financial

Apache is functioning normally

The Federal Housing Finance Administration is looking to make it easier to put entities and people into its Suspended Counterparty Program, a proposed rule change states.

This would require Fannie Mae, Freddie Mac and the Federal Home Loan Banks to report to the FHFA any individual or company they do business with that committed “certain forms of misconduct” in the past three years. The current program was established by FHFA letter in June 2012 and amended in December 2015.

Today, the SCP list is limited to those that have committed and are convicted of criminal offenses. “However, in FHFA’s experience of administering the SCP, it has determined that this standard is too narrow; specifically, it does not authorize suspension of counterparties that have been found to have committed various forms of misconduct in the context of civil enforcement actions,” the proposed amendment to the rule said.

It is looking to broadly expand the definition of misconduct “to all manner of civil enforcement proceedings,” including cases before administrative law judges, as well as qui tam actions (also known as whistleblower cases) such as those brought under the False Claims Act.

While many of those civil cases are settled without an admission of misconduct, the proposal noted, the change could allow the FHFA to put those entities on the SCP list. “FHFA has determined that it is appropriate to permit suspension where enforcement claims are resolved without admission of misconduct,” the proposal said.

For example, in the most recent qui tam settlement involving Movement Mortgage, the company specifically did not admit any legal liability for the False Claims Act violations. 

Other changes would allow for placement on the SCP for criminal or civil misconduct in connection with the management or ownership of real property.

“Amending the Suspended Counterparty Program will help strengthen FHFA’s ability to protect its regulated entities from business risks presented by individuals or institutions who engage in misconduct,” said Director Sandra Thompson, in a press release. “The proposed rule will strengthen FHFA’s ability to ensure the regulated entities remain safe and sound so they continue to serve as reliable sources of liquidity.”

The changes would also create an ability to vacate suspension orders in certain circumstances.

Currently, the SCP list has 170 individual or company names, most of which have a definitive end date for the suspension. The person on the list the longest time, starting on April 15, 2013 with an indefinite suspension, is Lee Farkas, the convicted mortgage fraudster who ran Taylor, Bean & Whitaker.

First Mortgage and its convicted founder and chairman Ron McCord — a former Mortgage Bankers Association chairman — are both also on the list. Live Well Financial, the defunct reverse mortgage lender, was the most recent addition.

This proposal will be opened for a 60-day comment period once it is published in the Federal Register.

Source: nationalmortgagenews.com

Apache is functioning normally

Mortgage applications increased 1.8% for the week ending Nov. 19, despite higher rates, according to the Mortgage Bankers Association (MBA) survey published on Wednesday.

The increase was mainly driven by the purchase index growing by 4.7% from the previous week, on a seasonally adjusted basis. Concurrently, the refinance index grew by 0.4% from the week prior.

Joel Kan, the MBA’s associate vice president of economic and industry forecasting, said in a statement that purchase activity increased for the third straight week, as housing demand remains robust, even as the housing market approaches the typically slower holiday season.

“Both conventional and government loan applications increased, and the average loan size for a purchase loan was at $407,200, continuing its ongoing 2021 run of being mostly above $400,000,” Kan said.

Regarding refi activity, Kan added that “borrowers continue to lock in mortgages in anticipation of higher rates in the future.”  

How lenders can turbocharge mortgage operations for today’s home buyers

For lenders, the past few months have been placed a strong emphasis on purchase originations. In light of this, HousingWire sat down with Saleforce’s Global Head for Mortgage and Lending, Geoff Green, to learn how lenders can better turbocharge mortgage for today’s home buyers.

Presented by: Salesforce

However, mortgage applications declined across the board in comparison to a year ago. The overall market composite index dipped 24.5% on a seasonally adjusted basis. Meanwhile, “refis” apps fell 33.6% year-over-year, and purchase apps decreased 6% in the same period, a symptom of even lower levels of inventory.

According to Khan, financial markets continue to discern the Federal Reserve’s policy in light of the current high growth, high inflation environment.

The trade group estimates the average contract 30-year fixed-rate mortgage for conforming loans ($548,250 or less) increased to 3.24%, four basis points higher than the previous week. For jumbo mortgage loans (greater than $548,250), it went to 3.28% from 3.26%.

Refi represented 63.1% of total applications, up from 62.9% the previous week. VA loans consisted of 10.3% of the share, decreasing five basis points. Meanwhile, FHA loans went from 8.9% to 8.6% in the period. The USDA share was at 0.4% of the total.

Source: housingwire.com

Apache is functioning normally

Today we’ll take a good look at Planet Home Lending, a rising star in the mortgage world that’s beginning to make inroads and become a household name.

Founded just 16 years ago, they were able to muster over $26 billion in retail loan origination volume in 2021, per HMDA data.

It was almost perfectly split between conventional loans, FHA loans, and VA loans, with a handful of jumbo loans and USDA loans thrown into the mix as well.

