest category when it comes to your credit score. This includes your balances, your utilization rate, and more.
15% Length of Credit History. The age of your accounts come into play here. This is why it’s usually a good idea to keep a credit card that you’ve had for a long time. I still have a credit card I opened when I was 18. It has no rewards, but it improves my average account age. However, only do this if you know you won’t go into debt.
10% New Credit. This category includes things such as how many hard credit inquiries you have and how long it’s been since you last opened a new credit account. It is important to remember that checking your own credit score does NOT impact this category as long as you receive your credit report from a company that is authorized to give you your credit report.
10% Credit Mix. This includes the type of accounts you have, such as whether or not you have credit cards, a mortgage, car loan, and so on.
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So, how can I improve my credit score?
After reading all of the above, I’m sure you’re wondering how YOU can increase your credit score.
Improving your credit score is not extremely difficult. Once you realize what can impact your credit score, you can make relatively easy changes that will begin to improve your credit score.
Here are my general tips for improving your credit score:
Make sure you pay all of your bills on time.
Regularly check your credit report. There is a chance that mistakes may pop up on your credit report, and this may be hurting you. If you find an error, you should fix it as soon as possible.
Keep your balances and utilization rate low. I recommend spending less than 20% of your available credit.
Ask for your credit limits to be raised.
Pay before your credit card balance is reported. Even if you pay your credit cards in full each month, your balances are still reported. To improve your credit score, you should pay your credit card in full before your balances are reported.
Keep your credit card accounts open if it makes sense (if you think you’ll go into debt with them open or if the annual fees aren’t worth it, you may want to think about closing them instead), so that you can lengthen your credit history.
When shopping for a loan, apply for loans within a short period of time instead of over several months.
This advice gives you the opportunity to improve your credit score so you can begin to use it to your advantage. Like I always say, though, make sure you are wise when it comes to your loan and credit card habits as you don’t want to go into debt.
Improving your credit score can be worthwhile, but taking on debt to do so is not.
Check your credit score with Credit Sesame for free!
Do you know what your credit score is? How has your credit score impacted you?
If you want people to read your investing-related post or book, you’ll increase your chances by mentioning Warren Buffett in your title. After all, I just did it — and it might be why you chose to read this. Every financial media company does it, including us at The Motley Fool.
His investing skills while the chairman and CEO of Berkshire Hathaway have made him the fourth-richest man in the world. Most of the articles and books about him attempt to dissect his investing strategies and explain how you can use them to identify your own winning stocks. So it was a bit surprising when Larry Swedroe wrote Think, Act, and Invest Like Warren Buffett. He’s the director of research for the BAM Alliance of independent financial advisers, the author of several books, and a blogger on CBS Marketwatch. He also thinks that picking individual stocks — as opposed to investing in index funds — is a really bad idea.
I’ve chatted several times with Larry over the years, because he’s as smart as they come on the topics of asset allocation and financial planning. Recently, we had a conversation about why he would write a book singing the praises of the world’s most famous stock picker. Of course, that whole “increase sales by including Buffett in your headline” thing probably had something to do with it. But it’s not just a gimmick; Larry has three main arguments for why the index investor should still listen to the Oracle of Omaha, and he uses actual quotes from Buffett to back them up. And it starts with…
1. Warren Buffett recommends index funds
It may not be widely known, but Buffett is actually a fan of index funds. Here’s what he wrote in his 1996 annual letter:
“Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expense) delivered by the great majority of investment professionals. Seriously, costs matter.”
Buffett’s a smart fellow, and he knows his history and his statistics; both establish that it’s pretty darn hard (though not impossible) to outperform an index fund over the long term. Obviously, he doesn’t think this applies to him — he still keeps picking individual stocks (or buying companies outright). But he recognizes the great value of the index fund. The same goes for us at The Motley Fool. My colleagues devote a great deal of time and energy to finding great stocks. But we also have a room named after John Bogle, the founder of the Vanguard family of mutual funds and one of the primary progenitors of the index fund. (Next to the entrance to our Bogle room, we have a picture of Mr. Bogle wearing a Motley Fool cap during one of his visits to our office. It’s pretty cool.)
2. Warren Buffett ignores market forecasts
Wade into the waters of the ever-flowing financial media, and you’ll see an endless flotilla of gurus offering their assessments of where the market is headed. Buffett thinks you should pay them no heed:
“We have long felt that the only value of stock forecasters is to make fortune-tellers look good. Even now, Charlie [Munger, vice chairman of Berkshire Hathaway] and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.”
In case you need some stats to back that up, CXO Advisory Group analyzed the predictions of 68 “experts” from 2005 to 2012. As a group, they were right less than half the time. You would have been better off flipping a coin than listening to these people.
During our most recent discussion, I asked Larry Swedroe why these people still have jobs. He had a few reasons, but one in particular stood out: “I have come to the conclusion, after my long years of experience both as an adviser to some of the largest corporations in the world on managing financial risk and as adviser to individuals and endowments, that there’s an all-too-human need for us to believe that there’s somebody out there who can protect us from bad things.” I think he’s on to something. Unfortunately, market predictions just create — rather than offer protection from — bad things.
