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When Halloween rolls around, it’s time to transform your space into a spooky wonderland. Drawing inspiration from the whimsical yet eerie aesthetic that Tim Burton is known for, you can create a haunted yet enchanting vibe. Whether you’re aiming for a full-on fright fest in your Austin, Texas home or just a touch of spooky charm in your Cincinnati apartment or Charleston rental home, these decor ideas will help you bring out your inner Burtonesque style while keeping it playful and festive.

Creative Halloween decor ideas to make Tim Burton proud

Halloween is the perfect time to get creative with your decor, blending spooky vibes with a touch of whimsy. From unique color palettes to gothic-inspired displays, even the most imaginative minds — like Tim Burton himself — would be impressed by these hauntingly captivating setups.

1. Gothic glam garb

For extra flair, without breaking the bank, consider repurposing everyday household items to show gothic glam. “Repurpose vintage vases or drinkware as eerie candle holders, adding a touch of gothic elegance to your home,” Courtney and John Achilli, proprietors of Content + Co. recommend.

They add, “Give new life to thrifted frames by painting them black, filling them with creepy crawly artwork or prints, and creating a Halloween-themed gallery. You can also make your home even spookier by creating a haunting atmosphere with stacks of dusty, vintage books or cut-out creepy images or passages that you can transform into a book of spells.”

Julie Boston, with Capturing Wonderland, emphasizes the beauty of utilizing vintage finds. “Incorporating antique finds like weathered books, brass candlesticks, and old-fashioned lanterns into your Halloween décor is perfect for the vintage-inspired or literary lover. Choose rich, muted tones like burgundy, mustard yellow, and faded black to evoke an old-world charm. Decorate with vintage postcards, old keys, or even literary prints from classic Gothic novels to add a literary twist. Thrifted lace curtains or tattered doilies can create an eerie yet elegant look when paired with aged furniture or dark wood accents.”

2. Skeletons and shadows

Skeletons are a Halloween staple, but how you display them can make all the difference. “Create an eerie yet elegant atmosphere by combining deep purples and blacks with flickering candlelight, as mentioned earlier,” shares Muhammad Muneeb Ali with My Spirit Halloween. “Add vintage, gothic-inspired pieces like candelabras or skull-adorned mirrors for a sophisticated twist. For a hauntingly cozy touch, drape faux cobwebs and spooky garlands around doorways and windows.”

3. Quirky figurines and characters

Add a playful element to your Halloween decor by incorporating spooky but whimsical figurines. Think plush creatures with large eyes, toothy grins, or stitched-up mouths that are more fun than frightening. Look for figurines of bats, witches, or black cats with exaggerated features, creating a Burtonesque twist while keeping it family-friendly. Scatter these characters throughout your home — on bookshelves, by the entryway, or even as table centerpieces.

Image courtesy of Laura’s Books and Blogs

4. Dim and dreamy lighting

Lighting sets the tone for any Halloween setup, and can often be overlooked. “Setting the perfect scene for Halloween starts with the right lighting,” emphasizes Daisies in Clover LLC. “Consider swapping out regular bulbs for purple, green, or orange bulbs in lamps and fixtures throughout your home. String lights with pumpkins, bats, or ghosts are perfect for parties, but even purple fairy lights can take your space from plain to spooky with just the touch of a button.”

It’s essential to consider outdoor lighting too when crafting a ghoulish grouping. “You can never have too many lights, especially outside,” emphasizes Laura Smith with Laura’s Books and Blogs. When it comes to pairing lighting with other decor, Laura recommends getting crafty. “Make your own simple decorations that you can display or give away as gifts, and take into account how much shelf space you have before buying or making more indoor decor and lighting.”

5. Unique colors

“Halloween doesn’t necessarily mean you have to stick to a black and orange theme. You can easily transition to spooky season with non-traditional colors like terracotta, sage, teal, olive green, navy blue, burgundy, plum, or brown to name a few,” Lauren O’Malley with The Styled Abode shares. “For an elegant yet spooky take on Halloween, incorporate lighter tones of neutrals, peach, or pink with pops of black, bronze, or gold. Dress a poseable skeleton in satin or lace, and accessorize with large fresh or dried floral displays, elegant glassware, and plenty of glowing candles.

“If you prefer a dark and moody theme, think deep jewel tones like burgundy, emerald, or maroon and accessorize with metallic pumpkins, black tapered candles in a gold or bronze base, and dark Halloween decor like black spider webs, skulls, and vintage apothecary jars,” O’Malley concludes.

6. Spooky topiaries and dark florals

As Lauren mentioned, florals and topiaries are a subtle way to bring Halloween into your space while keeping it stylish. Create eerie, twisted topiary shapes out of faux plants, like black spirals or gnarled branches. For indoor arrangements, dark florals like black roses, blood-red dahlias, or deep purple hydrangeas make for the perfect haunted bouquet. Place them in worn-out or distressed vases and layer in some fake cobwebs or skull accents for a spooky touch.

For extra decorative flair, craft a Halloween wreath (and save yourself a few cents). “I recently made this Halloween wreath. The use of purple, black, and orange really brings the holiday to light,” Diana Callaghan with Sew Very Crafty shares. “A trip through the Dollar Tree store can give you so many ideas, especially during the holidays, Halloween in particular. Dollar Tree crafts are simple and inexpensive to make, making it my go-to for easy design projects.”

7. Spider web elegance

Consider using black lace or intricate macramé that mimics the web-like designs but in a more elegant fashion. “Cover your pillows and stacks of books (pages front-facing) in black spiderweb lace to create a spooky, haunted effect,” recommends Alexandra of Home with Alexandra. “Drape your yard and house with loads of white webbing too. Place white webbing in your yard and inside for a truly creepy forest atmosphere. With a little creativity and a lot of Halloween spirit, you can create a home that’s as spooky as it is fun.”

8. Seek inspiration

The greatest way to elevate your Halloween decor is to gain inspiration from others. Explore social media, browse Pinterest, or host a decorating contest to discover new and creative ideas that can add a unique twist to your own spooky setup. “Halloween is such a fun holiday,” explains Melanie at Next Phase Parenting.

“A great way for a student to get involved at college is to participate in a decorating contest for their dorm room or apartment! If you only purchase small and flat things, the need for storage is minimal. There are so many great ideas for a small space!” With the right combination of creativity and compact decor, even small spaces can deliver a big, spooky impact that’s perfect for the holiday.

