Only after you have gotten in the habit of making regular increased payments towards your debt should you begin exploring other debt elimination tricks like debt negotiation and debt consolidation. All of the shortcuts in the world can’t help you get out of debt if you do not first develop the self-discipline to live within your means and devote additional income to paying down your debt.
This next part of my Debt Free in Seven Steps system is to find these short cuts that can help you get out of debt faster–and for less.
Step Four: Negotiate interest rate reductions from your creditors and/or consolidate balances in lower rate accounts.
What’s Ahead:
First, call your card companies!
The first step anybody with credit cards should take is to request an interest rate reduction from your credit card companies. Why in the world would a credit card lower my interest rate? Four times out of five they might not. But if you ask, and ask again, they will likely give you a rate cut to keep you as a customer. If you haven’t noticed your mail box overflowing with “pre-approved credit card offers”, the consumer lending industry is lucrative but it’s also competitive.
Call your credit card’s 800-number and just ask to have a lower interest rate. Tell them you received balance transfer offers and will take your balance elsewhere if you can’t get a better rate. If they say no, ask to speak with a supervisor. If that proves fruitless, call back again tomorrow. Most credit cards will eventually lower your rate if you harass them, and it’s a move that will save you hundreds if not thousands of dollars.
This debt negotiation tactic will work best if you are in good standing and don’t have a number of late payments in the last year. If, however, you are being charged a higher interest rate or “penalty APR” because of your late payments and are now paying on time, call and request a return to your usual rate. Most creditors will not refuse such a request from somebody who is paying in good faith.
Balance transfers
If your credit score is good, you may be able to qualify for one or more credit cards with 0% balance transfer offers for a year. Compare and apply for balance transfer credit cards and move high-rate balances onto the 0% card. Do NOT, however, use the new cards—or the old ones for that matter—to make new charges. Cut ’em up. The point of getting the new credit cards is only to save money on getting out of debt.
Debt consolidation
Another tool at some debtors’ disposal is debt consolidation, or the process of moving two or more credit cards or loans into a new loan, usually with more favorable terms like a lower interest rate. Mortgage lenders frequently advertise mortgage refinancing and home equity lines of credit as debt consolidation options, and introductory-rate credit cards make balance transfers a tempting debt consolidation option.
Be careful, however, with debt consolidation. Most people are in debt because at some point they spent beyond their means. Consolidating debt frees up credit and lowers the minimum debt payment you make each month, making it tempting to loosen your spending belt a bit. A few months of a dollar hear and two dollars here can add up quickly to yet another ugly debt.
If you decide to consolidate debts into a credit card balance transfer, for example, cut up your old credit cards and do not activate the new card—use it only to carry the transferred balance. The less available credit you have at your disposal, the less likely you are to backtrack.
Moving on…
Once you have taken advantage of any debt negotiation or debt consolidation techniques, it’s time to move onto Step Five: Automate Your Debt Payments. Or, check out all the articles in my Debt Free in Seven Steps system.
The Hottest Thing in Real Estate Is a Loan From Two Years Ago
Real estate agents are pushing sub-3 percent mortgages as an amenity, just like marble countertops or a view of the mountains.
Experts caution that mortgage transfers from seller to buyer can come with risks. Credit…Sophie Park for The New York Times
June 10, 2023
The only goal was to not lose money.
When Matthew Kilboy listed the Washington, D.C., condominium that he and his husband had bought in 2017, they accepted that higher interest rates and a soft market for condos meant any dollar over the $529,000 they had paid was a dollar they would thank their lucky stars for.
A similar two-bedroom and two-bath unit in the building had recently gone for just under half a million. The $549,000 price they listed in April was basically a wish.
A month later, the couple closed at $565,000 — thanks to a little-known amenity that has become increasingly popular as mortgage rates have risen. Their unit came with an assumable 30-year mortgage, with a 2.25 percent fixed rate that the couple had locked in after a November 2020 refinancing. By advertising that the buyer could inherit the mortgage, the couple, who have moved to Denver, got several over-asking-price bids that seemed like a relic from the warped real estate market during the Covid lockdown.
“It was the very first sentence of the listing,” said Mr. Kilboy, 39, a former Navy nurse whose loan, backed by the Department of Veterans Affairs, could be passed to the buyer. “No one could find an interest rate that low, so we were really pushing it.”
resumed their ascent, despite a huge increase in borrowing costs. The refrain among real estate agents and economists is that anyone who secured a mortgage rate of 3 percent or lower owns a valuable asset that they are loath to give up.
But every asset has a price. And now an emerging cadre of investors and real estate agents are trying to, in effect, sell mortgage rates from several years ago by transferring them to new buyers.
Redfin, the real estate brokerage, has seen a steep rise in listings like Mr. Kilboy’s that have comments like “beautiful home with assumable loan at 3.25 percent.” Facebook groups have popped up to find buyers for them, while new companies are pitching services to speed up the transfer.
Assumption Solutions, a consulting firm that, for a $1,100-per-deal processing fee, helps real estate agents navigate transferring mortgages between sellers and buyers. In his pitch to agents, Mr. O’Boyle argues that they push sub-3 percent rates as they do marble countertops or a view of the mountains.
“You market this, and let’s say you’re competing against the house next door, your house should sell either faster or for more money,” he said.
2/1 buydown,” in which a borrower pays for an interest rate reduction of two percentage points during the first year and one percentage point in the second.
Put simply: “Most homes are unaffordable at today’s rates,” said Luis Solis, a real estate agent in Phoenix and Portland, Ore.
A majority of Mr. Solis’s recent deals have had some form of interest rate compensation that is a price cut in all but name, he said. Usually it’s a lump sum at closing that buyers use to buy temporarily lower rates. Sellers with a lot of equity can cut out the middleman and finance the buyer’s purchase below prevailing rates by acting as a lender — seller financing, it’s called.
Assuming mortgages, paying down rates: These are creative but straightforward solutions to rising borrowing costs. But on the margins, a rising number of investors looking to buy homes with minimal cash are trying a gray technique of finance — known as “Subject to” or “Subto” — in which they try to find people who have fallen behind on their debts and make a side agreement to take over their (low-interest) payments. (The deal is said to be “subject to” an existing loan.)
@ConorDougherty
A version of this article appears in print on , Section BU, Page 1 of the New York edition with the headline: The Hot New Thing Is a Loan From 2021. Order Reprints | Today’s Paper | Subscribe
While not offered in the traditional sense through an employer, self-employed individuals have several types of insurance policies available to them. People who are self-employed often benefit the most from having insurance policies.
One type of insurance that is available and should be considered is disability insurance. If a self-employed individual has to work because of injury, or sickness, disability insurance helps to provide some income and security for the business owner.
Disability insurance is an extremely important insurance purchase, especially for anyone that is self-employed, but the vast majority of people ignore it, avoid this mistake at all costs. If you were suddenly unable to work because of a disability, what would happen to your business? Would you still be able to pay your own bills? What about the bills for your business?
You’ve worked hard to start your own business. Don’t let a disability destroy all of your hard work and all the hours you’ve put into your business.