3. Warren Buffett doesn’t try to time the market
You won’t see Berkshire Hathaway buying and selling its stocks or businesses too often. Once a company joins the Berkshire family, it’ll likely be in there for quite a while — decades probably. Here’s what Buffett said about it:
“Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient.”
My very first post on Get Rich Slowly was about attending the 2009 Berkshire Hathaway annual meeting. It happened in May, just two months after the stock market hit bottom after dropping more than 50 percent. It was a dang scary time.
During that annual meeting — and at just about every annual meeting over the past several years — the topic of Buffett’s and Munger’s successors came up. After all, Buffett is 82 and Munger is 89. They didn’t name names, but they have some people in mind. However, it won’t be someone who tries to move in and out of the stock market. Here’s what they said:
Munger: I don’t think we’d want an investment manager who would want to go to cash based on macro factors. We think it’s impossible.
Buffett: In fact, we’d leave out someone who thought he could do that.
The important three questions
The main argument that Larry makes in his latest books is this: If you agree that Buffett is one of the greatest investors of all time, then take his advice. And the next time you’re inclined to act according to some expert’s forecast market forecast, Larry has three questions you should ask yourself:
Is Warren Buffett acting on this expert’s opinion?
If he isn’t, should I be doing so?
What do I know about the value of this forecast that Buffett and the market in general doesn’t?
As Larry told me, “If someone has already told you that they think Buffett’s the greatest investor, it’s hard for them to say that they should do the opposite of what he’s advising them.”
Next month may bring an unpleasant surprise for some businesses: Their borrowing costs may rise sharply after banks finally retire the once-ubiquitous Libor interest rate.
Banks, lawyers and business leaders are spending the next few weeks working to avoid rate spikes, reflecting the need for last-minute work despite years of preparations. The London Interbank Offered Rate, which underpinned financial contracts across the world before being felled by a rate-rigging scandal, is finally going away in July.
The transition to new rates has so far gone smoothly. U.S. banks started making loans using new interest rate benchmarks ahead of last year, and trillions of dollars’ worth of derivatives contracts also transitioned without much of an issue.
Now comes the final leg: Switching old loans that still refer to Libor onto different rates. Some loans have easy fixes, but others have contractual language requiring that the interest rate charged should be the Prime rate when Libor isn’t available.
That’s a problem for borrowers, since banks’ Prime rates are above 8%, while Libor rates are closer to 5%. Though banks have alerted many clients to the situation, some borrowers may still be unaware of the looming cost increase, a sign that the Libor transition for loans is behind despite years of work.
“Frankly, I think it’s not where it should be,” said Joyce Frost, co-founder of the advisory firm Riverside Risk Advisors.
The higher interest payments could cause some borrowers to breach loan covenants, such as those measuring companies’ ability to repay their debts, Frost noted. At the very least, the issue is expected to cause some late nights for bankers and lawyers as they try to rework loan contracts. Legal disputes are also possible.
Observers don’t anticipate that borrowers will be stuck with the Prime rate for too long. Once companies realize they owe more interest, they will likely dial up their bank to figure out how to return to a cheaper option.
Bank lawyers say the industry is spending the next few weeks trying to get ahead of those phone calls — by following up with affected borrowers who may have missed previous communications about the issue.
While banks would make more money by charging the Prime rate, they are wary of negative surprises, which could sour client relationships.
“Everyone is trying to get to the same end goal, because no one wants to deal with: What happens if we start charging you Prime?” said Edward Ivey, a lawyer at the firm Moore & Van Allen.
It’s hard to say just how many customers will be affected, since many business loans involve only the bank and the borrower, and precise data isn’t public. The borrowers are more likely to be smaller and middle-market companies, which may have less sophisticated finance departments than larger firms.
Data from the leveraged loan market — where loans are made to larger and heavily indebted companies — shows that a small subset of contracts are at risk of switching to Prime. Roughly 8% of leveraged loans, or perhaps a bit more, may be at risk if the parties do not take action, according to Covenant Review data.
Regulators have spent years warning banks and borrowers to switch away from Libor as quickly as possible. In December, Federal Reserve Vice Chair for Supervision Michael Barr cautioned against a “pile-up of contracts all waiting” for a change to a non-Libor rate.
The Alternative Reference Rates Committee, the group of market participants that is leading the U.S. Libor transition, said in a statement Wednesday that market participants should by now be well aware of the “fast-approaching deadline.”
“Those that are not prepared risk significant ramifications, including uncertain and potentially unfavorable outcomes regarding their legacy Libor contracts along with operational disruptions,” the ARRC said. “These risks underscore that it is essential that all market participants complete their transition of remaining Libor contracts now.”
In preparation for Libor’s demise, the ARRC developed fallback contract language that lenders could use in the earlier stages of the Libor transition — providing a clear sense of what will happen when Libor ends.
