financial

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When it comes to purchasing a home, buyers may have difficulty finding financing beyond the conforming loan limit. In this instance, you may need to apply for a jumbo loan. So whether your sights are set on a home in St. Louis or sprawling land in Jefferson City, let’s break down what a jumbo loan is in Missouri, the 2023 conforming loan limits, and what’s needed to qualify for this type of loan.

What is a jumbo loan?

So, what exactly is a jumbo loan in Missouri? It’s a mortgage loan that allows borrowers to finance a property that exceeds the conforming loan limit set by the FHFA. In simpler terms, a jumbo loan is a specialized mortgage that enables you to borrow more money than you would be able to with a conventional loan. These loans are typically used to finance high-end or luxury properties in areas with high home prices.

If you find yourself in a situation where the home you wish to purchase requires borrowing beyond the conforming loan limit (CLL), then you’ll need to pursue a jumbo loan. Missouri jumbo loans allow you to borrow more money to buy a more expensive home, but they also come with higher interest rates and stricter requirements than conventional loans.

What is the jumbo loan limit in Missouri?

In Missouri, the conforming loan limit is $726,200 across all counties. For example, the conforming loan limit in St. Louis County is $726,200, so any mortgage that surpasses the loan limit designated for your county by even one dollar is classified as a jumbo loan.

As a reminder, the amount being borrowed is what determines whether or not you’ll need a jumbo loan, not the home price. So, if you were to put $50,000 down on a $750,000 home in Chesterfield, the mortgage would be $700,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.

For more information on the conforming loan limit in your county, use the FHFA map.

What are the requirements for a jumbo loan in Missouri?

To qualify for a jumbo loan in Missouri, borrowers must meet stricter requirements than they would for a conforming loan. The specific requirements may vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan in Missouri.

Higher credit score: When it comes to jumbo mortgages, lenders generally look for a credit score of 720 or above to qualify a borrower. While some lenders may accept a score as low as 660, this is typically the lowest threshold for qualification.

Larger down payment: Jumbo loans typically require larger down payments than conforming loans. While the exact amount varies depending on the lender and the borrower’s finances, down payment requirements for jumbo loans can be as high as 20% or more. That said, some lenders may offer jumbo loans with down payments as low as 10%, provided the borrower meets certain credit and income requirements.

More assets: Jumbo loan borrowers are typically required to have additional assets. In particular, lenders may require borrowers to demonstrate sufficient liquid assets or savings to cover one year’s worth of loan payments.

Lower debt-to-income ratio (DTI): When applying for a non-conforming loan, Missouri lenders typically look for a borrower with a debt-to-income ratio (DTI) below 43%. Ideally, a DTI closer to 36% or lower is preferred. The DTI is calculated by dividing the sum of all monthly debt payments by gross monthly income. A lower DTI signifies a borrower’s ability to manage their current debt load while taking on additional mortgage payments. It also indicates greater financial stability and the ability to make on-time payments towards their jumbo mortgage.

Additional home appraisals: A home appraisal is required whenever a homebuyer receives financing for their home purchase. However, for jumbo loans, your lender may require an additional appraisal. In areas with limited comparable property sales, this appraisal can be more expensive than in cities with higher sales rates.

Source: redfin.com

Apache is functioning normally

Supplemental Security Income (SSI) is a government program that provides monthly income to people with limited resources and low incomes and who are blind, have a qualifying disability or are 65 or older. The maximum monthly SSI benefit is $914 per person ($1,372 for a couple) in 2023

.

The Social Security Administration (SSA) sets the maximum SSI benefit each year. The amount increases in step with Social Security’s cost-of-living adjustment formula.

2023 SSI benefit amounts

Monthly SSI benefit

Annual SSI benefit

Individuals living alone

Individuals living in another household

Couples living alone

Couples living in another household

SSI overview

Congress created SSI in 1974. The Social Security Administration administers SSI. In May 2023, SSI paid benefits to about 7.5 million people.

  • Forty-four states have programs that provide additional amounts, called supplements, to SSI recipients (Arizona, Arkansas, Mississippi, North Dakota, Tennessee and West Virginia don’t; nor do the Northern Mariana Islands)

    . In some states, the SSA administers these additional payments. Qualifications and details for those programs vary by state.

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How to qualify for SSI

To qualify for SSI, you must have limited income and limited resources, and you must meet residency requirements. You must also be 65 or older, blind or disabled

. Each of these qualification hurdles has specific rules.

Limited income

To qualify for SSI, your monthly qualifying income can’t exceed $914 (the largest monthly SSI benefit amount this year). The Social Security Administration may reduce your SSI benefit if you have income from other sources.

