Not all is gloomy in the housing market. Redfin’s Homebuyer Demand Index has been on an upward trend since mid-January. The number of home tours has also seen a 16% increase since the start of the year, outperforming the growth observed last year during the same period. In addition, there’s been a 7% year-over-year increase … [Read more…]
Executive Vice President of Retail Production, Jim Racine
OneTrust Home Loans is excited to announce the appointment of Jim Racine as Executive Vice President of Retail Production.
— Jim Racine
DETROIT, MICHIGAN, UNITED STATES, February 7, 2024 /EINPresswire.com/ — OneTrust Home Loans, a prominent Ginnie Mae, Fannie Mae, and Freddie Mac approved direct lender and servicer, is excited to announce the appointment of Jim Racine as Executive Vice President of Retail Production. Racine, with an extensive background in the retail mortgage space, brings over 30 years of experience to his new role.
Most recently serving as the Central Division Vice President at Newrez-Caliber Home Loans, Jim Racine has a proven track record in leadership and a commitment to creating exceptional customer experiences. His career spans various leadership positions, including Central Division Vice President at Caliber Home Loans and Regional Vice President for Michigan, Northern Illinois, and Northern Ohio.
Racine’s expertise includes managing teams, building sales forces, and overseeing mortgage operations. At OneTrust Home Loans, he plans to emulate the tagline “Service is Everything!®” by further improving the customer experience with streamlined processes, innovative solutions, and a relentless commitment to providing exceptional service at every step of the mortgage journey.
Jim Racine expressed his enthusiasm for joining OneTrust Home Loans, stating, “I am excited to be part of a company that values customer service as much as I do and values hard work and a culture of teamwork and family that I’ve worked tirelessly throughout my career to build. OneTrust Home Loans’ commitment to excellence aligns perfectly with my vision of creating the best sales force to provide top-notch service to our customers, realtors, builders, and referral sources.”
Bringing on such a dynamic player in the mortgage industry is a huge win for OneTrust Home Loans. In addition to this success, at a time in the industry when rates are high and many companies are exiting, a new direct to consumer team in Maryland has also joined the OneTrust Family of Companies. This further highlights that, even in a challenging market, the company’s vision for the future continues to attract exceptional talent in the industry.
If you are interested in learning more about the career opportunities available, contact Jim directly at (248) 883-3454.
About OneTrust Home Loans
OneTrust Home Loans is a privately-owned Ginnie Mae, Fannie Mae and Freddie Mac approved direct lender and servicer licensed in 49 states and 2 US territories with sales and operations across the country. In addition to the standard loan options like Conventional, FHA, VA, USDA, and Jumbo, OneTrust originates a significant amount of residential, commercial and construction loans for purposes of holding on its own balance sheet. The company supports Reverse Mortgage and Wholesale channels and continues to grow with several joint ventures on the horizon. OneTrust Home Loans places special importance on customer service as evidenced by their tagline, Service is Everything!® For additional information visit www.OneTrustHomeLoans.com.
Rosemarie Pirio
OneTrust Home Loans
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Source: einnews.com
On a salary of $40,000 per year, you can afford a house priced at around $100,000-$110,000, assuming you have some money — say, $10,000 or $15,000 — for a down payment and are not already carrying debt, such as a car loan or student loan. The number can change quite a bit when you factor in your specific numbers:
• Your debt
• Your down payment
• Your taxes, insurance (and homeowners association dues, if applicable)
• Your interest rate
• Your loan type
• Your lender
Understanding how these factors play into home affordability can get you closer to finding a home you can afford on your $40,000 salary.
On a $40,000 salary, you want to get the nicest home you can. But what amount of home mortgage loan you qualify for depends on a number of factors, including your debt, income, interest rate, down payment, type of loan, and lender.
You may have heard that debt can seriously derail your plan to buy a house, but you might not know exactly how it does that. Here’s the scoop: A potential lender will calculate your debt-to-income (DTI) ratio by adding all your monthly debts and dividing that number by your monthly income.
Your DTI ratio determines how much home you can afford. If you have more debt, you can’t afford a bigger monthly housing payment, which means you’ll qualify for a smaller home loan. For example, if your total debt amounts are $3,000 each month and your income is $6,000 per month, your debt-to-income ratio would be 50%. This is well above the 36% guideline many mortgage lenders want to see.
💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.
A down payment can also drastically impact home affordability. If you have a larger down payment, you’ll be able to afford a higher-priced home. With a down payment of 20% or more, you’ll be able to avoid the added expense of private mortgage insurance (PMI), which will in turn increase the loan amount you’ll be able to qualify for.
Try using a mortgage calculator to see how different down payment amount can affect how much home you’ll be able to qualify for.
To complete the picture of home affordability, you’ll also need to consider these factors:
• Interest rates A higher interest rate means you’ll qualify for a smaller home purchase price. A lower interest rate increases how much home you’ll be able to afford.
• Credit history and score You’ll also see that your credit score directly affects home affordability. With a good credit score, you’ll qualify for a better rate, which means you’ll qualify for a higher mortgage.
• Taxes and insurance Higher taxes and insurance can also affect home affordability. Your lender has to take into account how much you’ll be paying in taxes and insurance and include it as part of your monthly payment.
• Loan type Different loan types have different interest rates, down payment options, and credit requirements, which can affect home affordability.
• Lender Your lender may be able to approve you at a higher DTI ratio — some lenders will allow the DTI to be as much as 50%.
• Area The cost of living in your state is a top factor in determining home affordability. Price varies greatly around the country, so you may want to consider the best affordable places to live in the U.S. if you’re open to moving.
