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Mortgage Q&A: “Does refinancing hurt your credit score?”

Consumers seem to be obsessed with their credit scores and what impact certain actions may have on them.

Perhaps the credit bureaus and credit score distributors are to blame, as they’re constantly urging us to check our scores for any changes.

Let’s cut right to the chase. When it comes to mortgage refinancing, your credit score probably won’t be negatively impacted unless you’re a serial refinancer. Like anything else, moderation is key here.

When you refinance your home loan, the bank or mortgage lender will pull your credit report and you’ll be hit with a hard credit inquiry as a result.

It’ll stay on your credit report for two years, but only affect your scores for the first 12 months.

The credit inquiry alone won’t necessarily lower your credit score, but if you’re constantly refinancing and/or applying for other types of new credit, the inquiries could add up to a point where they’re deemed unhealthy.

The credit score scientists found out long ago that individuals who apply for a ton of new credit are often more likely to default on their obligations.

But that doesn’t mean you can’t apply for mortgages and other types of credit if and when you feel it’s necessary.

You Could See a Credit Score Ding When Refinancing Your Mortgage

  • All 3 of your credit scores may fall temporarily
  • As a result of a mortgage refinance application
  • But the impact is usually quite minimal, say only 5-10 points
  • And fleeting, with score reversals happening in a month or so

Because a mortgage refinance is a new credit application, your credit score(s) could see a bit of a ding, though it probably won’t be anything substantial unless you’ve been applying anywhere and everywhere for new credit.

By a “ding,” I mean a drop of 5-10 points or so. Of course, it’s impossible to say how much your credit score will drop, or if it will at all, because each credit profile is completely unique.

Simply put, those with deeper credit histories will be less affected by any credit harm related to the mortgage refinance inquiry, while those with limited credit history may be see a bigger impact.

Think of throwing a rock in an ocean vs. a pond, respectively. The ripples will be a lot bigger in the pond.

But in either case, the ripple shouldn’t be much of a ripple at all, and nowhere close to say a late payment because it’s not a negative event in and of itself.

[What credit score is needed to buy a house?]

You Get a Special Shopping Period for Mortgages

  • FICO ignores mortgage-related inquiries made in the 30 days prior to scoring
  • And treats similar inquiries made in a short period (14-45 day window) as a single hard inquiry
  • Instead of counting multiple inquiries against you for the same loan
  • This may help you avoid any negative credit impact related to your mortgage search

First off, note that when it comes to FICO scores, mortgage-related inquiries less than 30 days old won’t count against you.

And for mortgage inquiries older than 30 days, they may be treated as a single inquiry if multiple ones take place in a small window.

For example, shopping for a refinance in a short period of time (say a month) may result in a large number of credit pulls from different lenders.

But they will only count as one credit hit because the credit bureaus know the routine when it comes to shopping for a mortgage.

And they actually want to promote shopping around, as opposed to scaring borrowers out of it.

After all, if you’re only looking to apply for one home loan, it shouldn’t count against you multiple times, even if you inquire with multiple lenders.

This differs from shopping for multiple, different credit cards in a short period of time, which could hurt your credit score more because you’re applying for different products with different card issuers.

Even if you shop for a mortgage refinance with different lenders, if it’s for the same single purpose, you shouldn’t be hit more than once.

However, note that this shopping period may be as short as 14 days for older versions of FICO and as long as 45 days for newer versions.

If you space out your refinance applications too much you could get dinged twice. Even so, it shouldn’t be too damaging, and certainly not enough to prevent you from shopping different lenders.

The potential savings from a lower mortgage rate should definitely trump any minor credit score impact, which as noted, is short-lived.

The mortgage, on the other hand, could stay with you for the next 30 years!

You Lose the Credit History Once the Account Is Closed

  • When you refinance it results in the closing of the old loan
  • That account will eventually fall off your credit report (in 10 years)
  • And closed accounts are less beneficial than active ones
  • But the new account should make up for the lost history on the old account

Another potential negative to refinancing is that you’d lose the credit history benefit of the old mortgage account, as it would be paid off via the new refinance.

So if your prior mortgage had been with you for say 10 years or more, that account would become inactive once you refinanced, which could cost you a few points in the credit department  as well.

Remember, older, more established tradelines are your credit score’s best asset, so wiping them all out by replacing them with new lines of credit could do you harm in the short-term.

Additionally, it could affect the average age of all your credit accounts (credit age), which is also seen as a negative.

But the savings associated with the refi should outweigh any potential credit score ding, and as long as you practice healthy credit habits, any negative effect should be minimal.

[Does having a mortgage help your credit score?]

Cash Out Refinance Means More Debt, Possibly a Lower Credit Score

  • A cash out refinance could hurt even more
  • Because you’re taking on more debt as a result
  • And larger amounts of outstanding debt
  • Along with higher monthly payments can make you a riskier borrower

Also consider the impact of a refinance that results in a larger loan balance, such as a cash-out refinance.

For example, if your current loan balance is $350,000, and you take out an additional $50,000, you’ve now got $400,000 in outstanding debt.

The larger loan balance will increase your credit utilization, and it could result in a higher monthly payment, both of which could push your credit score lower.

In short, the more credit you’ve got outstanding, the greater risk you present to creditors, even if you never actually miss a monthly payment.

In summary, a refinance should have a compelling enough reason behind it to eclipse any credit score concerns, so focus on why you’re refinancing your mortgage first before worrying about your credit score.

Ultimately, I’d put it on the no-worry shelf because chances are the refinance won’t lower your credit score much, if at all. And score drops related to new credit typically reverse very quickly.

So even if your credit score fell 20 points, it would probably gain those points back within a few months as long as you made on-time payments on the new loan.

And most people are only concerned about their credit scores right before applying for a mortgage, so what happens shortly after your home loan funds may not matter much to you.