They seem to do the most business in California, Florida, and Texas, despite being headquartered in Connecticut.

True to their name, Planet Home Lending has also partnered with the National Forest Foundation, pledging to plant three trees for every closed loan, up to 30,000 trees in 2020.

Planet Home Lending Quick Facts

  • Direct mortgage lender founded in 2007, headquartered in Meriden, Connecticut
  • Operates both a retail and correspondent lending business
  • Originated more than $26 billion in home loans during 2021
  • Services more than 250,000 active loans for borrowers
  • Does majority of business in California, Colorado, Florida, Texas, and Virginia
  • Licensed in all states other than Hawaii, Massachusetts, New York, Utah, and Wyoming

How to Apply for a Mortgage with Planet Home Lending

  • You can apply directly online, via smartphone, over the phone, or in-branch
  • They offer a digital mortgage application powered by AI known as Skymore
  • Allows you to link financial accounts, upload documents, and track loan progress 24/7
  • Hybrid eClosings and remote notary services available in select markets nationwide

If you’re looking to purchase a home or refinance an existing mortgage, you can visit the Planet Home Lending website and navigate to the “Get Started” tab on their top menu.

From there, you’ve got the choice to get a mortgage rate quote, apply for a mortgage, find a loan originator, or locate a nearby branch.

Those who have been referred to someone specific can use the loan officer directory to select that individual.

You can also simply call them up directly to speak to one of their mortgage loan specialists to get the ball rolling.

Once you’re set up with a loan officer, you can apply online via a Blend-powered digital mortgage application.

They call it Skymore, an AI-powered personal digital mortgage assistant that allows borrowers to apply via their smartphone if they wish.

You can also link financial accounts, upload key documents, and track loan progress 24/7 as you make your way to the finish line.

Those who want/need a personal touch along the way are also able to lean on their loan officer and processing team.

What Types of Loans Does Planet Home Lending Offer?

  • Home purchase loans and refinance loans
  • Rate and term, cash out, and streamline refinance loans
  • Renovation loans
  • New construction loans
  • Loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans including FHA loans, USDA loans, and VA loans
  • Jumbo home loans and home renovation loans
  • They provide financing on primary homes, second homes, and investment properties
  • Non-QM loans including interest-only options
  • Fixed-rate loans
  • Adjustable-rate mortgages (3/1, 5/1, 5/6, 7/6, 10/6 ARMs)
  • Home equity loans
  • Bridge loans
  • Temporary rate buydowns

They offer both home purchase loans and refinance loans, including cash out refinances if you want to tap your existing home equity, and streamline refinances if you want to lower your monthly payment.

If you’re buying a home, they can get you in the door with as little as 3% down via the Fannie Mae HomeReady loan program, or 3.5% via the FHA loan program.

Borrowers who qualify for a VA loan or USDA home loan can get a mortgage with zero money down as well.

Those who have found or own a not-quite-perfect home can also take out an FHA 203k loan with Planet Home Lending.

Or take advantage of their Jumbo renovation loan program that offers up to $500,000 in cash for home improvements.

You can also get a jumbo loan as large as $3 million, and they’ve got a no-mortgage insurance option as well at high loan-to-value (LTV) ratios, such as just 10% down.

In terms of loan type, they offer the full galaxy of fixed-rate mortgages, including the popular 30-year fixed, 15-year fixed, and terms in between such as a 10-year or 20-year fixed.

They also offer ARMs, including the 5/1 adjustable-rate mortgage, 5/6, 7/6, 10/6, and others.

Beyond that, you can get a home equity loan, bridge loan, and even a non-QM loan such as an interest-only mortgage.

Planet Home Lending Mortgage Rates

Like a lot of other lenders, they don’t advertise their mortgage rates on their website or anywhere else.

As such, I have no idea how competitive they are compared to other lenders out there. That means you’ll need to shop around if working with Planet Home to see how they stack up price-wise.

The same goes for lender fees – no mention of fees on their website, so again no idea what they charge, such as a loan origination fee, processing fee, underwriting fee, etc.

Be sure to find out all these details when gathering a quote from Planet Home to compare with other lenders while mortgage rate shopping.

In this day and age, it’s nice to have transparency when it comes to costs, especially since some lenders like Better Mortgage don’t charge lender fees.

Planet Home Lending Reviews

The company comes highly-rated, with a 4.84 out of 5-star rating on SocialSurvey based on nearly 12,000 customer reviews.

They were also recently rated a top-10 large mortgage company for customer satisfaction by SocialSurvey for 2019.

Planet Home Lending is not an accredited business with the Better Business Bureau, but does have an ‘A+’ rating with the BBB.

And the customer reviews on the BBB website are pretty good, with a 3.98-star rating out of 5 at last glance.

They’ve also got a 4.3 out of 5-star rating on Trustpilot, which is considered excellent, from more than 800 reviews.

Overall, they appear to be a well-liked mortgage lender across all ratings websites.