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#1
Quotes from the top disability carriers to ensure you find the best rates
Helps thousands of consumers apply for disability insurance each year
Rated Excellent on TrustPilot
Benefit terms range from 3 months to age 67
Choose your waiting period
Multiple riders add flexibility to your policy
#2
Benefit periods from as little as 2 years or all the way to retirement age
Family care benefit provides coverage for up to a year if policyholder has to take off work to care for a child, spouse, or parent
10% discount to business owners and an additional 10% to preferred occupational classes.
Offers the option of Full Coverage for Mental/Nervous disabilities or a 10% discount for a 2 year limitation.
Rated A (Excellent) by A.M. Best for financial strength
Table of Contents
Types of Disability Insurance Policies
There are two types of disability insurance policies.
Short Term Disability Insurance Policy
The first is for short-term disability which is a term of two to five years. This type of disability insurance is suitable for those who know that they will need to be out of work, perhaps for a scheduled surgery, for cancer treatment, or for the birth of a child.
Long Term Disability Insurance Policy
The second type of disability insurance policy is long term disability. This kind of policy is more of a “what if” policy. If something should happen that would cause a self-employed person to be out of work, the disability coverage would be in place.
It also covers a long-term disability period, someone who might be out of work for years. This policy can be purchased for a specified number of years or until retirement age.
If the worst happened tomorrow would you be satisfied with your financial planning?. If something were to put you out of work for several months or years, would you and your family be able to survive without the income?
Yes, life insurance is an extremely important purchase, but statistics say that you’re much more likely to end up with a disability than to die prematurely. The importance of life insurance is widely known, but few people understand just how important disability insurance is.
Coverage Amounts
It is important to note that there are almost no disability insurance policies available that cover 100% of the individuals salary.
The top life insurance companies cover the maximum of 50% to 60% of the salary. 50% or 60% doesn’t sound like a lot, and more than likely you may have to dip into savings, but you should take note that these benefits are tax-free.
So while disability insurance is beneficial to have, self-employed individuals need to have savings, additional insurance, and investments to help with the remaining lost wages.
Criteria for Selecting
There are many criteria for selecting an insurance policy and being selected as a candidate for disability insurance. Some things to consider:
Waiting Period – All policies have a waiting period before benefits will be paid. Should one need disability insurance quickly, the premium will be higher. The shorter the waiting period, the higher the premium. The longer the waiting period is the lower the premium for that area will be.
Premiums – Premiums are going to be based on the factors already discussed. These being if it is a short term or long term policy. Long term policies cost more as there is more of a chance for a long term pay out. Secondly, the waiting period. As mentioned this will help determine how much the premium will be.
Occupational Class – When one works in a high-risk occupational class it is slightly harder to obtain disability insurance. Even if you have a high-risk occupation coverage is possible, but you will pay more in monthly premiums. However, security outweighs the higher price any day. Proof of working records and salary/income need to be verified for a three year period. Only after a person is determined to not be able to perform the job duties required, will they be considered disabled.
Guaranteed policy – Individuals want to select a policy that is guaranteed, meaning it is automatically renewed as long as the premiums are paid. Benefits have to remain the same and must be paid if one becomes disabled. Beware of non-guaranteed policies as the rates and benefits can be changed at any time.There are countless stories of workers with a non-guaranteed policy that lost coverage and then ended up with devastating injuries.
What you need to know – Before you purchase a disability insurance policy, there are a couple things that you should know. As we mentioned earlier, the biggest thing that you should know is how much of your salary you’ll receive, because you want to get enough money to live off of. Another factor that you should be aware of is any exemptions that your policy may hold. Some long-term policies will pay out after the waiting period as long as you are disabled and can’t preform your job. Regardless of what the disability is, if you can’t do your normal job, you’ll be able to get the policy benefits. Some insurance plans aren’t that simple.Some policies will only pay out if you can’t work at all. If you can still work at any job, then you aren’t going to be paid. It’s important to make the distinction between the two types of plans, it could have a drastic impact on your future. There are countless stories of workers with a non-guaranteed policy that lost coverage and then ended up with devastating injuries.
Comparison
It is important to shop around, perhaps with an agent or financial adviser, for the best policy available. Finding the perfect rates by comparing several different companies that offer disability insurance. There are dozens of companies that offer unique rating systems, premium structures and guidelines which leads to widely different quotes. Consider the factors listed above to get the lowest premiums for the most coverage.
Please ask us about disability insurance, business insurance, or traditional life insurance, and our agents are standing by ready to provide you with the correct answers. It’s important that you and your family have the insurance protection they need.
Getting a disability insurance policy can be confusing. There are so many different factors to consider. It can be a burdensome process, especially if you’re self-employed, but it’s a purchase that you need to make. Don’t worry, you don’t have to go on that process alone, our agents will love to point you in the right direction to ensure that you get the disability coverage that you need.
If you’re thinking about selling your home, you’ve got a lot of options.
It’s not 2012 anymore, when you simply enlisted the services of a real estate agent and went on about your day.
Or bravely went down the for-sale-by-owner (FSBO) path, a much less common scenario.
Today, there are many more ways to unload a property thanks to the disruptors.
What Is an iBuyer?
It stands for instant buyer, a company that buys your home and then sells it shortly after
iBuyers offer all-cash in as little as 24 hours
Can choose your own close date and sell property as-is
Downside is offer will likely be below traditional market offers and fees and repair costs still apply
By now, you’ve probably heard the phrase “iBuyer.”
The term iBuyer is short for “instant buyer.” These companies buy homes almost immediately, with all-cash offers generated in as little as 24 hours, and then sell them not long after.
While the valuation methods might differ from company to company, the name of the game is speed.
With some companies, you simply enter your address into an online form and provide details about your home and the computers do the rest.
They instantly run comparable sales and factor in any improvements your home has to generate a so-called competitive market offer.
Assuming you like their offer, they’ll come by your home and verify the home is in the condition described, and adjust their offer to account for any necessary repairs.
Others might come to your home after you request an offer online, and once they see the property in person, you’ll receive an offer shortly thereafter.
Either way, you’ll get an offer fast, and it’ll be all-cash, meaning there won’t be any pesky mortgage lenders to deal with, or home buyers with cold feet who walk away last minute.
These iBuyers are generally happy to buy homes in any reasonable condition, without you having to worry about finding an agent, listing it, cleaning it, repairing it, staging it, giving tours, and waiting weeks or months for it to sell.
Some of the largest iBuyers include Offerpad, Opendoor, RedfinNow, and Zillow Offers. And even some real estate brokerages are getting into it, including Keller Offers from Keller Williams.
Selling a Home Isn’t Fun
The reason iBuyers exist is because selling a home is basically the worst.
In fact, Zillow’s 2019 Consumer Housing Trends Report found that 95% of home sellers were stressed by some aspect of the process.
As you can see from their chart of despair, home sellers have a lot of worries and concerns, with not knowing when the home would sell topping the list.
It was followed closely by uncertainty about it selling for the right price, having to prep and/or make improvements, concerns the offer would fall through, and timing the sale with a new home purchase.
These are all very legitimate issues to stress about, and younger homeowners are even more likely to be stressed by it all.