Because some old contracts did not have any workable fallbacks, Congress passed a law that automatically transitions them to new rates and further limits Libor transition risks.
But the law did not fix any contracts that had workable fallbacks in place — even those where plan B was using the more expensive Prime rate. That language was long a standard in the industry. But it was intended to address situations where Libor wasn’t published temporarily for whatever reason — not a scenario in which it goes away forever.
The next month will be “quite busy in this space,” as banks and borrowers work to amend contracts at the last minute, or give themselves more breathing room, said George Cahill, a partner at the law firm Alston & Bird. It helps that lenders have dedicated Libor teams in place to talk borrowers through their options, and that policymakers and industry officials spent years on the issue.
“There will be some bumps along the road, but I think the amount of time that these industries have put into trying to solve this problem will go a long way,” Cahill said.
The best-case scenario is for banks and borrowers to switch to a new rate by the end of the month, though actual deadlines for specific loans may be several weeks later, depending on when the borrower’s next interest payment is.
And though Libor will soon be buried — the U.K. panel banks whose funding estimates make up U.S. dollar Libor will no longer submit those numbers — a fake version of Libor will live on until Sept. 30, 2024.
U.K. regulators are requiring the publication of “synthetic U.S. dollar Libor” for one-month, three-month and six-month tenors. The actual rate will be the CME Term SOFR, which has quickly become popular in business loans, plus a small add-on figure that’s meant to adjust for credit-related risks. Term SOFR is a forward-looking rate based off the Secured Overnight Financing Rate, which is replacing Libor in most cases.
Lawyers are getting questions on whether specific contracts allow for the use of synthetic Libor, which would avoid an automatic switch to the Prime rate.
But some contracts have clauses specifying that Libor rates must be “representative” of interbank funding costs, which allows for less wiggle room, said Graham Silnicki, a lawyer at the firm White & Case. That’s because the panel of U.K. banks will no longer submit what’s long been seen as representative of what banks would charge for loans to each other.
Lary Stromfeld, a partner at Cadwalader, Wickersham & Taft, is recommending that banks and borrowers carefully review their contracts for any such nuances.
“Remember what your mother told you: Watch your language,” Stromfeld said.
Today we’ll check out “Celebrity Home Loans,” a mortgage lender that aims to treat you like a star. Perhaps more specifically, a Rockstar.
This means VIP service from start to finish to ensure you don’t have to “sweat the details” of your home loan financing.
Instead, you can focus on finding your dream home and leave the rest up to your mortgage lender.
This approach might explain how the company came up with its name, and what’s is mission is for its clients.
So far they seem to be living up to those lofty expectations, with excellent customer reviews from tens of thousands of customers. Read on to learn more.
Celebrity Home Loans Fast Facts
Direct-to-consumer, retail mortgage lender
Offers home purchase loans and mortgage refinancing
Founded in 2006, headquartered in Oakbrook Terrace, IL
Funded nearly $7.5 billion in home loans last year
Most active in California, Colorado, and Illinois
Do a near equal split of purchase loans and refis
Licensed to do business in 48 states and D.C.
More than 700 licensed loan originators nationwide
Celebrity Home Loans is a direct-to-consumer, retail mortgage lender with physical branches scattered throughout the country.
At last count, they employed more than 700 licensed loan originators nationwide.
They also own about two dozen other mortgage brands, including eClick Lending, Heritage Home Loans, Midwest Equity Mortgage, NEO Home Loans, and many others.
So there’s a chance you could obtain a mortgage from one of their many sister companies.
CHL got its start back in 2006, at around the time the housing market was peaking and began to fall.
Still, they managed to navigate the biggest housing crisis in recent history and fund tens of billions in home loans since.
Last year, they mustered an impressive $7.5 billion in loan origination volume, making them one of the bigger players on the national scene.
They do a near equal split of home purchase loans and refinances, which tells me they’re suitable for either purpose.
And while licensed in 48 states and the District of Columbia, they’re most active in California and Colorado, along with their home state of Illinois.
How to Apply with Celebrity Home Loans
To get started, your best move might be to visit their website from your computer or smartphone.
There you’ll be able to search for a nearby loan officer or branch office via their online directory.
You can see who works in an office nearby and quickly obtain contact information. Then reach out to get today’s pricing or inquire about available loan programs.
If you’re in the market to buy a home, their “Mortgage Assured” program goes beyond a standard pre-qualification and pre-approval to help you compete with cash buyers.
My assumption is it’s a fully-underwritten mortgage approval that gives home sellers confidence you’ll be able to obtain financing.
Once you find an individual you’d like to work with, you can click on the “Apply Now” button from their personal webpage to get started.
You’ll be prompted to create an online account with the option to also download Celebrity Home Loans’ free smartphone app.
Many loan tasks can be completed electronically, whether it’s the application itself, eSigning disclosures, or scanning/uploading documents.