But with any large lender, customer experiences can vary widely given the many staff and situations involved.

Tip: Visit a Planet Home Lending branch website near you so you can see who works there and access individual loan officer reviews. Then you can choose who to work with and apply directly.

Pros and Cons of Planet Home Lending

The Good

  • Highly-rated by past customers on both SocialSurvey and Trustpilot
  • A+ BBB rating
  • Offer a digital mortgage process via Skymore technology
  • Lots of fixed-rate and adjustable-rate mortgage options available
  • Free mortgage calculators on their website
  • They service their own loans instead of selling them off
  • Donate 3 trees to the National Forest Foundation for every loan closed (~250,000 trees so far)
  • Moved 70 million+ pounds of food to hungry families
  • Endowed a scholarship for military service members

The Maybe Bad

  • Not licensed in all states
  • Do not advertise their mortgage rates or lender fees
  • Some mixed reviews and several complaints via the BBB
  • No smartphone app

Source: thetruthaboutmortgage.com

Apache is functioning normally

The Homeowners Assistance Fund (HAF) — a program designed to offer financial help to homeowners impacted by the COVID-19 pandemic — has kept more than 300,000 homeowners in their homes by curing defaults and keeping them out of foreclosure, according to data released this week by the U.S. Department of the Treasury.

“As of March 31, HAF programs made roughly $3.7 billion in payments to more than 318,000 homeowners at risk of foreclosure,” the Treasury Department said in an announcement. “In the first quarter of 2023 alone, HAF programs distributed $1.2 billion in assistance to households – a 50% increase over the fourth quarter of 2022 – demonstrating the program is continuing to scale rapidly as designed.”

The data also shows that 14 states and two U.S. territories have expended over 50% of their HAF funds, excluding administrative expenses. In addition, the funding has reached a greater number of economically vulnerable people than it did prior to the federal mortgage relief efforts.

“As of March 2023, 49% of HAF assistance was delivered to very low-income homeowners, defined as homeowners earning less than 50% of the area median income,” the Treasury said. “Demographically, 35% of homeowners assisted self-identified as Black, 23% self-identified as Hispanic/Latino, and 59% self-identified as female.”

The Treasury Department is committed to ensuring that the remainder of the funds will be distributed, according to Wally Adeyemo, deputy secretary of the Treasury.

“The Homeowner Assistance Fund has helped keep hundreds of thousands of families in their homes,” Adeyemo said. “As state programs assess their remaining HAF funds, the Treasury Department will continue working with recipients to ensure these funds are swiftly delivered to homeowners most in need.”

Passed as part of the American Rescue Plan Act in early 2021, the HAF program is designed to help homeowners who have been financially impacted by COVID-19 pay their mortgage or other home expenses. A $10 billion allocation was made for the program, but mortgage servicers previously stated that spreading awareness about the program has been a challenge.

The program is also available for reverse mortgage borrowers. A requirement of a government-sponsored Home Equity Conversion Mortgage (HECM) is that the homeowner keep their home in good repair while paying any applicable property taxes, homeowners insurance and homeowners association (HOA) fees.

Reverse mortgage borrowers who may have fallen behind on such payments are eligible to receive HAF funds to help cover the expenses and keep them out of foreclosure.

Source: housingwire.com

Apache is functioning normally

I recently participated in a conference call with Suze Orman, who is working to promote Best Life Week. This series runs on The Oprah Winfrey Show all this week, and is intended to help viewers “jumpstart 2009 and make it the best year ever!”

Hyperbole aside, it was great to have a chance to speak with Suze Orman, who will be sharing money tips with Oprah viewers this Thursday. I tried to ask her about maintaining motivation and sticking to goals. She answered with how to avoid credit cards. Not exactly what I was after, but the information was still good.

J.D. Roth
Having once been over $35,000 in debt myself, I know that it’s one thing to say you’re ready to get out of debt and to stop using credit cards, but it’s another thing to actually maintain the dedication for the days and the years that are needed to pay that debt off. I’m wondering if you have any favorite behavioral tips or tools for maintaining motivation with new goals for a New Year’s resolution.

Suze Orman
You know, J.D., what’s very fascinating is that the desire to want to use the drug known as credit cards is a very, very strong pull on people. It’s almost as strong — I’m very serious about this when I say this — as a narcotic, as tobacco, as well as alcohol.

And in the same way that if you happen to be a drug addict or you happen to be an alcoholic, that normally what keeps you on the road of the straight and narrow is that you don’t hang out with people who drink. You don’t go into bars. You don’t keep alcohol around your house. You make it so that it’s easy for you to not get yourself in trouble because it’s right there.

Saying “No” to Credit

The same, I have to say, is true when it comes to credit cards. You have to, even though you don’t want to close down your credit cards because that will hurt your FICO score, that doesn’t mean that you can’t rip them up. Doesn’t mean that you can’t cut them up as soon as you’re out of credit card debt where you just don’t see them.