Here are some things to know about how the Social Security Administration looks at income:

  • Earned income — from a job or self-employment, for example — is considered income.

  • Some earned income doesn’t trigger a benefit reduction, though. For example, the first $65 of earned income doesn’t count against the $914 SSI income limit, and only half of income above the first $65 counts against the $914 income limit

    . For example, if you earn $500 a month, the Social Security Administration might reduce your monthly SSI benefit by $217.50.

  • Unearned income, such as Social Security retirement payments, pension income and dividends from investments, are also considered income. Unearned income typically reduces the SSI benefit dollar for dollar. For example, $500 in monthly pension income could reduce your SSI benefit by $500.

  • Unearned income also has exemptions. Supplemental Nutrition Assistance Program (SNAP) benefits, tax refunds, home energy financial assistance, state assistance, college financial aid, loans, disaster aid and tribal payments typically don’t count against the income limit.

  • Things or services you get for free or at a discount, including free or below-market rent, are considered income, even if you got them from family or friends. This kind of support, called in-kind support, can reduce SSI by a maximum of $324.66 per month. In-kind support doesn’t always reduce SSI payments dollar for dollar; the amount depends on a variety of factors, including the type of support you receive and its estimated value.

  • If a spouse, parent or other essential person with whom you live receives income but doesn’t receive SSI, it can reduce your SSI payments. The reduction isn’t dollar for dollar. Instead, a complex formula determines the reduction amount.

Limited resources

To qualify for SSI, the value of any cash, stocks and personal property you own can’t exceed $2,000 ($3,000 for couples)

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Like income, there are exemptions. Common examples include a house you own (as long as you’re living in it), one vehicle and household goods.

Residency

To qualify for SSI, you must:

  • Be a U.S. citizen or national. There are some exceptions, including for some refugees.

  • Live in a U.S. state, Washington, D.C., or the Northern Mariana Islands.

  • Not leave the U.S. for more than a month or 30 consecutive days.

Blindness

You may qualify for SSI if you meet the preceding financial and residency criteria and you have 20/200 vision or less in your better eye or a narrow field of vision (in technical terms, the Social Security Administration defines this as the widest diameter of your visual field subtending an angle of 20 degrees or less).

Disability

You may qualify for SSI if you meet the preceding financial and residency requirements and you have a disability. The Social Security Administration defines a disability as a physical, mental, emotional or learning impairment that is likely to last for at least one year or can be expected to lead to death.

  • If you are younger than 18, the disability must severely limit your ability to function.

  • If you are 18 or older, the disability must prevent you from finding “substantial gainful activity,” which is often, but not exclusively, employment or running a business. If you work and earn more than $1,470 per month, the Social Security Administration likely won’t consider you to have a qualifying disability.

The Social Security Administration doesn’t decide whether you have a qualifying disability; state agencies called Disability Determination Services (DDS) do. The local DDS reviews your application and decides your medical eligibility. In some circumstances, DDS may contact your doctors, teachers, therapists and relatives to learn more about your condition. The agency may also pay for a medical test to determine whether you have an eligible disability.

Source: nerdwallet.com

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Protective Life Insurance Company has a great record or working with its clients and can offer some of the best term life insurance rates available.

If you have ever shopped for life insurance, then you are probably well aware that there are several important variables that you should keep in mind when determining how and where to purchase your coverage.

First, at the top of your list, should be knowing how much protection to obtain. This is because you will not want your loved ones or other survivors to fall short when it comes to proceeds. For example, if your beneficiary (or beneficiaries) will need a certain amount to pay for final expenses or other specific debts, then it will be important to purchase at least that amount of coverage.

But equally as important, though, will be ensuring that the life insurance company through which you purchase the protection is strong and stable from a financial standpoint. This is because you will want to know that the company will be there to make good on its promise if or when the time comes for the policy’s beneficiary to file a claim. One insurer that has been positive when it comes to paying out its policyholder claims for many years running is Protective Life Insurance Company.

The History of Protective Life Insurance Company

Protective Life Insurance Company has been in the business of offering life insurance coverage for nearly 110 years. In the year 1907, the company’s founder, Governor William Dorsey Jelks started the insurer, just as President Theodore Roosevelt started his 7th year as a United States President.

Just a short two years later, in 1909, Protective Life Insurance Company paid out its very first death benefit claim – and the company has been faithfully doing so ever since. By the year 1932, after just 25 years in the business, Protective had more than $65 million of insurance in force. And, by the time the company was in business for 50 years, it had nearly $1 billion.

