Whether you’re shopping for a new credit card or trying to understand the details of an account you’ve already opened, the Schumer box can be a great place to start your research.
This cheat sheet provides the key details about a credit card account, such as the annual percentage rate you might pay to borrow money, and fees a card issuer may charge you.
What is a Schumer box?
Once upon a time, credit card companies used various methods to disclose the annual percentage rates and fees they charged consumers. However, the system was confusing. It could be difficult for consumers to understand the true cost of borrowing money with a credit card. And comparing one credit card to another was even more challenging.
Enter the Schumer box. In the late 1980s, then-Rep. Charles “Chuck” Schumer proposed legislation requiring credit card companies to use a standardized table to summarize a credit card’s rates, fees and other pertinent details. Congress passed the Fair Credit and Charge Card Disclosure Act of 1988 (an amendment to the Truth in Lending Act), and card issuers had to begin using the “Schumer box” in 2000.
Example of a Schumer Box
AMERICAN EXPRESS
Key information you can find in a Schumer box
Credit card issuers follow specific rules when it comes to Schumer box disclosures. Even the font size a card issuer uses has to meet certain standards. For example, the APR for standard purchases must appear in 18-point font. Bold text is also required for certain disclosures. Additionally, there are key details that card issuers must include in the Schumer box to make it easy to understand each credit card’s terms and conditions.
Here is some of the helpful information you can find in a Schumer box:
APR for purchases
The purchase APR is the interest rate a credit card company applies to the purchases you make with your credit card if you don’t pay your full statement balance during the grace period. (Tip: If you follow the first rule of credit card rewards and never carry a balance from one month to the next, you can enjoy the benefits of a credit card without paying interest charges.)
If you’re reviewing a Schumer box that’s part of a credit card application or offer, you might see a range for the purchase APR instead of a single interest rate. The APR a card issuer assigns you will depend on your creditworthiness and other factors.
Related: What is a good APR for a credit card?
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APR for balance transfers
When you use your credit card for a balance transfer, the APR may differ from what you pay for standard purchases. If you take advantage of a promotional balance transfer credit card offer to consolidate debt, your balance transfer APR might be temporarily lower. However, once the promotional APR expires, the balance transfer APR could be equal to or higher than your purchase APR.
APR for cash advances
When you use your credit card for a cash advance, you’ll typically pay a higher APR than for standard purchases. The Schumer box will tell you how much your APR will be on a cash advance. However, it might not make it clear that you’ll probably begin paying interest the same day you request a cash advance instead of enjoying a grace period like you do with the other purchases you make on your credit card.
Penalty APR
If you miss a credit card payment or violate the terms of your credit card agreement in other ways, you risk activating the penalty APR on your account. The Schumer box discloses the (high) cost of your account’s penalty APR if you ever trigger it.
Grace period
If a credit card company offers a grace period, the Schumer box explains how many days you have between the statement closing date and your due date to pay off your statement balance to avoid interest charges.
Related: Important dates to know for your credit cards
Annual fee
A card issuer must disclose the cost of any annual fee it charges (if applicable) in the Schumer box.
Transaction fees
It’s common for credit card companies to charge fees for certain types of transactions like balance transfers, cash advances and foreign transactions. If a card issuer charges these fees, it must list them in the Schumer box.
Penalty fees
Another type of fee that a card issuer might charge you is a penalty fee. These charges include late fees, fees for going over your credit limit, returned payments fees and returned check fees.
Related: What happens if you go over your credit limit?
Where to find the Schumer box
You can check your credit card statement to find the Schumer box for your account if you’re already a cardholder. But if you’re shopping for new credit card offers and want to compare different products online, you can also look for this information on different credit card issuers’ websites.
It’s worth pointing out that locating the Schumer box for individual credit card offers isn’t always easy. But most card issuers provide a link to the information under a phrase like “Pricing & information” or “Rates & fees.”
The following cheat sheet shows the phrase you’ll need to look for on various card issuer websites when you’re looking for the Schumer box to compare credit card offers:
American Express: “Rates & Fees”
Capital One: “View important rates and disclosures”
Chase: “Pricing & Terms”
Citi: “Pricing & Information”
Discover: “See rates, rewards and other cost information”
Bottom line
A Schumer box contains helpful details you can use when shopping for a credit card (or to stay informed about accounts you already have open). Yet there may be additional steps you need to take to choose the best credit card for you. While it’s wise to understand the potential cost of borrowing on a credit card, don’t overlook the importance of comparing the best credit card offers based on credit requirements, rewards and benefits before you apply for a new account.
We have a job opportunity to share from a member of the GEM, Gemini Ventures, a Venture Studio and Fund that conceives, builds, and scales companies at the intersection of real estate, finance, and technology: Vice President of Growth.
Responsibilities:
Create and implement “0 to 1” go-to-market strategies for each company we launch, ensuring they have a clear path to attracting their first customers, generating revenue, and securing strategic partnerships.
Collaborate closely with our startup founders to develop their “1 to 10” go-to-market strategies, teams, processes, and tooling that will allow them to scale effectively into their Series A round.
Develop and operationalize Gemini’s brand strategy, positioning us as a leading venture studio in terms of equity value creation, technical craft and ecosystem quality.
Help qualify and validate company ideas, systematize and productize our internal processes and tools, and amplify our network with yours.
Required Capabilities & Experience:
10+ years of experience in marketing leadership roles, preferably with diversity of experience across company stage (startup, growth, scale), end customer (B2B, B2C, B2B2C), funnel outcome focus (awareness, consideration, trial, conversion, repeat, loyalty), business model (SaaS, marketplace, D2C) and tactical approach (marketing-driven, sales-driven).
Proven track record of developing and implementing successful go-to-market strategies, ideally in “first marketing/growth hire” and/or “0 to 1” settings, including sales and marketing strategy / development / execution.
Deep and practical understanding of B2B marketing strategies and tactics, including product marketing, content marketing, demand generation, lead generation and conversion, partnerships, and digital marketing. B2C and B2B2C experience is relevant and valued, but secondary to B2B experience.
Hands-on experience using marketing technology and CRM platforms to drive marketing effectiveness and efficiency.
Excellent analytical skills, with the ability to use data to inform marketing strategy and decision-making.
Experience managing and growing high-performing marketing teams, including a deep relationship network.
Strong collaboration and influencing skills, with the ability to interact and work effectively with cross-functional partners, founders and their teams, investors, industry partners and other audiences.
Experience in tech is required; real estate and/or fintech experience and/or knowledge is a bonus but not required.
Required Values & Behaviors:
Entrepreneurial Spirit: You’re comfortable with ambiguity and rapid change; you’re able to take initiative and make things happen in a fast-paced, “0 to 1” startup environment.
Strategic Thinker: You’re able to see the big picture, think long-term, and translate strategic objectives into actionable marketing plans.
Collaborative: You’re a team player who can work effectively with people across the organization. You value diverse perspectives and strive to create an inclusive environment.
Results-Oriented: You’re focused on delivering measurable results and are always looking for ways to improve performance.
Integrity: You conduct yourself with honesty and operate ethically in all aspects of your work. You’re reliable and uphold commitments to the team and the company.
Continuous Learner: You’re always looking to learn and grow, staying current on the latest marketing trends and constantly seeking ways to improve your skills and knowledge.