So my advice to people who were once in credit card debt and now they’ve gotten themselves out of credit card debt is I would literally cut up all of my credit cards. I would not be carrying them, I would not even have them in the refrigerator. Some people say they put them in the freezer — oh, give me a break. Anything can come out of a freezer. I would cut them up 100%.

And if, in fact, I knew that I might seriously be tempted to call the credit card company and say, you know what, send it to me again — I would not care about my FICO score and I would literally call up the credit card company, close down the account and not give me any temptation whatsoever to get myself into credit card trouble. As soon as I got offers in the mail, they would immediately go into the trash.

Keeping Good Company

The key is keeping good company, and when it comes to your money, you usually are keeping good company with other people who aren’t in credit card debt, other people who don’t entice you to spend money, other people who don’t say, “Let’s go on this vacation. Oh, just put it on your credit card debt.” Other people that say, “Oh, please, let’s just go out to dinner.”

Good company are people that say:

  • “I understand that you have credit card debt and you don’t have the money.”
  • “Let’s go to your house and I’ll bring food.”
  • “We don’t need to go on a vacation, let’s just go for a walk on the beach.”

Again, when you leave your house, leave your house without any credit cards. You can go to the mall, you can go window-shop, you can enjoy the mall just like everybody else, but do not take your credit cards with you whenever you go out.

If you see something that you want and you don’t have the credit cards, fine — you can’t buy it. If you’re still thinking about it one month later, maybe you really wanted it. Who knew? But that keeps people in check. So:

  • Don’t leave your house with credit cards.
  • Cut up your credit cards once they’re paid off.
  • If you need to go further than that, close them down and who cares about your FICO score.
  • And keep good company.

That would be my advice.

You can read more of Orman’s responses at participating personal finance blogs. Jeremy from Gen-X Finance asked about the current economy, and Will from Wise Bread asked about the easiest things people can do to improve their financial situation.

Source: getrichslowly.org

Apache is functioning normally

Canceling a life insurance policy is an important decision that can have financial and emotional implications.

Deciding whether to continue with your life insurance policy or cancel it is not just a significant financial choice, it can also have profound emotional implications.

After all, life insurance isn’t just a monetary consideration – it’s about ensuring that your loved ones are protected in case of your untimely demise.

However, sometimes circumstances may lead you to contemplate canceling your life insurance policy. The question then arises: should you and if so, how do you go about it? Let’s delve deeper.

Understanding Life Insurance Policies: More Than Meets the Eye

First off, to make an informed decision, it’s crucial to understand the two main types of life insurance policies that are on the market.

Term Life Insurance: The Straightforward Option

As its name suggests, term life insurance provides coverage for a specified term, which typically ranges from 10 to 30 years. If you pass away during this term, your designated beneficiaries receive the policy’s death benefit. This type of insurance is often viewed as the simpler and more affordable option, as it strictly provides coverage without any investment component.

Permanent Life Insurance: Coverage Plus Investment

On the other hand, permanent life insurance policies, such as whole life or universal life insurance, provide coverage for your entire lifetime and include an investment element known as cash value. This cash value portion grows over time and can be borrowed against or even surrendered for cash, making this type of policy more complex and usually more expensive.

Reasons for Canceling Life Insurance: Making the Tough Call

Several scenarios might lead you to contemplate canceling your life insurance policy.

Financial Reasons: When the Premiums are too High

It could be that the premiums have become unaffordable due to changes in your financial circumstances. As the cost of living increases, especially in the light of rising inflation as highlighted in a recent FT Adviser report, it’s not uncommon for individuals, especially those over 50, to consider cutting back on their life insurance.

Policy No Longer Needed: When Life Takes a Better Turn

Your reasons for canceling could also be positive. Maybe your children have grown up and become financially independent, or your financial status has improved significantly since you first took out the policy.

Considerations Before Canceling Your Life Insurance: Weigh Your Options

But before you make the decision to cancel your life insurance policy, there are several factors to consider.

Evaluate Your Current Situation: Checking the Safety Net

Firstly, evaluate your current financial situation. You should be sure that you and your dependents won’t need the safety net that life insurance provides in the future.

Understand Potential Consequences: The Trade-Offs

It’s important to understand the potential consequences of canceling your life insurance. If you cancel your term life insurance, you won’t receive any money back and will be left without coverage.

On the other hand, canceling a permanent life insurance policy might allow you to recover some of the cash value, but could also result in surrender charges, especially if the policy is still in its early years, as pointed out by a Forbes Advisor article.

Alternatives to Canceling: Is There a Middle Ground?

Before canceling your policy outright, it’s worth exploring other options. For instance, you could reduce the death benefit to lower the premiums or even switch to a more affordable term life insurance policy if you currently have a permanent life insurance policy.

How to Cancel Your Life Insurance: Following the Right Steps

If, after considering all the implications and alternatives, you still decide that canceling your life insurance is the best course of action, then here are the steps you need to take.