Bring your Halloween vision to life

These Halloween decor ideas will transform your home into a spooky yet stylish setting. By combining gothic elements, playful characters, and haunting details, you can strike a balance between creepy and charming — something that would surely make Tim Burton smile. Whether you want to go all out or keep it simple, these ideas will help you create a Halloween atmosphere that is uniquely enchanting.

Wesley Masters works on Redfin’s stellar Content Marketing team as a content writing specialist. She has been with Rent. since 2023 and her previous experiences include non-profit communications, graphic design, and content creation. Wesley lives in Atlanta, GA, and loves outdoor walks, hanging out with her loved ones, and finding new recipes to try on Pinterest. Her ideal home is a brownstone with contemporary interiors.

Source: rent.com

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The best place to buy a used car — whether it’s a traditional car dealership, used-car website or private seller — depends on your priorities and needs. When you know the various options for buying a used car, along with the advantages and disadvantages of each, it can help you target those that are best for you.

Buying from a traditional used car dealership

If you want to browse a selection of used cars in person, take a test drive and negotiate price, a traditional car dealership may be a good option for you. You can get financing on site, although it’s always best to come with a preapproved auto loan for comparison. Also, the dealership will handle most of the paperwork for you.

On the downside, you can expect higher prices than you’ll find at other places and possible sales pressure from employees driven by quotas and commissions.

Before you visit a dealership, browse their online auto listings and read customer reviews. Also, be aware that different types of used-car dealerships exist, and one may be a better fit for you than another. Here’s a brief rundown:

Franchise dealerships

Franchise dealerships are affiliated with certain car manufacturers, and they sell both new and used vehicles. New cars in their inventory are limited to makes and models of the affiliated car maker, but used cars could be different brands, usually obtained from customer trade-ins. Franchise dealerships also sell certified pre-owned cars (CPO cars), which are used cars of that dealership’s brand. CPO cars have been inspected, reconditioned with factory parts and typically come with the best warranties, so they’re considered to be among the most reliable used cars.

  • If you have a specific make and model in mind, you’re likely to find a better selection at a franchise dealership.

  • Franchise dealerships with CPO cars are an opportunity to buy a used car in like-new condition.

  • This type of dealership usually has a larger network of lending partners to help you find a competitive rate on an auto loan.

  • If you’re looking for a range of makes and models, the used-car lot at a franchise dealership is less likely to offer that.

  • Franchise dealers often have the expense of bigger showrooms and employee teams, which can result in higher car prices.

  • If you buy a CPO car, expect it to have a higher price tag than a non-certified pre-owned car. 

Independent dealerships

Independent dealerships aren’t affiliated with a certain car manufacturer and are usually owned and operated locally. They can be a single location on a corner lot or a full-sized dealership with multiple locations around town.

  • Independent dealerships have a mix of makes and models, since they aren’t affiliated with a specific car manufacturer.

  • Independent dealers usually don’t have as much overhead, so they’re able to sell used cars for less.

  • Smaller independent dealerships may have limited inventory. 

  • Independent dealerships often have fewer financing connections and options, so you may be offered a higher loan rate than you could get elsewhere. 

National used car dealerships

National dealerships have many locations across multiple states. They have a big online presence, with car listings searchable by area and an ability to handle the sales process remotely.

One national car dealer is AutoNation, which has more than 300 locations in 20 states and more than 18,000 used vehicles, including CPO cars, listed for sale online. Another is CarMax with 200-plus stores nationwide and an inventory of more than 45,000 cars listed online. If you aren’t near a national dealer’s location, you can pay to have the car you buy shipped to your home.

  • National dealerships, compared to other types of dealerships, have the largest inventories and variety of makes and models.

  • You can easily search their website listings and manage the entire buying process online. 

  • National dealerships usually have no-haggle pricing.

  • Cars purchased from national chains often come with a limited money-back guarantee and warranty. For example, CarMax allows you to return a car within 10 days of its purchase, and cars come with 90-day or 4,000-mile warranty.

  • If the car you find is located across the country, test driving can be difficult. You might be able to pay to have the vehicle sent to a nearby location for a test drive, with no obligation to buy.

  • If you prefer negotiating on price, that isn’t likely to be an option.

  • Money-back guarantees may not apply for cars delivered to customers out of state, so check the fine print.

Car rental agencies

Car rental companies update their fleet of vehicles every year or two, and many of those cars are sold by their sales divisions. Rental companies have a limited number of used-car dealerships, with available cars also listed on their websites.

  • Used rental cars usually sell for competitive prices.

  • Rental cars have a strict maintenance schedule, which isn’t always the case for other used cars.

  • Rental cars are often sold with an extended warranty.

  • Rental cars may have higher mileage or more wear and tear than other used cars.

  • Inventory for used rental cars is limited, and you may not be able to find a specific make and model.

Buying from online-only used-car websites

Many car-buying websites are operated by companies that don’t have their own car lots or showrooms. These sites differ in how they operate and obtain vehicles, so the best websites to buy used cars won’t be the same for everyone. Here are a few examples:

Online-only used car retailers

Online auto retailers, like Carvana, operate much like a dealership but without traditional dealer locations. They have their own inventory to sell, and they may list cars from dealership partners.

  • Online car retailers have a large inventory and variety of makes and models.

  • The retailer can handle all or most of the car-buying process for you, including financing and title transfer/registration if allowed in your state.

  • Cars purchased from online retailers usually come with a limited money-back guarantee and warranty. For example, Carvana provides a seven-day money-back guarantee (with a limit of 400 miles) and a warranty covering 100 days or 4,189 miles.

  • Prices aren’t typically negotiable, so you can avoid the stress of haggling.

  • You may have to pay to have a car shipped or delivered to your home or other agreed location. 

  • You probably won’t be able to test drive a car until it’s delivered.

  • If you like to negotiate on price, that may not be an option.

Online auto marketplaces

Websites like Autotrader and Cars.com aggregate listings for used cars from dealerships and private sellers. Online aggregators may include listings from sites like CarMax and Carvana.

  • Auto marketplaces provide an easy way to view cars for sale without having to visit multiple websites.

  • Because they pull listings from many sources, these sites can have millions of listings from across the country.

  • Aggregator sites enable you to connect directly with a seller to ask questions or set up a test drive. An identity check is done for private sellers.

  • Since you’re not purchasing from the aggregator, many details — like whether you can negotiate or receive a warranty — will depend on the seller.

  • If the car you find isn’t located nearby, it may be difficult to test drive it.