Enter Zillow Offers! But seriously, it is hard to part with a half-million-dollar property for the sheer fact that it’s half-a-million dollars.
That just comes with the territory – as a homeowner, you’ve got responsibilities that renters do not.
You need to maintain your home, make repairs, keep it updated, pay lots of bills every month, property taxes, homeowners insurance, and so on.
And when it comes time to sell, you’ve got to do a lot of things to ensure it sells for the right price. Or you can use an iBuyer…
The Pros of iBuyers
You can sell your home very quickly
You don’t need to find a real estate agent
You don’t need to clean it, repair it, stage it, or hold open houses
You can choose your own closing date to coincide with a new home purchase
As noted, iBuying is all about speed and convenience. We can actually use Zillow’s list from above to highlight the many advantages to using an iBuyer.
First, you can choose your closing date with an iBuyer, so that completely eliminates the fear of a property selling in a desired time frame.
Next, they tell you the price upfront, so if you’re happy with said price, there’s no stress.
Third, iBuyers will make repairs themselves, so you don’t have to make them. Of course, there’s a cost, but savvy home buyers will also make requests for repairs, so it’s somewhat awash.
See Curbio for an alternative to paying for repairs out-of-pocket prior to listing.
Fourth, you don’t have to worry about the offer falling through because it’s a large company paying with cash that has done its diligence and isn’t going to have second thoughts.
Fifth, and perhaps one of the biggies to iBuying, is timing the sale of your home with the purchase of a new replacement home.
They totally alleviate this concern because your offer is guaranteed and you get to choose your closing date.
This also covers the lack of control with the selling process and timeline, and not knowing if the buyer is “serious.”
You also completely forego the touring (open houses), staging, and cleaning necessary with a traditional home sale.
In terms of negotiating, most iBuyers will probably say the price is the price, but you can still argue if you’ve made improvements and disagree with their assessment.
But you’ll likely find that they aren’t willing to budge much if at all.
The Cons of iBuyers
The price will likely be well below what a traditional buyer would offer
There are still fees that must be paid to the iBuyer in lieu of real estate agent commissions
Repairs will also cost you even if you don’t need to complete them yourself
Buying and selling homes shouldn’t necessarily be rushed
We’ve highlighted some of the pros of iBuying, namely the quick and easy process, and the all-cash offer. Sounds like a no-brainer, right?
Unfortunately, there’s a cost to the convenience. Sure, you can have the valet park your car instead of walking a block to the restaurant, but it’ll cost you $5.
That might be worth it though – with an iBuyer, the price could be significantly more devastating to your wallet.
You might miss out on $25,000 or more because of the inconvenience of selling yourself. Ouch!
At the end of the day, your competitive offer from an iBuyer is likely going to be significantly less than what the home might appraise for and/or what a traditional real estate agent would sell it for.
Additionally, iBuyers charge fees in place of real estate agent commissions, which while seemingly offsetting one another, probably don’t because of the lower offer price.
The old cliché is that a real estate agent’s commission is covered via a higher sale’s price. So even if they get paid 5-6% of the sale’s price, the home sells for that much more.
That’s the theory at least.
When all is said and done, you’ll likely receive less in your pocket if you use an iBuyer to sell your home, once factoring in their fee, the in all likelihood lower offer, and the cost of any repairs.
The question you need to ask is if it’s worth the price. There are a lot of things we probably don’t want to do, which we could have someone else do for us.
But there’s a cost involved. And when we’re talking about a very large transaction, the price is likely going to be steep.
Of course, you can always take the iBuyer up on their free offer to see if it’s close to what you’d get going the traditional route.
In some cases, it may be worth the convenience, especially if you’re trying to buy a replacement home.
But do your homework. You might need those extra proceeds for that subsequent home purchase.
An alternative might be to use a flat-fee listing company like Reali, which uses traditional real estate agents but doesn’t charge the percentage fee.
If you’re thinking about selling your home, you’ve got a lot of options.
It’s not 2012 anymore, when you simply enlisted the services of a real estate agent and went on about your day.
Or bravely went down the for-sale-by-owner (FSBO) path, a much less common scenario.
Today, there are many more ways to unload a property thanks to the disruptors.
What Is an iBuyer?
It stands for instant buyer, a company that buys your home and then sells it shortly after
iBuyers offer all-cash in as little as 24 hours
Can choose your own close date and sell property as-is
Downside is offer will likely be below traditional market offers and fees and repair costs still apply
By now, you’ve probably heard the phrase “iBuyer.”
The term iBuyer is short for “instant buyer.” These companies buy homes almost immediately, with all-cash offers generated in as little as 24 hours, and then sell them not long after.
While the valuation methods might differ from company to company, the name of the game is speed.
With some companies, you simply enter your address into an online form and provide details about your home and the computers do the rest.
They instantly run comparable sales and factor in any improvements your home has to generate a so-called competitive market offer.
Assuming you like their offer, they’ll come by your home and verify the home is in the condition described, and adjust their offer to account for any necessary repairs.
Others might come to your home after you request an offer online, and once they see the property in person, you’ll receive an offer shortly thereafter.
Either way, you’ll get an offer fast, and it’ll be all-cash, meaning there won’t be any pesky mortgage lenders to deal with, or home buyers with cold feet who walk away last minute.
These iBuyers are generally happy to buy homes in any reasonable condition, without you having to worry about finding an agent, listing it, cleaning it, repairing it, staging it, giving tours, and waiting weeks or months for it to sell.
Some of the largest iBuyers include Offerpad, Opendoor, RedfinNow, and Zillow Offers. And even some real estate brokerages are getting into it, including Keller Offers from Keller Williams.
Selling a Home Isn’t Fun
The reason iBuyers exist is because selling a home is basically the worst.
In fact, Zillow’s 2019 Consumer Housing Trends Report found that 95% of home sellers were stressed by some aspect of the process.
As you can see from their chart of despair, home sellers have a lot of worries and concerns, with not knowing when the home would sell topping the list.
It was followed closely by uncertainty about it selling for the right price, having to prep and/or make improvements, concerns the offer would fall through, and timing the sale with a new home purchase.
These are all very legitimate issues to stress about, and younger homeowners are even more likely to be stressed by it all.
Enter Zillow Offers! But seriously, it is hard to part with a half-million-dollar property for the sheer fact that it’s half-a-million dollars.
That just comes with the territory – as a homeowner, you’ve got responsibilities that renters do not.
You need to maintain your home, make repairs, keep it updated, pay lots of bills every month, property taxes, homeowners insurance, and so on.
And when it comes time to sell, you’ve got to do a lot of things to ensure it sells for the right price. Or you can use an iBuyer…
The Pros of iBuyers
You can sell your home very quickly
You don’t need to find a real estate agent
You don’t need to clean it, repair it, stage it, or hold open houses
You can choose your own closing date to coincide with a new home purchase
As noted, iBuying is all about speed and convenience. We can actually use Zillow’s list from above to highlight the many advantages to using an iBuyer.
First, you can choose your closing date with an iBuyer, so that completely eliminates the fear of a property selling in a desired time frame.
Next, they tell you the price upfront, so if you’re happy with said price, there’s no stress.