If you make $40,000, how much house you can afford also depends on what programs you’re able to qualify for. Down payment assistance programs can help with home affordability. These programs offer a grant or a second mortgage to cover a down payment. These programs are often offered by the state or city you live in. They may be restricted to first-time homebuyers or low-income borrowers, but these programs are worth looking into. Examples include Washington state’s Home Advantage DPA and Virginia’s HOMEownership DPA. Look for programs in your state, county, and city. You may also want to read tips to qualify for a mortgage.
💡 Quick Tip: Backed by the Federal Housing Administration (FHA), FHA loans provide those with a fair credit score the opportunity to buy a home. They’re a great option for first-time homebuyers.1
There are some guidelines lenders use to qualify borrowers for a mortgage. Knowing how home affordability is calculated can help you understand what income you need to make and what debts you need to pay off to qualify for a mortgage. Lenders often follow the 28/36 rule, looking for a housing payment less than 28% of a borrower’s income and total debt payments less than 36% of your income. Here’s how to calculate it.
Back-end ratio (36%): The back-end ratio is your debt-to-income ratio. Add together all of your debts (including the new mortgage payment) to make sure all debts are under 36% of your income. If your monthly income is $3,333 ($40,000/12 = $3,333), your debts (including the mortgage payment) should be no more than $1,200 ($3,333*.36).
Front-end ratio (28%): With a monthly income of $3,333, this number works out to $933.
The 35/45 Rule: It’s possible to qualify for a larger mortgage based on the 35/45 guideline, which is used at the discretion of your lender. With a monthly income of $3,333, the housing allowance (35% of your income) increases to $1,167 and the total monthly debts (45% of your income) increases to $1,500.
An easy way to calculate how much home you can afford is with a home affordability calculator.
For homebuyers with a $40,000 annual income (a $3,333 monthly income), traditional guidelines of a 36% debt-to-income ratio give a maximum house payment of $1,200 ($3,333 * .36). Each example has the same amount for taxes ($2,500), insurance ($1,000), and APR (6%) for a 30-year loan term.
Monthly credit card debt: $100
Monthly car payment: $300
Student loan payment: $300
Total debt = $700 total debt payments
Down payment = $20,000
Maximum DTI ratio = $3,333 * .36 = $1,200
Maximum mortgage payment = $500 ($1,200 – $700)
Home budget = $54,748
Monthly credit card debt: $0
Monthly car payment: $100
Student loan payment: $0
Total debt = $100
Down payment: $20,000
Maximum DTI ratio = $3,333 * .36 = $1,200
Maximum mortgage payment = $1,100 ($1,200 – $100)
Home budget = $141,791
As shown above, your monthly debt obligations affect how much house you can afford. With a lot of debt, it’s hard to make a mortgage payment that qualifies you for the home you want.
It’s also important to keep in mind how interest rates affect your monthly payment. By paying so much interest over the course of 30 years, even small fluctuations in interest rates will affect your monthly payment. That’s why you see your neighbors scrambling to refinance their mortgages when interest rates drop.
Recommended: Home Loan Help Center
There are different types of mortgage loans available for households in the $40K range:
• FHA loans: With Federal Housing Administration loans, you don’t have to have perfect credit or a large down payment to qualify. In fact, you can apply for a FHA loan with a credit score as low as 500.
• USDA loans: If you live in a rural area, you’ll definitely want to look at United States Department of Agriculture loans. You may be able to qualify for a USDA mortgage with no down payment and competitive interest rates.
• Conventional loans: For borrowers with stronger financials, conventional loans are some of the least expensive mortgages in terms of interest rates, mortgage insurance premiums, and property requirements. They’re backed by the federal government, and if you’re able to qualify for a conventional mortgage, it could save you some money.
• VA loans: For qualified veterans and servicemembers, the U.S. Department of Veterans Affairs loan is quite possibly the best out there. There are zero down payment options with great interest rates. If your credit is hurting, you still might be able to get a loan since the VA doesn’t have minimum credit score requirements (though the individual lender may).
With proper planning, a salary of $40K should be able to get you into a home in many U.S. markets. However, you’ll want to make sure you keep a close eye on your credit score and save up for a down payment or find programs to help with one. Over time, the small, determined steps you take will lead you to your goals.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
You work hard for your salary, and a $40,000 salary for a single person is a good start, though it is below the median income for a single person, which is $56,929, according to data from the U.S. Census.
Comfortable depends on the cost of living where you live and your personal needs, but it can range from around $45,000 per year in Mississippi to $112,000 in Hawaii.
Your liveable wage depends on your area, working household members, and children. For example, it can range from $15.89 per hour for a single living in Beaumont, Texas, to $44.99 per hour for a household with three children in St. George, Utah.
A salary of $234,342 would put you in the top 5% of all earners in the U.S.
Photo credit: iStock/stevecoleimages
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com
With more pet ownership happening across the country, finding the best cities for pets could help you live more comfortably. The best cities for pets provide pet-friendly apartments, as well as plenty of amenities, such as off-leash parks, hiking spots, veterinary hospitals and doggie daycares.
In our search for the best cities for pets, we analyzed the percentage of apartments in our database that were pet-friendly and allowed dogs or cats.
We also looked at the average cost of veterinarian services in large metro areas with populations above 100,000 and the number of pet-related businesses and parks per capita. Then, we ranked them accordingly.
Here are the best cities for pets in the U.S.
Just north of Miami, Davie is a town with plenty of scenic parks. Head over to Happy Tails Dog Park, the city’s pristine dog park, where your dog can socialize and run obstacle courses. The park has three different play areas and doggie water fountains.
There’s also Central Broward Park, which features 110 acres of fields and playgrounds, Vista View Park, a hilly green space to spend the day hiking and Peace Mound Park, which has an ancient burial site.
Located in Broward County, Davie is known for its colleges, universities and technical colleges. It’s home to plenty of family-friendly activities, such as hanging at the Flamingo Garden and Everglades Holiday Park.
Fast-growing city Vacaville in Northern California, just 55 miles outside of San Francisco and because it’s not in the heart of the city, it’s a lot more affordable, too.