But to ensure you don’t get denied as a result of a credit score drop, it’s helpful to have a buffer, such as an 800 credit score in case your score does drop a bit while shopping around.

If you’re right on the cusp of a credit scoring threshold and your score dips slightly, you could wind up with a higher interest, or at worst, be denied a mortgage outright.

Read more: When to refinance a home mortgage.

Source: thetruthaboutmortgage.com

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(Yicai Global) July 17 — Chinese banks have yet to respond to the People’s Bank of China’s suggestion that they lower the interest rates of existing mortgages. This is because home loans make up a large percentage of their lending and the move will have a negative impact on them, Yicai Global has learned.

Lenders are mulling rate adjustments based on their particular circumstances, a person working at a joint stock bank told Yicai Global, adding that the implementation schemes are expected to vary from bank to bank.

Commercial banks and other kinds of lenders are encouraged to amend contracts with borrowers through voluntary negotiations in accordance with market-oriented principles and the rule of law, Zhou Lan, head of the department of monetary policy at the People’s Bank of China, said on July 14.

Banks can also issue new loans at a lower rate to consumers to replace existing loans at a higher rate, Zhou said.

Most of the bank staffers contacted by Yicai Global, including Bank of China, China Construction Bank, Bank of Hangzhou and Bank of Ningbo, said that they are still using the mortgage rates based on the original contracts as they have yet to be notified of rate policy adjustments by their respective supervisors.

A rate cut scheme has not been rolled out yet, said the Guangdong province branch of a major bank. 

The PBOC’s proposal can help apartment buyers to cut their financing costs, and to some extent, reduce the risk of them breaching their borrowing agreements by repaying their mortgages earlier, which could cause the bank to lose out on the income it earns from interest, said Xue Hongyan, deputy director at research body Star Atlas Institute of Finance.

But according to banking insiders, the move will just make things harder for banks, especially those with a high proportion of personal mortgages, said Liao Zhiming, chief banking industry analyst at China Merchants Securities. 

‘For banks, especially big ones, lowering the rate of existing mortgages will cause short-term pain,” said Dong Ximiao, chief researcher at Merchants Union Consumer Finance. 

Difficult Decisions

China’s six state lenders as well as China Merchants Bank and Industrial Bank all had extended over CNY1 trillion (USD139.4 billion) each in home mortgages as of the end of last year, according to Wind Information data. 

Among them, China Construction Bank had issued the most home loans at CNY6.5 trillion, taking up over 79 percent of its overall personal loans. While the ratios at Industrial and Commercial Bank Of China, Agricultural Bank of China and Bank of China were all over 70 percent. 

“Lowering the rate of existing mortgages will put huge pressure on these banks but it seems that they have little choice or they face losing customers,” a credit loan manager at a big state-owned bank said. 

“If a lender does not reduce its mortgage lending rate, a customer could pay off the loan by borrowing from another bank at a cheaper rate, and thus switch banks,” said Zheng Dayuan, general manager at a mortgage agent firm based in Guangzhou city. 

The loan prime rate for loans of five years or more has been adjusted seven times since 2019 as the macroeconomy slows. And the lower limit on mortgages for first-time buyers sank to under 4 percent in over 40 cities, according to the China Index Academy.

In the first half, the weighted average rate of newly issued individual mortgages tumbled 107 basis points year on year to 4.18 percent, the lowest level since statistics began. 

Between 2018 and 2021 rates were above 5.4 percent at most banks and reached a peak of 5.7 percent, according to data from CSPI Ratings, a unit of China Securities Credit Investment. Homeowners who signed their mortgage contracts during this period will be highly motivated to look for refinancing in order to cut their interest repayment burden.

Editors: Tang Shihua, Kim Taylor

Source: yicaiglobal.com

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This is a guest post from Charlie Park at PearBudget.

Recently, Get Rich Slowly readers got upset at the idea of spending $6 on a gallon of milk. Reading that, I had to chuckle a little bit: Shortly before we had to give it up, our milk went up to $11 a gallon.

Yup. You read that right: $11. A gallon.

Technically, the milk was free, but the boarding and care of the animals that give us the milk went up to $11 a week for every gallon we got. The payoff was awesome: farm-fresh, antibiotic- and growth-hormone-free milk. And the expense was necessary: My wife was nursing twins, and she’s allergic to milk from the store. (Now that the babies are weaned, we’ve stopped buying it from the farm.) But the result was the same: We drank a gallon of milk and it cost us $11. Yikes.

So why, if we were willing to spend $11 on milk, would I be qualified to write about saving money while shopping?

In order to have the money for such expensive milk, we had to keep an even sharper eye on our other grocery spending. To not compromise on the foods that matter to us (organic beef, good produce, hormone-free milk), we had to find other ways to cut food costs.

Standard Advice

Almost any “how to save money on groceries” article will tell you one of five ways to trim costs. You’ve probably seen them before:

  1. Buy different kinds of food (lentils in place of meat; generic instead of premium).
  2. Buy from a cheaper source (Food Lion, rather than Whole Foods).
  3. Buy in bulk (from Costco or another consumers’ union).
  4. Buy only foods that can be reused or recombined with other leftovers to make new meals.
  5. Use coupons or sales to only buy when items are discounted.

Each of those methods is a good way to watch what you spend. And new tools like The Grocery Game help to compare costs. Unfortunately, those options aren’t always possible, or they don’t do enough. Maybe you don’t have access to a bulk food club. Maybe you have trouble finding coupons for the kinds of food you buy. Maybe you already buy generic brands, but it’s still not enough.

Luckily, there’s something that you can do — today — that takes no planning, requires no math (usually), and that will save you money every time you shop. It’s called unit pricing, and it’s pretty neat. If you’re a grocery guru, you almost certainly know about unit pricing (it’d be great if you could add a comment to the post about unit pricing techniques you use); but if you’re new to grocery shopping, it’s possible nobody’s ever told you about unit pricing, or explained how it works. Let’s change that.