Throughout the years, the company has grown and expanded. In part, it has done so by acquiring other insurers. For instance, in 1997, Protective acquired West Coast Life, which helped in solidifying the insurer’s national presence. And, in 2006, Protective acquired Chase Insurance Group.

By 2007, the insurance carrier’s 100th anniversary, it had more than $252 billion of insurance coverage in force. In 2015, the company became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Ltd. Protective Life Insurance Company was, and still is, headquartered in Birmingham, Alabama.

Protective Life Insurance Company Review

Protective Life Insurance Company is known for serving its customers first. Based on testimonials, the firm is known for being flexible, as well as for providing dedicated service. Also, it is also very involved in the communities in which it serves.

The company provides a learning center directly on its website. This can help consumers to learn more about life insurance and how much protection that they may need, based on their specific situation.

Protective also offers a claims center on its website, as well. Here, claims can be filed directly online. Forms can be downloaded and sent in, and questions may be asked of customer service representatives.

Reps may be contacted in a number of different ways, including via a toll-free telephone line (during business hours), email, and an email form. Business hours for reporting a life insurance claim are Monday through Thursday between 8:00 a.m. and 5:00 p.m. Central time, and Friday between 8:00 a.m. and 3:00 p.m.

Additional information is also provided within the Protective Life Insurance Company online claims filing center, such as details regarding what to do when a loved one dies, and life insurance FAQ.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important

Financial Strength and Ratings

Protective Life Insurance Company is considered to be a very strong and stable company from a financial standpoint. It also is well respected for paying out its policyholder claims. In 2015 alone, Protective paid out over 20,000 life insurance claims in the amount of approximately $1.9 billion. The average processing time on a life insurance claim at Protective Life Insurance Company was 6.22 days. For this reason, the company has been given high marks from the insurer ratings agencies. These ratings include the following:

  • A+ from A.M. Best (Superior) This is the second highest out of a possible 15 total ratings.
  • AA- from Standard & Poor’s (Very Strong) This is the fourth highest out of a possible 21 total ratings.
  • A from Fitch (Strong) This is the sixth highest out of a possible 22 total ratings.
  • A2 from Moody’s (Good) This is the sixth highest out of a possible 21 total ratings.

Although Protective Life Insurance Company is not BBB (Better Business Bureau) accredited, the BBB has provided Protective with the grade of A+. This is on an overall grade scale of A+ to F.

Over the past three years, Protective Life Insurance Company has closed a total of 39 complaints through the BBB. Of these, ten were closed over the past year. Of the 39 complaints that were closed during the past three years, 18 had to do with problems with the company’s products and / or services, 10 were concerning billing and / or collection issues, 3 were with regard to advertising and / or sales issues, another 3 were having to do with guarantee / warranty issues, and five had to do with other issues.

Life Insurance Products Offered Through Protective

Protective Life Insurance Company offers a wide variety of different life insurance policies to choose from. This can help its customers to gear coverage more towards their individual protection needs.

Policy types offered through Protective include the following:

Term Life Insurance

Term life insurance can provide level death benefit protection for a set amount of time. This type of life insurance doesn’t offer cash value build up, so it is often more affordable than a comparable amount of permanent insurance such as whole life or universal life coverage. Therefore, it can be a good option for those who want a nice amount of coverage, but who may not have a lot to spend in premium.

Protective Life Insurance Company offers term life insurance plans that range from 10 to 30 years in level death benefit protection.

Universal Life (UL) Insurance

Universal life insurance is a form of permanent life insurance coverage. This means that it provides both death benefit protection, as well as cash value build up. The cash value will grow tax-deferred, meaning that there is no tax due on the gain unless or until the time that it is withdrawn by the policyholder. This can allow the funds to grow and compound exponentially over time.

A universal life insurance policy can be more flexible than some other types of permanent coverage like whole life insurance. This is because the policyholder can choose – within limits – how much of their premium dollars will go towards the death benefit, and how much will go towards the cash component of the UL policy.

@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-leader-1-0-asloadedmax-width:728px!important;max-height:90px!importantThe Protective Life Insurance Company’s Custom Choice UL policy is a very affordable way to protect one’s family’s financial security if the unexpected were to occur. It offers low premiums for life, as well as a death benefit that is non-taxable (from income tax) to beneficiaries.

The premium rates can start as low as $7.32 per month – and, provided that the premium is paid, the coverage will remain in force for the remainder of the life of the insured. Also, the premium will also remain level for an extended period.

Protective Life Insurance Company also offers a survivor universal life insurance product. This could be a good option for someone who is married or part of a couple and has estate planning needs, such as helping beneficiaries to pay estate taxes and / or helping a loved one with special needs.

