The residential mortgage-backed securitization includes a portfolio of 606 non-QM loans with a scheduled principal balance of $284.5 million. The loans have a weighted average loan coupon of 4.5%, a weighted average original loan-to-value ratio of 71.3%, and a weighted average original FICO score of 734. Read more: Angel Oak Mortgage REIT posts full-year financial … [Read more…]
Temperatures are currently soaring across the U.S. South, with little expected relief ahead of the Fourth of July holiday.
Texas alone has seen record-high forecasts of temperatures around 110 degrees. The heat wave has come hot on the heels of several destructive storms that put severe pressure on the region’s energy grid and left thousands without power.
Weather experts expect the heat wave to expand further north into Missouri, the Mississippi Valley, Oklahoma, the western Florida Panhandle and western Alabama. As of last Saturday, more than 40 million people in the U.S. have been placed under a heat alert.
And the heat, combined with typical summer storms, is already affecting travelers. For example, when traveling recently on an Embraer 175, TPG’s Summer Hull and her two kids volunteered to receive $1,000 in future travel credits each as the plane was overweight for its trip from Houston’s George Bush Intercontinental Airport (IAH) to New York’s LaGuardia Airport (LGA) due to weather-related weight and balance issues.
Make no bones about it, this year’s Fourth of July celebrations are going to be hot, with an increased likelihood of more storms and heat-related travel disruptions.
For those without air conditioning, these temperatures can be extremely difficult to live with. The commute to work becomes more stressful, and it might be nearly impossible to sleep at night. All in all, it’s not a pleasant experience.
Not only do hot days affect how we work and sleep, but they also affect the aircraft that we fly on.
We’ve all heard the phrase “hot air rises,” but what does this actually mean and how does it affect your flight?
The air around us is composed of various particles, and, for the most part, it consists of 78% nitrogen, 21% oxygen and 1% various other gasses (such as carbon dioxide and water vapor). These molecules of air bounce around the place like balls in a lottery machine, taking up as much space as is available to them. This is known as the atmosphere.
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As the temperature increases, the atoms within these molecules get excited and start to move around more. The hotter they get, the more they move and the farther apart from each other they become — making the air less dense. Conversely, the colder the air becomes, the less excited the atoms are and the denser the air becomes, which makes it sink lower.
On a typical day, as the sun heats the ground and the air above it, the temperature of that air mass increases. This causes the air molecules to increase their movements and rise into the sky, reducing the air pressure as the density reduces. The hot air becomes “thinner” and therefore rises.
As the hottest part of the day passes and the air begins to cool, the molecules become less excited and sink back down toward the earth, increasing the density and, consequently, the air pressure. The same mass of air is now much heavier than it was during the hottest part of the day.
So why does the air density matter for aircraft? Well, contrary to common belief, aircraft fly not because of their engines but because of their wings.
As air flows over the wings, it creates a difference in pressure between the lower and upper surfaces. (There is lower pressure on top and higher pressure underneath.) It’s this difference in pressure that causes lift. When the lift generated by the wings becomes greater than the weight of the aircraft, the aircraft can leave the ground and fly.
For the math-minded among you, the formula for lift is …
Therefore, the amount of lift produced depends on the speed of the air over the wing, the density of the air and the wing area.
The engines are there to provide the forward movement the aircraft needs to drive the air over the wings. During the takeoff run, the engines accelerate the aircraft forward, forcing air over the wings. Because the amount of lift generated is partly determined by how fast air flows over the wings, once the aircraft reaches a certain speed, there will be enough lift to become airborne.
It’s for this reason that aircraft won’t simply fall out of the sky even if both engines fail. If that incredibly rare event were to happen, the pilots would simply lower the nose slightly and use gravity to keep the air flowing over the wings, creating lift. This will give a glide ratio of roughly 3 miles for every 1,000 feet above the ground; this means an aircraft at 43,000 feet can glide for around 130 miles.
So now that we know a little about how aircraft fly, we can begin to understand how the air temperature affects them.
As I mentioned, the amount of lift generated depends on a number of factors in the lift equation, including the speed of the air over the wing and the density of that air.
Related: The challenges for pilots when landing at hot and high airports
We’ve already agreed that on a cold day, the air is more dense, and the molecules fall lower and pack in tight together. As this air flows over the wing, there are many air molecules passing over the surface, creating the perfect conditions for lift.
However, on a hot day, the air is much less dense. As a result, when that hot air passes over the wing, there are far fewer air molecules near the surface, which reduces the amount of lift created.