Comp, benefits, and location:
Gemini Ventures is well funded by a network of top investors, and offer competitive cash comp in addition to equity in their portfolio of startups and comprehensive benefits (including health, vision and dental insurance, generous PTO / sick leave and 401(k)). The majority of their team lives in Boston, with others in New York, Colorado, and California. They work in a hybrid mode, with in-person collaboration when needed – usually a few days a week for the Boston crew and full-team on-sites every 6-8 weeks. While they prefer a Boston-based candidate, they are open to candidates in other locations – ultimately, they’re seeking the best possible person for the role.
Encompass360 enables omnichannel lenders and investors to more efficiently orchestrate their entire business through a single system of record. Here are some of the ways Encompass360 achieves this: Engaging and acquiring customers to drive more business Originating and closing home loans more efficiently to lower production costs Selling home loans quickly to fund them faster … [Read more…]
Long, long ago, in a mystical forest with good Wi-Fi, Goldilocks opened an investing account with $3,000 to invest.
At first, she considered pouring more money into her retirement accounts (which only holds mutual fund investments). But her Roth IRA was already maxed out for the year. Moreover, she knew that she would need this money sooner than age 65.
“Too cold!” she said.
Next, she considered investing in individual stocks. But even though she’d done her due diligence, she knew that investing in individual securities can be very risky. She didn’t need to become a millionaire overnight – she just wanted to make enough money to buy a cottage in a few years.
“Too hot!” she said.
Finally, she began browsing ETFs. ETFs are generally more stable, diverse, and safe investments than individual stocks, but they’re also more accessible than your retirement account.
“Juuuuust right!” she said aloud.
10 years later, Goldilocks’ investment had paid off – thanks to a steady 10% APY, her $3,000 investment had become nearly $8,000, so she was finally able to pay restitution and legal fees to the family of bears down the way.
Thanks to inherent diversity and steady returns, ETFs are a great place to stash a few grand to help you save for a big expense years or decades down the line.
What’s Ahead:
Large-cap stock ETFs
Large-cap ETFs typically bundle together blue-chip stocks or even an entire index, providing steady, sizeable returns. Warren Buffet once famously said:
“I just think that the best thing to do is buy 90% in S&P 500 index fund.”
So I’ve included two such options on the list.
You’ll also see a lot of Vanguard funds on this list because, well, they’re just awesome all the way around. Vanguard funds are extremely popular among investors because they combine industry-leading returns with incredibly low expense ratios.
ETF
Symbol
Fund info
Expense ratio
Schwab US Large-Cap Growth ETF™
SCHG
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index.
0.04%
SPDR S&P 500 ETF
SPY
The SPDR® S&P 500® ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index (the “Index”).
0.0945%
Vanguard S&P 500 ETF
VOO
The Vanguard S&P 500 ETF invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies.
0.03%
Vanguard Russell 1000 Growth ETF
VONG
The investment seeks to track the performance of the Russell 1000® Growth Index. The index is designed to measure the performance of large-capitalization growth stocks in the United States.
0.08%
Mid-cap stock ETFs
Goldilocks’ choice – mid-cap ETFs – bundle together companies that have an exciting growth curve before them, but are established enough not to fold overnight.
If you can tolerate a little more risk in exchange for higher potential returns than an index fund, consider these top picks:
ETF
Symbol
Fund info
Expense ratio
Vanguard Mid-Cap Growth ETF
VOT
VOT seeks to track the performance of the CRSP US Mid Cap Growth Index, which measures the investment return of mid-capitalization growth stocks.
0.07%
iShares Core S&P Mid-Cap ETF
IJF
IJF seeks to track the investment results of an index composed of mid-capitalization U.S. equities.
0.05%
Vanguard Mid-Cap ETF
VO
VO seeks to track the performance of the CRSP US Mid Cap Index, which measures the investment return of mid-capitalization stocks.
0.04%
Schwab U.S. Mid-Cap ETF
SCHM
SCHM’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index.
0.04%
Small-cap stock ETFs
If you’ve looked at your asset portfolio recently and thought “hmm… needs a little more spice,” then a small-cap ETF might add just the right amount of kick.
These ETFs track small companies with big potential, so they present higher risk but higher potential reward than large- or mid-cap ETFs.
ETF
Symbol
Fund info
Expense ratio
Vanguard S&P Small-Cap 600 Growth ETF
VIOG
VIOG employs an indexing investment approach designed to track the performance of the S&P SmallCap 600® Growth Index, which represents the growth companies, as determined by the index sponsor, of the S&P SmallCap 600 Index.
0.15%
Vanguard Small-Cap ETF
VB
VB seeks to track the performance of the CRSP US Small Cap Index, which measures the investment return of small-capitalization stocks.
0.05%
iShares Core S&P Small-Cap ETF
IJR
IJR seeks to track the investment results of an index composed of small-capitalization U.S. equities.
0.06%
Schwab U.S. Small-Cap ETF
SCHA
SCHA’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Small-Cap Total Stock Market Index.
0.04%
International stock ETFs
ETF
Symbol
Fund info
Expense ratio
Vanguard Emerging Markets ETF
VWO
VWO invests in stocks of companies located in emerging markets around the world, such as China, Brazil, Taiwan, and South Africa.
0.10%
Vanguard Total International Stock ETF
VXUS
VXUS seeks to track the performance of the FTSE Global All Cap ex US Index, which measures the investment return of stocks issued by companies located outside the United States.
0.08%
SPDR® MSCI EAFE Fossil Fuel Free ETF
EFAX
EFAX seeks to offer climate-conscious investors exposure to international equities while limiting exposure to companies owning fossil fuel reserves.
0.20%
Vanguard FTSE Developed Markets ETF
VEA
VEA provides a convenient way to match the performance of a diversified group of stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region.
0.05%
Fixed income ETFs
ETF
Symbol
Fund info
Expense ratio
iShares Core U.S. Aggregate Bond ETF
AGG
AGG seeks to track the investment results of an index composed of the total U.S. investment-grade bond market.
0.05%
Vanguard Total Bond Market ETF
BND
BND’s investment objective is to seek to track the performance of a broad, market-weighted bond index.
0.035%
Vanguard Intermediate-Term Corporate Bond ETF
VCIT
VCIT seeks to provide a moderate and sustainable level of current income by investing primarily in high-quality (investment-grade) corporate bonds.
0.05%
Schwab 1-5 Year Corporate Bond ETF
SCHJ
SCHJ’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of the short-term U.S. corporate bond market.
0.05%
What does large-cap, mid-cap, etc. mean?
To start, “cap” refers to market capitalization, or the total value of a company’s shares on the market. For example, if a company has 1 million shares on the market valued at $10 a pop, their market cap would be $10 million.
Large-cap ETFs are comprised of companies each with a market cap of $10 billion or higher. The Vanguard Mega Cap ETF (MGC), for example, contains around 250 of the biggest companies in the USA, from Amazon to Apple. Since they’re often full of blue-chip stocks that provide slow-but-steady returns, large-cap ETFs are considered a safe, long-term investment.
Mid-cap ETFsare comprised of companies each with a market cap in the $2 to $10 billion range. All ETFs are designed to succeed and make money, so mid-cap ETFs are filled with midsized companies that are in the middle of their “growth curve,” so to speak – they’re high-performing, high-potential companies that may become the next blue-chip, so mid-cap ETFs balance risk and reward.
Small-cap ETFsare comprised of companies each with a market cap of “just” $300 million to $2 billion. Fund managers who design small-cap ETFs cast a wide net, aiming to scoop up “the next big thing.” As a result, these ETFs have higher growth potential than most ETFs, but also steeper downside if the smaller companies within end up folding.