Vacaville is a great place to get on your bike and take your dog on a run through Alamo Creek Bike Trail or Lagoon Valley Park, a green, fenced off area for off-leash dogs to run around.
Besides sprawling, recreational areas and charming parks, you can also spend the afternoon checking out some of the local wineries.
Vacaville even has its own little museum, honoring the local heritage. It’s an ideal place away from the hustle and bustle, but close enough if you ever need to access a bigger city (only 35 miles from Sacramento).
Naperville is a suburb of Chicago — it sits just 35 miles west of the Windy City and is home to paths and bridges that hug the DuPage River. Just like Vacaville, Naperville is far enough from the concrete jungle of Chicago so residents can enjoy the more scenic vibe of public art, colorful local shops, cafes and restaurants.
Grab the leash and take your dog on a stroll through Naperville Riverwalk, which has a two-mile path that opens up to the heart of the city. It’s picturesque with lots of green space, shopping and places to eat or get takeout along the way.
When it comes to outdoor activities, you really can’t find a better place than Colorado. Arvada, which is near Denver, offers a unique, small-town feel with a retro vibe. The city has a historic shopping district called Olde Town and offers plenty of parks, trails (it has 125 miles of hiking and biking!) and lakes where you can see the mountains and bald eagles.
You can hike Mesa Trail and see views of the Flatirons or check out Eldorado Canyon State Park to climb amid sandstone cliffs. Because of its close proximity to nature, low crime rate and educated workforce, Arvada is a popular place to live. It encompasses the top 20 of Colorado’s wealthiest ZIP Codes.
While summers are hot, the rest of the year in Scottsdale is relatively mild, which makes it a comfortable place to live with your pet and get outside. Just outside of Arizona’s capital Phoenix, Scottsdale is well-known for incredible views of rock formations at Camelback Mountain and Hole in the Rock, a geological cluster with big open spaces.
Scottsdale even has a number of popular pet-friendly hotels (for some cool, indoor time for those scorching summers) and is generally welcoming of pets in public places, such as its posh Scottsdale Fashion Square and local wineries.
In eastern Texas, Tyler is known for its rose gardens and even has a museum dedicated to remembering the rich history of the town’s annual Texas Rose Festival.
Tyler is the kind of place where you can visit popular attractions, such as the Tyler Azalea trail and any of their lakes, such as Lake Tyler and East Lake Tyler.
The city’s location and access to nature make it a great place for pets. The Sunrise Paw Park is a massive dog park — four acres, to be exact. The park, just northwest of Old Jackson Highway, has separate fenced off sections for small and large dogs to play and socialize.
At the base of the Rocky Mountains is Boulder, CO. The city offers the best of both worlds, with the intricate rock formations of the Flatirons just west and the convenience of Pearl Street’s downtown’s shops, cafes and restaurants.
You can take your furry best friend just about anywhere in Boulder, including hiking trails and picnics with some spectacular scenery.
A dog-friendly must-do hike is the Flatirons Vista and Doudy Draw Trail, which is a beginner-level, 3.7-mile hike that will take about three hours. It’s an incredible way to spend the day, especially in the spring.
Ann Arbor is near the Huron River and nicknamed “Tree Town” because of its abundance of green space — even their downtown is filled with trees. Known as one of the best places to live in Michigan, Ann Arbor is a welcoming place for young professionals, families and their pets.
A popular destination for dog-lovers is Swift Run Dog Park, which is an outdoor grassy area with 10 acres of freedom for Fido to get some exercise and be off-leash.
Stroll through the coffee shops and historic downtown area that’s lined with vintage clothing shops, independent bookstores and historic theaters. Ann Arbor is also home to the University of Michigan, and its creative, youthful vibe makes it feel like a typical university town.
For being such an old city, founded in 1670, Charleston is surprisingly pet-friendly, with tons to do and see with Fido, including James Island County Park. This play haven features a dog beach, four acres of grass, a cleaning station and a fenced play area for small dogs.
Besides dog parks, beaches and trails, Charleston exudes an old, historic charm. The port city has cobblestone streets, especially in the French Quarter and Battery districts.
Go for a stroll down the promenade and Waterfront Park for a relaxing view of the Charleston Harbor. There are also tons of local shopping venues, theaters, museums, cafes and gardens.
The No. 1 city for Fido is in Greeley, a city in northern Colorado, about an hour away from Denver. There’s plenty of outdoor activities to do with your pet, from spending the afternoon at Poudre River Trail or taking advantage of the green space at Rover’s Run Dog Park.
Greeley is a central hub for community events and unlike its more expensive counterparts in Denver and Boulder, it’s considered a hidden gem due to its affordability in housing.
Greeley is a thriving cultural area, known for its art, entertainment and food-driven events, such as their summer-long Friday Fest and OktoBREWfest in the fall.
Greeley also landed in the No. 35 spot in a well-being index report, which measures community social and health data across populations.
If you want to know what other cities made the list beyond the top 10, here are the top 50 best cities for pets.
Here’s what you need to know in order to find the best find a pet-friendly apartment for your needs.
Newer apartment buildings come with all sorts of amenities, beyond a pool and fitness center. Pet-friendly apartments will have on-site dog parks, washing stations and even pet daycare.
You may have heard why it’s important to get renters insurance. Consider buying it for the year if you’re ready to move to a new apartment with your pet. It could show your new landlord that you’re responsible and are covered in case your pet causes any damage to the unit.
Depending on the type of coverage and policy you choose, renters insurance may include:
Ask your former landlord to write a letter of recommendation, highlighting your dog’s behavior and the condition of your previous apartment. You may want to include other types of documentation when talking to your landlord, such as:
This topic will inevitably come up when you look for a pet-friendly apartment. Most apartment buildings will require a pet deposit, which is generally a few hundred dollars.