These types of policies are also often referred to as second-to-die or joint life insurance coverage. They cover two individuals under just one single life insurance policy – and because of that, they are often less costly than purchasing two single policies. The death benefit that is paid out will be free of income tax to the beneficiary (or beneficiaries), and the proceeds may be used for whatever needs the survivor or survivors may have.

Variable Life Insurance

Variable life insurance is another type of permanent life insurance coverage. With variable UL, there is also a death benefit and a cash value component. However, with this type of insurance coverage, there is additional flexibility with the investments that can be chosen in the cash component. For example, equities may be chosen, which can allow for additional growth. They can, however, also pose more risk. Therefore, it is important to be aware of this before getting into any variable life insurance product.

Overall, a variable universal life insurance policy will essentially combine the “core” benefit of life insurance coverage via an income tax-free death benefit, along with a great deal of flexibility for the policyholder / investor in terms of cash value / investment build up over time. It is important to note that there may also be additional fees with variable universal life insurance because of the investments that are included in the policy.

Other Coverage Products Offered

Protective Life Insurance Company also offers a Protect My Child life insurance policy. While most people do not want to ever think about the passing of a child, the truth is that sometimes accidents or illnesses do occur. In this case, the cost of final expenses and / or uncovered medical expenses can be paid through a life insurance policy on a child.

The Protect My Child policy offers coverage of between $10,000 and $100,000. Because the policy is a permanent life insurance policy, it will also have cash value build up. Therefore, the plan will have tax-deferred savings that may be used for future college costs, the down payment on a house, a wedding, or any other need down the road.

When the child turns age 18, the amount of the life insurance coverage will automatically double – at no additional premium cost. When purchasing the Protect My Child life insurance plan, premium rates can start as low as $6.37 per month. And, because the policy is permanent, the rate is locked in never to increase. This means that the child can keep this same premium rate throughout the lifetime of the policy.

How to Find the Best Premium Quotes on Life Insurance Coverage

When seeking the very best premium quotes on life insurance coverage, whether it is through Protective Life Insurance Company, Banner Life Insurance, or any other insurer, it is typically best to do so via an agency or a company that works with more than just one life insurer. This is so that you will be able to compare and contrast all of the options that are available to you, as well as the cost of each. This is not only true when seeking the best life insurance coverage but for when shopping for other forms of coverage as well such as the best auto insurance companies and rates.

We know that buying life insurance can be somewhat confusing, There are lots of details to keep in mind – and you want to be sure that you are getting the very best deal from the best insurer for your needs. We can help you in sorting it all out so that your coverage will best meet the protection requirements that you have. We can do it all without you having to meet in person with a life insurance agent. Just simply go online or give us a call. So, contact us today – we’re here to help.

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Source: goodfinancialcents.com

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A townhouse is a multi-story home that’s owned by individuals and is attached to at least one other similar unit. This type of hybrid dwelling combines features of a single-family home with a condominium — having some of the benefits and challenges of each. It’s also sometimes called a townhome or a row home or house.

Differences Between Townhomes and Condos

Differences between a detached home and a townhouse may be clearer than differences between a townhouse and a condo. After all, a home is a freestanding structure while a townhouse, like a condo, is part of a complex.

So, how is a townhouse different from a condo? Well, for one thing, although townhouses would share walls with units that are right next to theirs, there wouldn’t be a dwelling above them or below, as could be the case with a condo.

Typically, people who own a condo are responsible for the interior of their units, while funds that they pay into their homeowners’ association (HOA) are used to maintain shared areas and the outside of the building.

Townhouse owners, though, are usually responsible for maintaining the inside and outside alike, which is more like owning a home.

Because townhouse owners are usually responsible for more maintenance than condo owners, their HOA fees are often smaller and they typically have more freedom on how to renovate their dwellings. Neither of these is universally true, though, so it’s important to check the specifics of the property of interest.

Potential townhouse owners may be asking themselves, “Is buying a townhouse a good investment? What are the pros and cons?”

Let’s take a look at the pros and cons of buying a townhouse, along with insights into getting a mortgage loan.

Pros of Buying a Townhouse

Having control over the inside and outside of a townhouse might make it more appealing than the purchase of a condominium. Townhome owners might appreciate how they have more ability to make decisions about their property.
Additional benefits of buying a townhouse include:

More Affordable

A townhouse can be an affordable option in communities with higher home prices, providing a space-savvy housing choice in places where available land can be scarce. Although townhouses may be more expensive than a condominium in a community of choice, they tend to be less expensive than a detached home.

Less Maintenance

Townhouses may be appealing to those that are busy; there’s no big yard that needs time and attention and, if owners travel for work and/or pleasure, security services that may be covered by HOA fees can help to protect the dwelling without any extra steps needed — and the complex may even be gated for added security.