International ETFsare, as the name so subtly hints, full of non-U.S. stocks and securities. There are country-specific ETFs, foreign industry ETFs (think non-U.S. automotive stocks), and even ETFs representing emerging markets like sub-Saharan Africa and Brazil.
Fixed income ETFs, aka bond ETFs, give you access to diverse bond investments. For the uninitiated, bonds are like loans you make to companies or governments that they pay back with interest. You can read more about bonds here, but the bottom line is this: fixed-income ETFs provide steady income in the form of dividends, so they’re a good choice if you want a safe investment that gives you a paycheck!
Read more:How To Invest In ETFs
Which type of ETF is right for you?
Well, it depends on both your goals and your risk tolerance.
If you can tolerate some risk in your portfolio, and want your ETF investment to pay off sooner than later (within five years), you may want to consider small-cap and mid-cap ETFs. They’re riskier, but have higher upside potential.
If you’re looking for a safer investment that will multiply your money over a longer horizon (5+ years), a large-cap ETF is probably a fit.
If you’d like your ETF investment to provide a trickle of cashback each month, fixed income ETFs are probably your best bet.
And finally, if you don’t mind doing a little research or believe strongly in the economic performance of a foreign market, you’ll be a fan of international ETFs.
Read more: How To Determine Your Investing Risk Tolerance
About our criteria
With hundreds of commission-free ETFs available, how did these become the winners?
To make this list, ETFs had to impress in all of the following categories:
Earnings potential.Naturally, the first thing looked at was the ETF’s performance over the past five years. A good sign of a healthy ETF is how quickly it bounced back in Q3 2020 after the market panic surrounding the COVID-19 pandemic. Springboarding back and surpassing Q1 levels are a sign of investor confidence, and helped solidify the ETF’s place on this list.
Expense ratio.Next, I looked at the ETF’s expense ratio. Your expense ratio is the percentage of your investment you pay to the fund manager for having shares of the ETF. Although measured in fractions of a percent, expense ratios make a difference – 0.80% of $10,000 is $80 and 0.04% is just $4, so ETFs with an expense ratio below 0.20% were favored.
Fund reputation. You’ll see a lot of repeated names on this list because funds like Schwab, BlackRock (iShares), and especially Vanguard have a proven track record of building well-crafted, reliable ETFs with low expense ratios. Fund reputation matters in the long run because big funds attract big money, which helps to generate higher returns for you!
Solid fundamentals.ETFs aren’t just random grab bags of stock and securities – each one is a carefully curated list, with selection criteria driven by both AI and human logic. There are some wacky and unique ETFs out there – such as Millennial ETFs and Space ETFs – and I’ll cover more of them in an upcoming piece. But this list isn’t for the experimental, exciting stuff – it’s for safe, dare I say boring, places to stash and multiply your savings.
Conscious investing.Finally, this was more of a small thing in the back of my mind, but I wanted each ETF on this list to score average or above average for “conscious capitalism.” No fossil fuels, no sin stocks (learn more about sin stocks here) – and not just because it’s not the way of the future, but because investments in conscious capitalism generally outperform “sinful” investments in the long term.
Commission-free ETFs solve a big problem for young investors
Commission-free ETFs aren’t just great because they’re cheap – they actually solve a pretty serious problem plaguing young ETF investors.
You see, ETFs have heftier commissions and trade fees than stocks because ETFs can be resource-intensive to create. Let’s say you’re a fund manager and you have an idea for an ETF. The process to get your ETF approved by the SEC isn’t unlike getting your new drug approved by the FDA; you have to research a ton, understand the risks, and propose your ETF to the government.
Once your ETF is approved and available, you probably want some additional compensation for your work beyond just capital gains from your ETF.
You don’t want to charge a high percentage trade fee, because big-ticket investors will be turned off. So, instead, you charge a $10 to $20 fee per trade of your ETF.
Big-ticket investors who drop $50,000 on a trade couldn’t care less about a $20 fee, since that represents just 0.04% of their investment. But if you’re a young investor, investing maybe $50 to $100 out of each monthly paycheck, a $20 per-trade fee is way too high – basically pricing us out of ETF investing. 🙁
Thankfully, many brokerages have realized that their per-trade fees are too high for young investors and have eliminated commissions on trades of certain ETFs. At first, funds like Vanguard and Fidelity only let you trade commission-free on their own platforms, but now, they’ve expanded their commission-free goodness to wide platforms like J. P. Morgan Self-Directed Investing.
And it’s not just the junk ETFs that get traded commission-free – in fact, it’s often quite the opposite. Firms like Vanguard and Fidelity will let you trade their most successful ETFs for free – presumably because they don’t really need the commission.
Disclosure – INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Summary
If you’re looking for an investment vehicle falling somewhere between your boring retirement account and your exciting individual stock purchases, ETFs are an excellent choice. And now that the big funds are waiving commissions on their top-performing ETFs, there’s never been a better time to dive into the world of ETFs and inject some low- to mid-risk into your portfolio.
ETFs are also an excellent investment if you’re looking to multiply your money and cash out within 2 to 10 years. You can even leave your ETF investment until retirement, if you want, so it has plenty of time to multiply under compound interest.
Not all ETFs are made the same, however – and the SEC has approved some stinkers over the years, for sure. These ETFs, on the other hand, are universally considered top-ranked and well-supported within the investor community – and are a superb place to start.
Renting an apartment is an exciting but crucial decision, as it often becomes your home for a significant period. To ensure you make an informed choice and avoid potential surprises, it’s essential to get the info beforehand, whether you need to know more about lease terms, amenities, responsibilities and more. We’ve gathered the top questions to ask when renting an apartment, empowering you to make a confident and well-informed decision for your future living space.
19 questions to ask when renting an apartment
Whether it’s top-of-mind questions or typically forgotten-about details, this list ensures you have your bases covered to learn about the living experience curated by an apartment.
1. What is the monthly rent?
This is arguably the most important question to ask when you’re renting an apartment so you’re aware of how much you’ll be expected to pay monthly for rent. Before you go into any apartment tour or even before you begin your apartment search, it’s a good idea to calculate how much rent you can afford. That way you can determine if the apartment you’re touring is within your budget.
2. Are utilities included in the rent? If not, what utilities am I responsible for and how much do they typically cost?
Standard utilities may include electricity, gas, water, sewage, garbage and internet/cable. The cost of utilities can vary based on factors such as apartment size, location and local rates. Knowing if utilities are included in the rent helps you accurately budget your monthly expenses. If utilities are not included, you need to account for those additional costs and accounts you’ll need to set up.
3. How long is the lease term and what are the penalties for breaking the lease?
Understanding the lease term length allows you to plan your living situation accordingly. You may have specific needs or future plans that require a shorter or longer lease term. It helps you determine if the apartment is suitable for your intended duration of stay. In the same vein, asking about the penalties for breaking the lease helps you understand the flexibility you may have in case of a situation where you need to relocate or move out.
4. Are there any additional fees or deposits required, such as a security deposit or application fee?
Most of the time, you can expect a security deposit and an application fee at the beginning of your apartment renting journey. The application fee, while it isn’t refundable, covers the cost of running the renter’s background checks and processing the application.
The purpose of a security deposit is to provide the landlord with financial protection in case the renter causes any damage to the apartment or fails to fulfill certain obligations outlined in the lease agreement.