Third, iBuyers will make repairs themselves, so you don’t have to make them. Of course, there’s a cost, but savvy home buyers will also make requests for repairs, so it’s somewhat awash.
See Curbio for an alternative to paying for repairs out-of-pocket prior to listing.
Fourth, you don’t have to worry about the offer falling through because it’s a large company paying with cash that has done its diligence and isn’t going to have second thoughts.
Fifth, and perhaps one of the biggies to iBuying, is timing the sale of your home with the purchase of a new replacement home.
They totally alleviate this concern because your offer is guaranteed and you get to choose your closing date.
This also covers the lack of control with the selling process and timeline, and not knowing if the buyer is “serious.”
You also completely forego the touring (open houses), staging, and cleaning necessary with a traditional home sale.
In terms of negotiating, most iBuyers will probably say the price is the price, but you can still argue if you’ve made improvements and disagree with their assessment.
But you’ll likely find that they aren’t willing to budge much if at all.
The Cons of iBuyers
The price will likely be well below what a traditional buyer would offer
There are still fees that must be paid to the iBuyer in lieu of real estate agent commissions
Repairs will also cost you even if you don’t need to complete them yourself
Buying and selling homes shouldn’t necessarily be rushed
We’ve highlighted some of the pros of iBuying, namely the quick and easy process, and the all-cash offer. Sounds like a no-brainer, right?
Unfortunately, there’s a cost to the convenience. Sure, you can have the valet park your car instead of walking a block to the restaurant, but it’ll cost you $5.
That might be worth it though – with an iBuyer, the price could be significantly more devastating to your wallet.
You might miss out on $25,000 or more because of the inconvenience of selling yourself. Ouch!
At the end of the day, your competitive offer from an iBuyer is likely going to be significantly less than what the home might appraise for and/or what a traditional real estate agent would sell it for.
Additionally, iBuyers charge fees in place of real estate agent commissions, which while seemingly offsetting one another, probably don’t because of the lower offer price.
The old cliché is that a real estate agent’s commission is covered via a higher sale’s price. So even if they get paid 5-6% of the sale’s price, the home sells for that much more.
That’s the theory at least.
When all is said and done, you’ll likely receive less in your pocket if you use an iBuyer to sell your home, once factoring in their fee, the in all likelihood lower offer, and the cost of any repairs.
The question you need to ask is if it’s worth the price. There are a lot of things we probably don’t want to do, which we could have someone else do for us.
But there’s a cost involved. And when we’re talking about a very large transaction, the price is likely going to be steep.
Of course, you can always take the iBuyer up on their free offer to see if it’s close to what you’d get going the traditional route.
In some cases, it may be worth the convenience, especially if you’re trying to buy a replacement home.
But do your homework. You might need those extra proceeds for that subsequent home purchase.
An alternative might be to use a flat-fee listing company like Reali, which uses traditional real estate agents but doesn’t charge the percentage fee.
When it comes to investing, you have two big decisions to make: What to buy, and where to buy it. As for the former, you have all kinds of choices: cash, bonds, stocks, funds, real estate, and a piece of carpet from Elvis’ jungle room (yes, I have a piece — at least, that’s what the guy who sold it to me said it was). Regarding the latter, most people have just three general options: a traditional retirement account, a Roth retirement account, and a regular investment account. This article is about the second category — how to make the most of your investment accounts.
Stop the Sprawl
If you’re like many investors, you have accounts spread throughout the financial services industry: an IRA or two here, a brokerage account there, perhaps a 401(k) still with a former employer. If you’re married, your spouse probably has a lineup to match. By consolidating as many of those accounts as you can with a single provider, you’ll unclog your mailbox and make tax time easier — and you can even make your portfolio fatter, thanks to these advantages:
Find a better balance. Determining your asset allocation can be tough when you have to look at lots of statements. Rebalancing across several accounts gets tricky; for example, you can’t sell the bonds in your 401(k) to buy stocks in your IRA.
Move money out of mediocre (or worse) accounts. This is especially true of money left in retirement plans from former employers, which often have limited investment choices at high costs.
Get extra services and discounts. Financial companies lure big accounts with lower fees, plus planning services such as a portfolio analysis or access to a Certified Financial Planner.
Find the Best Provider
Choosing a company that deserves the honor of holding your nest egg depends on your style of investing. Here are guidelines based on your investments of choice:
Mutual funds: You can use a single fund family or go with a fund “supermarket” (such as Fidelity, Schwab, or TD Ameritrade) that offers access to thousands of funds from many families. The former is the simplest and possibly the cheapest. The latter offers far more selection.
Funds and individual stocks: Check out the big brokerages that allow you to buy stocks as well as choose form thousands of funds. Look for reasonable stock commissions and a lineup of no-load funds labeled “NTF,” for “no transaction fee.” The Fool’s Broker Center compares the options from several providers.
Stocks and ETFs: Look for the cheapest trades. Many brokerages, including Fidelity, Schwab, and Vanguard, offer free trades on some ETFs.
To Roth or Not to Roth?
By investing after-tax money in a Roth account, you trade a tax break today for one tomorrow, as your earnings and withdrawals will be tax-free. Here’s a rule of thumb: If you’ll be in the same or a higher tax bracket when you retire, go with the Roth.
There is no longer an income limit for converting traditional accounts to Roths. The converted amount gets added to your taxable income in the year you make the move, so if your traditional account is down significantly and you’re contemplating changing it to a Roth, you may want to convert some while the account is down. (Check out this article to hear from several financial planners about why a Roth conversion might make sense, though the option to spread the tax bill over two years was available only in 2010.)
The Right Investments in the Right Accounts
Don’t overlook the art of asset location — deciding which investments to put into which types of accounts. You want to put the most tax-inefficient investments in the accounts that have the most tax advantages. Here’s a summary of what should go where:
Roth accounts: Stocks with a higher potential return (such as small-cap stocks and emerging-marking stocks) and real estate investment trust (REITs).
Traditional tax-deferred accounts: Slower-growth stocks, commodities funds, Treasury inflation-protected securities (TIPS), and bonds (though, given historically low yields, the argument for keeping bonds in an IRA is not as compelling as it used to be).
Taxable, non-tax-advantaged accounts: Low-yield stocks you plan to hold for several years, low-turnover stock funds (such as many index funds and ETFs), municipal bonds, and savings bonds and I bonds.
Those are general guidelines, and can be affected by several factors, such as when you’ll need the money and your ability to pick the stocks that will have the higher return (a difficult task, indeed). For example, keep money that you need before age 59 ½ out of retirement accounts since early withdrawals from an IRA or 401(k) may result in a 10% penalty (though there are exceptions). But they’re a good starting point.
Have a Recommendation?
As for which brokerage, fund company, or online bank to choose, I’ll leave that to you readers. Have any particularly good or bad experiences? Are you happy with whomever’s holding your money? Let us know.
Final note: Don’t forget to get your free Slurpee today! You see, today is my birthday, and in honor of my Womb Liberation Day, 7-11 stores are giving away free 7.11-ounce Slurpees from 11 a.m. to 7 p.m.