  • You may have to pay to have a car shipped or delivered to you.

Buying a car from a private seller

Also commonly referred to as a private-party sale, individual car owners are another source for buying a used car. “Cars for sale by owner” can be found through websites like Facebook Marketplace and Craigslist.

  • Negotiating with a private-party seller may be easier than negotiating with a trained salesperson at a dealership.

  • If you’re looking for an exact make and model, you may be able to cast a wide net online and find it for sale by owner.

  • Private sellers won’t push expensive add-ons, like paint protection packages.

  • Since you’ll be responsible for paperwork typically handled by a dealership, buying from a private party is more time-consuming.

  • You’ll need to be cautious to avoid potential scammers.

  • Your car won’t have warranty coverage, unless it’s still covered under the original manufacturer’s warranty.

Auto auctions are another place to buy a used car

Auto-auction businesses provide many used cars to dealerships that then resell them, but some auctions are public so anyone can participate. Auctions may be in person, online or a combination of both.

  • Buying a used car at an auction can be a way to get a good deal.

  • Auctions usually have a wide variety of used cars.

  • If the auction is nearby, you should be able to inspect the car before bidding.

  • Fast-paced bidding can run prices up and cause you to overspend.

  • Auctions usually sell cars “as-is,” so you have no recourse if the car is defective and in need of costly repairs.

  • You typically can’t test drive the vehicle before buying it.

How to find the best place to buy a used car

Ultimately, the best place to buy a used car is wherever you can find the best deal on a reliable vehicle. You can improve your chance of doing that if you follow these basic tips before buying a used car:

  • Look at the car’s vehicle history report, such as Carfax or AutoCheck, for information about the car’s past, such as major accidents, maintenance and title information. Most dealerships offer buyers a free vehicle history report, but you may have to pay for one yourself if you buy from an individual.

  • Enter the car’s vehicle identification number (VIN) on the National Highway Traffic Safety Administration website to find its recall history and see if any problems still need to be addressed.

  • Research the car’s current market value using online pricing guides like Kelley Blue Book or the National Automobile Dealers Association to ensure it’s listed at a fair price. If you’ll be trading in a car, research the trade-in amount you should expect too.

  • Test drive the car to see how it accelerates, handles and drives. Driving a car can alert you to potential problems that might not be evident any other way. Test driving is important, so if it isn’t an option at all — for example, if you buy at an auto auction — it could be a reason not to buy a car that way. 

  • Get the car inspected by an independent mechanic that you trust. Used car inspections cost several hundred dollars, but they can prevent you from later paying thousands of dollars for car repairs. Note that CPO cars receive thorough inspections, so it isn’t necessary to have a separate one. Also, if you have a car shipped to you, make sure to have it inspected and test drive it before any money-back guarantee expires.

Source: nerdwallet.com

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Looking for ways to earn extra cash online? Websites like Freecash can give you many chances to make money from home. You can try surveys, watch videos, play game apps to win real money, and more to earn rewards. These sites give you fun ways to make money in your spare time. Some pay better…

Looking for ways to earn extra cash online? Websites like Freecash can give you many chances to make money from home. You can try surveys, watch videos, play game apps to win real money, and more to earn rewards.

These sites give you fun ways to make money in your spare time. Some pay better than others, so it’s smart to try a few. You might find new favorites that work well for you.

With a bit of effort, you could earn some nice extra spending money each month.

I have earned over 100 free gift cards and PayPal money by using many of the sites below, so I know they are real!

Proof that I made money playing games on Freecash. The $0.05 amounts were rewards for playing 2 minutes each day. The larger amounts like $40, $70, and $150 were for reaching certain levels.

What Is Freecash?

Freecash is a website where you can earn money by doing fun activities online. It’s like getting paid to play! You can make extra cash by taking surveys, trying out new apps, and even playing games on your phone or computer.

Freecash started in 2020 (you can find my full Freecash review here). Since then, lots of people have joined and earned money. In fact, Freecash users have made over $75 million combined!

Here’s how it works:

  1. Sign up for free
  2. Pick an activity you like
  3. Complete the task
  4. Get coins as a reward

Every 1,000 coins equals $1. When you have enough coins, you can trade them for real money or gift cards. You can get paid through PayPal, choose gift cards from places like Amazon or Google Play, or even get paid in crypto (like Bitcoin).

Freecash has many ways to earn:

  • Welcome bonus when you join
  • Surveys that pay $1 for 5 to 10 minutes
  • Games that can pay up to $650
  • Download apps that pay $1 to $75

You can even make money by telling your friends about Freecash. Plus, there are contests where you can win extra cash by being a top earner.

It’s pretty quick to start making money on Freecash. On average, people earn enough for their first payout in just 17 minutes.

I have personally made $302 by playing games on my phone on Freecash in just one week. You can read about it here – How I Made $302.80 Playing Games on My Phone (In One Week).

Click here to sign up for Freecash.

Best Websites Like Freecash

Here’s a quick list of the best sites like Freecash:

Below are the best websites like Freecash to make money.

As you can see here, I have earned 109 gift cards from Swagbucks. This is an old screenshot, I’ve earned a few more since then.

1. Swagbucks

Swagbucks is a rewards platform where you can make side cash online.

I started using Swagbucks years ago, and it’s helped me earn extra cash from home or while traveling. I’ve personally earned over 100 free gift cards through Swagbucks, so I know it’s a real app that pays you!

You can earn points called SB by doing easy tasks. These include taking surveys, watching videos, shopping for cash back, scanning receipts, and playing games. You can also get SB for shopping online or searching the web.

It’s free to join and only takes a few minutes to sign up. The points you earn can be turned into free gift cards, such as to Amazon, Target, Visa, and PayPal.

To play games on Swagbucks, just go to the “Play” tab after logging in. When I logged in, I saw over 20 games I could get paid to play, with a total reward value of $2,264.02 or 226,402 SB points.

Swagbucks won’t make you rich, but it’s an easy way to get some extra spending money. You could use it for small treats or to help pay bills. Give it a try and see how much you can earn!

If you join Swagbucks through my referral link, you can receive a $10 bonus.

Recommended reading: Swagbucks Review

2. KashKick

KashKick is a Get Paid To (GPT) site that pays you for doing simple tasks like taking surveys and playing games. It’s free to join and easy to use.

One of the best things about KashKick is the variety of games you can play. You might try Monopoly GO, Yahtzee, or Bingo Blitz. Some games can even earn you over $100 if you reach certain levels.