5. Is renters insurance required?
Renters insurance isn’t always required. Some landlords or property management companies may require tenants to have renters insurance as a condition of the lease. They will include this requirement in the lease agreement and explicitly state the purpose of this coverage is for the renter’s personal belongings and liability. Sometimes renters can even purchase this insurance through a provider recommended by the apartment, making this process easy.
6. What is your subletting policy?
Subletting is a great option for renters if they are ever in need of their lease being covered. By asking about the subletting policy during a tour, you are aware of the potential to have this option in case your future plans change.
7. What should I know about parking? How many guest spots can I expect to get?
When touring an apartment, asking about parking is important because it directly affects your convenience. Parking is sometimes included in rent but there are also cases where there’s an additional fee you pay for parking. If you live in a city where parking is a little less accessible, you may have to pay for a parking garage pass.
Asking about guest parking helps you understand the availability and convenience of parking for your visitors. It is especially important to ask these questions when renting an apartment if you frequently have guests or expect to entertain visitors. This will typically either be a guest parking pass or designated guest spots/ guest floors in the parking garage.
8. Are pets allowed, and if so, do you have any weight limits or breed limits that I should know about?
Most apartments are furry-friend-friendly. You’ll most likely run into an additional pet fee you’ll pay monthly on top of your rent and monthly utilities. In conjunction with this question, asking about breed and weight limitations is equally as important. Apartment complexes often have specific policies regarding pets to ensure the well-being of both the animals and the other residents.
9. Is the apartment furnished or unfurnished?
If you’re someone who prefers convenience and doesn’t want the hassle of buying or moving furniture, a furnished apartment might be a better fit than a standard, non-furnished apartment. Knowing whether the apartment comes with furniture helps you estimate your expenses and plan your budget accordingly, or determine if the furniture is an expense you want to take on.
10. What appliances are included in the apartment?
It’s good to know what appliances are in the apartment and what appliances you’ll need to purchase depending on your individual needs. Some apartments will lack in-apartment appliances but have communal kitchen and laundry appliances that you’ll share with the rest of the building residents.
11. Is there a maintenance staff available for repairs and how quickly are maintenance requests typically addressed?
This question gives you an idea of how to handle any repairs or malfunctions that happen in your apartment and how long you may have to wait for repairs if something in the apartment needs reparation.
12. Is there a designated area for trash and recycling? How often is it collected?
Whether the apartment offers valet trash services, designated trash areas or coordinated trash pickups, it’s an often forgotten-about part of the renting process. Many apartments will have trash rooms, recycling collection and/or valet trash, giving residents options and designated areas to dispose of waste.
13. Are there any amenities available, such as a fitness center, pool or community room? Are there any additional fees to use these amenities?
A huge part of your apartment living experience is the amenities offered outside of your individual apartment walls. Different individuals have varying preferences and priorities when it comes to amenities, so asking about them helps you determine if the apartment meets your needs and lifestyle.
14. What is the policy on renewing the lease after the initial term?
By asking about a lease renewal, you can assess whether the apartment is suitable for your long-term needs. Most apartments will send out renewal offers months before your lease terms, giving you time to decide if renewing your lease is the best fit for your future living needs.
15. How secure is the building? Are there security measures in place?
Peace of mind is important. It’s a good idea to ask about the security measures the building and apartment staff are taking as well as apartment-friendly security measures renters can take, like installing a doorbell camera. Some apartments will even have security guards for late hours that you can contact in case of an emergency.
16. Are there any decoration restrictions like painting the walls or hanging artwork?
The goal of this question is to ensure you get your security deposit back as well as evade additional charges when moving out. Most rental agreements have specific terms and conditions regarding modifications to the property space or apartment. By knowing your restrictions, you can decorate in a damage-free way.
17. What is the policy on rent increases? How often do they occur and by how much?
Depending on the area you’re living in, rent increases can range from small to large increases. Normally, residents will see rent increases when renewal offers are given to residents. You’ll typically have a few months to decide and calculate your budget or negotiate the increase. Landlords may have different rent increase schedules, so asking before you’re contractually obligated is a safe bet.
18. What is the policy on package deliveries?
Typically, residents receive mail and smaller packages in assigned mailboxes or at their doors. More recently, apartments are starting to install package lockers where residents can register a locker for packages. Asking this question helps you know if your packages are protected or the options you have for your mail delivery.
19. Is rent payment online or in-person? Are there any late payment fees or grace periods?
Being familiar with this process helps renters know how they pay and the budget they need to personally make around payments. Grace periods and late fees can vary from one property to another, and being aware of them allows you to understand any flexibility in a worst-case scenario or money you’ll tack on if you pay late.
Asking questions and take note of the answers
By asking these questions during a tour, you can gain a clear understanding of the overall renting experience you would have living in that apartment. This knowledge will help you make an informed decision about the fit of the apartment and ensure a smoother experience during your tenancy.
There are many renting options so finding the right fit for you ensures the best living experience possible. Start your apartment-hunting journey today!
Inside: A biweekly budget is a budget that is broken into two-week periods. Learn how to create biweekly budgets and download your free template.
Many people create budgets, but only a few budget on a biweekly basis.
That is an interesting statistic because 43% of Americans are paid on a biweekly pay period (source).
So, the thought process is more people should be interested in learning knowing how to create a biweekly budget. But, in reality, most people give up on budgeting or move to a budget-by-paycheck method.
Recently, we moved over to a biweekly pay period. And thus, we quickly had to change how we focused on budgeting.
While most financial bloggers and gurus would agree, budgeting with biweekly paychecks makes the whole concept of budgeting hard.
While biweekly budgeting isn’t easy, it can be done!
This post will show you how to create an easy-to-manage and effective biweekly budget so that you can conquer your financial goals in the most efficient way possible!
We will go through the exact steps I use to create a biweekly budget to cover two weeks’ worth of expenses, get one month ahead on your bills, or adjust your planning to cover your monthly expenses.
This is a basic example, and you should use your own personal situation when developing your own budget.
Do you struggle to keep your finances on track? If so, here are some tips for creating a biweekly budget.
What is a biweekly budget?
A biweekly budget is a budget that takes into account a person collecting a paycheck every 14 days. This type of budget is beneficial for those who are paid on a biweekly schedule, as it allows them to plan their spending more effectively.
However, many people find it difficult when bills are due on a monthly basis.
Difference between biweekly and semi-monthly paychecks
When receiving paychecks twice a month happens with two types of pay schedules either biweekly or twice-per-month. The difference between these two schedules is the number of checks per year.
Those who are paid biweekly receive 26 checks per year, while those who are paid twice-per-month receive 24 checks per year.
Making a budget on a biweekly income can be difficult because the total number of checks received in a year varies depending on the pay schedule you have.
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How does a biweekly budget work?
A biweekly budget divides your budget into two parts, one for each paycheck that is received. This can be helpful for those who want to better track their spending or for those who want to save money.
It can be helpful to think of your biweekly budget as two separate budgets – one for bills and one for everything else.
When you create a biweekly budget, you are essentially creating two budgets over the span of ten months. Then, in the other two months, you will receive three paychecks; thus, need to create three budgets.
Since many monthly expenses remain the same when switching from a month budget to a biweekly budget, knowing which expenses should be increased or decreased beforehand can make the process smoother.
Additionally, it is helpful to know how much money you will need for each check. That way, you won’t have to worry about bouncing checks or accidentally overdrawing your account.