Those who download the app have the option to message their loan officer instantly and receive updates as they go.
All in all, Celebrity Home Loans is big on technology and customer service, so you should get the best of both worlds here.
Loan Programs Offered by Celebrity Home Loans
Home purchase loans
Home renovation loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
USDA loans
VA loans
Fixed-rate mortgages: 30-year, 15-year, and other terms available
Adjustable-rate mortgages: 5/1 and 7/1 ARM
Celebrity Home Loans offers a wide array of loan programs to fit nearly any situation.
Whether you’re buying a home, renovating one, or refinancing an existing mortgage, they’ve got solutions.
This includes conforming loans backed by Fannie Mae and Freddie Mac, jumbo loans, and the full suite of government options (FHA/VA/USDA).
And they lend on all major property types, whether it’s a primary residence, vacation home, or investment property.
Both fixed-rate and adjustable-rate mortgages are available in a variety of loan terms, including 5/1 and 7/1 ARMs.
Celebrity Home Loans Rates
One area where they lack information is loan pricing. There isn’t a section dedicated to mortgage rates or lender fees.
This contrasts some other banks and mortgage lenders that post daily mortgage rates and/or a list of lender fees.
As such, you’ll need to get in touch with a loan officer to obtain pricing your unique loan scenario. And to find out if they charge lender fees, such as a loan origination fee.
Be sure to compare the rate and fee they provide, collectively the mortgage APR, with that of other banks and lenders.
Doing so will allow you to determine how competitive they are relative to other options out there.
Service is definitely high up the list when it comes to selecting a mortgage company, but so is pricing, as it will stay with you for potentially decades to come.
Celebrity Home Loans Reviews
Over at Experience.com, Celebrity Home Loans has a solid 4.89-star rating out of a possible 5 from nearly 24,000 reviews.
You can see loan originator reviews as well if you want to see how a particular individual fared in the past.
This might be beneficial given the large number of folks employed by the company.
On Google, they have a perfect 5-star rating from about 1,500 customer reviews. Again, a great sign.
If you know the loan officer’s name, you might also be able to find personal reviews on Zillow.
And while they aren’t an accredited business with the Better Business Bureau (BBB), they do hold an ‘A+’ rating based on customer complaint history.
To sum things up, Celebrity Home Loans is committed to providing exceptional service to its customers.
And their many positive reviews show they’re holding up their end of the bargain.
So whether you’re buying a home or refinancing an existing mortgage, you should be in good hands.
The only question is how competitive they are relative to other options. Because they don’t lead with price, you may also want to compare their rates/fees to other companies before you proceed.
Celebrity Home Loans Pros and Cons
The Good Stuff
Can apply for a home loan online or via smartphone
Connecticut-based lender and servicer Planet Home Lending has acquired the assets of Illinois-based retail lender Platinum Home Mortgage Corporation.The financial terms of the transaction have not been disclosed.
With the acquisition, Planet will inherit the majority of Platinum’s origination staff and branches throughout the country. The deal also expands Planet’s footprint in the Midwest, Northwest and West Coast markets.
Founded in 1993 by Bill and Michael Giambrone, Platinum has 22 branches and 79 active loan officers, according to the mortgage tech platform Modex. The company’s assets will add to Planet’s 30 branches and 128 active LOs.
“I don’t think retail is great for anybody right now with rates high and home values high, but it’s a good time to be investing in retail,” Michael Dubeck, CEO and president of Planet Financial Group, parent of Planet Home Lending, said in an interview.
“We’re taking a long-run view that it’s going to pay off. It’s an investment down the road,” the executive added. “We look to acquire right-sized, financially solid distributed retail companies.”
Platinum’s current president and CEO, Lee Gross, will join Planet as senior vice president and continue to lead the Platinum team. According to Gross, the move to the new company brings “access to improved pricing, technology and marketing to Platinum’s branches.”
“In addition to agency and GSE home loans, Planet also has niche products tailored to today’s tight real estate markets, including self-funded One-Time Close (OTC) construction loans as well as manufactured housing and renovation mortgage loans,” Gross said in a statement.
Planet, which originates loans through the correspondent and retail channels, plans to grow organically and via mergers and acquisitions. However, according to Dubeck, the lender has no plans to enter the wholesale space, as it would create channel conflicts.
In April 2022, Planet agreed to acquire assets from Homepoint’s delegated correspondent channel for $2.5 million in cash. The transaction doubled Planet’s clients base in the correspondent space, with 60% of these clients delivering loans monthly to the lender, Dubeck said.
“Correspondent is probably our most mature and efficient channel,” Dubeck added.
Planet was the third largest correspondent lender in the first quarter of 2023, following Pennymac Financial and AmeriHome Mortgage, per Inside Mortgage Finance (IMF) estimates.
The lender originated $6.5 billion in mortgage loans from January to March, with $6.3 billion from the correspondent channel. According to IMF, it was enough for the lender to become the 9th largest mortgage lender in the country.