Steps to Cancel Term Life Insurance: It’s All About Communication

The process for canceling term life insurance is generally straightforward. First, you need to contact your insurance provider and inform them of your intention to cancel the policy. This could be over the phone, via email, or sometimes through an online portal.

Ensure you follow all the steps they provide and always ask for a confirmation of your policy’s cancellation. It’s also important you understand your rights to canceling your insurance policy.

Steps to Cancel Permanent Life Insurance: A Bit More Complex

The process of canceling a permanent life insurance policy, on the other hand, could be a bit more complex, particularly because of the cash value component. You may need to complete a policy surrender form or send a written request to your insurance provider.

Remember:

Always confirm the details with your insurer and remember that you might be entitled to receive some of the policy’s cash value upon surrendering the policy.

Life After Canceling Your Life Insurance: Managing Your Risks

The aftermath of canceling your life insurance policy requires careful financial planning. Now that you no longer have the protection that the policy provided, you need to manage the financial risk that the policy once covered.

Managing Financial Risk: New Strategies

This risk management could involve several strategies, from building an emergency fund to investing for your long-term financial goals.

Setting Up an Emergency Fund: An Essential Buffer

An emergency fund is an essential financial tool that provides a buffer against sudden expenses or financial emergencies. It ensures that even if unexpected costs arise, you have a financial cushion to rely on.

Investing for Long-term Goals: Playing the Long Game

By investing, you can grow your wealth over time and work towards achieving your financial goals. Whether it’s retirement planning, saving for a home, or investing in your child’s education, having a robust investment strategy can provide financial security in the long run.

Conclusion: Making the Best Choice for You

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Canceling your life insurance policy is a significant decision that should be made with careful consideration. It’s crucial to weigh the potential risks and benefits, evaluate your current and future financial situation, and explore all available alternatives.

Remember, the right choice will depend on your unique circumstances and the needs of your dependents.

FAQs – Cancelling Life Insurance Policy

Can I cancel my life insurance policy?

Yes, you can cancel your life insurance policy at any time. It’s your right as the policyholder to do so.

How do I cancel my life insurance policy?

The cancellation process may vary depending on your insurance provider. Generally, you can contact your insurance company directly and inform them of your decision to cancel. They will guide you through the necessary steps and paperwork.

Will I get a refund if I cancel my policy?

It depends on the type of life insurance policy you have. Term life insurance policies typically do not have a cash value, so cancelling them usually doesn’t result in a refund.

However, if you have a permanent life insurance policy, such as whole life or universal life, there may be a cash surrender value that you could receive upon cancellation.

Are there any fees or penalties for cancelling my life insurance policy?

Some life insurance policies may have surrender charges or penalties for early cancellation. These charges are more common with permanent life insurance policies, and they can vary depending on the specific terms of your policy.

Review your policy documents or contact your insurance company to understand any potential fees or penalties.

Source: goodfinancialcents.com

Apache is functioning normally

[Editor’s note: Originally published on Vertical.]

In 2017, I had a quick day trip to San Francisco. I was visiting family just south of the Bay Area in Carmel-by-the-Sea and needed a place to stay for the night after some meetings.

I plugged into AirBnB and found a private room with Mimi and Mosh right in Presidio Heights (where I could run in the morning) for $193 per night.

I was probably impatient with them as I staggered in late that night after a day full of meetings and they walked me through all of the amenities of the place. But they were very kind with me and seemingly delighted in pointing out the little tea kettle they had bought for guests with assorted teas for the next morning.

It was a wonderful, inviting experience and I felt safe and it felt private. I left them a 5-star review and they did the same for me.

It was perfect. I was a stranger to them and they were to me. And it didn’t matter.

I had a safe, private, well-located place to sleep on a business trip and they got an extra couple hundred dollars. We were both happy.

That’s what Brian, Joe, Nate, and the AirBnB team created: a place for strangers to spend the night in the same house . . . happily. Peacefully.

Now, I’m sure you are reading all the same articles I am about AirBnB.

It’s fun to see who is going to be the big financial winner and all the ways they are taking care of employees and hosts. I’m sure plenty of people are scoffing at yet another Silicon Valley tech startup getting huge with hyper-growth metrics.

All of that coverage is warranted and usually worth the read. But I would encourage you to look a little deeper than the financials and think about something that AirBnB taught me and taught us about ourselves.

For context, if you happen to be reading this in some future year, you should know that 2020 has been pretty tough for most of us. We’ve had this crippling global pandemic that shut down the planet.

From Black Lives Matter to mask-wearing, somehow every decision or statement we made this year seemed to be about who we vote for.

Add to that the worst hurricane season on record, an escalating trade war between the US and China, and the death of James freaking Bond, and I am just done with all of this.

Suffice it to say – 2020 has been a pretty tough year and it’s easy to get bogged down in all the negativity.

And then there is AirBnB.

As a startup investor, I love a good origin story. With the tales of maxing-out credit cards, selling political cereal, and taking pictures of early listings in NY, AirBnB’s origins are legendary.