This difference is why pilots prefer to fly on cold (dense air) days rather than hot (less dense air) days. Not only do the wings generate more lift at a given speed, but the aircraft “bites” the air much better and is more responsive to control inputs.
We’ve seen that on a hot day it’s more difficult for wings to generate lift than on a cold day. When temperatures reach 86 degrees and above, this has a noticeable effect on aircraft performance.
So what can we do if the air density decreases, but we want to keep the lift generated the same? One option is to delay the flight until the air temperature decreases. It’s for this reason that many ultra-long-haul flights depart late at night when the air is the coolest.
However, delaying a flight due to high temperature isn’t ideal. With that in mind, there are two other variables in the formula — the area of the wing and the speed of the air over the wing.
The first option is to make the wing bigger. Even though this may seem like an unrealistic idea (how can you just make it larger?), it’s not as unrealistic as you may first think.
When you first board an aircraft and can see the wing, it looks pretty smooth and sleek. However, just after the engines start, a loud whirring noise comes from under your feet and the surfaces on the leading edge and trailing edge of the wing move outward.
By extending the slats (leading edge) and flaps (trailing edge), we can increase the aerodynamic surface area of the wing, giving us a higher value for our lift formula. For takeoff, most commercial aircraft set the flaps to around a 5-degree extension.
They can go up to around 30 degrees — a measurement used for landing. Since increasing the wing area will create more lift, one option is to use a greater flap setting and increase the area of the wing.
While this is a solution, it’s important to note the more flap you use, the more another factor comes into play — drag.
Drag is the aerodynamic force that slows an object down. The more an object is “hanging out” into the oncoming wind, the more drag it has. This is why sports cars and fighter jets have low, sleek profiles.
Related: No, your flight didn’t go supersonic. That was just really fast wind
If we use more flap to increase the surface area of the wing, there’s a point where the drag generated becomes a bigger problem. The more drag there is, the faster the plane has to fly to overcome the extra force, reducing the lift generated.
Using extra force to generate more lift works but is hugely inefficient. The other option is to simply increase the speed of the air over the wing. There are two ways to accomplish this.
The first is to take off into a strong head wind. If an aircraft needs an airspeed of 100 mph over the wings and you angle it into a 100 mph wind, the aircraft will become airborne even if it is stationary compared to the ground.
In the video below, the small aircraft needs very little air over its wings to become airborne. So little, in fact, that during a storm, bad weather can generate winds strong enough to meet these criteria. The result? Any aircraft that isn’t tied down can very quickly relocate to another area.
However, because most commercial airliners need airspeeds of around 180 mph to become airborne, and the lift generated by wind alone will only make up maybe 30 mph, the other 150 mph must be generated by the engines.
Another little-known fact is that we rarely take off with our engines at full power. This is because it uses a lot of fuel, increases the amount of maintenance needed, and is noisy for those living and working around the airport. As a result, we try to get airborne using as little engine power as safely possible.
To do this, we calculate just how much engine power we need before each departure by considering all the variables — air temperature, air pressure, wind speed and weight of the aircraft. By adding in the runway length available to us, we can then calculate just how much engine power we will need to reach our takeoff speed with the runway length available.
If we need to increase the speed because we can’t increase the wing area anymore and the air density is too low because the length of the runway is fixed, the only way we can do this is to increase our engine power. However, there may come a point where we are using full power but the runway isn’t long enough to reach our takeoff speed before the end.
This is why airports in hot places such as Dubai and Singapore have exceptionally long runways. When airports with shorter runways, sufficient for normal weather, go through periods of extremely high temperatures, the runway length can suddenly become a limiting factor.
When we’ve reached this stage, things really get challenging. We can’t increase the wing area anymore due to excessive drag, and we can’t go any faster because the runway isn’t long enough. It seems that we would be stuck as these are the only variables in our lift formula. However, there is one more element that we can change: the amount of lift required to get airborne.
We’ve already mentioned that an aircraft flies when the lift generated by the wings is greater than the weight of the aircraft. So, if we are unable to generate any more lift, the only way to still get airborne is to reduce the weight of the aircraft to a value that allows us to get safely airborne.
When loading an aircraft, the one thing we can’t change is how heavy the aircraft is when empty. What we have to do once again is look for the variables. These come in four areas: the amount of fuel we load, the number of passengers we carry, the number of bags we load and the amount of cargo we carry.
The first of these to go will be the cargo, as this can be loaded onto a later flight without much inconvenience to the customer. The next element we’ll try to change is the fuel figure; however, understandably, there is a limit to how much we can reduce this.