Residential real estate is the single largest physical asset class. In the U.S. alone, the aggregate value of houses exceeds $45 trillion. As such, this sector attracts investors and entrepreneurs alike and spurs a huge ecosystem.
Yearly transactions are measured in the trillions, and with such staggering amounts at play, one is reminded of the apocryphal story of bank robber Willie Sutton. Upon being asked why he robbed banks, he said, “Because that’s where the money is.” The money is in real estate — for sure.
This statement is certainly a truism but it’s worth examining the matter with more nuance. Questions worth posing include:
Who is investing in real estate?
What is the position of the ordinary family in this sector?
Are houses affordable for most Americans?
Who benefits the most from the rise in real estate prices?
Answering the questions
The National Association of Realtors (NAR) predicts that approximately 4.8 million homes will be bought in 2023. Of that share, institutional investors are likely to purchase about 20%. This number is brought into bold relief when we consider that the U.S. is “short” circa 5 million housing units — both single and multi-family units.
Add this to another double-whammy, housing prices are near historic highs in the U.S. and mortgage interest rates have doubled over the last 18 months. This situation creates an impossible burden for tens of millions of American families.
When considering all of these facts, there are three straightforward conclusions to be drawn:
1. There are vested interests in creating the crisis of permanent renting. Today, 45 million American families rent their homes.
2. Capital talks. The “activation” capital that people need to become homeowners eludes tens of millions of American families while flush institutions can buy entire neighborhoods and convert them into rentals.
3. A large portion of these renters could become homeowners with just a little nudge. This is borne out by the fact that 45% of renters spend 30%+ of their gross household income on rent. With the right methodologies, that money could be spent on a mortgage.
What all of this comes down to is, you guessed it, capital. The crisis is so deep that it affects even families that would be considered well-off by otherwise sensible standards. In some markets like San Francisco, San Jose, Seattle, Boston and New York, even families with incomes upward of $200,000 per year have a hard time achieving homeownership. Mind you, these lofty numbers apply to only 7% of all households.
The crisis is not only about affordable housing but about housing affordability
Real estate has two mantras: “location, location, location” and “money, money, money.” Capital, however, does not live in isolation from other factors. It’s a major disservice not to discuss other valences that have brought us to where we are today with regard to housing. The most decisive parameter is race, which cannot be seen as discrete from class. Rather, they are intertwined in powerful ways.
In the U.S. today, approximately 65% of people live in houses they own. The Non-Hispanic, white homeownership rate is 73.3% while the rate for Black households is 42%. The average household income for the former group is $75,000 while for the latter it is $51,000.
Given the low rates of homeownership and income disparities coupled with the fact that home equity is the main source of generational wealth transfer for most families, historical trends weigh heavily on the present. This is not simply a product of individual bias. Redlining and “housing racism” has been enshrined in the law for the entire history of this country.
Wealth disparities are hard enough to overcome, but disparity combined with an abetting ideology creates a boundary that appears to be insuperable.
Houston, we have a problem
To extend the NASA analogy, societies are known to make moon shots and are often taken, even kicking and screaming, into a new reality. That reality requires a new paradigm of capital.
Let’s call this new paradigm “Community Capital” while the traditional/ incumbent I’ll label as “Wall Street Capital.” The latter category should be understood as a partnership between institutional money and government agencies. So what is the difference between the two? Community Capital can be seen as a form of altruism or as a form of long-term, sustainable business with positive externalities.
These externalities include both those realized at the personal or family level and also those realized on a societal level. Strong communities with economic and social “happiness” tend to be healthier, safer, more democratic and better at problem solving. These factors benefit everyone, including those who ordinarily are on top of the hierarchy. In this way, housing inequality is like air pollution — it is toxic for everyone.
Community Capital can be the wave of the present and the harbinger of a positive future. Housing is one sector that can benefit from this paradigm. No doubt, others can as well, like healthcare.
This is a clarion call for a new paradigm whose time has come. Some companies have answered the call, but voices in the wilderness need amplification.
This piece was originally published in the June/July issue of HousingWire Magazine. To read the full issue, click here.
Romi Mahajan is the president of KKM group and adviser to Rook Capital.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
It is no secret that the internet is changing how money is made forever.
This has caused a boom in many businesses and people the ability to make money online, which is a huge benefit for you!
This trend will only continue as technology improves. If it feels daunting to jump onto this new bandwagon right now, don’t worry; we have some tips that can help you double your 10k in the next few weeks or years.
I am going to show you how to double your money so that you can retire early, pay off debt and invest in the stock market.
A lot of people would say this is impossible, but I’m not just showing it–I’m proving it!
We all have said it takes money to make money and while that is true. It is easy to start doubling your money with just $10K.
What if, right now, you decided to double your 10K by the end of the year? Maybe, you want to hit a major goal and make a huge change in only 8 short weeks?
Making money is not a difficult task. Too often, people become impatient and think that they can simply make money without putting in the effort. This is not true.
Cash is a tool and nothing more. Once you understand this concept, you can begin to figure out how to make more money. Additionally, it’s important to appreciate that it takes time to make money – don’t expect to become a millionaire overnight.
Here is a realistic guide to help you work towards that goal.
Be sure to decide which strategic way to double $10k quickly works best for your personality.
The 10K of your dreams seems impossible.
How can I double $10000 fast?
There is no one-size-fits-all answer to this question, as the best way to double your money will vary depending on your individual circumstances and goals. However, some general tips include developing a growth mindset around money, finding ways to make more money, and investing in yourself and your skills.
Keep in mind that $10,000 is not a lot of money to double in a short period of time.
How long does it take to double 10k?
The answer to this question is dependent on a number of factors.
The most important factor is the amount of time it takes for your investments to double.
If you are investing in stocks, you can quickly double 10K with an options contract within 2-3 days. If you are looking at other avenues, it will depend on how you choose to double your money.
Typically, people start seeing results in approximately 4 to 6 months to double 10k.
If your eyes are set on this, then make sure to write down one of the millionaire quotes for motivation.
What to do with 10k?
Now that you’ve earned an extra 10k, you may be wondering what to do with it.
You could save it, spend it, or invest it, but there are a few other things you could do as well.
Here are some ideas on how to make the most of your money and grow it even more.
How can I Double my Money?
There are many ways you can double your money in a short amount of time.
I am passionate about exploring the best ways to make money online. In this article, I will share some tips on how you can double your money relatively quickly. However, please keep in mind that these are general ideas to get you started.
Specifically How to Double 10k Quickly?
If you are serious about how to double your 10k fast, you will need to dedicate time on a regular basis to the tasks needed to reach your ambition. The key is to do it daily in order to keep the momentum of your progress going.
Earning money is a mindset.
To double 10k quickly, learn how to change your mindset about money.
Although doubling $10,000 may seem difficult, it can be done with the right approach.
If you have $10,000 and want to double it within a month or a few months, here are a few realistic strategies to help you reach your goal.
Idea #1 – Swing Trading with Stocks
Swing trading is a technique that allows investors to hold onto stocks for a period of time, typically two to four days. During this time, the trader watches for specific price patterns and buys or sells shares based on their analysis.
One former assistant principal, Teri Ijeoma, changed her life when she left her job as an educator and become an active trader.