But one aspect of their story stands out to me and should give hope to all of us in this year of woe.

Any remarkable startup is a little controversial and AirBnB was no exception. Investors couldn’t deny the hustle and talent of Joe and Brian as they built it from the beginning. What they could question was human nature.

“Why would I want a stranger staying in my home?” went the common objection.

You see, most investors are so jaded about people that they assume the worst of our nature. We are inherently self-serving creatures and will revert to our most selfish and protective impulses more often than not.

So it’s highly understandable that your average venture capitalist would look at a young AirBnB, with just a few hundred listings on the platform, and assume that most of us would NEVER be comfortable letting a stranger sleep in our home.

That would be crazy. People are difficult and mean and rude and terrible towards each other.

Who would do that?

Well, it turns out more than a few of us. Mimi and Mosh weren’t the only ones willing to open their home.

To be clear, as with any endeavor that involves large numbers of human beings behaving around each other, AirBnB has had its problems with parties and illegal activity on their platform. I don’t want to make light of those and I do commend the ongoing work the team is doing there.

But that misses the bigger point – AirBnB created a place where strangers can trust each other enough to share a roof.

Doesn’t matter who you voted for. Doesn’t matter where you are from or what you believe.

We are all just people stumbling our way through our own stories looking for places to rest and feel safe.

AirBnB allows us to find strangers that want to provide that. Not hotel brands we trust. Not a college buddy’s couch. Strangers.

And that is truly remarkable.

So here in late 2020, I hope we can all take a moment to pause and reflect on that.

Try to forget about politics for a minute. Forget about how different we are from each other.

Just for a moment, think about the millions of people who have shared their homes with complete strangers. I know we can be terrible to each other, but we can also be kind, welcoming, and get special tea kettles for people we’ve never met.

Because when it comes down to it, we all just want a place to rest, feel safe, and belong. AirBnB not only created a place for us to feel that, but they made a place where we can feel that sense of belonging among total strangers in most cities and countries around the world. And in this terrible year we need that sense of belonging and connectivity more than ever.

So whenever Joe, Brian, and the team go ring the opening bell in the next few weeks to signal their company going public, stand up with me and cheer for them. Raise a glass or tweet your heart out.

Not because of the financial success and rewards, but for reminding us of something we seemingly forgot in 2020 – we are more similar than we are different and strangers can still be kind to each other.

From me and my family to the team at AirBnB, thank you! I needed that reminder.

Source: geekestateblog.com

Apache is functioning normally

New Silver, a private lender located in Connecticut that specializes in providing lending to real estate investors, is a major success story. From their recent founding and work in the New England area to their growth across the country to provide lending in a number of states.

Who and Where

Founded in 2018, New Silver’s founding fathers include managing partners Alex Shvayetsky and Kirill Bensonoff. Shvayetsky has a proven track record of more than 25 years working in the real estate sector with a focus on real estate management, property development, and investment. Bensonoff is a tech entrepreneur that has founded and successfully exited companies in enterprise IT and fintech.

Quickly Moving to the Top

Right from its early founding, New Silver wasted no time providing innovative financial services to real estate investors and entrepreneurs. Success came quickly, leading this fintech company to take on bigger and more ambitious projects, with the most recent being the financing of a 50-unit commercial apartment complex in Connecticut to the tune of $2.6 million. This is in addition to its earlier successes in both the residential and commercial markets, where it has aided entrepreneurs in the purchase, refurbishment, and then flipping of a number of properties.

A Technological Approach

New Silver takes a novel and thoroughly modern
approach to real estate finance. New Silver enables its’ borrowers to gain
access to the working capital they need through a streamlined and hassle-free
process that can provide borrowers conditional approval on financing in 10
minutes or less. In addition, New Silver’s tech-first approach helps the
company to reduce risk by looking closer at the underlying data.

This is just one of many examples of how New Silver has differentiated itself from the pack when it comes to your typical real estate lending facilitator. With a displayed commitment to staying as current as possible when it comes to the newest developments in the financial tech sector, New Silver’s dedicated staff keep a close eye on the industry. As a result, it’s likely to find New Silver represented at a number of conferences throughout the year in an effort to better serve borrowers to the excellent standard to which they have been accustomed.

Customer Service as a Rule

The real estate lending industry is a crowded
one. There are a number of lenders that an entrepreneur can approach, and New
Silver knows this — that’s why the company is committed to differentiating
themselves through providing exemplary customer service. You won’t find the
company referring to itself as a “great lender’, as Shvayetsky and
Bensonoff are refreshingly humble when it comes to their accomplishments, but
the primary driver for these managing partners is to have a laser-like focus
when interacting with borrowers, lending partners, and even internal staff.