Regarding its servicing portfolio, it had $68 billion in owned mortgage servicing in the first quarter of 2023, the 29th largest servicer by this metric in the U.S. In early May, the company launched a commercial servicing division led by James DePalma and Janina Woods.
Finding the right insurance or any insurance at all can be a daunting task when there are pre-existing medical conditions present. It is oftentimes frustrating to find term life insurance as companies tend to flat out deny those with pre-existing conditions or is there is not denial they are placed in a high-risk policy which is oftentimes more costly. Despite these challenges and frustrations, finding insurance with pre-existing conditions is not impossible.
In fact, in just about every case, there are plenty of affordable life insurance options. Even applicants with pre-existing conditions are surprised to see how affordable their policy can be.
What is Your Pre-existing Condition?
The type of pre-existing condition is perhaps the biggest consideration when shopping for new life insurance. From one insurer to the next, the types of policies for people with certain conditions will vary. Life insurance companies rate conditions differently based on the level of risk they believe are associated with it.
When considering conditions such as cancer, many insurance companies may not accept that level of risk since there is not a long life expectancy associated with these types of conditions. Although this is the case, other considerations are factored in such as whether or not it is in remission.
The main thing that insurance underwriters are considering is how threatening the condition is to the life of the policyholder so obviously, there are usually multiple variables at play. The good news is that insurance companies are adapting and changing with medical advancements. When it may have been impossible in the past to receive insurance with pre-existing conditions, insurance companies recognize that certain conditions can be treated or slowed due to new research and technology.
Avoid The Fuss With No Medical Exam Life Insurance
Another great option is a no medical exam life insurance policy. If you have not been previously diagnosed with a condition, this may be a great option. Although these types of policies usually run at a higher premium, the coverage is usually guaranteed and the policy coverage varies slightly from a standard term life policy. Despite the guaranteed coverage it is a good idea to disclose any medical conditions you may have.
In today’s market, there is far more competition in terms of top-rated life insurance companies. Because of this, they are oftentimes aggressive in the risks that they take. For this reason, you need to shop around or even work with a professional who can point you in the right direction.
These policies of course usually come at a higher rate but it is a good option still for those who may have been denied by a more traditional life insurance provider.
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It’s Best to Compare Between Different Insurance Companies
Perhaps the biggest factor related to a pre-existing condition that there is no way around is the higher cost. Insurance companies need a way to compensate for the additional risk. However, many companies will treat certain conditions differently than other. For example, there are some companies that view conditions like diabetes more favorably than others. With some companies, if you have well-controlled type 2 diabetes, you could get great rates, but other companies are automatically going to skyrocket your rates because of the diabetes diagnosis.
The best course of action is to be proactive with your condition and try to manage it the best way that you can. Insurance companies have been known to consider these types of things and reduce your premium over time as it is demonstrated that you are getting your condition under control.
Thankfully for advances in the medical community it is no longer the case that pre-existing means denial. It is still a good idea to shop around and find the best fit for your particular condition. Spending the extra time up front can save you a lot of money in the long run and the peace of mind that comes with knowing you are insured is invaluable.
The benefits of finding the perfect company are obvious, lower insurance rates. But finding the right company isn’t as easy as that. This is why you need an expert, like our independent agents. Not only can they represent several different companies, but they are also knowledgeable about the different companies and which one will view your pre-existing condition more favorably.
Getting the Lowest Rates Possible
We just mentioned a great way to get lower monthly rates, by working with an independent agent, but that isn’t the only way.
The first thing is to do is improve your health. Sure, you have a health problem, it’s going to impact your monthly rates, but there are still some health factors that you can improve to get a better classification from the insurance company.
The best thing you can do is to shed a couple of pounds. The majority of life insurance applicants are keeping a few more pounds than they should, and losing that weight could have an extremely beneficial impact on your insurance plan. Start a healthy diet and exercise program, it will save you money.
Deciding how much Life Insurance you need
The next most important decision is determining how my life insurance coverage you’re going to need. The bigger your policy, the more you’re going to pay for your coverage.
If you don’t have enough coverage, you could leave your loved ones paying for all of those debts you would leave behind. How are you supposed to know if you have enough coverage? There are several different questions that you can ask yourself to ensure that you’ve bought a large enough life insurance policy.
The first question is, “how much debt would I leave behind?” Before you buy a plan, make sure the policy will provide enough protection. Make sure that you add up your mortgage, car payments, credit card bills, student loans, and anything else your loved ones would be responsible for paying.
The other questions that you have to ask is, “how would my family suffer if they lost my salary?” the other main purpose of life insurance is to help your family find a way to replace your annual income. Your family could have a difficult time finding a way to permanently replace that income without experiencing serious financial strain.
I remember starting my career as a young adult, I had a lot on my plate, working my 9 to 5, paying off my student loans, and hoping to find my future spouse.
One of the last things on my mind was buying life insurance. I could almost guarantee that for all young adults buying life insurance is the last thing on our minds.