Unit Pricing

In most states in the US, and in more and more countries around the world, every time you see a price tag at a grocery store, you’ll actually see two prices. The more prominent number is the real price — the amount that the cashier will ask you to pay when you get to the cash register. The smaller number, tucked away on the side of the price tag, is something called the unit price. Often, the unit price will be in a smaller font size, printed with a lighter color of ink, or the real price will have yellow highlighting on it to call attention to itself. Ignore the big, bold, yellow-background number. Embrace the unit price.

The unit price is the amount you’re paying for each “unit” (ounce, pound, etc.) of the product you’re buying. By giving you a standard unit to use to compare products and packages, the store lets you make a more informed choice. You can let the store do the math for you, to make it easier for you to compare prices.

Here’s an example: I have a small party coming up, and I’d like to buy some soda. I’d like to avoid 2-liter bottles, if possible, opting for single-serving containers.

I go to the store, and it turns out I have seven different options (plus the two-liter bottle):

  • A six-pack of 24-oz. bottles for $3.50.
  • A six-pack of 8-oz. cans (the “100-calorie cans”) for $2.59.
  • A twelve-pack of 12-oz. cans for $3.99.
  • That same twelve-pack, but with a store loyalty card for $3.66.
  • An eight-pack of 12-oz. bottles for $3.49.
  • A 2-liter bottle for $1.59.
  • A six-pack of 8-oz. “classic” glass bottles for $4.19.
  • And then, there’s always the option of buying the pre-chilled 20-oz. bottles in the refrigerated case, at $1.49 each.

Maybe you’re better at doing math in your head than I am, but I look at all those numbers and my head starts swimming. My eyes begin to glaze over.

But here are the same options, with their unit pricing:

Unit pricing lets you keep fewer numbers in your head. It’s easy to look at the options in front of you, to compare them, and to see which one makes the most sense.

Bigger is Not Always Better

Knowing that we’re now comparing apples-to-apples, we can look at the price per quart, and see that the six-pack of 24-oz. bottles is the cheapest of the “single serving options.” And we can see that the twelve-pack of cans is just little bit more than that. And we can see that the 2-liter bottle is the cheapest of all of them, and it gives guests power over their portion control, so maybe I’ll reconsider that whole “single serving options” decision.

“I know all that already,” you’re saying. “Buy the biggest box on the shelf, and you’ll automatically get the lowest price per unit.” That’s often (but not always) true. If you’re buying a commodity item (something you tend to buy every single time you’re at the store, and that you tend to go through at the same rate whether you have one pound or ten pounds of it on hand [think: rice]), you can usually get away with just buying the biggest package you can. But it’s easy enough to check and see that you are, in fact, getting the best price — just look at the tag. (For example, pay close attention in the breakfast cereal aisle. We’ve found that the biggest box of Cheerios sometimes has the highest unit price.)

Meat Market

I know you’ve basically got it by now. But there’s one more section of the store we’ll take a look at, since it’s a place where unit pricing is incredibly easy, and where it can make a big difference to your food bill: the meat department.

Meat is one area where unit pricing is actually really really easy. If you don’t use unit pricing anywhere else in the store, at least try it with the meat department. Most grocery stores print their own labels for their meat — the numbers are large and readable, they’re custom-printed for each package, and they include the sell-by date, the size of the package, and the unit price (all of which are useful data).

One especially nice thing about shopping for meat: it’s all measured with the same unit! So you can, very easily, see what the per-pound price of that ground beef is, compared with the per-pound price of the filet mignon. You can look at the boneless chicken breasts, as compared with the drumsticks. You can look at the fish versus the chicken, or the pork versus the beef, and decide which will be the better purchase.

Smarter Shopping

Unit pricing isn’t always the best method to use for shopping. There are always other things to consider as well. Are the ingredients safe? Will my family eat this? Obviously, unit price shopping isn’t a substitute for that. But it’s one more tool you can use to help you make better financial choices when shopping.

So if you’re trying to get out of debt, or you’re trying to save for the future, take a look at the choices you’re making with your food buying. Saving 20 cents here and 75 cents there can really add up. And maybe buying according to unit pricing will help you spend less on things that aren’t as important, so you can buy more of the stuff that matters. Like $11-a-gallon milk.

Charlie and his wife live in Virginia with their three daughters. They’re the folks behind an easy online budget program called PearBudget. Photo of Italian butcher by o0Karen0o.

Source: getrichslowly.org

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As Alabama’s most populous city, there are more restaurants, bars and activities than you can ever find on your own in Birmingham. That’s why we asked a group of local experts to help out and tell us about their favorite hidden gems around town.

Birmingham is also full of historical value, thought-provoking museums, a strong music scene and plenty of areas designed specifically for outdoor fun. But, where do the locals in the know go when they clock out for the day?

1. Jemison Park Nature Trail

Source: facebook.com/Jacqueline JaNet Fisher

Perfect for those who like to run, walk or simply take the dog out for some exercise, Jemison Park Nature Trail is a perfect choice. “It’s shaded for most of the trail,” shares Melissa Cunningham-Campbell, Owner of Monkee’s of Mountain Brook, “and we always spot some wildlife which makes it so much more interesting.”

Jemison Park sits within the Mountain Brook neighborhood, a popular spot for local attractions. It’s also home to the Birmingham Zoo and Brookwood Village, an open-air shopping complex.

2. City Walk

Source: facebook.com/CityWalkBham/

For a different outdoor experience, Wavey Davey, Influencer, Creator, Photographer and Model at Simply Dave Photography likes to toss on a pair of roller skates. Heading to City Walk, Davey will trade-off between the skating rinks and paths in the parks.