Amenities

There may be great shared spaces and amenities for families to enjoy. These can include gyms and pools, and people who own units each have an ownership interest in these common-area benefits — which means they have a legal right to use them.

You Own the Land

Buyers of a townhouse will actually own the land where the property exists. In contrast, the condo owner would only own their unit, not any of the land. This means that someone owning a townhouse is typically less restricted on how the land could be used, perhaps being allowed to grill dinner outdoors, as just one example.

Pay Less in Property Taxes

Owners of a townhouse usually pay less in property taxes when compared to a stand-alone home. This is typically true because of the smaller lot size.

Townhomes could be ideal for first-time homebuyers who are looking for a more affordable option in densely populated areas. It can also be a good choice for people who aren’t interested in doing much home maintenance.

Cons of Buying a Townhouse

Townhomes may not be ideal for everyone. If you don’t want to share walls with another family, for example, a townhouse may be eliminated.

Other potential downsides of buying a townhouse include:

Limited Lot Size

The limited lot sizes that make it easy to minimize maintenance also means that townhouse owners don’t have the benefits that come with a larger yard, whether that means hosting larger picnics, setting up a swing set for the kids, or creatively landscaping the space.

Less Privacy

Townhouses are less private than single-family homes. While there are no units above or below, as there would be with a condominium, walls are shared and backyards are fairly small. This may be problematic if young children living in the townhouse want to run around and play.

Potentially Many Stairs

Townhouses are built upward to maximize limited land, meaning a townhouse could be three or four stories with only a couple of rooms on each floor. This means stairs. Perhaps lots of stairs. And, if someone in the home has physical challenges or has just had surgery, as just two examples, this can make navigation of the townhouse challenging.

Less Appreciation

In general, the value of a townhouse does not appreciate as quickly as single-family homes. Because of this, it may not make sense to buy a townhouse if the idea is to invest in real estate, rather than simply having a desired place to live.

Recommended: Track the Value of Your Home and Real Estate

After reviewing the pros and cons, is buying a townhouse a good idea? Here’s one more consideration: financing the unit.

Financing a Townhouse

Seeking a mortgage loan for a townhouse is similar to one for a single-family home. That’s because, unlike a condo purchase, the buyer of a townhouse also owns the land beneath the dwelling.

When buying a townhouse, lenders will typically want to see a buyer’s monthly income and outstanding debt to determine their debt-to-income ratio and see how much of a mortgage they can afford.

If the townhouse has HOA fees, those would be included in the mortgage calculations. Just as with a single-family home, it can make sense to get preapproved for a dollar amount before townhouse shopping, save money for a down payment and closing costs, and so forth.

Home Loans at SoFi

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: Simple, smart, and so affordable.

*SoFi requires PMI for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Minimum down payment varies by loan type.

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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Source: sofi.com

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Rising mortgage rates, lower homebuyer demand and fewer homeowners choosing to sell their homes caused the housing market to slow during the second half of 2022. In the title insurance industry this resulted in a drop in capital adequacy, according to a report released Friday by Fitch Ratings.

In 2022, the title industry’s aggregated risk-adjusted capital (RAC) ratio, which is a measure of resiliency of a financial institution’s balance sheet to endure an economic risk or recession, fell to 168%, compared to 182% in 2021. However, the 168% figure is consistent with Fitch’s guidelines for an “A” category rating.

According to Fitch, this shows that the headwinds faced in the second half of 2022 led to revenue and earnings weaknesses and it also adversely impacted capital levels at some underwriters.

Fitch attributed the decline in industry-wide aggregate RAC score to a drop of roughly 17% in adjusted policyholders’ surplus (APS), which was offset slightly by a decline in target policyholders’ surplus (TPS) due to a lower expense leverage and large loss charge.

In addition, Fitch estimates that the level of redundant statutory loss reserves fell 14% year over year, also contributing to the lower RAC ratio, and that 81% of reported statutory reserves ($5.1 billion) were used in the 2022 RAC ratio and just over 100% of Schedule P reserves ($4.1 billion). Fitch noted that based on Schedule P reporting, recent underwriting periods continue to generate low reported loss ratios compared to historical averages.

The industry base RAC score also fell, dropping 13 percentage points compared to the year prior to 136% at the end of 2022.

When broken down by company, of the Big Four, Fidelity National Financial had the lowest RAC ratio at the end of 2022, after it fell 13 percentage points year over year to 129%, with the largest driver of the decrease being an increase in the large loss and ceded reinsurance risk charge and an almost 32% decline in APS.