Example: Here’s how you can make money playing Monopoly Go on KashKick: Install the game (make sure to allow tracking on your device!) and reach Board 27 within 8 days to get $30. If you reach Board 42 in 12 days, you’ll earn an extra $40, and if you reach Board 71 in 24 days, you’ll get another $50. Altogether, you can earn $120!

Surveys are another good way to earn on KashKick. You’ll answer questions about products and services, and each survey usually takes less than 20 minutes and pays between $1 and $5.

When you’re ready to get paid, KashKick uses PayPal. You need to earn at least $10 before you can cash out.

Please click here to sign up for KashKick for free.

Recommended reading: KashKick Review

3. InboxDollars

InboxDollars is a popular site that pays you for doing fun online tasks. You can earn money by taking surveys, watching videos, and playing games.

It’s easy to use and free to join.

InboxDollars pays through PayPal cash and free gift cards to places like Amazon, Apple, Target, Dunkin’ Donuts, Lowe’s, Barnes & Noble, and Gap.

Sign up for InboxDollars here and get a free $5 bonus.

4. PrizeRebel

PrizeRebel is a great choice if you’re looking for a site like Freecash.

You can take surveys, play games, watch videos, and shop to earn points. Some of the games on PrizeRebel include Bingo Blitz, Solitaire Grand Harvest, Age of Apes, Kingdom Guard, Yahtzee, Woody Sort, Viking Rise, and others.

These points can be turned into cash (PayPal money) or free gift cards.

Like Freecash, PrizeRebel also has a referral program so you can earn extra by inviting friends to join.

You can sign up for PrizeRebel here.

5. MyPoints

MyPoints is a popular rewards site that lets you earn money in different ways, just like Freecash. You can take surveys, play games, and shop online to get points.

To get paid to play games on MyPoints, log in to your dashboard and go to the “Games” tab. There, you’ll find games like Bejeweled, Bingo, Catch 21, Puzzle Match, Wheel of Fortune, and more.

You can sign up for MyPoints by clicking here.

6. Survey Junkie

Survey Junkie is a popular website where you can make money by taking online surveys. They don’t have games to play like Freecash, but they have a lot of surveys that you can answer in your free time.

It’s easy to use and free to join. You can earn points for each survey you complete.

The surveys on Survey Junkie cover many topics. You might answer questions about products, brands, or your daily habits. Most surveys take between 5 and 20 minutes to finish.

You can sign up for Survey Junkie here.

7. Branded Surveys

Branded Surveys is an easy way to make some extra cash in your free time by answering surveys.

Each survey can pay you between $0.50 and $5. The amount you get depends on how long the survey takes, and most surveys only take 5 to 20 minutes to finish.

You can also earn points by inviting friends and answering a quick daily poll. If you’re really active, you might even win bonus points on their leaderboard.

Once you have 500 points, you can cash out. That’s equal to $5. You can choose to get paid through PayPal or pick from over 100 different gift cards.

You can sign up for Branded Surveys here.

8. Scrambly

Scrambly is a popular GPT site where you can earn money by doing simple tasks online. It’s a lot like Freecash and other reward sites.

On Scrambly, you can make money by taking surveys, playing games, and trying out new apps. These are quick and easy things to do in your free time.

When you finish tasks, you get points. You can trade these points for real money or gift cards. Some popular gift card options are Amazon, Walmart, and Starbucks.

One good thing about Scrambly is that it has a low cash out minimum of just $1. This means you don’t have to wait long to get your rewards and you can get paid pretty quickly.

Please click here to sign up for Scrambly.

Frequently Asked Questions

Below are answers to common questions about websites like Freecash.

What are some other websites like Freecash where I can make money?

My favorite websites and apps like Freecash are Swagbucks, KashKick, InboxDollars, PrizeRebel, and MyPoints. These sites let you earn money by doing tasks online such as by taking surveys, watching videos, playing games, and more.

What’s better than Freecash?

Swagbucks is a popular choice and I have been active on this site for years. It has many ways to earn and has paid out over $500 million. You can get cash back for shopping, take surveys, and play games. Some people like it better because it has more options to earn money.

How much money can you typically earn using sites like Freecash?

The amount of money you can make on sites like Freecash can vary, but most people make $1 to $5 per day. Some people are able to make $10 to $15 daily. It depends on how much time you spend and which tasks you do. I definitely don’t think you should expect to get rich, but you can earn some extra cash.

What are some tips for maximizing earnings on websites that pay cash for tasks?

To make the most money on sites that pay cash for tasks, I recommend doing the highest-paying tasks first and checking for daily bonuses. Also, try different types of tasks to see what pays best for you. For some people, it may be playing games, and for others, it may be answering as many surveys as possible.

How much can you earn with Freecash?

Freecash pays an average of around $15 to $30 per day (it depends on the day). Your earnings can be higher or lower. It depends on the tasks you do and how much time you spend. Some users make more by doing lots of tasks every day.

Which is better, Freecash or Swagbucks?

Both Freecash and Swagbucks have pros and cons. Swagbucks has more ways to earn and has a longer history. Freecash might have better payouts for some tasks like playing games. Try both to see which you like better, or you can simply just use both at the same time. For me, I really like both Freecash and Swagbucks.

Websites Like Freecash – Summary

I hope you enjoyed my article where you learned about other websites like Freecash.

If you’re looking for easy ways to make extra money online, websites like Freecash have many options. You can earn money by doing surveys, playing games, watching videos, and trying out apps.

These sites won’t make you rich, but with some effort, you can earn a little extra money each month.

I have personally earned over 100 free gift cards as well as PayPal cash by using many of the sites listed in this article. They are all real.

Here’s a quick summary of my top websites like Freecash:

Plus, you can join Freecash for free here too.

What are your favorite sites like Freecash?

Recommended reading:

Source: makingsenseofcents.com

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There’s no question that furthering your education can be an expensive endeavor. But depending on what you study, students in some majors can expect to pay a significantly higher price than others.

If your goal is to study law, medicine, or veterinary medicine, for example, and you plan to get a graduate degree, you could end up owing five or six times more than the average person with a bachelor’s degree.

Whether you choose your major out of passion or for the potential paycheck — or both — only time will tell if you’ll get the outcome you’re hoping for. In the meantime, it can be a good idea to look at how much you might have to borrow to finance the course of study you’re considering.

Student Loan Debt in America

How much do student loan borrowers in the United States owe after college?