How to create a biweekly budget
Creating a biweekly budget is a great way to start getting your finances in order. You can either create your own template or use one of the many templates that are available online for free.
One popular template is ours!
Money Bliss Biweekly Budget Template (see below to get your copy). This template is available as a free download and can be used in conjunction with our budget binder. The planner allows you to track your income and expenses, as well as financial documents such as bills and bank statements.
There are a few key things to keep in mind when creating a biweekly budget:
Adjust your budget as needed.
Be flexible when adjusting to this 2 week budget style.
Compare your regular expenses to your spending from the past month.
Now, here are the steps to creating a biweekly budget that works.
Step 1: Print out a calendar
You need to print out the dates you get paid from your employer. On the biweekly paycheck, Fridays are usually pay dates; you just need to know which Fridays!
So, print out a blank calendar. Write down when you get paid along with when your bills and expenses are due.
This will help you get an idea of where you are spending your money and where you can cut back.
Many people find it helpful to color code by category and add stickers. This will help you see your budget at a glance.
Step 2: Put in a buffer
This will help ensure that you don’t have to worry about going into debt if something unexpected comes up.
Ideally, you should try to save at least two weeks’ worth of living expenses so that you know you’ll be able to cover your costs even if something goes wrong.
For us, all of our income goes into an “income checking” account. Then, at the beginning of the month, we transfer money into our “bills checking” to cover our expenses for the month.
Then, we always have at least one month of expenses on hand – just in case.
Step 3: Organize expenses
The easiest way to do this is by category. There are a few different ways to categorize your expenses, but the most common are:
Fixed or recurring expenses: These are expenses that happen every month, like rent or utilities
Variable or occasional expenses: These are expenses that happen each month but vary in amount, like groceries or entertainment
Annual or quarterly expenses: These costs are less frequent, but take a good chunk of your budget like an annual insurance payment or kid’s sports fees
One-time only expenses: These are one-time only costs and you don’t anticipate them again.
For most people, the struggle happens when organizing expenses. The expenses you “forgot” about are what blow your budget. Honestly, these are not forgotten expenses – just something you forgot to plan for.
Step 4: Focus on Zero Based Budgeting
Additionally, it’s important to use a zero-based budgeting approach.
With this method, you start by assigning every penny of income a job, whether it be for rent, groceries, or savings. This way, you can make sure that you’re not overspending each month.
A zero-based budget is a type of budget that starts with the assumption that there is nothing in your bank account.
This includes both predictable and unpredictable costs.
In the next steps, you will lay out what paycheck will cover what bills.
For example, some costs, like your rent or mortgage payment, will likely stay the same from one biweekly period to the next. By taking into account both types of expenses, you can get a more accurate picture of how much money you will need each pay period.
Learn more about zero based budgeting.
Step 5: Write your first biweekly budget
Writing a biweekly budget is the first step to creating financial stability. It’s important that you set up a plan for each paycheck to make sure your bills get paid.
When creating your first biweekly zero-based budget, you’ll want to start by paying your immediate obligations. This includes any bills or fixed expenses like rent or car payments that are due during the first pay period. After that, focus on covering your variable expenses such as groceries, gas, or eating out.
To make sure every dollar has a job, you should consider these tips:
If you have any leftover money at the end of the month, send it to your savings or make extra debt payments.
Make sure that each category in your budget has a specific amount assigned to it.
Keep track of your spending so that you can stay on track and adjust as needed.
Paying your most important bills first is a crucial step in making sure that your finances are on track.
Step 6: Write Your second biweekly budget
The second biweekly budget is a budget that’s typically created for the 2nd paycheck of the month. This budget would cover the next two weeks and may need to cover expenses at the beginning of next month before you get paid again.
Just like creating a budget plan for the 1st paycheck, you will do the same again. Prioritize any fixed expenses first, then add in variable expenses or sinking funds to contribute to.
In order to make your budget as accurate as possible, you should account for fluctuations in your expenses. This is where the buffer comes in – you put a certain amount of money aside each month to cover any unexpected costs. Then, you can start planning for them in the upcoming months.
Once again, if you have leftover money after budgeting for the two weeks, you can either send it to your savings account or start paying down your debt. If you choose to save, make sure that the money is in a place where it will earn interest and grow over time. If you choose to pay down debt, make sure that the payments are more than the minimum amount due so that you can see results quickly.
Step 7: Start tracking
Now that you have your biweekly budget template set up, it’s time to start filling in the numbers and track your budget. This part can be a little tricky, but with a little effort, you’ll be able to save money and get ahead on your debt payments.
First, take a look at your income and expenses for the month. How does this compare to what you’ve budgeted? If you’re coming in under budget in some areas, great! You can either use this extra money to bolster your savings or make extra debt payments. However, if you’re over budget in some areas, don’t worry – we’ll work through that below.
Next, take a look at your sinking funds.
These are accounts where you save money each month to cover specific expenses. How much money do you need to save each month in order to cover your bills? If you’re not sure, take a look at your past bills and use that as a guide. Once you know how much money you need to save, divide it by two and put that amount into your biweekly budget.
This will help ensure that you always have the money you need saved when the bill comes due.
If you have any leftover money after filling in your budget, send it to savings or make extra debt payments.
You can also use this extra money to invest in yourself (by taking classes, for example), but be careful not to overspend!
Creating and sticking to a biweekly budget is a great way to start saving money and getting your finances under control.
Biweekly budgeting tips
When it comes to budgeting, biweekly budgets can be a helpful way to streamline the process. By taking an hour or so at the beginning of each month to set up your budget, you can avoid potential headaches down the road.
It’s also important to remember to write everything down! This includes both fixed and variable expenses.
Tip #1 – Change Due Dates of Bills
If you’re having trouble with your bills, don’t hesitate to call companies and ask them to change the due dates.
This is something I do whenever I open a new credit card. I want the credit card date to close at the end of the month.
Tip #2 – Age Your Money
You may also want to save up for one month’s worth of expenses so that you always have a cushion in case something unexpected comes up.
This is also the first step to stop living paycheck to paycheck.
When you have a cushion of savings, you’re less likely to fall into debt if something unexpected happens.
Tip #3 – Track Your 2 Week Budget
There are plenty of tools for budgeting out there. In fact, here are the best budgeting apps available.
It offers a variety of helpful tips for getting started, as well as ways to automate time-consuming tasks. With this tool, you’ll be able to improve your budgeting and financial insights in no time!
Many popular options include a budgeting app, Excel, or Google Sheets. Pick what works best for you
Tip #4 – Focus on Your Goals & Finances
In order to be successful, you’ll need to set financial goals for yourself and make plans to achieve them.
As with any other goal, it’s easier said than done! It can take a lot of time, work, and effort to reach your goal.
If you’re not sure where to begin or what goals are right for you, here are some examples:
This is just a sample of the types of goals you can set. If you’re not sure where to start, just think about what’s important to you and your family.
What are some financial goals that you have? Write down your goals and make a plan to achieve them.
What to avoid when you’re paid biweekly
When you’re paid biweekly, there are a few things you should avoid in order to make the most of your money.
You need to learn which payment type is best if you are trying to stick to a budget.
Since biweekly budgeting can be more difficult, you need to know the pitfalls to avoid.
Pitfall #1 – Spending All your Money Too Quick
First, don’t spend your money as soon as you get it. This will leave you with nothing left for the following two weeks.