When you find the right place to live, be sure to take photos of your apartment before you move in. This could serve a few purposes for you, including proof that your pet didn’t ruin the unit.
You could show these photos to future landlords to state your case that your dog is well behaved. It could also help you get your security deposit back.
To determine the best cities for pets, we looked at all cities with at least 100,000 people according to the U.S. Census Bureau’s 2019 estimates and then ranked each city by the following factors:
Pet-friendliness (50%)
Veterinarian costs (20%)
Pet businesses per capita (30%)
Each of these factors was weighted differently, and the cities with the best overall score were determined to be the best cities for pets.
Source: rent.com
The Westwood neighborhood in Los Angeles has so much to offer its residents. From great schooling to delicious restaurants, there’s something for everyone in Westwood. This article will tell you all you need to know about this desirable Los Angeles neighborhood.
Settled on Wilshire Blvd., Westwood is nestled amongst some of L.A.’s wealthiest neighborhoods. To the north, you’ll find Bel Air and to the south, there’s Century City. On the west lies Brentwood and on the east, there’s Beverly Hills.
In addition, the popular neighborhoods of Santa Monica and Hollywood are just a few miles away.
Like all L.A. neighborhoods, Westwood is truly unique. It’s located close to the famous UCLA campus, which can make the surrounding area feel like a small college town. However, that doesn’t mean there isn’t more to this diverse neighborhood.
The average resident of Westwood is 50 years old. While the average resident skews a little older in age, it’s also a great space for young families and singles alike. There are many different elements that make living in this area great. Let’s dive into a few of those elements.
Westwood’s population is roughly 2,000 people, composed of retirees, young adults and students. Although the area mainly draws in students attending UCLA or other surrounding colleges, it has become more popular in recent years due to the building of new high rise apartment buildings.
The area is also home to many retirees who enjoy the more suburban side of Westwood, near The Los Angeles Country Club. This area hosts spacious homes that draw in people looking for a quieter side of this urban neighborhood.
Westwood is also a great option for families as the area offers several amenities suited for families, such as spacious parks and interactive play areas. In this community, you’ll really find a broad mix of people across all ages and walks of life.
If you’re looking for a safe neighborhood in Los Angeles, you can’t go wrong with Westwood. Compared to other neighborhoods of Los Angeles, Westwood is a very safe place to live. According to the L.A. Times, Westwood averages one violent crime and 12 property crimes per week, with an average of 2.5 crimes per 10,000 people.
While we all want to live in a crime-free neighborhood, this rate per person is incredibly low compared to other areas in the city, state and even country. Safety matters when it comes to choosing a place to live and Westwood is a pretty safe area to settle down and call home.
Los Angeles is not known as a walking city and most people living in Westwood drive to work with an average commute time of 27 minutes. Parking in Westwood Village can be tricky and sometimes non-existent. While public transportation is available, it isn’t always the most reliable.
That being said, Westwood is one of the more walkable neighborhoods in Los Angeles. There are other forms of transportation to get around this cozy neighborhood, such as rideshare apps, bikes and scooters.
There are many great schools within the Westwood neighborhood. For families with children, the area offers many options for school, from private to charter to public schools. For high school, Westwood has many college prep schools for those looking for a more specific education for their children.
The most notable schools in the area are UCLA and Mount Saint Mary’s, which draws college students from all over the world. Whether your kids are just starting their education or ready to write their college essays and take the SATs, Westwood is a great neighborhood that caters to education and continued learning.
Westwood, Los Angeles has an abundance of entertainment, everything from fancy, fine dining to cozy coffee shops. Some of the favorites restaurants include Mary and Robbs Westwood Café, Diddy Riese and Espresso Profeta.
If you’re looking for a cultural day activity, you’re in luck because Westwood is home to some of L.A.’s best art museums — one of them being The Hammer — where you’ll find everything from Monet to modern art.
There’s also plenty to do at night. Try The Geffen and Fox theater as they’re staples in Westwood and are well known for putting on plays and hosting movie premieres. On the weekend, support local shops at the Farmers Market. Keep in mind the neighborhood is also located within driving distance to many other neighborhoods and attractions, such as the beaches of Santa Monica and the famous Rodeo Drive in Beverly Hills.
Westwood is one of the most sought after neighborhoods in Los Angeles. With its new high-rise apartment buildings, diverse restaurants and entertainment, this area is quickly increasing in popularity. The average rent in Westwood is around $5,000 for a three-bedroom apartment.
Whether you’re a student, recent grad, young family or retiree, Westwood has something for you. It’s the perfect Los Angeles neighborhood to settle down in. Check out these apartments and find your perfect home in Westwood, Los Angeles.
Source: rent.com
People have been screaming about a housing bubble crash on social media sites for over 12 years. The truth is, U.S. housing credit looks very different than in 2005, 2006, 2007 or 2008. Homeowners have actually never looked better and the data from the Federal Reserve‘s Quarterly Report on Household Debt and Credit shows why.
Homeowners are not the people we need to be concerned about this time. Renters, younger renter households and those with lower FICO scores are the ones showing credit stress today. Homeowners, on the other hand, are sitting pretty and are the envy of the world.
After 2010, the qualified mortgage laws came into play and all the exotic loan debt structures in the system, especially in the run-up in demand from 2002 to 2005, disappeared. This means housing should only show financial stress when people lose their jobs and cannot pay their mortgages — not because the loan structures are a ticking time bomb.
As shown below, we saw massive credit stress in the data from 2005 to 2008, all before the job loss recession happened. It was there for everyone to see and read. Now, that same chart shows that homeowners don’t have credit stress. So, for those still saying housing is in a bubble: Where’s the beef?
From the report: About 40,000 individuals had new foreclosure notations on their credit reports, mostly unchanged from the previous quarter. New foreclosures have stayed very low since the CARES Act moratorium was lifted.