So the question remains, “Should young adults consider buying life insurance?”
The cop out answer is: it depends.
A lot depends on where you are in your life and what where you plan to be in the next few years. If you are a young adult considering buying life insurance, here are some things to consider.
Remember the Hand That Feeds You
In retrospect, I regret not buying life insurance when I was a young adult. Sure, I was single and I didn’t have any dependents, but my parents didn’t have a lot of income and a lot of financial stability. If something happened to me and they had to pay for my funeral expenses, it would have affected them greatly.
In fact, it would have been so great that I honestly don’t know how they would paid for it. Getting a cheap term policy would have cost me less than $10/month and my parents would have been unscathed financially if something happened to me.
If you are single, you might not think that you need life insurance but don’t forget about the ones that raised you.
Life insurance is very inexpensive and even if you took out a small $50,000 to $100,000 policy, you would be paying less than 2 values meals at McDonald’s a month for coverage. It is the responsible thing to do and it won’t drain your checking account like one would think.
If you’re in the same boat that I was in, single with no dependents, you probably think the same thing I did, that life insurance would be a waste of time.
But before you automatically discount it, talk to your parents about the possibility of something tragic happening and what kind of financial suffering they would experience if you were to pass away.
What About Debts?
It seems nowadays that parents are helping their kids more and more getting through school and getting their career started. I wasn’t one of those lucky ones, but my wife was.
Her parents sacrificed funding their retirement fully to pay for their daughters tuition and cost of living while at school. Imagine if something happened to her and now all that money on books and fees is literally flushed down the toilet.
If she would have had bought cheap life insurance, her parents would have been replenished all the money they had invested into her college education.
But, just because you’re a young adult doesn’t mean that student loans are your only debt. This is the stage of life when you’re going to start looking to buy a house, right? Even if you don’t have a mortgage right now, look a few years in to the future.
A couple years down the road you could buy your first house, which means that you’re responsible for your first mortgage. If you were to pass away with that mortgage, guess where it’s going? Straight to your family.
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When Shouldn’t Young Adults Buy Life Insurance?
If you are debt free, your parents haven’t handed you the silver spoon and you are not married, then buying life insurance isn’t necessary. At least not yet. When you do start your family, that’s when life insurance should become a priority.
Also, don’t buy your life insurance through your employer (unless you have a pre-existing condition). The price is usually about the same buying it through a third party, plus you won’t have to worry about getting life insurance again if you change jobs.
Life Insurance Is NOT Expensive
Some of the major benefits of buying life insurance when you are young is that it is super, super cheap, as mentioned above. The younger you are, the lower your costs are going to be in paying for your life insurance.
Going from your 20’s to your 30’s or 40’s, you can generally see a 20% to 25% increase in premium.
Compound this with the fact that when you are younger, you are super healthy and probably still find time to work out five days a week, which further increases your changes of locking in a low rate.
Getting The Best Life Insurance Rates
Yes, as a young adult, life insurance is going to be cheap. Very cheap. But this is the premium that you’re going to be paying for many years to come, so you want to get the best rates that you can.
You have one of the biggest advantages of finding cheap life insurance, your age. Your age is the biggest factor in determining how much you’re going to pay for your coverage, buying coverage at 20 is much more affordable than purchasing life insurance over 50 years old, but it’s not the only one.
You can’t do anything about how old you are (trust me, you can’t stop it), but there are some factors that you can change and save money on your insurance plan.
The next biggest factor that the insurance company is going to look at is your health. They will look for any pre-existing conditions and your overall health to determine how much of a risk you are.
The higher your risk level may be, the more they’re going to charge you for insurance coverage. If you want to save money on your monthly premiums, spend a couple months improving your health.
After you complete the initial paperwork for your policy, the insurance company is going to send a paramedic out to complete a simple medical exam to determine what kind of health you are in.
During this exam, the paramedic is going to take your blood pressure, cholesterol, take a blood sample, and also a urine sample. These results are going to play a role in what kind of ratings you get.
If you have are carrying a few more pounds than you should, it’s time to trim down that waistline. Being overweight increases your chances of having health problems later in life, like diabetes or heart complications. It’s time to actually use that gym membership that you’ve been paying for.
Additionally, if you’re a smoker or tobacco user, it’s time to kick those bad habits once and for all. If you’re listed as a smoker on your life insurance application, you’re going to be looking at double or triple the monthly premiums of a non-smoker.
Sure, that could only raise your premiums by $20 or $30, but once you calculate that out through the course of the insurance policy, it adds of to some serious cash.
The best way to ensure that you get the best rates is by comparing dozens of companies before you choose the plan that works best for you. Each company is different and is going to view your applications differently. It’s vital that you receive quotes from several different companies before you choose the one that works best for you.
The holidays are about six months away. Why wait until the last minute to shop? Answer: You shouldn’t. And you won’t have to if you have a decently stocked gift closet. Some people I know keep their eyes open starting on Dec. 26 and are finished by mid-summer.