“I like to roller skate and skate on my free days and the rinks and parks at City Walk are one of the best things to happen to Birmingham in my opinion,” says Davey.

In total, City Walk covers 31 acres across the Evergreen neighborhood.

3. The Backyard Leeds

Source: facebook.com/thebackyardleeds/

For a full day of fun, Caroline Moffitt of The Backyard Leeds suggests you come visit her. Less than 20 minutes from Downtown Birmingham, The Backyard Leeds can keep families, a group of friends in their twenties and seniors busy all day. There’s truly something for everyone.

“We have mini golf, a dog park, playground, Saw’s BBQ, Neighbors Brew & Pies, an indoor and outdoor bar, event spaces for parties of all sizes, live entertainment from Thursday-Sunday, yard space to play your favorite games, like corn hole or horseshoes, AND a drive-in movie theater with a snack shack concession stand.”

Prepare to stay for the entire day when you come to this hidden gem.

4. Hidden antique gems

Source: facebook.com/Hanna Antiques

With plenty of options across Birmingham to go antiquing, Olivia B. Carter, Owner of Olivia B. Photography has two go-to spots. Hanna Antiques in Southside and Irondale Pickers just 15 minutes away in Irondale top her list.

“By the time I get through all of the booths at each of those locations, it’s usually time for dinner,” says Carter.

5. Railroad Park

A 19-acre green space right in the center of downtown, Railroad Park connects Downtown Birmingham with Southside and the campus of the University of Alabama at Birmingham. With its urban location, it’s the perfect place to enjoy some outdoor time without having to lace up the hiking boots.

It’s a go-to spot for Corbitt Chandler, a local Digital Marketer and Entrepreneur, when he has a day off and feels the need to get some fresh air.

6. La Libertad

Technically not in Birmingham proper, La Libertad is a Salvadoran restaurant in Pelham. The short drive is worth it though, according to Alexis Blaydoe, Creative Director and Event Leader at Back Forty Beer Co. She highly recommends their pupusas. “The rich cornmeal cake stuffed with cheese and beans is cut by the heaping mound of curtido (spicy fermented cabbage slaw) that I like to pile on top,” she says.

7. Brewery tours

Source: facebook.com/GoodPeopleBrewing

Rather than recommend just one Birmingham brewery to visit, Dustin Hughes of City Brew Tours Birmingham thinks you should check out as many as possible. “The brewery scene here in Birmingham is rapidly growing and constantly pushing out new delicious craft beers. Whether it is a nice hot summer day or a cool fall night, going to our breweries to just hang out with friends is the best,” he says.

8. Protective Stadium

Source: facebook.com/protectivestadium

Not necessarily a hidden gem, but new to the city, Protective Stadium is a multi-purpose stadium at the edge of Druid Hills. It’s a must-stop place for Katie and Alec Dixon, Owners and Photographers at Katie & Alec.

You can catch a University of Alabama at Birmingham Blazers football game, watch the Birmingham Legion Football Club score or catch a special game hosted by the US Football League.

9. Oak Mountain State Park

“Many are aware that this breathtaking oasis exists,” says Lorenda Pryor of Pinkie’s Closet, “but not everyone explores all that it has to give.” When it comes to Oak Mountain State Park, Pryor suggests that you skip the busy main beach and check out the hiking trail that starts just a few steps across the street. “There are a plethora of different owl species and their habitats scattered along the way. It’s beautiful!”

For the real inside scoop on enjoying this particular park, look for the back entrance. According to Pryor, it’s much more serene and features a trail that goes right along the water.

10. Coffee shops

Source: facebook.com/CaveatCoffee

Everyone needs that go-to coffee shop in their home city. For Kenslie McGuire, Owner and Photographer at Kenslie, she’s lucky enough to have a favorite coffee spot for weekdays and a different one for weekends.

“I’m a freelance photographer so I love to work at coffee shops most days. Caveat is one of my favorites. On Saturdays, I love to get coffee at General and walk around Forest Park.”

11. El Barrio

Source: facebook.com/elbarriobirmingham

Situated in Central City, El Barrio is a “Tex-Mex Birmingham staple,” according to Kayla Stinnett, Marketing Maven at local favorite Cahaba Brewing Co. “I’ll find just about any excuse to stop by El Barrio,” she says, claiming the restaurant lives up to all the hype.

“The fare is flavorful, the staff is excellent and they have a full bar menu to quench your thirst.” Unique and popular dishes abound, including plantain nachos, chicken escabeche and the beef barbacoa quesadilla. Stinnett also advises you order dessert. “It’s the best part.”

Not that anyone needs an extra push to order dessert, but we appreciate Kayla for providing it, anyway.

Other popular spots in Birmingham

These specific hidden gems are only the start of what you can discover living in Birmingham. Believe it or not, our local experts had even more to share for those looking for a new place to eat, drink, hang out or shop in Bham.

For eating and drinking:

For hanging out

For a unique shopping experience, top off your list at Urban Suburban. Here you’ll find a mix of antique and vintage items. Located in the Crestwood neighborhood, this mainstay has over 65 individual vendors.

What will you discover in Birmingham?

Birmingham really is a special city. Boasting ample entertainment choices, a plethora of places to get a delicious meal, beautiful outdoor options and so much more, there’s no excuse to be bored while you’re living here. Lace’em up and head out to explore The Magic City yourself today.

Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.

Source: rent.com

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Avid readers tend to have a book problem. You don’t think you’re buying an excessive amount of titles until it’s time to move. Packing books is heavy work, and one box doesn’t often cut it. But, book lovers need not worry. You can keep your precious hardcovers and paperbacks safe so all your books go back on the shelves in your new home in perfect condition.

Ready to pack your books easier? Let’s get started.

First whittle down your library

So, the first question to ask yourself is “how many books do I have?” When you answer “a lot,” or “too many,” it’s time to decide what really makes sense to keep. Even if you have quite a collection, chances are you don’t need to keep all the books currently in your possession.