When I speak at events around the country and put up this chart, I always say, what a beautiful-looking chart! That’s because after 2010, people got 30-year fixed mortgages and every year, as their wages rose, their cash flow versus the debt cost of their home got better. Then add three refinancing waves in 2012, 2016 and 2020-2021, and you can see why homeowners are in a good spot.
During inflationary periods, wages grow faster than usual, so housing debt costs much less. Also, people live in their homes longer and longer as they age and their yearly income lowers their housing costs. One note on this subject: we had an explosion of households with FICO scores of 740+ during COVID-19. A lot of rookie economists said this was FICO score inflation. But the data has been the same since 2010: we just originated more loans during this time — purchases and refinances — so the data didn’t get better, it stayed roughly the same.
From the report: The median credit score for newly originated mortgages was flat at 770, while the median credit score of newly originated auto loans was one point higher than last quarter at 720.
When the next job loss recession hits, we should all expect credit stress in housing to start rising. Every month, people get fired and can’t find work right away. This is why jobless claims are never zero and we have a constant amount of 30-60 days late every month. However, since we are working from near record lows in credit delinquency data and the homeowners’ households are in such good financial shape, the credit stress data won’t be like what we saw in 2008.
Over 40% of homes in America don’t even have a mortgage, and we have a lot of nested equity, so if worst comes to worst, many homeowners who bought homes from 2010-2020 have a ton of equity and can sell. Remember, the foreclosure process typically will take 9-18 months from start to finish, meaning that homes come to market as market supply due to the legal process we have in-housing. This is very unlike 2008, where we had four years of credit stress building up in the system.
From the report: Early delinquency transition rates for mortgages increased by 0.2 percentage point yet remain low by historic standards.
Hopefully, between the charts and the explanations, you can see why it’s not housing 2008. However, we do see credit stress in the data for younger households and those with lower FICO scores. The people that Jerome Powell says he wants to help at each meeting are showing credit stress.
The Fed missed the housing bubble credit stress when it was apparent in the run-up to 2008, and now they’re turning a blind eye to those who aren’t homeowners by keeping policy too restrictive, due to some devotion to a 1970s inflation model that doesn’t exist today. Or, as I’ve said since 2022, they’re old and slow. It’s the nature of the beast.
Source: housingwire.com
Small Luxury Hotels of the World (SLH) is a collective of high-end properties that meet high standards for service and style. There are more than 500 boutique hotels in 90 countries that make the grade.
SLH will not become one of the many Hilton Honors brands, but the strategic partnership between the two unlocks the door to significantly more luxury properties than are currently in the Hilton portfolio.
For now, the details of using Hilton elite status benefits and credit card perks at SLH properties are still being ironed out, but Hilton members will soon be able to earn and redeem points at the participating luxury hotels.
As Hilton Honors ramps up its partnership, World of Hyatt will end its connection with SLH. This comes on the heels of Hyatt’s new acquisition of travel club platform Mr. & Mrs. Smith, which gives World of Hyatt members plenty of opportunity to earn and redeem points at more than 1,500 luxury properties. Hilton will have an exclusive partnership with SLH.
To book these new hotel options, Hilton Honors members can use any of Hilton’s traditional reservations channels to book a stay at participating SLH hotels. This includes earning and redeeming points, which multiply when you use a Hilton Honors co-branded credit card.
Hilton Honors is also a transfer partner of AmEx Membership Rewards. No matter which credit card you use, these are some of the exciting SLH options that may participate in the Hilton Honors partnership.
(Photo courtesy of The Principal Hotel)
Along the famous Gran Via, this hotel is close to popular shopping, theaters, nightlife, dining and tourist attractions like the Prado and Retiro Park.
Be sure to visit the one of the rooftop restaurants and bar for cocktails and tapas before heading out to a night on the town.
(Photo courtesy of Inverlochy Castle)
Want to sleep in a castle? Hilton Honors points could be your chance. The 19th century Inverlochy Castle is in the Scottish Highlands where guests can slumber like royalty.
Other activities include fishing, hiking, mountain biking, golf and even a ride on the Hogwarts Express train of Harry Potter fame.
(Photo courtesy of Hotel Excelsior)
Hugging the Adriatic Sea, this year-round hotel provides excellent views of the city’s famous Old Town (which was used for filming King’s Landing in “Game of Thrones”) and the popular island of Lokrum across the bay.
Instead of a traditional sandy beach, guests have a stone-lined deck from which they can take a dip in the water or lay back in the sun. There is a heated indoor pool and spa when the weather is not ideal for sitting by the sea.
(Photo courtesy of Nimb Hotel)
Facing Tivoli Gardens, one of the oldest amusement parks in the world, this hotel looks like part of a fairytale. Not only is there a convenient rooftop pool and sun deck available for guests, but anyone that stays here enjoys free access to Tivoli Gardens when it is open.
(Photo courtesy of Hemingways Nairobi)
Hemingways Nairobi is a solid option for visitors either before or after a safari trip because of its location near Nairobi National Park. It has its own gardens offering tranquility from the city of Nairobi, one of East Africa’s bustling downtowns.
An outdoor swimming pool, massive guest rooms and plenty of green space are all less than 30 minutes from the city-center Wilson Airport, where many safari flights depart.
(Photo courtesy of The Anam Mui Ne)
Along the East Sea, this resort is similar to a Hawaiian getaway with beautiful sea views and two sparkling swimming pools.
The Vietnamese restaurant serves traditional regional recipes from around the country, and don’t miss the evening sundowner music and dance performances.
(Photo courtesy of Viceroy Bali)
This small, family-owned resort five minutes from Ubud is surrounded by rice fields and lush foliage ideal for guests looking for a wellness vacation, especially one focused on meditation and self-improvement.
Its 40 private villas offer oversized infinity pools, and local experiences include everything from a walk through the rice paddies to Balinese dance lessons and temple offerings.