It’s more than just the December holidays, though. A small selection of “evergreen” gifts (non-perishable, non-trendy) means you’re prepared for any birthday, anniversary or new baby that comes along.
Building your gift closet doesn’t have to cost much. I always trot out the example of the puzzle depicting the Sistine Chapel ceiling, the perfect gift for a jigsaw-loving relative. Still shrink-wrapped when I found it on half-price day at a thrift shop, it set me back a whopping 35 cents.
If you wait until the last minute, you’re likely to spend more. On the afternoon of the baby shower, you might be tempted to stop at the first store you see and grab the item that’s closest to the door. Compare that with, say, the 89-cent newborn outfit that I bought at a post-holiday clearance sale.
(It wasn’t junk, either, but made by Carter’s. And it was cute as hell. I made the girl-noise when I saw it.)
Incidentally, it doesn’t really have to be a closet. I keep my stash in a cedar chest that I bought for $15 at a garage sale. Not only are my gifts cheap, they’re guaranteed moth-free! Here are some ways to build an evergreen gift stash without breaking the bank.
Clearance tables. Both post-holiday and everyday “last chance” sales can yield amazing finds. In late December the department stores want to get rid of unsold hat-and-scarf sets, gloves, slippers and “executive” gifts (e.g., day minders or business card holders) — and all of these can be held until next year’s Christmas or this year’s Father’s Day. Classic toys (stuffed animals, puzzles, books) can be had for a song if you’re patient enough to wait until Target or Walgreens really wants to get rid of them. (I’ve seen discounts as deep as 90%.) Remember that clearance sales happen in a lot of places: hardware stores, craft shops, drugstores, souvenir stands, supermarkets, office-supply stores.
Tip: If you see a gift set (foodies, spa items) wrapped in a Christmas-y way, break it down and repackage the elements for a January birthday or for Valentine’s Day.
Deal sites. Dealnews, Eversave, My Bargain Buddy and other money-saving sites can be dangerous if you’re a compulsive buyer. Pick your spots, though, and you might see a lovely package of fancy teas that would be perfect for your sister, or a swell set of socket wrenches that would be perfect for your other sister. You’ll spend relatively little to get them, especially if you get site credits for having referred other members.
Social commerce sites. Whether you’re buying a gift item or a discounted gift certificate you can use to buy a gift yourself, Groupon et al. can really stretch your buying dollars. Recently I saw a $20 Old Navy gift certificate for only $10, which could translate into shorts, tank tops or other items (especially if you wait for clearance sales). You could also give the certificate itself, if it has a decently distant expiration date — a massage or a spa day would be a great gift for a babysitter, housecleaner or teacher. And a middle-school-aged niece or nephew might love to get $20 worth of buying power at Old Navy.
Thrift shops. It’s amazing what you can find in the secondhand store — and as noted above, some of it has never been opened. Extra frugal points if your finds are “tag color of the day” specials or found during half-off sales.
Note: GRS readers discussed at great length whether it’s okay to give thrift-store gifts. If this really makes you uncomfortable, don’t do it. But here’s my advice: Get over yourself. Nobody has to know where you bought the present unless you choose to tell them.
Yard sales. We’re heading into the prime garage-sale season. I’ve found beautiful books, stationery and card sets, candles, book-and-toy combos, journals and other items — all new or seemingly unused — that became birthday or Christmas gifts. None of them cost more than $1.
Tip: Toward the end of the day, go back to the yard sale — they might be ready to haggle.
Rummage sales. The ones held indoors are even better than garage sales, because you’re not sweating in 95-degree heat while you shop.
Social media giveaways/contests. Companies will do anything to get noticed — including hand out free clothes, books, sporting equipment, jewelry, TVs, computers or big bundles of cash. (Believe it or not, I once saw a contest whose prize was a year’s worth of health insurance.) To find such contests, try using Twitter hash-tag searches (“#giveaway” or “#freebie”) or checking a Facebook app called “Wildfire.” Or do it the easy way: Find yourself a good freebie blogger and watch for the giveaways you really want.
Tip: Free software such as Roboform will fill in contact info automatically, making your entries more efficient. Also: Google “second-chance drawing” — contest junkies, aka “sweepers,” know that the odds are much better than in the initial drawing.
Take online surveys. You have to be choosy, since some companies ask for a lot and give back relatively little. But some people make a decent little side income answering questions. Depending on the site, you can redeem points for physical prizes, gift cards or even cash. I’ve had a lot of luck with Clear Voice Surveys and Valued Opinions, through which I’ve obtained dozens of Amazon gift cards in the past few years. (These days I don’t keep them, though; I give them away on my website.)
Rewards programs. Got a credit card that gives points? Cash some in for gift cards you can use to shop or that you can give outright. Or join a rewards program like Swagbucks or MyPoints, which let you earn gift cards, prepaid debit cards and other items. I’m particularly fond of Swagbucks, myself; right now I’m squirreling away Amazon gift cards until Black Friday. I’ve also given Christmas gifts obtained through My Coke Rewards: magazine subscriptions, a NASCAR hat, a set of barbecue tools, T-shirts, movie tickets.