Check out: My Personal Trade and Travel Review
This type of trading can be very profitable if done correctly, as it allows the trader to make twice their investment in a short amount of time.
The key is you must learn how to invest in stocks for beginners. This is one step many people overlook when they are focused on doubling their money. Either you will get lucky or you will have a huge loss. Take time and become educated on swing trading stocks.
Related Reading: How Fast Can You Make Money in Stocks?
Idea # 2- Cryptocurrencies
Cryptocurrency is a digital or virtual asset that uses cryptography for secure transactions. Cryptocurrencies are growing in popularity and may become a major part of society. Bitcoin, the first and most well-known cryptocurrency, has seen its value skyrocket in recent years.
Cryptocurrencies are often unstable because they are not regulated by any government or financial institution, and thus their value can change rapidly. However, the potential for reward is high, making cryptocurrency an attractive investment option. Because of this, cryptocurrency investments are often seen as riskier than traditional investments, but also have the potential for greater returns.
Before investing in cryptocurrency, do your research and be sure you understand the risks involved. There are many educational resources available to help you get started.
Idea # 3 – Flip Items for a Profit
Retail arbitrage is a practice where an individual or company purchases a popular product at a discounted price and then resells it for profit at another online retailer. This can be done on marketplaces like Craigslist, eBay, and Facebook Marketplace.
This is a great way to make some extra money on the side. You need some time and a willingness to invest, but if you find the right deals, you can make a good return on your investment.
Many people have great success by flipping items from auctions, free groups, or local goodwill store.
Check Out: Flea Market Flipping
Idea #4 –Resell Products on Amazon FBA
Amazon FBA is a service for independent entrepreneurs who want to start their own e-commerce business. They can offer products on Amazon and work with Amazon directly to fulfill orders, collect payments, and provide customer service. By doing this, they don’t have to worry about the inventory and can focus on other aspects of their business.
This is another avenue for selling your flipping treasures.
There are a few ways to make money through reselling products. You can either find products to sell on Amazon or Ebay, or you can dropship products from a supplier. If you want to find your own products to sell, you’ll need to do some research on what is selling well and what prices are competitive. If you want to dropship, you’ll need to find a supplier and create an account with them.
Idea #5 – Start a Business or Invest in a Franchise Company
Starting a business is not easy. It requires a lot of work and effort, but if you’re willing to put in the time and effort it can be very rewarding.
Starting your own business is one of the most difficult things you can do, but it’s also one of the most rewarding. There are many different businesses you can start that have low overhead costs, so it’s a great way to get started.
Think of the things you enjoy doing or any hobbies you have. Look for business opportunities that line up with your interests. Then, it makes working much easier.
Here are great ways to make money on the side:
It is possible to make more money on your business than you make more money in your current job or career.
Idea # 6 – Real Estate Portfolio
Real estate is a recession-proof business.
There will always be people who need to rent or buy dwellings in boom or bust economic times.
Real estate can be a lucrative investment, but it is not without risk. A lot of people have invested in real estate and lost money, but an investor who does their research and finds a good deal can make a lot of money.
Idea # 7 – Increase Your Income
If you’re not happy with your current income, don’t worry! You can increase it this year.
This is the year that many experts are predicting will see the biggest wage growth in years. So start planning now and you could see a significant increase in your take-home pay.
More than likely, this could be your seed money of $10k to fund the start to doubling your money and making $20k.
Related Reading: How Much Do I Make Per Year?
Idea #8 – Advertise and Gain Clients
If you are a small business owner, then this one is for you. Start advertising as a way to gain more customers.
There are a number of ways to make your services more accessible and appealing to potential clients. One way is to spend money on promotions and advertising. Advertising can be effective in reaching your goals, surpassing your double your money goal of $20,000 in revenue.
There is no doubt that advertising your services will increase the number of customers you have. The more people who know about your business, the more likely they are to use it. And as we all know, the more customers you have, the quicker you earn more money.
It’s a simple equation: More customers equals more money.
Idea # 9 – Invest in Stock Market – ETFs & Index Funds
Investing in the stock market is a process that requires careful consideration and research. Index funds have become an increasingly popular investment option for many investors. ETFs are known as Exchange Traded Funds, which are also a popular investment option.
Both index funds and ETFs provide investors with the ability to invest in a diverse range of stocks, making them ideal for any investor who is looking to diversify their portfolio.
Investing in an index fund is one of the best ways to build wealth over time.
This is probably the slowest way to make money quickly in the stock market, but it comes with less risk.
With a mutual fund, you are essentially investing in many different stocks, which means that you get to choose how much your investments grow each day. This can be a great way to ensure that your money is working for you – and growing – even when you’re not able to actively monitor it yourself.
Just to know, investing in bonds will eventually double your money, but it will take more time as the rate of return is less.
Idea #10 – Start a Mining Farm
Cryptocurrency mining is a process by which new coins are introduced into the market. In order to do this, miners use computers to solve complex mathematical problems in order to receive rewards in the form of new coins. A cryptocurrency mining farm is a way to pool together multiple computers in order to increase the chances of solving these problems and receiving rewards.
Starting a mining farm is a process of investing in cryptocurrency or blockchain technology.
Mining farms can be started with as little as $500, and they are commonly used to mine cryptocurrencies like Bitcoin, Ethereum, and ZCash. Although the process of mining cryptocurrency is not always easy, it can be lucrative for those who invest in the process.
Starting a cryptocurrency mining farm can be lucrative, but it’s important to do your research first. The farm will require a lot of power and will have a rate of return of around 18% (source).
Idea #11 – Share Cash with P2P Loans
Peer-to-peer lending is the act of lending money to borrowers through a P2P lending website. These websites act as an intermediary between lenders and borrowers, and most sites allow you to lend money to a dozen or two applicants. The interest rate you earn on your loan depends on the P2P website you register with, but it typically falls between 3% and 36%.
When considering a P2P loan, it is important to remember that you are entrusting your money to a stranger. Because of this, it is crucial to take the time to review and assess as many applicants as possible in order to find someone who you feel is most likely to pay back their loan.
P2P loans can be arranged without any collateral or credit check.
Idea #12 – Buy Initial Public Offerings
When a company decides to go public, it sells shares of its stock to the public. This is a way for the company to get more money, and it also allows people who invest in the company early on to make a lot of money if the stock prices rise.
The share price of a company can be very volatile when it first goes public. This can lead to significant growth for the company as investors buy and sell shares rapidly. However, this volatility can also lead to losses if the share price falls abruptly.
You must know the underlying stock value before looking at IPOs as a way to double your money. Many current stockholders are required to hold their stocks for a certain number of days after the IPO. Typically, the stock price falls after the hold period expires.
Idea #13 – Make Money with Airbnb
There are a number of ways to make extra money, and renting out a room at Airbnb is one of them. You can also learn how to make money from home by becoming an Airbnb host.
By doing this, you can provide a valuable service to people who are looking for a place to stay, and you can also make some extra money on the side.
Learn how to start hosting with Airbnb today.
Idea #14 – Flip Some Furniture
Flip furniture is very trendy right now. There has been a recent resurgence in popularity for antique and vintage furniture, and people are buying pieces and restoring them themselves. This can be a great way to make additional money without spending a lot of money.