(Image courtesy of Keswick Hall)
This luxury resort overlooking the Blue Ridge Mountains in the Virginia countryside boasts renovated interiors, a new spa and a Jean-Georges’ restaurant.
History buffs will appreciate its proximity to Thomas Jefferson’s Monticello.
(Photo courtesy of The Roundtree)
In the Hamptons on Long Island, this boutique hotel provides respite from the bustle of New York City and puts visitors within reach of the Atlantic Ocean.
A beach buggy takes guests to the shore during the summer, but back at the property, there is a lot to do, too. This includes popcorn and s’mores by the fire pit, afternoon tea and cookies, biking around the area, golf, baking classes and wine tastings.
The accommodations are made up of rooms, suites and private cottages.
Hilton Honors members have another option for earning and redeeming points now that there is an exclusive partnership between Hilton and Small Luxury Hotels of the World. As long as you make a reservation through a Hilton channel, SLH hotels now offer Hilton Honors members access to more than 500 boutique hotels around the world.
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Source: nerdwallet.com
Moving to Detroit is a unique experience. Unlike other major cities across the country, Detroit almost feels tucked away. But what many out-of-towners overlook is all the neighborhoods that make up Detroit.
For instance, Detroit is home to amazing gastropubs, five-star restaurants, historical sites, great vintage shops, Belle Isle Park, the Riverwalk and more than one marina.
Keep on reading if you want to find out what the buzz is all about and why you’ll absolutely love living in this city.
You don’t need to ask a local to know that Detroit has a complicated past.
Founded in 1701 by French traders, this city gets its name from a French word meaning “strait.” Through much of the 18th century, Detroit was a trading post that was the subject of several conflicts including the French and Indian War (1756-1763), and years later with the British. In fact, it wasn’t until the 1800s that Detroit saw an influx of settlers and a somewhat conflict-free playing field.
Around the 19th century, Detroit finally became an industrial hub, and the city started to expand outward. Fast forward to the 1950s, civil rights, environmental racism, riots and gentrification came to the forefront, which the city struggled with well into the 1990s.
In many ways, Detroit is still recovering from its past. But it’s safe to say that today’s Detroit is revitalized, reimagined and its commerce spirit is renewed.
A list of top apartments for rent in Michigan, unsurprisingly, includes several Detroit apartment communities and complexes. That said, first-rate apartment homes are available throughout the 20+ neighborhoods that make up the city.
Thus, to assist you in your search, here are a few popular neighborhoods that you should definitely consider when looking for your next home.
There are more than a few advantages to moving to Detroit. As briefly mentioned, the city continues to transform itself. Moreover, with new construction and more businesses making their way downtown, Detroit is truly becoming one of the best cities around.
One obvious reason for moving to the D is the wealth of entertainment. Detroit has a lively nightlife, new restaurants, music venues, sports arenas and casinos. Plus, if you’ve never checked out Campus Martius Park, then you don’t know what you’ve been missing. This park is known as Detroit’s gathering place and offers beach bars with real sand, outdoor ice skating in the winter, live music and good eats.
Detroit also has a thriving economy that’s projected to grow over the next couple of years. Thanks to the increase in commerce, start-up companies, restaurants and various entertainment venues, Detroit will expand. Plus, with continued efforts to revamp and improve less populated areas of the city, even in the face of a global pandemic, Detroit should have no trouble at all taking its economy to the next level.
As briefly touched upon, living in Detroit is affordable. In fact, in comparison to other major U.S. cities, you can’t beat Detroit’s cost of living. Most apartments are available for less than $2,000 a month, and the majority of residents’ everyday expenses are reasonably priced.
Overall, Michigan ranks as one of the best places to live if you’re looking for inexpensive housing and a lower cost of living, which is what Detroit is all about.
Of course, there are some drawbacks to living in Detroit. For one, the rate of auto insurance is higher than it is in other cities, which is an additional expense that many people are not looking forward to.
Besides paying more for insurance, there’s also a clear lack of public transportation, only a few nearby grocery stores and there are the winters.
When you live in most major urban cities, there’s usually ample public transportation like buses, bikes for rent, subway stations, streetcars, and more. But, here in the D, public transport is not as great as it could be. Despite the recently built Q line and the good old People Mover, there really isn’t much in the way of convenience or inexpensive public transit.
Yet another downside to moving to Detroit is you have to go out of your way for groceries. In order to correct this problem, a Whole Foods Market was built just a few years back. However, any organic food shopper will tell you that Whole Foods is not cheap. Thus, the city still needs to find ways to incorporate more affordable food options.
Lastly, winter is a real problem in the entire state. Michigan seems to get more snow than it knows what to do with. This leads to icy roads, possible unplowed side streets, and months of cold snowy weather. Better still, you can expect to experience all four seasons in one day even in the springtime or fall.
Ultimately, when you balance the pros and cons of living in the city, you’ll likely find that Detroit is a great place to put down some roots. So, if you need assistance, finding the apartment of your dreams in the D or just need help making the big move, then check out our Moving Center. Here, you’ll find free quotes and more information about planning out your move. Whether you’re looking for apartments to rent or homes to buy, we have what you need.
Source: rent.com
High mortgage rates and harsh weather are pushing down home sales, but some house hunters are touring and getting a feel for the market.
The bumpy start to 2024’s housing market continues, with daily average mortgage rates posting their biggest one-day increase in over a year on February 2. The jump came after a hotter-than-expected January jobs report and the Fed’s confirmation that they’re unlikely to cut interest rates in the next two months, which means mortgage rates will probably remain elevated near their current level for at least that long.