When having to use one paycheck to cover most of your big expenses like mortgage/rent or insurance, that leaves very little money for groceries or gas
Try to have a savings goal and save for that.
For example, don’t wait until the end of the month to spend all your money. This can help you save more money and have something left over at the end of the month.
Pitfall #2 – Forgetting Bills
Second, don’t forget to budget for bills and other expenses. Make sure you have enough money to cover your costs, especially those non-frequent bills like car registration.
By doing this, you’ll be able to ensure that you have enough money each week to cover what you need.
Pitful # 3 – Quit Bi-Weekly Budget Completely
Yep, I get it budgeting your paycheck over a 2-week budget is difficult. It may feel like pushing a square through a circle. It takes a different mindset and a little more planning to make it happen.
If anything, try to avoid impulse buys. Wait until the next paycheck and see if you still want the purchase. That will help you not to overspend on unnecessary items.
What to do when you have a third paycheck?
This is the BEST benefit of a biweekly paycheck. Twice a year, you will receive 3 paychecks in a month instead of just two.
Looking forward to having a third paycheck, you can either save it or spend it.
If you save it, you can use it as a down payment on a house or invest it in a retirement fund. If you spend it, you can use it to pay down debt, remodel a house, buy a new-to-you car, or go on a vacation.
There are a few things you can do when you have an extra paycheck:
Use it to pay down debt: If you have high-interest debts, using your third paycheck to pay them off can save you a lot of money in the long run.
Invest it: If you’re comfortable with taking on some risk, investing your extra paycheck could lead to bigger returns down the road.
Sinking Funds: Those yearly expenses can weigh heavily on your budget. So, set extra money aside for those payments.
Put the money towards your goals: Whatever your ambition is, here is money to help you get there faster.
Spend it on something fun: Obviously, this isn’t the smartest option, but if you’ve been working hard and deserve a little treat, go for it!
Just make sure that you’re not spending more than you can afford.
Free Printable Bi weekly Budget Templates
There are a number of different printable 2 week budget templates that can help you get your finances in order. Most of them are simple and easy-to-use, and they’re not scary to look at. In addition, many of them have templates that you can download and/or punch holes into so that you can use them as binders or notebooks.
One great option is the budget tracking worksheet. This cute template is simple yet effective, and it will help you track your spending each month.
How do you make a monthly budget with biweekly pay?
There are a couple of ways to make a monthly budget if you receive biweekly paychecks. You can either budget by paycheck, divide out your expenses between biweekly paychecks, or focus on a monthly budget.
If you choose to budget by paycheck, you’ll create a new budget for each pay period and then stick to it. This method gives you a better understanding of the flow of money in your bank account and will help you keep track of your bills more carefully.
The other option is to budget monthly, which is for people who live paycheck to paycheck. In this case, you would budget off 24 paychecks and make plans for your two budget paychecks. Then, two of your paychecks would be budgeted for the monthly budget.
However, many people argue the Budget-By-Paycheck method can help reduce stress since it allows for more flexibility.
In either case, it’s important that you track your spending throughout the month so that you can make adjustments as needed.
Time to Create Your Bi weekly Budget Calendar
This budget will be a little more complicated than your monthly budget because your paychecks are not always going to be paid on the same day of the month. However, most of your bills are usually fixed and don’t change from month to month.
So, you need to plot out which bills you will pay with each paycheck ahead of time in order to make sure you have enough money to pay them all and keep them organized.
It is important to remember that when creating your budget, you need to give yourself some grace to make sure it works for you while you work on perfecting your budgeting style.
For us, having a buffer of money in our “income checking” account takes away the stress of bills and anxiety that we will run out of money. We understand that we need to use sinking funds for those variable expenses.
However, it is important to note that a biweekly budget tends to forget events such as birthdays or vacations from being considered in spending plans. So, make sure to include them.
Now that you have a good idea of how much money you make and how much money you need to live comfortably, it’s time to start creating your biweekly budget.
Also, taking time to understand your personal financial statement is important.
From all of the free and paid budgeting apps, here are our top budgeting apps to check out!
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Great way to use cash flow budgeting. Plus uses “envelopes” to budget.
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I’ve been doing what I call “investment banking” for a friend’s company (I say it that way because the work I do is almost definitely not what you probably think of when you hear the term), and I get this question almost every day:
“So, I guess you know a lot about investing!”
Well, I know more than perhaps most people about investing. But, again, it’s not what you think; I’m not doing any research into public companies, and I’m never, ever picking stocks professionally. Most of the work I do is with deals that have closed long before or deals that are only imaginary.
People ask me, often, “So, you’re an investment banker? What should I invest in?” My response isn’t what they’re expecting, even though I think it’s the best advice:
“Invest in companies you like.”
I’m going to make the usual disclaimers here: most people should be Sharebuilder. (Basically, you pick a dollar amount to invest each month — say, $50 — and it gets put into the stock of your choice, on the same day each month, in fractional quantities based on the stock price that day.)
So I have a list of things I look for in a stock. And the first one is that I like the company and most importantly the CEO.
“The CEO is the main character of a stock’s story.”
It’s not a coincidence, I don’t think, that I’m both a writer of stories and a lover of investment banking. I think of companies in much the same way I think of literature: driven, essentially, by the main character of the story. CEOs are interesting; of the companies whose CEOs I’ve either met or gotten to know by obsessively studying their interviews and public statements, I never once remember seeing a company whose long-term performance differed greatly from the personality of the CEO. That’s not extremely clear so I’ll give you a few examples.
1. Hospital management company number one. When I was a young investment banker, I had two hospital management companies whose deals occupied a lot of my time. In both cases I got to know the management teams fairly well. In both cases, I watched their performance for several years. Number one was run by a very ego-driven doctor whose tan was nearly orange and who often made startling pronouncements in bank meetings — predictions not supported by his financial team, say, or exaggerations of performance when we had the real numbers in our handouts. His employees seemed a little frightened of him. Hospital company number one bought too many urban hospitals outside of its management scope, got too deeply in debt and ended up having to liquidate a few hospitals, losing money.
2. Hospital management company number two. The second company’s management team was boring, boring, boring. The CEO was also a doctor, but he wore unremarkable suits and worked too much to spend any time tanning. He was careful and kind, and his management team followed him loyally. His VP of finance would call me in the middle of the night sweating over a small detail in the financial sheets. He did not, that I know of, drive a flashy car. This company made smart investments, slowly, and was ultimately purchased by a larger company for a good price.
No matter what sort of company it is, a CEO will set the tone. Many organizations are held together entirely by the force of the management team’s personality, and the CEO usually hires the rest of the team. If you think the CEO is stupid, ego-driven, mistake-prone, too likely to take risks, cripplingly risk-averse, unethical, or tending to make decisions on a whim; well, you might (as with, say, Enron) make money in the short term, but in the long term the company’s story will hew more closely to the CEO’s story than to any of the bit characters.
“Invest in sustainable market trends.”
Quick distinction: there is a difference between trends and fads. One is the way the sentiment of a large group or force is moving. For instance, our country is trending toward greater acceptance of gay marriage. The other is something that could be extremely popular today and a complete dud tomorrow. Silly Bandz were a fad. Invest in trends and not in fads.
One of the client companies I’ve been following is an end-of-life transition company. In other words, they own funeral homes and cemeteries. There is a sustainable market trend for you; death rates are increasing — any reversal of such would be slow and obvious — and we have not seen a major cultural shift away from funerals or burials. It’s sustainable, because we keep growing people, and they’ll have to die eventually.