According to the Federal Reserve’s most recent numbers, outstanding U.S. student loan debt reached $1.74 trillion in the second quarter of 2024. That’s nearly triple what the Fed says Americans owed in 2006.

Gen Xers have the most student loan debt out of any other generation, with an average balance of $44,290 per borrower. Baby boomers have the second-largest amount at $42,520 per borrower, and millennials average $32,800 per borrower.

And the United States isn’t the only country with a high amount of student debt. In England, the value of outstanding loans reached £236 billion (approximately $261 billion in U.S. dollars) at the end of March 2024. The government there forecasts the value of outstanding loans will be around £500 billion (approximately $553 billion in U.S. dollars) by late 2040s.

While student loan forgiveness and other reforms are often discussed here and abroad, little is happening so far.

Recommended: Average Student Loan Debt: By Career

Average Student Loan Debt

According to the Education Data Initiative, the average federal student loan debt balance is $37,853 per borrower. And if you include private loan debt, the average balance may be as high as $40,681.

Of course, the amount you might borrow (or have borrowed) could vary significantly depending on your major and the degree required to pursue your chosen profession.

The average student loan debt for a borrower with a bachelor’s degree, for example, is about $30,500. But if your major moves you on to a graduate degree, the cost can move on, as well — to an average of $65,667 for the graduate degree only ($84,203 on average in total student loan debt). And if you’re thinking about a degree in law or medicine, your debt could be in the hundreds of thousands.

Federal student loan programs also allow graduate students to borrow more money than undergraduates. Though there’s a $31,000 cap on federal loans for undergraduate students who are dependents, graduate students may be eligible to borrow up to the full cost of attendance through the federal Grad Plus program.

Other factors that affect the amount students end up borrowing can include the cost of living in the state where the school is located, whether the school is public or private, and whether the student is paying in-state or out-of-state tuition.

Recommended: How to Pay for College

Student Loan Debt by Major

When you first start thinking about how to choose your college major, it’s likely you base your top choices on the academic subjects you’ve always been good at or things you’re interested in. Maybe you have a passion for a subject you feel destined to pursue.

If you’re a practical person, you also may have considered what career that degree might potentially lead to, and how much you’d earn if it became your profession.

What you may not have thought about — at least not at first — was how much it might cost you to major in one subject vs. another. Or if you might have to get an advanced degree in your major to actually get the job, or paycheck, of your dreams.

Here’s a look at the average student loan debt for some popular degrees:

Law Degree

$160,000 upon graduating

74% graduate in debt

Medical Degree

$243,483 upon graduating

73% have educational debt

Recommended: What Is the Average Medical School Debt?

Dental School

$296,500 upon graduating

82% take out student loans

Nursing

Associate Degree in Nursing (ADN): $23,302

Bachelor of Science in Nursing (BSN): $28,917

Master of Science in Nursing (MSN): $49,047

Almost 70% take out student loans.

Recommended: A Look at the Average Cost of Nursing School 

Business Administration

$41,000 to $170,000 for MBA students

54% of MBA graduates take out loans

Architecture

$40,000 in debt

(% who borrow not available)

Veterinary Medicine

$179,505 on average

82% graduate with debt

Pharmacy

$167,711

82.2% take out student loans

Education/Teaching

$55,800

45% take out loans

Communication/Journalism

Bachelor’s degree: $31,651

Master’s degree: $27,911

(% with loans not available)

Associate Degree Debt by Major

Below is the average debt of students graduating with an associate degree based on major, per Education Data Initiative:

•   Alternative and Complementary Medicine and Medical Systems: $38,533

•   Computer Systems Analysis: $27,924

•   Behavior Sciences: $21,859

•   Construction Management: $19,423

•   Marketing: $16,628

•   Animal Sciences: $12,705

•   Education, General: $11,035

•   Engineering, General: $10,299

•   Biological and Physical Sciences: $7,591

Bachelor’s Degree Debt by Major

Below is the average debt of students graduating with a bachelor’s degree based on major, per Education Data Initiative:

•   Behavioral Sciences: $42,822

•   Computer Programming: $28,586

•   Education, General: $28,001

•   Music: $26,600

•   Architecture: $26,468

•   Construction Engineering: $26,025

•   Social Work: $24,863

•   Accounting and Related Services: $24,086

•   Economics: $20,700

•   Human Biology: $17,994

•   Science Technologies/Technicians, General: $9,529

Master’s Degree Debt by Major

Below is the average debt of students graduating with a master’s degree based on major, per Education Data Initiative:

•   Advanced/Graduate Dentistry and Oral Sciences: $158,155

•   General Sales: $104,650

•   Real Estate Development: $97,023

•   Landscape Architecture: $80,409

•   International Business: $65,052

•   Public Health: $48,726

•   Engineering Science: $45,887

•   Insurance: $43,408

•   Construction Management: $37,620

•   Engineering, General: $33,235

•   Education, General: $29,434

Doctoral Degree Debt by Major

Below is the average debt of students graduating with a doctoral degree based on major, per Education Data Initiative:

•   Pharmacy, Pharmaceutical Sciences, and Administration: $310,330

•   Psychology, Other: $187,804

•   Public Administration: $146,194

•   Health and Medical Administration Services: $101,589

•   Education, General: $82,131

•   Biology, General: $42,879

Federal vs Private Student Loan Debt

As these student loan debt statistics show, the rising cost of attending college can be a heavy financial burden for many Americans. And because there are limits on how much students can borrow in federal loans each year, many turn to private student loans to help cover their education bills.

The national private student loan balance now exceeds $128 billion, according to EducationData.org, which says 88.93% of that balance is in undergraduate loans and 11.07% is in graduate student loans.

Private student loans are a pretty small piece of the overall outstanding student loan debt in the United States — about 8.84%. But the number of students taking out private loans is growing. Student loan borrowers owe 71% more in private student loan debt than they did a decade ago, the Student Borrower Protection Center reports.

Recommended: Private Student Loans vs Federal Student Loans

The Takeaway

No matter what your major is, there’s a good chance you may have to take on some debt to get the education you need and want.

And the final bill could be substantial: The average federal loan debt balance is $37,843 per borrower, but if you choose a major that requires a graduate degree, it could be two or three times that amount, or more.

Most student borrowers use federal loans to help pay for their education. But a combination of federal and private loans may be necessary to cover all your costs.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How much student loan debt is there in the United States?

According to the Federal Reserve’s most recent numbers, outstanding U.S. student loan debt reached $1.74 trillion in the second quarter of 2024.