You can set any criteria you like to whittle down your book collection. Maybe you only want to keep titles you’ll read again. Maybe you just keep the books that really spoke to you. However you want to do it, start the packing process by really thinking about the books you want to keep and which you can live without.

Once you’ve made your two piles, you have a few options as to how you pass along the books you don’t need to keep yourself.

  • Sell back your books to a used bookstore
  • Give books away to friends and family who may enjoy specific titles
  • Donate books to a local charity

Charities can include your local library, spreading them out among a few Little Free Libraries in your area or locating a specific organization that’s accepting book donations.

When to start packing

Since you don’t need access to all your books on a regular basis, get those moving boxes out early. Books are a great item to jumpstart packing all together.

Packing boxes full of books early is often not as frustrating as packing clothing or fragile items. There’s not any folding or wrapping in bubble wrap required to pack books (most of the time.) There’s also typically no risk you’ll accidentally pack something you need.

So, get ahead in the packing process and start at least a month out with those book boxes. If you can, pile them up in the corners so the boxes are out of the way as you get everything else ready to move.

What’s the best way to pack books in a box?

How you pack your books is as important as the packing materials you use. You need the right box and lots of packing tape.

Use a box made of thick cardboard, with strong sides and corners. Don’t reuse a box that looks like it’s in less-than-perfect condition. Even on a moving truck, boxes can get knocked around and packed books can easily rip a worn box.

Make sure to add reinforcement to any box when you’re using it to store books. To do that, it’s all about packing tape. From the outside, reinforce the bottom of the box by laying an extra layer of tape around all the seams and folds. You should also add a strip of tape across the bottom seam inside the box before you begin packing in the books for increased durability.

A layer or two of packing paper or newspaper in the bottom provides extra cushioning and protects those bottom books that will bear all the weight of the rest of the box.

Once a box is full, reinforce the top by adding extra tape parallel to the seam as you close it up. It helps keep the flaps taped to the box even if the center strip comes off.

1. Watch your weight

To properly pack books for moving, you have to think about weight. Books are heavy in general, and it’s not just because of the actual heavy books — those hardcovers with hundreds of pages.

Starting with small boxes when it comes to moving books will help you keep the weight down. If you’re going to carry these boxes yourself, try to keep the weight at or below 40 pounds. If movers are helping out, they usually have dollies or carts specifically for heavy items, so you can probably max out the weight of your book boxes at 50 pounds.

Even with movers doing the bulk of the heavy lifting, though, you may need to pick up your book boxes once they’re in your new home. Keep that in mind when thinking about the weight of these boxes.

2. Label clearly

After you’ve packed these heavy boxes, make sure everyone knows there are books inside with a nice big label. Think of it as a way to identify what’s in the box, as well as a warning that there’s something heavy in there.

3. Lift the heavy boxes safely

As you pack books for moving, make sure you’ve refreshed yourself on how best to lift heavy items. General tips are helpful like wearing comfortable clothing that lets you easily bend at the knee, but to move heavy boxes, remember to:

  • Wear closed-toe shoes
  • To lift, face the box and bend at the knee to squat down; don’t hunch over
  • Grip the box at opposite corners
  • Stand slowly and lift with your legs
  • Move slowly and carefully to wherever you’re taking the box

To put the box down, work in reverse, bending at the knee again slowly to set the box down while protecting your back from having to manage all that weight.

How do you pack books so they don’t get damaged?

The essential question when you pack books is how to get them into boxes so they stay safe and remain intact.

There are a few different ways to position books to fill a box, but most will leave you with gaps that could cause books to shift. To protect covers, book spines and even the pages of your favorite reads, use any of these strategies.

1. Sort by size

The first trick to filling book boxes is to sort your books by size. This makes it easier to get even piles as you pack, and decreases the amount of wasted space in a box.

2. Order by weight

Next, you need to group your books, already in their same-size piles, by weight. The heaviest books always go on the bottom of a pile, with the lightest books on top. This also often means your hardcovers are sitting at the base of any given pile. Even if they’re the same size, hardcovers can withstand the weight of all your other books much better, protecting the more delicate books.

3. Find the proper position

There are three safe positions for packing books — flat, vertically and horizontally. Each works depending on the type of book you’re packing.

  • A flat stack of books works best with paperbacks. Putting one on top of another ensures the covers don’t get creased. Make sure stacks are lined up so the spines are all on top of each other.
  • Going vertical means mimicking how books sit on the shelf. This is better positioning for hardcover books, but make sure the spines face the sides of the box.
  • Horizontal positioning really only works for the bottom layer of books in smaller boxes where the second layer of books won’t fit. For this method, lay the books spine down along the bottom, then, layer something lighter on top to protect the pages.

For valuable books, make sure to wrap them in packing paper before positioning them.

No matter which position you pick when you pack books, the spines should always face the box. Whether that means it faces the sides or the bottom varies but putting books spine-to-spine in a line, whether it’s a stack or a line like they sit on a shelf, keeps them safer.

4. Mind the gaps

No box will get perfectly filled with books. There will always be gaps to fill, which means having packing paper on hand. You don’t want books to shift in their boxes during a move, so any open space should get filled with balled-up packing paper.

Resist the urge to put books in at odd angles to fill a space. Doing so can weaken the spine of the book and even lead to a page or two falling out.

5. Skip boxes altogether

Now that you have all these packing tips for how to get your books into those moving boxes, here’s how to bypass all this effort.

Suitcases make for great book storage, and rolling suitcases means no heavy lifting.

You’re more likely to get more books into a suitcase than one small box anyway, even with some packing paper padding. Plus, you have to move all your luggage anyway, so why not put some of your stuff in them, too? This is a great opportunity to save a little money on packing supplies.