Tip: Ask family or friends to save My Coke Reward points for you. Check the recycle bins at work, or outside your apartment house, too.
Gift swaps. Got a gift you don’t want? So do a lot of people. Invite family and friends to bring over items, then trade to your hearts’ content. Try not to be sad, though, if someone brings a package of teas or socket-wrench set that look awfully familiar.
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32k salary is a solid hourly wage; above most minimum hourly wage jobs.
For most people, an entry-level job would be pay just over $32,000 a year. The question that remains is can you make a living off $32k a year.
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 32,000 per year in today’s society since it is well below both the average and median household incomes. The question you want to ask all of your friends is $32000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $32000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $32k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$32000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 32k a year hourly. That way you can decide whether or not the job is worthwhile for you.
For our calculations to figure out how much is 32K salary hourly, we used the average five working days of 40 hours a week.
$32000 a year is $15.38 per hour
Let’s breakdown how that 32000 salary to hourly number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $32000 by 2,080 working hours and the result is $15.38 per hour.
32000 salary / 2080 hours = $15.38 per hour
Just above $15 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $11K to $43K per year, it would increase your hourly wage to over $20 an hour – a difference of $5.29 per hour.
To break it down – 43k a year is how much an hour = $20.67
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $32K salary Per Month?
On average, the monthly amount would be $2,667.
Annual Salary of $32,000 ÷ 12 months = $2,667 per month
This is how much you make a month if you get paid 32000 a year.
$32k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $32k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$32000/52 weeks = $615 per week.
$32000 a year is how much biweekly?
For this calculation, take the average weekly pay of $615 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$32000 / 260 working days = $123 per day
If you work a 10 hour day on 208 days throughout the year, you make $153 per day.
$32000 Salary is…
$32000 – Full Time
Total Income
Yearly Salary (52 weeks)
$32,000
Monthly Wage
$2,667
Weekly Salary (40 Hours)
$615
Bi-Weekly Wage (80 Hours)
$1,230
Daily Wage (8 Hours)
$123
Daily Wage (10 Hours)
$153
Hourly Wage
$15.38
Net Estimated Monthly Income
$2,036
Net Estimated Hourly Income
$11.75
**These are assumptions based on simple scenarios.
32k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 32000 a year after taxes?
Gross Annual Salary: $32,000
Federal Taxes of 12%: $3,840
State Taxes of 4%: $1,280
Social Security and Medicare of 7.65%: $2,448
$32k Per Year After Taxes is $24,432.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$24432 ÷ 2,080 hours = $11.75 per hour
After estimated taxes and FICA, you are netting $24,432 per year, which is $7,568 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $32000 income can range from $21,872 to $25,712depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $32,000 income.
32k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $32,000 a year is going to be extremely difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can afford the cost of living and maybe save more money. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $32,000 a year is well below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $32,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL.
You should be able to meet your basic expenses each and every month.
Not be able to afford many of the fun spending luxuries.
Start saving with the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $1000 in 52 weeks.
When A $32,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 32k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$32k Salary To Hourly
We calculated how much $32,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
$32K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 32k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $32000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$187
Savings
15-25%
$480
Housing
20-30%
$693
Utilities
4-7%
$107
Groceries
5-12%
$213
Clothing
1-4%
$16
Transportation
4-10%
$107
Medical
5-12%
$133
Life Insurance
1%
$10
Education
1-4%
$6
Personal
2-7%
$24
Recreation / Entertainment
3-8%
$60
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$631
Total Gross Monthly Income
$2,667
**In this budget, prioritization was given to basic expenses and no debt.
Is $32,000 a year a Good Salary?
As we stated earlier if you are able to make $32,000 a year, that is a low salary. You are making around or just above minimum wage.
While 32000 is a decent salary just starting out in your working years, it is a salary that you want to rapidly increase before your expenses go up or the people you provide for increase. If not, you will be left working multiple jobs to make ends meet.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $32k salary would be considered a lower class salary. You must make each dollar count in your budget.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 32k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities a 32,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a decent living at 32,000 per year.
If you are looking for a career change, you want to find jobs paying at least 35,000 a year.
Is 32k a good salary for a Single Person?
Simply put, you can make it work.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live comfortably on $32000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 32k a good salary for a family?
Many of the same principles apply above on whether $32000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $43,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 32,000 per year, then the combined income for the household would be over $64,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on 32000 Per Year?
As we outlined earlier in the post, $32,000 a year:
$15.38 Per Hour
$123-153 Per Day (depending on length of day worked)
$615 Per Week
$1230 Per Biweekly
$2667 Per Month
Next up is making $35000 a year!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a lower-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 30,000 a year, that is a-okay place to be getting your career. However, if you have been in your career for over 20 years and still making $32K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
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