What is the average U.S. student loan debt per student?

According to Education Data, the average federal student loan debt balance is $37,843 per borrower. If you include private loan debt, the average balance may be as high as $40,681.

Who owns the most student debt?

The federal government — or, more specifically, the U.S. Department of Education — owns about 92.5% of all student loan debt in America.

Photo credit: iStock/FabrikaCr

SoFi Private Student Loans
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SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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SOISL-Q324-055

Source: sofi.com

Apache is functioning normally

Moving out of your parents’ house for the first time can feel exciting. Freedom, peace, and no one telling you what to do. But in reality, it’s not as easy—or as cheap—as it looks. There are hidden costs you may not have considered, and careful budgeting is key. You’ll also need to save enough money before making the leap to your own place. So, how much should you have saved before taking the plunge? Let’s break down the costs and help you figure out exactly how much you need to move out on your own.

So, how much money should you save before moving out?

Moving out is more expensive than you might think. While the cost of moving and monthly rent payments certainly factor into the cost, there’s so much more to consider. The actual amount varies depending on the person, but the general recommendation is to have six months worth of living expenses saved up before you move out and live on your own. Obviously, this can vary widely depending on where you live, as the cost of living in an apartment in Waco, TX pales in comparison to what you’ll pay in a San Francisco apartment. Let’s break down some of the expenses you’ll have to account for.

First, assess your current spending

Before you determine how much money you’ll need to move out, it’s crucial to evaluate how much you’re spending right now. Start by reviewing your last six months of bank statements. Break down your expenses into categories such as transportation, entertainment, food, and subscriptions. This will help you see what your monthly spending looks like and where your money is going.

Don’t overlook debts. If you’re making regular payments on student loans, a car, or credit cards, consider how these obligations will affect your ability to pay rent and other living expenses. If your current debt load feels overwhelming, try to pay down some of it before making the move to your own place. Understanding your current spending habits will give you a solid foundation to start building a budget for life after you move out.

Determine how much rent you can afford

One of the most important steps in moving out is determining how much rent you can realistically afford. A common reccomendation is that you should be spending no more than a third of your monthly take-home income on rent. To figure this out, start by calculating your monthly income after taxes. Multiply that amount by 0.30 to get the maximum rent you should consider. For example, if you take home $3,000 per month, you’d aim to spend no more than $900 on rent.

Keep in mind, this 30% rule is just a guideline. If you have other significant financial commitments, like loan payments or savings goals, you may need to adjust your rent budget accordingly. On the other hand, if you’re in a lower-cost area or sharing rent with roommates, you might be able to afford a higher percentage.Take a look at the average monthly rent in the city or area you wish to find a place. This will give you an idea of where you can afford to live and how much you’ll expect to pay.

Budget for additional upfront fees 

Rent is just one part of the cost of leasing your first apartment. Before you even move in, you’ll need to prepare for several upfront fees. These expenses can catch you off guard if you’re not aware of them, so it’s important to budget for them alongside your rent.

Common fees include:

  • Application fee: Often ranging from $50 to $100, this fee covers the cost of processing your rental application.
  • Background check fee: Landlords typically charge between $35 and $75 to run a background check as part of the rental process.
  • Credit check fee: This can cost anywhere from $30 to $50, depending on the landlord.
  • Security deposit: Usually equal to one month’s rent, but it could be as high as two months’ rent in some cases. This deposit protects the landlord in case of damage or unpaid rent.
  • First and last month’s rent: Many landlords require both upfront to ensure you don’t skip out on the lease.
  • Move-in fees: These can range from $100 to $500, depending on your building, and are meant to cover elevator usage or building staff during your move.
  • Pet fees: If you have a pet, expect to pay a pet deposit or pet rent. Deposits may range from $200 to $500, while pet rent could add $25 to $50 per month to your rent.

Altogether, these fees can add up quickly, so be sure to include them in your budget as you plan for your move. By knowing what to expect, you can avoid surprises and make the transition to your new home smoother.

Factor in basic apartment necessities

But all those fees aren’t the only things you’ll need for your first month. Your apartment is empty, your cupboards are bare. You’ll need to stock up on cleaning and cooking supplies.

Before you settle in, you’ll need to shop for toilet paper, tissues, paper towels, garbage bags, laundry soap, dishwashing liquid, all-purpose cleaner, lightbulbs and other apartment essentials.

Don’t plan on ordering food every night, as that cost can add up quickly. You’ll have to cook at home to keep expenses down. In the kitchen, the cabinets and fridge will need to be filled with basic necessities like flour, sugar, baking soda, and vegetable oil, not to mention cookware. Be prepared to pay upwards of $200 to fill your pantry and supply closet.

Don’t forget utilities and recurring expenses

As soon as you move in, you’ll have to start to pay your monthly bills for recurring expenses. Utilities will consist of your electric bill to run your heat, air conditioning and appliances, your water bill and (in some apartments) a natural gas bill. Expect to pay between $125 and $175 a month in basic utilities.

There are additional monthly utility costs, as well, including internet access and cable or streaming services. If you’re cutting the cord and can still stay on your parents’ Netflix and Hulu account, you’ll save a ton, but you’ll still need an internet connection from your cable company or another provider.

You might also face monthly fees for garbage pickup, recycling, sewer and even parking. And don’t forget about your cell phone bill.

Do some research on the average costs of these services in the area to which you’re planning to move, and calculate how they fit into your budget. Pay all your bills on time, and don’t make the mistake of falling into debt and ruining your credit score.

Moving costs

Then there’s the cost of actually moving. Depending how much stuff you have, how much furniture you’re bringing with you and how far away you’re moving, your costs will vary. The average cost of hiring a moving company. Save some cash by having friends help or borrowing a truck.

Regardless of your furniture situation, you’ll need to budget for some. Even if you’re simply moving your own furniture into your new apartment, you’ll likely need to rent a moving truck or hire professional movers to haul that bed, couch and other large items.

If you decide to buy new furniture, try to keep costs down by hitting thrift stores and Facebook Marketplace. Renting a partially furnished apartment may be a more efficient option even if you’ll pay a bit more in rent.

Account for lifestyle costs

When you move out of your parents’ house, your lifestyle expenses are likely to increase. Beyond rent and utilities, you’ll need to account for everyday living costs that can add up quickly. These include groceries, transportation, entertainment, dining out, and personal items like clothing or toiletries.