It’s all about personal attention and clear
communication with New Silver. As a customer service strategy it’s been a clear
winner, as staff say it’s been an overwhelmingly effective method for learning
what people need and how to then deliver on that need. The tactic dovetails
with the other drive behind New Silver, which is to aid in the success of real
estate entrepreneurs.  Borrowers that
partner with the company gain the benefits of New Silver’s attention to detail
and its eagerness to embrace technological developments, such as data-gathering
APIs, in order to make personalized lending more accessible.

The Future of New Silver

New Silver might have gotten its start in the Northeast of the United States, but this lender is expanding quickly, and its’ products are now available to real estate investors in CT, RI, MA, NY, NJ and FL, with more to come. Thanks to its innovative approach and already proven track record, it’s quite clear New Silver bears watching for future success.

For more information on how to obtain a loan contact New Silver at 1 855 844-Loan or follow us on Facebook and LinkedIn.

Ben Shepardson is a Realty Biz News Contributing Writer and has a long track record of success in online marketing and web development. While pursuing a bachelor’s degree in Computer Information Systems, he worked doing enterprise-level SEO and started an online business offering web development services to small business customers.

Latest posts by Ben Shepardson (see all)

Source: realtybiznews.com

Apache is functioning normally

For many people, that monthly mortgage payment can be their biggest recurring bill. It may be the main expense that guides the development and management of their monthly budget, because that is an important bill to pay on time.

Prevailing wisdom says that your mortgage payment shouldn’t be more than 28% of your gross (pre-tax) monthly pay. But whatever that sum actually is, you may be wondering how to shave down the amount. Think about it: A lower mortgage payment could reduce your financial stress. And it can also open up room in your budget to allocate more money towards shrinking other debt, pumping up your emergency fund, and saving for retirement or other goals.

Here, you’ll learn more about your mortgage payment and possible ways to lower it.

What Is a Mortgage Payment?

A mortgage payment is a sum you typically pay every month, but it’s more than just a bill. It reflects an agreement between you and your lender that you have borrowed money to buy or refinance a home, and in exchange, you’ve agreed to pay back the sum with interest over time. If you fail to keep up with your payments, the lender may have the right to take your property.

There are typically four parts of your monthly payment: the loan principal, the loan interest (which is how the lender makes money), taxes, and insurance fees.

A mortgage payment may be a fixed rate, meaning your payment stays the same, month after month, year after year. Or it might be an adjustable rate, meaning the interest and therefore the payment can change at regular intervals.

Pros and Cons of Lowering Your Mortgage Payments

There are upsides and downsides to lowering your mortgage payments.

On the plus side, lowering your mortgage means you likely have more money to apply elsewhere. You might apply the freed-up funds to:

•   Pay down other debt

•   Build up your emergency fund

•   Put more money towards retirement savings

•   Use the cash for discretionary spending.

On the other hand, there are downsides to consider too:

•   You might wind up paying a lower amount over a longer period of time, meaning your debt lasts longer

•   You could pay more in interest over the life of the loan

•   If a lower monthly payment means you are not paying your full share of interest due, you could wind up in a negative amortization situation, in which the amount you owe is going up instead of down.

6 Ways to Lower Your Mortgage Payments

Now that you know a bit about how mortgage payments work and the pros and cons of lowering your mortgage payments, consider these ways you could minimize your monthly amount due.

Recommended: How to Pay Off a 30-Year Mortgage in 15 Years

1. Give Your Mortgage a Bonus

If you get a bonus or a windfall, consider throwing some of that money at your mortgage. If you are in a position to make a major lump-sum payment on your home loan, you may benefit from mortgage recasting.

With recasting, your lender will re-amortize the mortgage but retain the interest rate and term. The new, smaller balance equates to lower monthly payments. Worth noting: Many lenders charge a servicing fee and have equity requirements to recast a mortgage.

Other similar options:

•   Make a lump-sum payment toward the mortgage principal (say, if you inherit some money or get a large bonus at work)

•   Make extra payments on a schedule or whenever you can.

It’s a good idea to tell your lender that you want to put the extra money toward the principal and not the interest. Paying extra toward the principal provides two benefits: It will slowly reduce your monthly payment, and it will pare the total interest paid over the life of the loan.

Refinance your mortgage and save–
without the hassle.

2. Reap Rental Income at Home

You could lower how much you pay out-of-pocket for your mortgage by bringing in rental income and putting it towards that monthly bill. You’re not lowering how much you owe, but you are using your home to bring in another income stream.

There are two common methods: “house hacking” (generating income from your property) and adding an accessory dwelling unit (ADU).

•   House hacking can mean buying a two- to four-unit multifamily building for little money down and living in one of the units. Multi-family homes with up to four units are considered residential when it comes to financing. Owner-occupants may qualify for and opt for Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, or conventional financing.

Some people house-hack a single-family home, which just translates to having housemates or short-term rental guests.

•   An ADU is another option for bringing in rental money to use towards your mortgage. This secondary dwelling unit on the same lot as a primary single-family home could be a detached cottage, a garage or basement conversion (that is, an in-law apartment or similar), or an attached unit.