Books on the move

Most likely the heaviest thing you’ll move, furniture aside, your book collection can go with you without being a burden to pack and transport. Following these tips will help, but don’t forget to leave a title or two out to accompany you to your new home. After all, you may decide to unpack your sheets and dishes first, and then, what will you read in your downtime?

Source: rent.com

Apache is functioning normally

On August 29th, 2019, major iBuyer Opendoor launched a mortgage lending division known as “Opendoor Home Loans” to create a one-stop shop for home buyers and sellers.

As a result, those interested in purchasing a property from Opendoor can take advantage of their financing department, similar to how home builders partner with mortgage lenders to facilitate loan closings.

You can even sell an existing property to Opendoor and finance a new one, all with one company if you feel so inclined.

Let’s learn more about this new mortgage lender, which operates out of Plano, Texas.

Opendoor Home Loans Wants to Cut Closing Times in Half

  • Aim to close home purchase loans in 3 weeks
  • Offer $100 per day toward closing costs if loan closing is delayed
  • Can generate a pre-qual letter in minutes via phone or computer
  • Limited-time $1,000 closing cost credit also available to customers

Noting that financing is often “one of the most complicated and intimidating parts of a home purchase,” they claim they can cut the typical 45-day timeline in half.

So instead of closing in a month and a half, they aim to close your home loan in as little as about three weeks.

They’re backing up that promise by offering $100 per day for every day beyond the scheduled closing date that the loan closing is delayed.

To get started, they ask that you get pre-qualified, which can be accomplished over the phone or online in just minutes.

You’ll receive a pre-qualification letter as well, which can be used to show home sellers that you’re a serious buyer.

Once you find your dream home and your loan is submitted, you’ll receive one-on-one support along with regular updates from your dedicated Mortgage Consultant.

If you happen to be using Opendoor’s trade-in program, where you sell them your old home and buy a new home from them directly, you can schedule the closings to take place on the same day.

At the moment, the company is offering a limited-time $1,000 credit toward closing costs, which is automatically applied to your closing statement.

Speaking of closing costs, they say they don’t charge an application fee, and that you’ll only be on the hook for third-party fees, such as home appraisal and title/escrow fees.

What Types of Loans Does Opendoor Home Loans Offer

  • Currently offer conventional mortgages (Fannie Mae and Freddie Mac) and FHA/VA loans
  • Can obtain a fixed-rate mortgage or an ARM with varying loan terms
  • Offer both home purchase loans and mortgage refinances
  • A minimum 620-FICO score is required for loan approval

The company began by only offering conventional mortgages, those backed by the likes of Fannie Mae and Freddie Mac, but has since expanded into FHA and VA loans.

They do not offer USDA loans, though that may change in the future as they expand.

In terms of specific loan programs, fixed-rate mortgages are available in 30-, 25-, 15-, or 10-year terms.

You can also get an adjustable-rate mortgage with an initial fixed-rate period of five, seven, or 10 years.

Regarding their mortgage rates, they simply refer to them as “competitive,” so be sure to shop around to see what other lenders are offering for similar loan scenarios.

The lowest down payment available for Fannie- and Freddie-backed loans is 3%, so even those with little set aside in assets have the ability to qualify for a mortgage.

Like Fannie/Freddie, Opendoor Home Loans requires a minimum 620-credit score to get approved for a mortgage.

Once the loan is closed, it will be sold off and serviced by a different loan servicing company, which is common practice in the mortgage lending industry.

Where Opendoor Home Loans Operates

  • Only licensed to lend in eight states at the moment
  • Additional states are planned for the near future
  • Can finance any home purchase, not just Opendoor-owned properties
  • Company will likely serve mostly Opendoor home buyers to facilitate loan closings

Currently, the company only offers financing to home buyers in the states of Arizona, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Texas.

They plan to expand to more states in the near future if all goes well.

You can finance any home purchase in these states, even if it’s not an Opendoor-owned home.

You’ll just want to ensure it actually makes sense to do so versus using one of the many other lenders out there.

All in all, Opendoor Home Loans joins a very crowed space in the mortgage ecosystem, but it makes sense to have their own financing department to facilitate their iBuying activity.

Ultimately, it gives them more control of the process to ensure there aren’t any roadblocks put up by third parties, similar to why Zillow Home Loans exists.

Whether they become a major mortgage lender in the future remains to be seen, but my guess is they will mostly serve Opendoor customers.

In November 2021, Opendoor acquired RedDoor, a so-called digital-first mortgage brokerage that delivers 60-second verified pre-approvals.

The move should allow the company to compete with the likes of Rocket Mortgage and other tech-heavy lenders, while also bolstering their iBuying business.

Update: In early November 2022, Opendoor Home Loans was shuttered. The company also laid off 550 workers, or 18% of Opendoor staff.

In January 2023, Opendoor announced that Lower was its exclusive mortgage provider.

Source: thetruthaboutmortgage.com

Apache is functioning normally

My husband and I are in the process of building a home on 4.5 acres in the Texas hill country. At the moment, we’re still in the planning phase — not quite ready for blueprints.

Last month, our architect asked us to start thinking about the make and model of the kitchen appliances we want for our home. Visions of sleek, Thermador cooktops and double ovens danced in my head. Even when I saw the hefty price tag, I thought maybe we could find other ways to cut back so that we could afford the dream oven. After all, we’re both avid cooks. To us, eating well is one of the best ways to enjoy life. There’s no doubt we’d use it, so the purchase makes sense. Right?

Reality Check From a Minimalist

Then I happened upon an article by Mark Bittman, who writes The Minimalist column in The New York Times. In “So Your Kitchen is Tiny. So What?” he describes how he makes do with 42 square feet of kitchen space, precious little counter space, and a stove that sometimes doubles as storage for pots and pans. It is in this space that he develops most of the recipes for his cookbooks.