Old Republic had the second lowest RAC at 158%, six percentage points lower than a year ago. Fitch attributed this decrease to a 9% drop in surplus and an increase in large loss and ceded reinsurance charges, which was partially offset by a decrease in expense leverage and agency risk charges. First American ranked third, with a RAC ration of 186%, a slight increase compared to a year prior, keeping the firm in line with Fitch’s “A” rating guidelines. The slight increase was driven by an 18% drop in TPS, due to a drop in large loss and ceded reinsurance charges, despite a drop in surplus.

Stewart had the highest RAC at 221%, remaining essentially unchanged compared to a year ago, keeping the firm in line with Fitch’s “AA’ rating guidelines. Fitch attributes Stewart’s results to a slight decline in surplus and a slight improvement in estimated reserve redundancy, as well as a slight decline in TPS. Stewart’s base RAC of 191% is the highest in Fitch’s universe.

Looking ahead, Fitch believes that we will start to see the impact of some of the title firms’ expense reduction measures in the second quarter of 2023 and that the industry should expect net profits for full-year 2023 to be “on par or slightly better than 2022 despite the slowdown in originations and home price declines.”

“The declines in premium volume and reduced operating expenses, with flat to modestly higher capital levels, will promote modest capital adequacy improvement in 2023,” the report reads.

“Title insurers are actively pursuing expense reductions in response to macroeconomic pressure, which coupled with lower premium volumes, will promote modest improvement in capital adequacy in 2023,” Gerry Glombicki, Fitch’s senior director, said in a statement.

In addition, Fitch also expects industry capital levels to, at best, move slightly higher in 2023, benefiting from recent expense reduction measures. However, Fitch Ratings also states the further expense reductions may be necessary if market conditions worsen.

While the confluence of higher mortgage rates, lower home prices and limited existing home inventory continues to put a strain on the industry, the industry-wide decline in operating expenses coupled with flat capital levels is expected to cause an increase in the title RAC ratio by the end of 2023.

Source: housingwire.com

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REACH operates a variety of accelerator programs around the globe, created and operated by Second Century Ventures and backed by NAR. The program offers education, mentorship and exposure for technology companies working to scale their businesses across the U.S. residential and commercial real estate markets and expand into adjacent markets, including insurance, mortgage and financial services.

Applications for its flagship 2021 REACH & REACH Commercial classes are now open, but only until January 31st. That means, if you’re an early-stage startup interested, you best start the process now…

Apply Now

Source: geekestateblog.com

Apache is functioning normally

Hiring a landscaper can remove a major headache from both ongoing lawn maintenance and one-time makeover projects in your yard. Depending on your budget and schedule (not to mention your definition of a fun weekend), it may be worth outsourcing some, or all, of your yard projects.

At my house, my husband and I typically outsource mowing and weed whacking because it’s a fairly low-cost service compared to the amount of free time we gain back each week. On the other hand, I love gardening, and we regularly tackle projects that involve growing flowers and vegetables without the help of a professional. 

If you’re considering getting professional help with your landscaping, think about the types of projects you plan to undertake, plus the time, tools, and skill level involved. Here’s a breakdown of both ongoing and one-time landscape projects, plus how to determine if professional help is worth the cost.

What’s Ahead:

Average landscaping costs: an overview

Service Average cost
Lawn mowing $49 to $218
Bedding plants (selection and installation) $1,366 to $5,641
Disease and insect control Less than $100
Tree trimming $460
Landscape design $1,954 to $6,971
Deck construction $7,300
Exterior light installation (10 lights) $2,000 and $2,500
Drip irrigation system (per acre) $2,150
Sprinkler system $2,500

Ongoing services

Having consistent professional help can keep your yard clean and healthy. A well-maintained yard is good for wildlife and also motivates you to get outside more often and enjoy it, so it is a big deal!

Lawn maintenance

Ongoing lawn maintenance involves mowing your grass and weed whacking the edges of any hardscaping, like the sidewalk, driveway, and flower beds. The lawn maintenance company provides their own equipment, as well as any products that may be needed. In the fall, you can also add leaf removal services and have the collected leaves taken off-site by your maintenance crew.

Costs vary depending on the size of your lawn and how intricate any weed whacking may be. According to HomeAdvisor, average prices range between $49 and $218. Depending on your weather, you may opt for weekly or bi-weekly service. The rainier it is in your area, the more frequent mowing may be needed.

Pros of hiring a landscaper:

  • Seasonal expense in many areas. During cooler-weather months you may not need to pay for lawn maintenance.
  • Get on a schedule. Avoid tall grass by scheduling recurring services from your maintenance crew.
  • Avoid paying for and maintaining lawn equipment. Upfront and ongoing maintenance costs for lawn mowers and weed whackers can quickly add up, especially compared to the relatively low cost of professional lawn maintenance.