If you’re used to sharing household responsibilities or having meals provided, managing all of this on your own can be an adjustment. Groceries alone can be a significant expense, especially if you’re not accustomed to meal planning or cooking at home. You’ll also need to factor in transportation costs, whether it’s fuel for your car, public transit passes, or rideshares.

It’s also important to think about how you’ll spend your free time. If you’re someone who enjoys going out frequently or spending on hobbies, you’ll need to adjust your budget accordingly to ensure you can maintain the lifestyle you want while still covering your essentials.

Keep an emergency fund

Aside from all that, you should put away as much as you are able in case of emergency or job change. Always keep somewhere between $500 and $2,000 aside for unexpected health, car or other circumstances — and don’t touch it.

Ready to move? Make sure you’re financially prepared

Now that you know the true cost of leaving the nest, you can compare it to your paycheck and determine if you can afford to move out, how much rent you can manage and how much you must save. Remember, you’ll need to be able to cover six months of these expenses to be comfortable. The last thing you want to do to yourself is miscalculate your expenses and have to move back in with your folks.

Source: rent.com

Apache is functioning normally

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Well, it looks like we’re here in another US election year already. 

As Advanced Mustachians, we already know that the ongoing battle of Harris vs. Trump should not be consuming much of our time.  Sure, we do our research and cast our votes but after that we move right on to focus on other things within our own circle of control.

But out of all the things the politicians like to bicker about, there’s one area where MMM does need to set the record straight, and that area is of course money. Your money, the economy in general, and the overall wealth of the nation. 

Politicians are already not known for being the sharpest tools in the shed when it comes to technical stuff like science, technology, or economics. But this year the discourse has become particularly dumb, as our candidates try to manipulate undecided voters in swing states with ideas that are based on irrational emotions rather than sound economic sense. 

For one particularly funny example, you may have noticed that the competing party (Trump in this case) is attacking the incumbents (Biden/Harris) over the “bad economy.” When in fact the US economy is stronger than it has ever been, with the lowest unemployment we’ve ever seen as well. 

It’s hard to imagine a better situation than we have right now, and in fact the recent bout of higher inflation is a sign that things have been going too well, and we needed to step on the brakes with the help of higher interest rates. 

But somehow the people still seem to believe that we have a “bad” economy. Take a look at this Gallup poll showing that while most people (85%) are doing really well right now, they assume that it’s just their own good fortune – only 17% believe the economy is doing well. 

This is mathematically impossible, because if most people are doing well, that’s the definition of a good economy! And suspiciously enough, this widespread wrongness correlates quite nicely with the rise of social media misinformation.

–

So the politicians and the news have been doing the opposite of what they should be doing in an ideal situation (sharing accurate information). And sure, we can always just ignore their speeches and go on with our lives. But when it comes to economics, knowledge is power (and money). The more accurately we understand how things really work, the wealthier we will all become.

So with all that in mind, I hereby present you with my list of the… 

Top Dumb Things Politicians Want You To Believe About The Economy

1: The President Controls the Economy

If there’s a recession, the opposition party likes to blame it on the current president. If the economy is booming, the current president likes to give himself (or possibly soon herself) credit for all of that success. But really, the US economy is way too big – and thankfully way too free – for the president to control or really even influence all that strongly. 

In reality, our economy is a gigantic machine which converts labor and materials into things like iPhones, hospitals and pumpkin pies. And although we’re the biggest economy at 26% of the planet, we are still heavily influenced by that much bigger 74% of economic activity that the other 7.6 billion people on Earth are busy producing everywhere else.

When we have our inevitable little boom and bust cycles, they are mostly caused by the normal cycle of irrational exuberance (and greed) like the 2007 housing boom, followed by brief periods of extreme fear and pessimism like the 2008-2012 financial and housing crash. 

The government does play a role too, by setting tax rates and other rules. But the effects of these policies are usually so delayed and unpredictable, that you can’t draw a straight line between today’s president and today’s economy. In other words, the government does its best to adjust the rudder on our giant ship, but in the short term our economy lurches around on the waves and storms of the ocean.

2: The President Controls Interest Rates

This one is especially funny to me, as our candidates feign sympathy for the hard life of middle class Americans, who now face higher borrowing costs on their credit cards and car loans and mortgages. They claim they will fight to bring the interest rates down. Trump even goes as far as bullying our Federal Reserve board members (who can only do their jobs if we allow them to function as independent experts) and suggesting that he would take over the whole department, if elected.

The real story is that while monetary policy would be a terrible tool to leave in the hands of a sitting president (see Argentina), it does function as an excellent set of gas and brake pedals for the economy if used properly. When things slow down and unemployment gets too high, a cut to the interest rates will produce a boost in everything from new jobs to stock prices. But if things get too hot, you get rapid inflation which can mess up the system.

3: Inflation has Made Life Harder for Americans (and the President Can Magically Reverse it)

This line of reasoning is even dumber than the last one. For a couple of years after the Covid era, we had rapid inflation. It was caused by a rare combination of a goods shortage caused by things like factory closures and remote work, plentiful demand from government stimulus spending and low interest rates. These factors have since ironed themselves out, and inflation is back down to an ultra-low 2.4%.

Steve Ballmer explains the inflation vs wages debate in his useful new video series called USA Facts (see note below)

But most significantly, wages have still risen faster than inflation so we are all better off than before! Since 2019, overall prices are up 19% and our wages are up 21%. So even after all that inflation, we are still doing just fine. But the candidates are still bickering over inflation as if it’s an actual problem, and even worse promising to “bring prices back down”. And they’ve managed to convince the electorate that “higher wages and prices” is the same thing as “a bad economy”. Which is just plain wrong.

Bonus dumbness: politicians also occasionally blame “greedy corporations” for increasing prices to hoard profits. While price increases are totally acceptable in a market system (as a business owner you are free to set prices wherever you like), in reality it doesn’t usually happen because our markets are too competitive. For example, a recent deep analysis from NPR showed that no, grocery stores haven’t made any windfall profit at all off of this recent bout of Covid-fueled inflation.

4: The President Controls Housing Prices

One important thing that has changed over the past ten years is that US house prices and rents have both risen much faster than general inflation and even wages. On the positive side, interest rates have also risen which tends to make houses feel more expensive and is supposed to help bring house prices down. But it hasn’t happened yet which means we have the double whammy of higher prices and higher interest costs for mortgage borrowers. 