But when he posted a photo of his kitchen on his blog, readers were shocked. Bittman writes:

[Chefs and food writers] know that when it comes to kitchens, size and equipment don’t count nearly as much as devotion, passion, common sense and, of course, experience.

To pretend otherwise — to spend tens of thousands of dollars or more on a kitchen before learning how to cook, as is sadly common — is to fall into the same kind of silly consumerism that leads people to believe that an expensive gym membership will get them into shape or the right bed will improve their sex life. As runners run and writers write, cooks cook, under pretty much any circumstance.

With my feet firmly back on the ground, the fancy cooktop and double oven were erased from our kitchen plans. We don’t need top-of-the-line appliances to do what we love. Sure, I’ll have to cope with the quirky nuances of our oven, which loves to cook my cupcakes unevenly just to spite me, but I’ve learned its ways and I work around it. We know where the hot spots are on the stovetop, and we’ve learned how to position the racks just so for even browning. Surely if we’ve managed with a slightly cantankerous oven for this long, we’d be just fine with a new, moderately-priced range.

We do love to cook — and we like to think we’re pretty good at it — but we don’t need a 36″ Thermador to let the world know that, hey, in case you weren’t aware, we’re serious about food. That wasn’t my conscious thought as I was drooling over appliances at Lowe’s, but Bittman’s article made me question my motives (and probably saved me a couple thousand dollars). Anything that could be cooked on a fancier stove can be cooked on a standard one.

Curbing Wants, Focusing on Needs

Because we’re building a house, it dawned on me that this is just the beginning of a long list of decisions we’ll have to make — each one with a price tag. Our goal is to keep expenses down as much as possible so that we don’t feel owned by our mortgage payment. We want to pay off the house early. We want to travel. We want the flexibility that a lower house payment affords us. My fear is that we’ll be faced with so many decisions that we might lose sight of our goals.

To help us stay on track, I started thinking about questions to ask ourselves as we’re faced with more and more building decisions. I organized the set of questions into a flowchart, which we’ll use as a tool to help ignore emotions and evaluate need.

My “Should I Buy It?” Flowchart

Let’s look at how this would work using my cooktop example:

  • First, we’d ask ourselves whether we can afford it. Technically, yes, we could.
  • Is it something we need? Yes, our house will need a cooktop of some sort.
  • Is there a less expensive option? Yes, a standard range is much less expensive.
  • Is the alternative durable? Yes, there are durable ranges. (We researched Consumer Reports articles on ranges for their top picks.)

Our result? The flowchart suggests we should purchase the less expensive option.

This chart could be used for small, personal purchases, as well. For example, I’ve been coveting a blue YogiToes towel for my yoga practice. Can I afford it? Yes. Is it something I need or lack? No. I have one in red. Flowchart says don’t buy it.

I know we’ll want a few nicer features in our home, but it’s important that our spending decisions are made consciously. Little upgrades here and there could easily add up to a sizable mortgage in the end. If there’s one thing I’ve learned from being in credit card debt, it’s that the seemingly small things accumulate quickly. The only way to combat this is to be conscious of what we buy — and why we are buying it by constantly keeping a check on our credit report.

Photo by LifeSunDeath.

Source: getrichslowly.org

Apache is functioning normally

There are lots of different ways to get a mortgage these days – you can walk into a physical bank branch, call a mortgage broker, or even start a loan application on your smartphone.

While the mortgage broker model isn’t new by any means, a company called “Credible” is shaking things up on that front, promising real-time mortgage rates from multiple mortgage lenders without the “annoying calls or emails.”

They also let you compare rates and close your loan all in one place. Let’s learn why this company is different and if they make sense for your mortgage needs.

Credible Launched Back in 2012

  • Company founded by former investment banker in 2012
  • Initially focused on student loan refinancing
  • Has since delved into personal loans, credit cards, and mortgages
  • Lets you compare personalized loan offers from multiple lender partners anonymously
  • Acquired by Fox Corp. in late 2019

The company is relatively new, having been founded less than a decade ago in San Francisco.

But that didn’t stop it from being acquired by none other than Fox Corp., better known for TV shows like The Simpsons rather than finances.

Originally a student loan marketplace, the company has since expanded to personal loans, mortgages, and credit cards.

Our focus will be the mortgage piece of the pie, this being a mortgage blog and all.

In late 2018, Credible announced a “first-of-its-kind mortgage marketplace” that offers actual rates to consumers in just two or three minutes, all without affecting the applicant’s credit score.

But that’s not all – you also get a streamlined origination platform that allows you to complete much of the loan process without leaving Credible’s website, similar to Rocket Mortgage.

Their digital process utilizes “smart logic” to cut down on the number of questions asked to borrowers, as well as documentation requests, by making sure they are pertinent to your unique situation.

Additionally, the Credible platform automates the collection of things like pay stubs, bank statements, and tax documents, making the application process both faster and easier to complete.

Many of these items can be gathered electronically by simply granting access to your financial institution, without having to exit the Credible website.

However, they also have licensed loan officers available to those who would like additional support along the way. And they don’t work on commission, so they should have your best interests in mind.

How Credible Works to Get a Mortgage

First, you tell them a little about yourself and your property, just like most other mortgage companies.

This includes your property address, whether it’s a primary, second, or investment home, property type, estimated value, and mortgage balance.

Next, they ask if you have a second mortgage or if you’re looking to take cash out in addition to refinancing your existing loan balance.

One neat feature is they provide estimates of your property taxes and homeowners insurance for you, but you can adjust those numbers if needed.

They then ask for a source of income and average annual income, along with how much you have in assets.

If it’s a home purchase loan, they’ll ask you how far along you are in the process (just looking or found a home, etc.), and what your down payment will be.

You can generate a pre-approval letter instantly and see how much you can afford based on your inputs.

Lastly, you enter your name, date of birth, and phone number, agree to their terms and conditions, and get your loan options.