Cons of hiring a landscaper:

  • Extra cost added to your monthly budget. Go the DIY path if your budget is already tight or you’re focused on important financial goals like debt payoff. 
  • A fixed schedule may not meet your lawn’s needs. Low rain could mean you’re paying for service even without tall grass. On the flip side, your lawn may be ready for a trim after heavy rain, days before your next mowing is scheduled.

Bedding plants and installation

Spending time in a yard filled with beautiful plants can give you countless hours of joy throughout the year. Plus, you’ll create a haven for all types of important insects, including pollinators.

A professional landscaper can pick out plants that thrive in your area and in specific spots in your yard. You can also get advice on plants that work best for your preferred level of care, whether you want to invest the time to water and weed, pay to outsource those tasks, or focus entirely on low-maintenance plants in your landscape.

The cost of getting a landscaper to choose and install plants ranges from $1,366 and $5,641. If your landscaped beds have become extremely overgrown, this expense may be worth the cost, but if you simply need to pop in some annuals to fill up space, this might be a better DIY project.

Pros of hiring a landscaper:

  • Create year-round interest. A landscaper’s expertise ensures your flower beds aren’t dull three out of the four seasons of the year.
  • Choose the right plants based on water and sunlight needs. Avoid killing plants and wasting money by picking the right options for your yard’s conditions.
  • Pick colors and textures that complement each other. A landscaper creates an overall theme, whereas a DIY approach may create competing colors, heights, and textures.

Cons of hiring a landscaper:

  • Can be costly. The expertise of a landscaper definitely comes at a price.
  • You have less control over designs and colors. A DIY approach may be better if you have a very specific aesthetic you want to achieve in your yard.

Disease and insect control

Insects are a natural part of the garden’s ecosystem, but some bugs and diseases can actually harm your plants. There are many ways to mitigate these issues on your own, like promoting healthy soil and encouraging beneficial bugs that prey on the damaging types. For instance, ladybugs eat aphids, an insect that can cause major damage to vegetables, fruit, roses, and other flowers. 

But if you need help, a professional landscaper can manage these issues as well. Just be sure to ask about the products they use and the ingredients, especially if you grow edibles in your garden. Non-organic ingredients can be harmful to you, your plants, and beneficial insects. A standard pest treatment typically costs under $100, according to Thumbtack.

Pros of hiring a landscaper:

  • Fast and easy service. Outsource the work rather than trying to figure out what products and treatment you need.
  • The expertise of specific disease and pest issues. Make sure you’re treating the right problem, so you don’t waste money on DIY “solutions” that just don’t work.

Cons of hiring a landscaper:

  • May use harmful ingredients. Ask what products the landscaper uses and check to see if the ingredients align with your needs, especially if you grow an organic garden or have outdoor pets.
  • Less control over products and processes used. You need to trust the professional you hire.

Tree services

It’s important to regularly care for any trees near your house since they can cause damage to your home as they grow larger. The biggest issues are trees extending over your roofline and dead trees eventually falling. Regular tree maintenance includes pruning your trees to keep them disease-free and trimming away dead branches. Your trees will stay healthy, and you don’t have to worry about branches falling and hurting someone or something on your property.

You can certainly buy the tools needed to care for your trees and take a DIY route, but you also need to learn about how pruning affects each tree and what time of year is best for curbing tree growth. Hiring a landscaper to do the job could very well keep your trees in better shape, not to mention help you avoid the risk of injuring yourself. Just be sure your tree service landscaper is licensed and insured in case they sustain an injury while on the job. 

The cost of having tree work done is dependent on how many trees are on your property, their size, and whether or not they need to be felled.

Pros of hiring a landscaper:

  • Trees safely pruned. Landscapers have the knowledge and experience to keep people safe.
  • Avoid damage to surrounding property. Falling trees can cause damage to nearby houses, cars, or fences. A professional knows how to cut strategically so the tree lands where it should. 
  • Pick the best season for pruning. Pruning in some seasons spurs new growth, while other seasons are best for managing size. 
  • Utilize the right equipment for hard-to-reach places. Tall trees could require heavy equipment, like a cherry picker or scissor lift.

Cons of hiring a landscaper:

  • Can be costly for tall trees. Tree trimming is important but will take a pretty big bite out of your budget.
  • Unlicensed landscapers could be an insurance liability. An uninsured contractor who gets injured on your property could require you to file a claim with your homeowners insurance policy. 