There are a number of ways to quickly turn a profit by flipping furniture.
Spend some time researching the best methods and finding a niche in the market that you can exploit. With a bit of hard work, you can easily double your investment in no time.
When you are looking for furniture to flip, it is important to do your research and become familiar with the different places you can find quality pieces at a low cost. Local antique stores will often have hidden treasures, so be sure to check them out. Additionally, watch for yard sale notices in your area; people are often willing to sell high-quality furniture at a fraction of the price. Finally, estate sales can be a great place to find unique furniture pieces that you can resell for a profit.
There are many ways to sell furniture, but when you are starting out, it is best to use popular platforms like Facebook Marketplace, NextDoor, Craigslist, and others. Once you have more experience, you may want to create a website and online storefront.
This can be a fun and lucrative way to grow your money.
Idea #15 – Pay Off Debt Strategy
This idea of getting out of debt may seem backward, but this is one of the fastest ways to find extra money in your budget.
There is no doubt that paying off your debt is one of the smartest things you can do for your financial future.
Not only does it reduce the amount of interest you are paying each month, but it also frees up more money to save and invest. Additionally, by paying off high-interest debt first, you are essentially making an investment with a very high return rate.
Once your debt is paid off, you can save your first $10000 which you can now use to quickly double to $20000. This will help you achieve your financial goals faster.
Idea #16 – Online Courses & Coaching Programs
Coaching is a huge business – reaching $11 billion in 2022 (source). People are actively searching for coaching and online courses for personal development.
Coaching programs are designed to provide guidance and support for individuals in order to improve their skills, knowledge, or habits. Coaching programs can take the form of one-on-one sessions or group sessions. Some coaching programs are designed for specific topics like career development, personal growth, or relationship issues.
If you don’t want to work one-on-one as a coach, you can create an online course that can be viewed at any time.
If you have passion, you can likely find people that want coaching.
Idea #17 – Buy a Fancy Car and Uber
You could buy a new, luxury car and become an Uber driver. This would allow you to make money while driving people around in your fancy car.
If you’re looking to make some extra money, driving a luxury car for Uber could be a great way to do it. Not only will you make more per trip, but you’ll also get to drive a nicer car. Keep in mind that if you drive full-time, you could easily double your $10,000 investment.
Driving a luxury car for Uber can get you up to 50% more fares. The extra money can be great for those looking to upgrade their lifestyle or simply want to make some extra cash on the side.
If you want to buy a fancy car and use it for Uber, make sure you have the appropriate insurance. This will protect you in case anything happens while driving.
Idea #18 – Learn a New Skill
A new skill can help to increase your income by allowing you to do things that you couldn’t do before. For example, learning how to code can allow you to start a new career in tech or programming.
Additionally, many skills have the potential to double your income quickly if you are able to find a way to use them in high-demand areas.
It is always a good idea to invest in learning new skills.
There are many places where you can learn, including online and in-person courses. The key to success is jumping in with both feet and really dedicating yourself to learning the skill set. Once you have it down, new opportunities for income will be available.
Idea #19 – Work More Overtime
Working overtime is a great way to earn extra money. You can earn up to double-time pay for working more than 8 hours in a day or 40 hours in a week.
Overtime is becoming more common, so be sure to ask your employer if you can work some extra hours.
In order to make $10,000 in one month from overtime, you would need to figure out how many extra hours per work you need to work.
Idea #20 – Some Gambling?
This is the RISKIEST option of all of them. And highly not recommended as a strategic way to double $10k quickly.
Gambling is a way to risk cash in the hopes of making more cash.
While it can be thrilling and exciting, it’s important to remember that gambling is also a form of entertainment that comes with risk. If you’re able to afford it, gambling can be a way to double your money- but be aware that you could also lose everything you put in.
What is the quickest way to double your money?
How to double your money quick is simple. You need to side hustle and start a business.
Also, the stock market is a simple way to double your money with the rule of 72.
Following billionaire morning routines can be helpful in setting up solid habits for success.
How can I double my money in 24 hours?
The answer to this question is simple… Doubling the money in 24 hours is not practical or doable. You might be able to double your money in 24 hours, but it’s also possible that you could lose everything in one day.
Pay attention to scams if you think you can double your money in 24 hours.
You are better off learning how to make 10k a month.
Which investments are the safest and which are the riskiest?
First of all, it depends on your education, experience, and background.
The best way for someone to double their income is by leveraging their time with the right strategies.
Investments that are considered safe are investments that have an average return on investment of about 8-12% per year. Investing in index funds and ETFs typically have a lower risk. Investing in individual stocks is riskier, but they have an average return on investment of about 10-75% per year.
The riskiest option is the idea that you don’t understand how to double your money and you could end up losing more money.
Best Way to Invest 10K
The best way to invest 10,000 is through stocks. Investing in stocks can be risky and make you lose money, but it also has a high potential for gaining value.
As such, this topic needs to be done in more depth to understand how investments in the stock market work. For now, here are some articles to start to understand the returns of stock investing.
Learn all of the ways you can learn how to invest 10k.
You must do your research on companies, know your risk tolerance, understand the volatility of the markets, and be wary of the news.
Which Strategic Ways on How to Double my Money Quickly will you Pick?
You can choose from many classic way and options, but here are a few that we think would be the most effective.
Thankfully, there are many ways to make money online. But when it comes to making a quick buck, which approach should you take?
In this post, we have outlined the 20 popular routes to double your $10k fast. Your retirement plan relies on your investment of 10k.
However, any of these options is a time-consuming process that takes a lot of hard work and dedication. So, you cannot quit halfway through when things get tough.
This is what you want to do in order to be financially secure and take care of all your needs.
Be successful in doubling your 10k by setting a deadline to make it happen.
Then, your next goal will be how to turn 10k into 100k.
Know someone else that needs this, too? Then, please share!!
The mortgage and real estate industry is no stranger to disruptors, especially over the past few years as scores of companies have tried to change the way we buy, sell, and obtain a home loan.
One of the latest examples is “Tomo,” a venture-backed fintech with some big-name founders and investors, including former Zillow employees Greg Schwartz, Carey Armstrong, and Spencer Rascoff.
What’s unique about this mortgage lender is they only originate home purchase loans. No refis. That means they’re completely committed to home buyers.
Like other lenders, they’re attempting to level the playing field between cash buyers and those who need a mortgage, an especially relevant concern in today’s ultra-competitive housing market.
Started by former Zillow executives Greg Schwartz and Carey Armstrong
Do not charge lender fees and offer both a low rate and closing guarantee
Will also pair you with a real estate agent for an additional mortgage rate discount
Tomo Exists Because Buying a Home Can Be Terrible
Tomo was created because purchasing a property can be a real pain in the neck, and instead of relying on old technologies, they’re going the digital route.
This means you can get started right from their website in minutes, whether by desktop computer or smartphone.
They’re also streamlining the process, simplifying how you can complete tasks, and throwing in a bunch of guarantees along the way.
It all starts with a mortgage pre-approval, which they break down into two options: verified and an underwritten pre-approval.