It’s also relatively “sustainable” in another meaning of the word; it is not a company whose product uses very finite resources (or whose byproduct damages finite resources) that might disappear, increase greatly in price, or become heavily restricted in the near future. For instance, many human rights watchers have begun to voice concerns about some of the metals used in the components of most mobile phones, digital cameras, tablets and laptop computers. They are mined under dangerous conditions, they can provide funds for combatants in conflicts, and their disposal is tricky.
But you could see “sustainability” in a number of ways; maybe you wish to invest in companies engineering crops for drought tolerance and higher yield, or maybe you believe that such companies are forsaking economically sustainable practices (seed saving and soil preservation, for example) in order to obtain a higher price for their goods (the seeds). It’s important to remember that you still have to make your own judgment. A claim of sustainability is just that, a claim, and you have to determine how well you believe in it (return to the first point, likability and trustworthiness).
“Invest in companies whose future prospects are rosy.”
You don’t want the companies whose projections show 20 percent growth for the next five years. Those numbers may be impressive and awesome, but they’re expensive. Investment advisers say that a company’s future growth is “priced in”; in other words, you’ll be paying for the stock as if the company had already achieved the analyst-consensus growth rate. But that’s just a guess based on current market conditions and current information. You’re paying for a guess.
You’re better off not with companies whose futures are so bright (you gotta wear shades), but with companies whose future are just a little blush of pink. You want a company whose growth prospects are possible. Take McDonald’s, if you believe that fast-and-cheap-and-corn-fed model has a long future — I don’t — but we can all agree the company is pretty widely distributed. Even its international growth has been a part of pop culture for decades. Remember the “Royale with Cheese”? Anyway, it’s a crap shoot; there might be a big future for fast food, but then again, there might not. Better off with something small enough to leave room for growth but not so small as to be unproven. Rosy.
I like companies who are taking advantage of growing market trends in sustainable products, like Seventh Generation. (The company isn’t public, but if it was, I’d be a buyer!) Maybe you believe in the future of sub sandwiches. Maybe you believe in the future of Med-alert devices. Whatever it is, take a look at the future, and make sure you can see it — glowing but not blinding.
What stocks do you think make sense in these qualifications: likeability, following a sustainable market trend, and with a rosy future? Is there anything else you really focus on when picking a stock?
Mortgage rates fell slightly this week, staying almost flat ahead of the Federal Reserve’s closely watched interest rate-setting meeting next week.
The 30-year fixed-rate mortgage averaged 6.13% in the week ending January 26, down from 6.15% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed rate was 3.55%.
“Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the monthslong freeze that gripped the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.”
After climbing for most of 2022, spurred by the Fed’s harsh interest rate hikes to tame soaring inflation, mortgage rates have been trending downward since November, alongside data that continues to show inflation may have reached its peak. Last week’s mortgage rates hit the lowest level since September.
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less than ideal credit will pay more than the average rate.
All eyes on the Fed
The Fed is expected to continue its rate-hiking campaign at its two-day meeting on January 31 to February 1. The central bank is likely to announce a smaller increase in the fed funds rate, with a quarter-point hike, compared with the half-point and three-quarter-point increases in the meetings last year.
The Fed does not set the interest rates borrowers pay on mortgages directly. But its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions.
When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
“The Freddie Mac fixed rate for a 30-year loan rebounded slightly this week, following the trajectory of the 10-year Treasury,” said Jiayi Xu, an economist at Realtor.com. “While businesses and investors are watching the market closely, the recent large-scale layoffs in the tech sector combined with Monday’s stock market rebound have created mixed signals.”
On one hand, she said, many cash-burning tech companies are struggling with the Fed’s rate hikes. On the other hand, investors are happy about slowing inflation and anticipate that interest rate hikes may begin to moderate or stabilize in the months ahead.
Economic indicators like the low unemployment rate and the cooling inflation rate do not point toward a recession, Xu said. “However, it’s important to keep in mind that monetary policy takes time to have an impact, and these economic indicators might not yet show the full effects of the restrictive policy,” she said.
While the Fed may continue to raise rates this year, Xu said, the slower pace will help to create a soft landing for the economy by balancing the risks of bringing down inflation without pushing up the unemployment rate.
“Despite slowing inflation, the expected ongoing restrictive monetary policy may keep mortgage rates in the 6%-7% range in the short term,” she said.
Mortgage applications rise
The downward trend for mortgage rates since November has had a positive impact on home affordability for mortgage borrowers.
Homebuyer affordability improved in December, with the national median payment decreasing 2.9% to $1,920 from $1,977 in November, according to the Mortgage Bankers Association.
Many buyers are taking advantage of the relatively lower rates of the past few weeks: Applications for mortgages were up 7% last week from one week earlier, according to MBA.
“Borrower demand, thanks to lower mortgage rates, continues to rise in early 2023,” said Bob Broeksmit, MBA president and CEO. “Mortgage applications increased for the third straight week. Purchase demand is still below year-ago levels, but lower rates and improving affordability are favorable developments for the housing market heading into the spring.”
Buyer traffic is picking up in many markets, even if inventory is slow to improve.
“High costs and concerns about economic uncertainty had many buyers pausing their purchasing decisions and led to fewer transactions,” said Xu. “However, decreased competition may have presented opportunities for some first-time home buyers.”
Today we’ll check out “Compass Mortgage,” a direct lender based out of Chicagoland that is one of the top mortgage companies in Illinois.
They do nearly all of their business in the Land of Lincoln, putting them near the top-20 for all mortgage lenders in the state.
So if you’re a homeowner or prospective home buyer in Illinois, there’s a good chance you’ve heard of them.
What sets them apart is their dedication to customer service, with a big focus on creating a personal home loan experience, with you guessed it, real people.
That means being treated like family, instead of relying on a chat bot to get your loan. Read on to learn more.
Compass Mortgage Fast Facts
Retail, direct-to-consumer mortgage lender
Offers home purchase loans and refinances
Founded in, headquartered near Chicago, IL
Licensed to do business in 15 states
Funded $3.2 billion in home loans last year
Roughly 90% of total production comes from state of Illinois
Compass Mortgage is a retail, direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinances.
This means you can apply remotely via their website, or visit a physical branch if one is located near you (they’re mostly in the Midwest).
The company was founded by Dan Graham in 2002 and is located in Warrenville, Illinois, which is about 30 miles west of Chicago.
For the record, they are not affiliated with the Compass real estate brokerage, which is based out of New York City.
While Compass Mortgage is licensed in 15 states across the nation, roughly 90% of total loan volume comes from their home state of Illinois.
That made them a near top-20 mortgage lender in the state of Illinois, mostly beat out by the mega banks, Guaranteed Rate, Rocket Mortgage, and so on.
The other states where they’re licensed include Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
Last year, Compass funded $3.2 billion in home loans, with about two-thirds of volume consisting of mortgage refinances and the rest purchase loans.
That means they are probably well-suited for both existing homeowners and those looking to buy a property.
How to Apply with Compass Mortgage
To begin, you can either call them up, visit a physical branch, or simply head over to the website and go the self-serve route.
Your best bet might be to speak with a loan officer first to discuss loan pricing and eligibility, then apply.
Either way, it’s possible to apply without speaking to anyone if you’re a self-starter.
Once at the website, select your transaction type (e.g. refinance or purchase), then you’ll be asked if you know your loan officer by name or don’t have one/remember.