One-time landscaping services

In addition to ongoing lawn care, weigh the pros and cons of hiring a landscaper for one-time landscaping projects.

Hardscape design and installation

No matter what size your yard may be, a professional landscaper can help you design hardscaping to maximize its usability. This could be with decking, a stone patio, pergola, or other hardscape features. The design and installation are typically two different services. A professional landscape design for your outdoor space could range from $1,954 to $6,971. For the actual labor and materials, your costs vary greatly depending on the size, scope, and materials.

These projects are typically better left to the professionals instead of a weekend warrior project, unless you have above-average DIY skills. For a homeowner with limited experience, you run the risk of unlevel patio stones or structurally unsound hardscaping if you attempt large-scale projects on your own. Plus, projects like decking typically require city or county permits and approvals. 

Pros of hiring a landscaper:

  • Quality craftsmanship. Avoid the DIY “look” by using a detail-oriented landscaper. 
  • Faster results. Get your project completed all at once, rather than fitting it into your own busy schedule here and there.

Cons of hiring a landscaper:

  • Expensive costs. Expect to spend several thousand dollars for hardscaping projects.
  • Potential need to manage multiple professionals. You may have to manage the landscape designer and installer separately.

Landscape lighting

Incorporating lighting into your landscape can add a magical nighttime ambiance to your yard. There are different levels of service depending on the property features you want to highlight in the evening. You could add uplighting towards the home to draw attention to unique architectural features or illuminate walking paths to see where you’re going in the dark. String lights for garden parties are also a popular upgrade when it comes to landscape lighting.

Some of these projects are fairly simple to DIY and if you opt for solar-powered lights, you can especially save money since you won’t have to plan on an electrician having to wire anything. For bigger projects that do require re-wiring, you may want to hire a professional so you don’t hurt yourself. Electricity is not something that you should play around with.

Costs vary on the type of lighting and how far your cables need to go from existing electric lines. 

Pros of hiring a landscaper:

  • Safer than DIY. This is especially true if new electric cables are involved. You don’t want to set yourself up for a fire hazard.

Cons of hiring a landscaper:

  • Solar projects may be easier. In some cases, DIY projects may be simple if no new electrical cables are needed.

Lawn and garden bed irrigation

If your summers are marked by dry conditions or inconsistent rain, you might consider installing a sprinkler system for your grass and irrigation lines for your garden beds. Irrigation can keep your plants healthy all year long.

If you’ve already invested in lawn seed and garden plants, this could be an important project. Plus, while the average drip irrigation system costs upwards of $2,000 for an entire acre, there are plenty of online DIY tutorials that can help you spend even less. In fact, if you’re willing to do some digging and connect some PVC pipes and soaker hoses, you could knock out this project for around $100 (depending on your garden size).

A new sprinkler system might be pricy, but you can purchase a DIY kit if you feel confident in marking zones and digging trenches throughout your entire yard. Based on the mechanics involved, this would definitely be a project for more seasoned DIYers.

Pros of hiring a landscaper:

  • A quick process with limited mistakes. A landscaper can quickly get irrigation or sprinklers in place without digging into buried power lines or pipes.
  • Minimal disruption to grass and other plants. Landscapers have tools to limit the disruption to your lawn, especially compared to you digging trenches by hand with a spade.

Cons of hiring a landscaper:

  • Small irrigation projects may be simple and inexpensive. You could certainly DIY raised bed irrigation or other areas that aren’t intrusive.

Saving with a DIY approach

When deciding which projects to complete on your own, start by evaluating your safety and skills. Selecting and planting plants takes a little research, that way you can make sure that you are planting them in the right place. That said, it can be a fun experience and much less expensive to tackle by yourself. Consult the staff at your local garden center to get ideas of what plants perform well in your area. If you make mistakes, you can always plant something new.

For projects that have an element of danger involved, like trimming trees or building a deck, consider shelling out the money for the professional. You don’t want to risk building a faulty structure or mistakenly estimating where a tree could fall. 

Project DIY cost Professional cost
Planting Cost of plants $1,366 to $5,641
Lawn maintenance Average cost of lawn mower: $363 for push mower; $2,450 for rider mower
Plus gas and maintenance costs		 $49 to $218 per visit
Deck construction $8 to $10 per square foot ~$25 per square foot

Summary

Some landscaping projects are easy to do by yourself over the course of a few hours, but others take a lot of time, effort, and skill. For some homeowners, it isn’t worth it to take the DIY route.

At a minimum, hire out landscaping projects that may seem dangerous without the right tools or talent. From there, you can gauge how each project cost compares to your budget and timeline to find out if hiring a landscaper is, in fact, worth it for you.

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Source: moneyunder30.com