The verified pre-approval assesses your credit score, income, and debt, and turns around the paperwork in no more than three hours after they receive your information, without a hard pull.
The more robust underwritten pre-approval does all that with a hard credit check and a complete assessment by an underwriter, backed by their Closing Guarantee.
The second option takes about 24 hours to complete, once you’ve uploaded all your necessary documents.
Tomo commits to closing on time, and are confident they can do so by moving critical steps earlier in the process.
But if there is a delay on their end, they guarantee your closing date will not change.
It’s unclear what happens if they aren’t able to meet their obligations, but they appear to not let that be an issue.
The Tomo Price Match
While all that sounds good, there’s even more to like about Tomo when it comes to their pricing.
For one, they do not charge lender fees, similar to companies like Better Mortgage, Filo Mortgage, and PenFed Mortgage.
On top of that, they offer the Tomo Price Match if you happen to find a better mortgage rate elsewhere.
Just provide a valid, comparable Loan Estimate (LE) dated within one business day of submission to Tomo and they’ll lower their rate if need be to match it.
But they’re confident they can offer some of the lowest rates around because they’ve simplified the home loan process and made it more cost-efficient.
Speaking of mortgage rates, they’ve got them on full display on their website, so they’re not hiding anything.
Simply navigate to “Find your rate” and you’ll see a list of rates and corresponding costs (discount points) or rebates (lender credits).
You can also fine-tune the rates by entering in your borrower and property information for a more accurate gauge of pricing.
Tomo Brokerage Partner Agent
Speaking of pricing, to sweeten the deal even more, they’ll throw in a .125% (eighth) discount in mortgage rate if you use a Tomo Brokerage Partner Agent.
This is essentially their real estate referral network that pairs you with a local real estate agent, which makes a lot of sense because both Schwartz and Armstrong worked on Zillow’s Premier Agent product previously.
In truth, Tomo might be even more similar to Redfin Mortgage, which doesn’t charge fees and has an obvious real estate agent affiliation.
It also plays into the trend of controlling more of the home buying process instead of just the lending piece, or merely the agent portion.
Assuming you don’t already have a real estate agent, you could save some money by going with one of their recommendations.
This is known as “Tomo Perks,” and on a $300,000 loan amount could save you more than $7,000 over the life of the loan.
To get paired up, you simply provide your info to Tomo and they’ll send video profiles for three local real estate experts they love. Then it’s up to you who to pick, if any of them.
For the record, it is possible to take advantage of both the Tomo Price Match and Tomo Perks.
Where Is Tomo Mortgage Available? And What Loan Types Are Offered?
Currently serve just five states: CO, CT, FL, TX, WA
Offer home purchase loans only
Fixed-rate mortgages: 15- and 30-year loan terms available
Minimum loan amount of $150,000 and min. credit score of 660 required
Jumbo loans available with loan amounts up to $3 million
Single family homes, townhomes, condos, and 2-4 unit properties acceptable
Do not offer FHA/VA loans
At the moment, the company is licensed in just five states, including Colorado, Connecticut, Florida, Texas, and Washington.
And currently only operates in three markets, Dallas-Fort Worth, Houston, and Seattle. My assumption is they’ll expand fairly quickly with their big venture cap backing.
They also only offer home purchase loans, as stated above, though it’s possible they may expand into mortgage refinances in the future.
In terms of loan choice, you can get a conventional mortgage starting with loan amounts of $150,000, or a jumbo loan up to $3 million.
You can’t yet get your hands on an FHA or VA loan, though that could change in the future.
A minimum 660 credit score is required, and they only offer 15- and 30-year fixed mortgages. No ARMs just yet.
While it seems like a limited product menu, something like 90% of home buyers go with the 30-year fixed, and most home loans are conforming.
In summary, Tomo is yet another mortgage/real estate startup looking to shake up the status quo.
While it’s a crowded place, their low rate guarantee and on-time closing guarantee, combined with their fresh modern look, might be enough to help them stand out.
Too many people are afraid of their credit scores.
Many don’t know what their credit score is, many don’t know how to have a good credit score, and many just have an overall negative attitude about them.
This doesn’t have to be true for you, though.
I believe a credit score can be used to a person’s advantage. A good credit score can help you earn great rewards through credit cards, it can help you get certain jobs, it can help you buy your dream home, and more.
Related article: How Your Credit Score Affects Your Life + Credit Sesame Review
Plus, the great thing is that it doesn’t have to be hard to increase your credit score.
However, it can sometimes be easy to ruin your credit score if you’re not careful.
Below are four ways you may be preventing yourself from having a good credit score.
1. You spend too much on your credit cards.
If you have a credit card, you have a credit limit. However, just because you are given this limit doesn’t mean you should try to reach it.
In fact, you should always try to be below 30% of your credit limit if you want to have a good credit score. So, if your credit limit is $1,000, you do not want to spend more than $300 as this can impact your credit score.
It’s also important to note that even if you are paying your balance in full each month that going over 30% of your credit limit can still negatively impact you. This is because your balance is reported on a monthly basis to the credit bureaus. In this case, it is best to pay off your balance or at least some of it before your next credit card statement goes live so that your utilization rate stays low.
2. You cancel old credit cards.
According to FICO, 15% of your credit score is from the length of your credit history. The longer your credit history then the higher your score may be.
If you have old credit cards that carry no annual fee, you may want to think twice before you cancel them. Yes, it can be great to simplify your life, but that old credit card may be lengthening your credit history and, therefore, improving your credit score.
I have one credit card that I signed up for the day I turned 18. The credit card stinks and pretty much offers no benefits. However, it’s the card I’ve had the longest. To keep it active, I just buy one thing a year (such as gum)!
Side note: There are many reasons for why you may want to cancel your credit cards, though. If you are horrible with credit cards and can’t seem to have them without having credit card debt, then it may be your best idea to cancel them.
3. You pay your bills late.
According to FICO, 35% of your credit score is from your payment history. One or two late payments most likely won’t prevent you from having a good credit score, however, continually missing payments most likely will.
No matter what the bill is that you are paying, you should always pay it on time. Paying a bill late may lead to interest charges, late fees, and a drop in your credit score.
Yes, companies can report late payments to credit agencies. If you do happen to accidentally pay a bill late, do not panic, though. If you are quick enough you may be able to ask for some leniency from the company and ask them not to report it.
I once underpaid my monthly mortgage payment by $10. I must have clicked the wrong number because I’m still not even sure how that happened. Luckily I caught it quickly enough and my mortgage company realized that it must have been a mistake. They waived any late fees and also did not report it to anyone.
Related article: How To Live On One Income
4. You never check your credit report.
When was the last time you checked your credit report?
Sadly, many don’t ever check theirs!
You want to check your credit report at least once a year because there may be errors on it and this may be preventing you from having a good credit score. Errors can then lead to your score dropping and that’s a big reason to check!
You can receive your credit report for free each year so there is no reason for why you shouldn’t do this. You can get one free credit report from each of the credit bureaus once each year, so you may even want to time that out so that you can receive one every four months and stay as up-to-date on your credit report as you can.
How have you damaged your credit score in the past? Do you have a good credit score? Why or why not?