They note that they take privacy seriously, and that they’ll NEVER sell your information to external companies, nor will you receive phone calls from lenders.

A Soft Credit Check Provides Accurate Rates

Once you click “See My Rates,” a soft credit check (doesn’t affect your credit score) is conducted to look up your credit history and credit scores to ensure your pre-qualified rates are accurate.

If any of their partner lenders have home loan options that fit your profile, you’ll see a notification on your Credible Dashboard within minutes.

Credible will also reach out via email, phone, or text, but only once they have received responses from all potential lenders.

Note that these are just pre-qualified rates, and you’ll still need to qualify, like you would any other mortgage.

Once you select a loan option, you will be asked to provide additional information, and a hard credit pull will take place (these do affect your credit).

If your credit and application pass muster, the mortgage lender partner will provide you with an offer that you can review.

Then you’ll begin the loan process by signing disclosures, providing financial and personal documentation, and so on.

What Types of Home Loans Does Credible Mortgage Offer?

  • They offer home purchase and refinance loans
  • Including conventional conforming and jumbo loan amounts
  • FHA, VA, and USDA loans don’t seem to be available at the moment

Credible has two main mortgage options available – Home Loans, which is designated for purchase transactions, and Mortgage Refinancing, which as the name implies is for refinancing an existing home loan.

This means both prospective home buyers and current homeowners can take out a mortgage using Credible.

In terms of loan types available, I’ve been told that they only offer conventional loans, aka non-government. That means no FHA, VA, or USDA. It’s unclear if that will change soon, but I assume it will.

They also offer jumbo loans, those that exceed the conforming loan limit.

So if your loan scenario fits those criteria, there’s a good chance their lender partners will provide you with pre-qualified rates.

Which Mortgage Lenders Does Credible Work With? And How Do They Get Paid?

  • The first two lenders to join Credible were Quicken Loans and UWM
  • There are now several others including loanDepot and Stearns
  • Credible acts as a mortgage broker and only gets paid if the loan funds
  • They receive a percentage of the loan amount from the lender who closes your loan

While they don’t list all the mortgage lenders they work with, they do displays the logos of Caliber Home Loans, JMAC Lending, loanDepot, Quicken Loans, Stearns Lending, and UWM.

Originally, they started with just Quicken Loans and UWM, so it’s possible there are even more lender partners today.

As noted, you don’t need to work with those companies directly, or talk to anyone at those companies.

Instead, you can continue to complete your loan application on the Credible website, or ask for assistance from a Credible loan officer.

This is similar to how a mortgage broker works – they handle everything and you never actually deal with the wholesale lender providing the financing.

In terms of how Credible gets paid, it’s also like how a mortgage broker gets paid. If and only if the loan funds, they receive compensation from the corresponding lender.

That means they don’t charge you any fees directly, but rather take a cut, which is a flat percentage of your loan amount, such as say 1% or 2%.

For example, on a $500,000 loan they might make $5,000 to $10,000, depending on the terms they have with their lender partner.

Should I Use Credible to Find a Mortgage?

  • If you like the idea of a mortgage broker in terms of shopping around
  • But don’t actually want to deal with a human being
  • Credible could be a good option for your home loan needs
  • Just note that they may not offer all loan types at this time
  • However they do come highly rated by both Trustpilot and the BBB

If you live in one of the states where Credible offers mortgages, you might be wondering if they’re a good choice.

They refer to themselves as “Your trusted online mortgage broker,” which highlights the fact that they aren’t a direct-to-consumer lender. Nor are they a mortgage lender at all.

Rather, they connect you to trusted lender partners and earn a commission if your home loan funds.

As noted, they don’t charge any fees directly, nor do they hit your credit report with a hard inquiry. Despite this, you get to compare real, pre-qualified rates from a variety of lenders in minutes.

So if you aren’t the type to shop around, but still want the benefit of shopping around, you could give them a whirl.

And you can take advantage of their digital platform, which should make the loan process easier, smoother, and quicker.

However, you’re still at the mercy of one of the lenders they match you up with, so customer experiences will certainly vary based on your unique loan scenario and the lender you’re paired with.

Another potential negative is they don’t seem to offer all types of mortgages – those looking for an FHA, VA, or USDA loan may want to search elsewhere until they add those loans to their stable of offerings.

In terms of customer satisfaction, they have an excellent rating on Trustpilot and an A+ rating with the Better Business Bureau.

They could be a good alternative to LendingTree, which provides a similar shopping experience without the ability to complete the loan process on their own website.

Credible vs. LendingTree

Credible LendingTree
Type of business Online mortgage broker Mortgage lead provider
Compare mortgage rates from multiple lenders Yes Yes, but after providing contact info
Get pre-approved Yes No
Credit check Soft pull Soft pull
Do they sell your information? Keep your data private Share with lenders you are matched with
How they get paid When your loan funds After you fill out lead form
How to apply for a mortgage Digital process via their own website Depends on lender you match with

If you’ve checked out Credible, you might be wondering how it compares to LendingTree.

While the pair sound similar, they’re actually pretty different. Credible is an online mortgage broker that matches you up with wholesale mortgage lenders.

And LendingTree is merely a lead generation service that matches you with retail mortgage lenders.

The key difference is that Credible will be your loan guide throughout, and only gets paid once your loan funds.

LendingTree will simply share your information with multiple lenders, at which point you’ll need to pick one to work with. After that, LT is out of the picture.

Credible’s pitch is that you can shop anonymously, whereas LendingTree will provide your contact to multiple lenders upfront.

Additionally, Credible allows you to complete the entire loan process online with the latest digital tools, and even generate pre-approval letters instantly.

However, both services may match you with the same lender. For example, if you use either you could wind up getting your home loan from Rocket Mortgage.

Source: thetruthaboutmortgage.com