There is a loan officer directory on their website if you wish to read bios or if you simply need a reminder of who you were working with/referred to.
If you know the individual, you can select them from a drop-down list to ensure you’re paired with the correct person.
If not, you’ll be assigned a loan officer after you submit your loan application.
Their digital mortgage application is powered by Blend, a leader in the mortgage fintech world.
It allows you to complete the app electronically, link bank accounts using login credentials, eSign disclosures, upload paperwork, and more.
Once your loan is submitted, your loan team will guide you throughout the process. You’ll also be able to log on to the borrower portal 24/7 to check loan status and satisfy outstanding conditions.
Compass Mortgage makes it easy to apply for a home loan and stay abreast of what’s going on from start to finish.
If you’re a prospective home buyer, they offer their “Get Committed” mortgage pre-approval, which is a more robust loan commitment.
It is fully-underwritten and includes the ability to lock your loan before you find a property (pre-lock).
This shows home sellers you’re a serious, well-qualified buyer and can make your offer stand out in a bidding war or even compete with cash buyers.
Loan Programs Offered by Compass Mortgage
Home purchase loans
Renovation loans
Construction loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Down Payment Assistance (DPA) programs
Bridge loans
Lot/Land loans
Compass Mortgage offers a wide selection of home loan options to suit just about any borrower in any situation.
This includes home purchase loans, refinance loans, and construction and renovation loans, such as the FHA 203k program.
All the major loan types are available, including conforming, jumbo, government loans (FHA/VA/USDA), and even bridge loans.
Those who are short on funds can take advantage of their Down Payment Assistance (DPA) programs, including grants and forgivable loans.
They lend on all property types, including primary residences, vacation homes, multi-unit investment properties, and condos/townhomes.
Both fixed-rate and adjustable-rate mortgages are available in a variety of loan terms including the 15-year fixed and 7/1 ARM.
Simply put, you shouldn’t be limited when it comes to loan choice.
Compass Mortgage Rates
One area that’s light on information is their mortgage rates and lender fees.
Compass Mortgage doesn’t publicize these details on their website, so it’s hard to know how competitive they are on the pricing front.
As such, you’ll need to get in touch with a human first to discuss interest rates and inquire about any fees.
It’s unclear if they charge a loan application fee, loan origination fee, underwriting fee, and so on.
Be sure to get all the details and your mortgage APR so you can compare it to quotes from other banks, lenders, and mortgage brokers.
Compass Mortgage Reviews
On Zillow, Compass Mortgage has a 4.99-rating out of a possible 5 from about 400 customer reviews.
That’s pretty much as close to perfection as you can get, and a testament to their mission to provide a “Better Mortgage Experience.”
A good chunk of those reviews indicate that the interest rate and/or closing costs were lower than expected. So that at least provides a clue to their pricing.
They also have a 4.9-star rating on Google from nearly 800 reviews, another sign of their strength in the customer satisfaction department. And a 4.5-star rating on Yelp from over 50 reviews.
Lastly, while they’re not an accredited business, they hold an ‘A+’ BBB rating based on complaint history, of which there are none currently on file.
To summarize, Compass Mortgage seems to be really big on customer service, and could be a good choice for a first-time home buyer who wants hands-on service throughout the loan process.
They could also work for an existing homeowner looking to refi – just pay attention to rates and fees to ensure they’re competitive.
Compass Mortgage Pros and Cons
The Good Stuff
Can apply for a home loan online in minutes
Offer a digital, paperless loan application process
Also have brick-and-mortar branches in the Midwest
Lots of loan programs to choose from
Offer fully-underwritten pre-approvals to help you win a bidding war
Can pre-lock your rate before you find a property
Excellent customer reviews across ratings sites
A+ BBB rating
Free online mortgage guides, mortgage calculators, and mortgage glossary
Lindsay Mack earned her bachelor’s degree from Georgetown University in 2005. Nearly 15 years later, when she considered the best way to grow her business acumen, an MBA was not it.
Mack, who is from Philadelphia, grew her career without an MBA. When ready to advance her skills in platform strategy, she opted for a faster, lower-cost cohort program instead.
For students like Mack, the cost of a top MBA — averaging $225,605 in the U.S., according to a 2022 report by BusinessBecause, an online publisher of graduate business content — is daunting, and the value is questionable.
“I didn’t see how making such a significant investment (in an MBA) would really leapfrog me to the next level,” says Mack, now Comcast’s executive director of product management.
Cost isn’t the only barrier to attaining a graduate business degree. BusinessBecause reports that the average acceptance rate for the most competitive U.S. business schools is 16%, based on its analysis of data from U.S. News & World Report and other sources.
If you want access to business school education without the price of tuition or hassle of admissions, you have other options.
If you prioritize credentials
Consider a graduate business certification. A certification — offered by accredited colleges and universities — differs from an MBA degree primarily in how long it takes to complete the program.
For example, a graduate business certificate from the University of Nebraska–Lincoln College of Business requires 12 credit hours to graduate. An MBA from the same university needs 48 credit hours for completion.
Because you’re taking fewer credits compared to an MBA, you can expect to pay much less. For example — based on the 2022-23 academic year — tuition for a graduate certificate in strategic management from Harvard Extension School, a Harvard Division of Continuing Education, is $15,500. A Harvard MBA costs $73,440 in tuition, not including fees.
Certificate programs are often more specialized than graduate business degrees. This can be great for those looking to develop a specific skill set — like business analytics — to advance in their career, says Olivia Jobson, associate director of graduate recruitment at Oregon State University College of Business.
If you need a more flexible schedule
Consider a self-guided online course. Companies like MasterClass, Skillshare, Udemy and Coursera let you learn business skills at your own pace.
“Our central tenet is to meet learners where they are,” says Marni Baker Stein, Park City, Utah-based chief content officer at Coursera. The company offers individual courses, professional and credentialed certifications, and full degrees through university partnerships.
Many online companies allow you to access some courses for free, but the full libraries require a monthly subscription. MasterClass, for example, offers unlimited access to existing and new content for $180 annually.
Unless partnering with an accredited institution, these programs typically do not offer credits for completion. If you need credits to transfer to a university, consider enrolling in an accredited program.
If you want more of the MBA experience
Consider a business training cohort. Though it’s hard to replicate the two-year, in-person MBA experience, some companies creatively found ways to incorporate its key components into online learning.
Section, a New York City-based online business education company, for example, offers one- to two-week online sprints structured much like sections within an MBA program. Members participate in live classes online, group discussions and even team projects for $996 per year.
Similarly, the Invited MBA, by Texas-based corporate leadership development company Abilitie, offers a 12-week program that includes live virtual sessions, team business competitions, study groups and even online happy hours. Tuition is $1,850.
Companies like Section and Abilitie are not accredited universities. Graduating from these programs will not result in an MBA degree, but some graduates of the programs say it delivered exactly what they needed — practical business skills, a strong network and greater employability at a fraction of the cost of an MBA.
“I have folks who are at the exact same level as I am, who did full-time MBAs and have school debt, and I am now peers with them,” says Nicholas Schroeder, a Seattle-based graduate of Abilitie’s Invited MBA.
Upon completing the Invited MBA in May 2021, Schroeder, a former U.S. Army officer, transitioned into a career in consulting — the most coveted industry for prospective graduate management students, according to a 2022 survey by the Graduate Management Admission Council, an association of graduate business schools.
This article was written by NerdWallet and was originally published by The Associated Press.