Rising home prices are exacerbating rising rates, with the typical monthly mortgage payment just about $100 shy of October’s all-time high. The median U.S. sale price rose 5.4% year over year during the four weeks ending February 4, the biggest increase in over a year. High housing costs are pricing out many would-be homebuyers; pending sales are down 8%, the biggest decline in four months. There are also a few other contributors to sales falling: Harsh winter weather in the first half of January delayed a lot of homebuying deals, and pending sales were improving at this time last year as mortgage rates temporarily dropped.
Still, some house hunters are at least getting a feel for the market. Redfin’s Homebuyer Demand Index–a seasonally adjusted measure of requests for tours and other buying services from Redfin agents–has steadily risen since mid-January, and a separate measure of home tours shows they’ve increased 16% since the start of the year, compared with a 10% rise at this time last year. Some sellers are jumping in, too, with new listings up 7% year over year.
“We’re seeing a bit of recovery with house hunters touring homes, but even demand at the earliest stages isn’t up as much as we would expect at this time of year,” said Chen Zhao, Redfin’s economic research lead. “That’s because mortgage rates are climbing again and winter weather has been harsher than usual in much of the country, keeping some house hunters at home.”
Luis Rojas, a Redfin Premier agent in the Viera West, FL area, said today’s housing market is touch and go. “High mortgage rates brought the local market to a near-standstill from August through November, activity picked up when rates dropped a bit in mid-December, and now it’s slowing down again as rates rise,” Rojas said. “I’m advising buyers–especially first-timers–that the mortgage rates they see in the news aren’t the be-all and end-all. Some local lenders are willing to give rates in the 5% range for new construction projects because any business is better than no business.”
| Indicators of homebuying demand and activity | ||||
| Value (if applicable) | Recent change | Year-over-year change | Source | |
| Daily average 30-year fixed mortgage rate | 6.92% (Feb. 7) | Up from 6.75% a week earlier | Up from 6.39% | Mortgage News Daily |
| Weekly average 30-year fixed mortgage rate | 6.63% (week ending Feb. 1) | Near lowest level since May | Up from 6.09% | Freddie Mac |
| Mortgage-purchase applications (seasonally adjusted) | Down 1% from a week earlier; up 3% from a month earlier (as of week ending Feb. 2) | Down 19% | Mortgage Bankers Association | |
| Redfin Homebuyer Demand Index (seasonally adjusted) | Up slightly from a week earlier, but down 7% from a month earlier (as of week ending Feb. 4) | Down 14% | Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents | |
| Google searches for “home for sale” | Down 2% from a month earlier (as of Feb. 3) | Down 16% | Google Trends | |
| Touring activity | Up 16% from the start of the year (as of Feb. 6) | At this time last year, it was up 10% from the start of 2023 | ShowingTime, a home touring technology company | |
| U.S. highlights: Four weeks ending February 4, 2024
Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. |
|||
| Four weeks ending February 4, 2024 | Year-over-year change | Notes | |
| Median sale price | $361,498 | 5.4% | Biggest increase since Oct. 2022 |
| Median asking price | $395,949 | 7% | Biggest increase since Sept. 2022 |
| Median monthly mortgage payment | $2,607 at a 6.63% mortgage rate | 11.5% | Down roughly $110 from all-time high set in October 2023, but up roughly $250 from the four weeks ending Dec. 31 |
| Pending sales | 68,872 | -7.8% | Biggest decline since October 2023 |
| New listings | 70,415 | 6.6% | |
| Active listings | 740,834 | -3.5% | |
| Months of supply | 4.2 months | Unchanged | 4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. |
| Share of homes off market in two weeks | 33.3% | Up from 32% | |
| Median days on market | 48 | -2 days | |
| Share of homes sold above list price | 22.4% | Up from 20% | |
| Share of homes with a price drop | 5.5% | +1 pt. | |
| Average sale-to-list price ratio | 98.2% | +0.5 pts. | |
|
Metro-level highlights: Four weeks ending February 4, 2024 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. |
|||
|---|---|---|---|
| Metros with biggest year-over-year increases | Metros with biggest year-over-year decreases | Notes | |
| Median sale price |
Miami (13.4%) Anaheim, CA (13.4%) Detroit (13.3%) Warren, MI (12.1%) Chicago (11.3%) |
San Antonio, TX (-4.7%) Austin, TX (-3.7%) |
Declined in 2 metros |
| Pending sales | San Jose, CA (13.8%)
San Francisco, CA (6%) Anaheim, CA (4.5%) Riverside, CA (0.4%) Columbus, OH (0.2%) |
San Antonio, TX (-33.2%)
Portland, OR (-30.2%) Nashville, TN (-21.5%) New Brunswick, TN (-19.4%) Houston (-18.5%) |
Increased in 5 metros |
| New listings | Dallas, TX (27.1%)
Miami (26.9%) Jacksonville, FL (26.3%) Fort Lauderdale, FL (23.6%) San Diego, CA (22.1%) |
Chicago (-17.8%)
Atlanta (-16%) Milwaukee, WI (-14%) Portland, OR (-13.6%) Nashville, TN (-10.4%) |
Declined in 14 metros |
Refer to our metrics definition page for explanations of all the metrics used in this report.
Source: redfin.com
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Nearly 215 million U.S. drivers carry car insurance, and many may ask themselves, “Why is my car insurance so high?” If you’re one of those Americans, know that there are ways you can take control of the situation and reduce your insurance premiums.
We’ll guide you through why your car insurance may be higher than normal and ways you can proactively work to lower the costs.
Most insurance providers consider your credit score when determining insurance rates. Maintaining a good credit score can help individuals maintain a lower insurance premium. However, those with poor credit scores often need to pay more since they are seen as being higher risk.
Factors that impact your FICO® credit score include:
Keep in mind that credit score is only one factor used by insurers to set premiums.
Your driving record can significantly impact your insurance premium costs. Those with clean driving records without any traffic violations or accidents tend to pay lower insurance premiums. However, policyholders who have been in vehicle accidents and accrued traffic violations may pay for higher insurance premiums. Your insurance provider can increase your premium for:
Your insurance may provide safe driver discounts to those with good driving records and who are accident-free for a required period. These discounts can decrease your insurance premiums.