The dumb part is that our candidates are proposing things that would make the problem even worse, like subsidies for first-time homebuyers or schemes to reduce the interest rates. When really the solution is to increase the supply of housing, which I personally think will happen if we stop putting up roadblocks for homebuilders (myself included) to build housing. 

Things like faster and cheaper permits, less onerous and expensive building codes, eliminating suburban-style zoning and setback and car parking rules, and changing laws so that NIMBYs no longer get any say over what other people do with their own land could all help reduce the cost of building a house by about 50%, quickly and permanently.

5: The President Controls Gas Prices, and They Are Currently “High” and We Want Them Lower

Ahh, gasoline! The most ridiculous of things to worry about and the fuel for many of MMM’s rants since 2011. 

First of all, on an inflation-adjusted basis, gasoline is still about the same price as it was in 1950: in the $3-4 range per gallon, in today’s dollars. 

Secondly, it is so cheap that even with our huge inefficient American vehicles, the average household is still only spending 2.5% of their disposable income on the stuff! (The funny part is that they spend many times more on the rest of the car ownership experience while thinking gas is the part that is expensive)

Third, gasoline has been obsolete for almost a decade now. You can get a used electric car for less than the price of a comparable used gas car, or if you’re a fancypants money waster like me, new EVs are also cheaper than their gas counterparts. You get a faster, nicer car that almost never needs maintenance OR gasoline, and save money.

So why are we even still talking about this antique fuel of a previous era? Why aren’t the candidates also arguing over the price of Kodak film or typewriters or fax machines?

6: The Economy is Something We Should Even Worry About

The funniest part about all this economic talk is that we’re focusing on the wrong thing. While hard work and business and advancing the frontiers of human knowledge are all fun things, the reality is that we passed the point of having “Enough” decades ago. When the American middle class complains about how hard we have it these days, it’s like a bunch of overfed people at a buffet wishing they could just have one more flavor of donuts stacked onto the table.

Yes, we have income and wealth inequality so that the rich tend to get richer more quickly. And yes, we should keep that in check with a somewhat progressive tax system because a more equal society tends to be a more peaceful and happy one. 

But have you noticed that as the rich people get richer, they don’t get any happier? It’s because after you pass the point of “Enough”, adding more money doesn’t really help much. 

And “Enough” is much more defined by your mindset (and your collection of life skills) than your paycheck. So if the politicians really cared about improving our happiness and wellbeing, they’d be preaching the Principles of Mustachianism rather than pandering to the specific requests of coal miners or billionaires.

But alas, winning an election is a very different thing than proposing stuff that is actually best for the country. And for that reason, we cast our votes for the best party and then tune back out until the next election.

Happy voting!

In the Comments: Has the election season been getting you down, pumping you up, or just giving you a thorough dose of “Meh”?

Further Reading/Watching: 

While researching economic stats for this article, I came across a quirky but informative series of videos called USA Facts by none other than Microsoft co-founder Steve Ballmer. It seems that he had the same frustration as me: Americans are fighting over a bunch of opinions and misinformation without even bothering to look up the actual facts. So he made a well-produced series of videos that just share the facts without the baggage of political hype on top of them. I wish our politicians could do the same thing!

Bonus Podcast based on this article!
Thanks to the magic of AI, you can direct the wizardry within Google to generate a custom-made podcast on almost anything on the Internet. A reader just emailed me this take on this episode – remarkably human-like and even entertaining!
https://notebooklm.google.com/notebook/0e1d0af8-8888-466c-abe4-8b1da8986773/audio

Source: mrmoneymustache.com

Apache is functioning normally

Homeowners who purchased in the last year or so could drive themselves nuts trying to find the perfect time to refinance. After all, it hurt bad enough to miss out on those once-in-a-lifetime low rates of 2020 and 2021, and it’s hard to pull the trigger when refinancing today could potentially mean missing out on even lower rates next week.

This week was a great example of how much mortgage interest rates can change in a short window of time. The 30-year fixed-rate mortgage rate spiked 21 basis points to an average of 6.4%. That’s a whopping 51 basis points more than in the week ending Sept. 19, immediately following the last Federal Reserve meeting. A basis point is one one-hundredth of a percentage point.

Rather than waiting for rates to hit their lowest, homeowners may be better off calculating what rate would give them a reasonable break-even point — the number of months or years it would take to recoup the refinancing costs — and make that their goal.

For instance, suppose a borrower got a $300,000 30-year conventional mortgage in early October 2023 at a rate of 7.5%, which was typical for that time. Refinancing to 6.12% — the average rate posted by Freddie Mac on Oct. 3, 2024 — would result in monthly savings of nearly $300 and savings of $80,155 over the entire life of the loan. Assuming the borrower pays $6,500 in closing costs, the break-even point would be 22 months, or just under two years.

Explore mortgages today and get started on your homeownership goals

Get personalized rates. Your lender matches are just a few questions away.

Won’t affect your credit score

Even small rate changes affect refi opportunities for millions

While Fed watchers are predicting further cuts to the federal funds rate through the rest of this year, mortgage rates don’t have to vary much to create sizable implications for the refi market. According to an October report from real estate tech firm ICE Mortgage Technology, rates falling from 6.4% in August to 6.1% in September grew the number of households who would benefit from refinancing by 1.3 million. An additional mortgage rate drop of 25 basis points (which is within a fair range of normal weekly or even daily changes) would add another 1.2 million to that pool of potential refi candidates.

On the flip side, an Oct. 9 Zillow analysis of homebuying data estimates that approximately 275,000 more households would benefit by refinancing at 6.1% than at 6.6%. According to Zillow, that 0.5-percentage-point rate increase represents a combined loss of over $6 billion in potential refinance savings over five years.

What to do if you’re thinking about refinancing

If you find that refinancing may soon be on the table after you’ve calculated your target rate, you can prepare by getting your financial profile in shape. Get a copy of your credit report, and contact the credit reporting bureaus if you note any mistakes. Pay down existing debts as much as possible, as lowering your debt-to-income ratio will make you a more attractive borrower and can get you a lower interest rate. You should also avoid making any large purchases on credit, like buying a new car or financing new furniture.

Additionally, if you’ve only recently purchased your home, review your closing contract to see if there’s a prepayment penalty for refinancing before a certain number of months have passed. If you’re stuck with that fee, you’ll want to factor that into your break-even calculations and see if that affects your goal rate.

Explore mortgages today and get started on your homeownership goals

Get personalized rates. Your lender matches are just a few questions away.

Won’t affect your credit score

Source: nerdwallet.com