With any planned addition or renovation to create an ADU, you might want to estimate return on investment — how much you’d charge and how long it would take to recoup the cash you put in before turning a profit.

3. Extend the Term of Your Mortgage

If your goal is to reduce your monthly payment — though not necessarily the overall cost of your mortgage — you may consider extending your mortgage term. For example, if you refinanced a 15-year mortgage into a 30-year mortgage, you would amortize your payments over a longer term, thereby reducing your monthly payment.

This technique could lower your monthly payment but will likely cost you more in interest in the long run.

(That said, just because you have a new 30-year mortgage doesn’t mean you have to take 30 years to pay it off. You’re often allowed to pay off your mortgage early without a prepayment penalty by paying more toward the principal.)

4. Get Rid of Mortgage Insurance

Mortgage insurance, which is needed for some loans, can add a significant amount to your monthly payments. Luckily, there are ways to eliminate these payments, depending on which type of mortgage loan you have.

•   Getting rid of the FHA mortgage insurance premium (MIP). Consider your loan origination date that impacts when you can get rid of the extra expense of mortgage insurance:

•   July 1991 to December 2000: If your loan originated between these dates, you can’t cancel your MIP.

•   January 2001 to June 3, 2013: Your MIP can be canceled once you have 22% equity in your home.

•   June 3, 2013, and later: If you made a down payment of at least 10% percent, MIP will be canceled after 11 years. Otherwise, MIP will last for the life of the loan.

Another way to shed MIP is to refinance to a conventional loan with a private lender. Many FHA homeowners may have enough equity to refinance.

•   Getting rid of private mortgage insurance (PMI) If you took out a conventional mortgage with less than 20% down, you’re likely paying PMI. Ditching your PMI is an excellent way to reduce your monthly bill.

To request that your PMI be eliminated, you’ll want to have 20% equity in your home, whether through your own payments or through home appreciation.

Thinking about starting a new home renovation project? Use this Home Improvement Cost Calculator to get an idea of what your project will cost.

Your lender must automatically terminate PMI on the date when your principal balance reaches 78% of the original value of your home. Check with your lender or loan program to see when and if you can get rid of your PMI.

5. Appeal Your Property Taxes

Here’s another way to lower your mortgage payments: Take a closer look at your property taxes. Your property taxes are based on an assessment of your house and land conducted by your county’s tax assessor. The higher they value your property, the more taxes you’ll pay.

If you think you’re paying too much in taxes, you can appeal the assessment. If you do, be prepared with examples of comparable properties in your area valued at less than your home. Or you may also show a professional appraisal.

To challenge an assessment, you can call your local tax assessor and ask about the appeals process.

6. Refinance Your Mortgage

One of the best ways to reduce monthly mortgage payments is to refinance your mortgage. Refinancing (not to be confused with a reverse mortgage) means replacing your current mortgage with a new one, with terms that better suit your current needs.

There are a number of signs that a mortgage refinance makes sense, such as lower interest rates being offered or the desire to secure a fixed rate when you have an adjustable rate mortgage.

Refinancing can result in a more favorable interest rate, a change in loan length, a reduced monthly payment, and a substantial reduction in the amount you owe over the life of your mortgage. Do note, however, that there are often fees for refinancing your mortgage.

Tips on Lowering Your Mortgage Payment

If you’re serious about lowering your mortgage payments, consider these methods:

•   Refinance to get a lower rate or other changes in your mortgage’s terms

•   Apply a windfall (a tax refund, say, or a bonus) to your mortgage’s principal

•   Reach enough equity in your home to drop mortgage insurance

•   Make extra mortgage payments or higher mortgage payments (this can build equity or pay off the loan sooner, saving you interest)

•   Ask about loan modification or forbearance programs if you are struggling to make payments.

Recommended: First-time Homebuyer Programs

The Takeaway

How to lower your mortgage payment? There are several possible ways. And who wouldn’t love to shrink their house payment? You might look at strategies to build equity and ditch mortgage insurance, extend the terms of your loan, or refinance to reduce your monthly payment.

If refinancing could help, see what SoFi offers. Both refinancing and cash-out refinancing are possible. And SoFi also offers a range of flexible home mortgage loans with competitive rates to help you make homeownership that much more affordable. Plus, our online process is fast and simple.

Ready to see how much simpler a SoFi Home Mortgage Loan can be?

FAQ

How can I make my mortgage payment go down?

There are several ways to lower your monthly mortgage payment. A few options: You could refinance at a lower rate or longer term, or you could build enough equity to forgo mortgage insurance.

How can I lower my house payment without refinancing?

To lower your house payment without refinancing, you could appeal to lower your property taxes; you might apply a windfall to lower your principal; or you could rent out part of your property to bring in more income.

What is the average mortgage payment?

According to the C2ER’s 2022 Annual Cost of Living index, the average monthly mortgage payment in the U.S. is $1,768.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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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Source: sofi.com