Your insurance rates can be significantly affected by the coverage type and insurance level you opt for. Depending on where you reside, your state has regulations and criteria for minimum policy coverage.
For example, Washington requires drivers to have the following minimum coverage:
Depending on other factors, like your vehicle type and whether it’s leased, you may require additional coverage on top of the minimum state requirements.
Similar to your driving record, you want to keep your claim history as unscathed as possible. However, accidents happen, whether they result from your actions or those of another driver. Multiple filed claims can impact premium costs, especially if they are large claims, like a totaled vehicle. Plus, claims have a long-lasting impact—an at-fault accident can increase your rates for at least three years following the claim.
Insurance premiums can greatly vary by location, especially if you live in a city versus a more rural area. Insurance premiums in each state are affected by various factors, including:
Things like road conditions and crime rates can also impact your auto insurance. For example, If you live in an area with high auto theft rates and poorly planned roads that are prone to cause accidents, you’ll likely be paying higher insurance rates.
When insurers determine insurance premiums, they consider vehicle types. Certain car models have a lower likelihood of ensuring the safety of passengers or cost more to repair in the case of an accident, leading to higher insurance rates.
Vehicles that typically have higher rates are:
Vehicles that typically have lower rates are:
Overall, newer, luxurious, smaller vehicles tend to have more expensive premiums.
Gender can impact your insurance premiums in the majority of states. However, there are states that have banned gender in insurance rating, including:
Your age is another uncontrollable factor that impacts your insurance rates. Your insurer will likely charge you more if you have young drivers under 25 on your insurance policy. This is because they’re viewed as less experienced drivers with a higher risk of filing a claim.
Rates vary across insurance providers. It’s easy to stick to renewing the same policy every year, but you could be losing out on savings by switching insurance companies. Among the leading auto insurance companies across the country, the average annual car insurance rate stands at $1,547 per year. Yet, a driver with identical coverage may pay as little as $1,022 with one company or as much as $2,135.
When you apply for insurance, expect your insurance provider to inquire about your occupation and residence. How often you drive and how much time you spend behind the wheel can increase your insurance premiums.
Those with longer work commutes increase their risk of being in an accident while they’re on the road. If you work in an expensive city and live in the suburbs outside the city to save on housing costs, you could, unfortunately, be paying a higher insurance rate.
Your deductible is the amount you would need to pay if your car is damaged and you file a claim. Your insurance provider pays the remaining total cost to fix your vehicle. For example, if you have a $500 deductible and file a claim for $2,500 in damages, you’ll need to pay the $500 and your insurance will cover the final $2,000.
If you pay for a lower deductible on your policy, there’s more risk for your insurance provider. Therefore, you’ll likely have to pay for higher insurance premiums.
Take a look at your policy add-ons. You may be paying for additional coverage you don’t currently need. Evaluate whether it’s necessary to cover items like:
While some of these additional coverage items can be beneficial, they aren’t essential expenses.
Your car insurance history can impact your insurance premium costs. If you have lapses in your insurance history, periods where you didn’t hold insurance, you can be penalized with higher premiums. Reasons for having gaps in your insurance history include:
You should always have auto insurance when you own a vehicle. Consider acquiring nonowner car insurance if you don’t own a vehicle—it provides coverage when driving cars you don’t own and prevents future premium increases when you do own one.
As noted above, various factors can skyrocket your car insurance costs. Luckily, there are steps you can take to help lower your premiums and keep more money in your pocket.
Your credit score can greatly impact how expensive your premium is. Improving your credit can help you find lower premiums in the future. Actions that can potentially improve a credit score is:
Improving your credit takes time, especially if you have multiple derogatory marks on your report. Be patient and smart while building your credit back up.
Review your current coverage and evaluate whether you’re paying for add-on coverage you don’t need. For example, if you aren’t frequently renting cars, you likely don’t need car rental coverage. If you do rent a car for occasions like a business trip or vacation, your insurance should cover any damage caused to the rented vehicle.
For homeowners, bundling your home and auto policies can help lower your premiums. We recommend comparing bundling quotes from both of the providers before deciding which provider policy to cancel. Not only can you potentially save on both your premiums, but you will also be able to manage these expenses with one provider.
Opting for a higher deductible on your car insurance can help lower your premium rate. Your deductible is what you would pay “out of pocket” in a claim. However, you should be able to pay your deductible in case of an accident. If you increase your deductible too much, your insurance won’t cover smaller damages and repairs.
Has it been a while since your insurance premium was set? Shopping around at different insurance providers is the easiest way to get a lower insurance premium. If it’s time to renew your policy and you have a clean driving record, it may be a good time to compare quotes and see if other providers can provide a lower premium.
Below are frequently asked questions about car insurance expenses and factors.
Your credit score is factored in when your provider calculates your insurance premiums. Those with poorer credit scores (below 580 on the FICO scale and below 601 on the VantageScore® scale) tend to pay higher rates than those with good credit scores. Improving your credit score will help you secure favorable insurance rates and in other financial situations, like when you’re applying for a loan.
There are a few actions you can take to potentially lower your insurance premiums, including:
There are several reasons why auto insurance costs are higher for an expensive vehicle. Luxury cars have more expensive parts, such as high-tech and advanced safety features. Also, if your vehicle is severely damaged and declared totaled, your insurance provider will need to cover the value of your car.
Now that you know why your car insurance is so high, it’s time to take steps to reduce your premiums. Credit.com can provide you with a free credit score and credit report so you can see where you need to start working on your credit and lowering your premium rates.
If you’re shopping for a new auto loan, Credit.com offers custom that won’t impact your credit. Get prequalified and see your rates today.
Source: credit.com