We may look at how much fuel we will use to taxi to the runway or how much contingency fuel we carry in case of unexpected routings or altitudes. However, realistically we only save a few hundred kilograms in weight by doing this, even on a long-haul flight.
The final variable is when airlines become really unpopular with customers — offloading them or leaving their bags behind.
Related: Runway approaching: How pilots find their way safely to the ground in all elements
Let’s be clear on this: No airline wants to leave passengers or bags behind. However, there is absolutely no way the pilots will risk taking off knowing that the aircraft is too heavy for the environmental conditions.
As a result, the only option is to either cancel the flight or offload some passengers and/or bags and send them on another flight.
Not only do high temperatures affect how we work and sleep, but they also have an effect on how aircraft fly. As the mercury rises, the air density changes, which reduces the performance of the lift-generating wings. Pilots have ways around this — but only up to a certain point.
Should the temperature become so hot that the pilots can’t make any further changes to their takeoff performance, the only way to get safely airborne is to either offload passengers and bags or cancel the flight altogether.
This is far from ideal, but it’s our job to keep all those on board our aircraft safe. Every so often this involves taking extreme steps.
Source: thepointsguy.com
Direct link to offer
Best bonus was 175,000 points, this is 35,000 less but comes with the $100 statement credit. We have also seen 140,000 points + free night certificate. I think those were better offers than this, but some might prefer this offer.
Source: doctorofcredit.com
Soon it will be easier to finance foreclosed properties with FHA loans.
HUD Secretary Shaun Donovan announced today that FHA financing will be permitted on homes owned by sellers for less than 90 days in a bid to stabilize home prices and accelerate the sale of vacant properties.
The agency currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days, making it difficult for those who acquire foreclosed properties to resell them, as FHA loans are the most widely used nowadays.
“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan, in the release.
“FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”
The move came after FHA research revealed that “acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days.”
Consequently, prohibiting the use of FHA loans for subsequent sales would adversely affect the seller’s ability to move the property, leading to higher holding costs, a drag on home prices in the surrounding area, and an increased risk of vandalism.
At the same time, HUD noted that it understands the risk of predatory practices related to the rule change, which is why the waiver is limited to sales meeting a number of conditions.
The transactions must be arms-length, with no identity of interest between buyer and seller, forward mortgages (no reverse mortgages), and in cases where the sales price of the property is 20 percent more than the seller’s acquisition cost, more conditions must be met.
“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”
The rule change is being implemented on February 1, and will be effective for one year, unless extended or withdrawn earlier.
Source: thetruthaboutmortgage.com
A new online mortgage lender by the name of “Clara” looks to separate itself from the crowd by touting technology and transparency.
And from the looks of their website, they seem to be appealing to the youth. I might be joking a bit when I refer to them as a hipster mortgage lender, but that’s kind of what I take away when I peruse their site.
They highlight the fact that you can text, e-mail, call, or even video chat with your loan rep during the process.
Clara claims it can “help you finance your home in a modern, intuitive way,” and notes that they’re “powered by tech, supported by humans,” and “designed for you.”
So let’s see what makes Clara so special.
First and foremost, the so-called “loan specialists” at Clara do not get paid a commission. That means they’re available to help you, not steer you into a certain loan product or urge you to do something you aren’t sure you want to do. That’s the idea at least.
I looked at their mortgage rate quotes and they seem to charge a flat $1,000 loan origination fee regardless of loan amount or transaction type, such as refi or purchase. They offer cash out refis as well, but do not offer HELOCs.
They seem to pride themselves on being super transparent with loan pricing, showing you all the fees associated with your loan right on the quote page. You can choose between a lower interest rate with more fees out-of-pocket, or a slightly higher rate with a lender credit.
Either way, it’s all spelled out for you to see with your own eyes to help determine what’s best for your situation.
At the same time, they want to empower the borrower by offering some mortgage education, with explanations on things like LTV and mortgage insurance.
Clara has a page dedicated to their mission, which appears to be fixing the “broken” mortgage industry. We’ve heard this narrative before with the likes of Eave, Lenda, SoFi, and Quicken’s Rocket Mortgage.
But it always seems to be a case of oversimplifying what has become (or maybe always has been) a very regulated and bureaucratic process. Besides, people get upset when you make it too easy to get a mortgage…
As much as we’d all like to text the mortgage lender our details and receive our loan in 30 minutes or less, that’s just not going to be a reality anytime soon. I hope it is eventually, and maybe newcomers like Clara will get us there.
They do seem to have a very seasoned roster consisting of former employees from Yahoo, Google, Lyft, Twitter, Quicken Loans, Blackrock, the US Treasury, and even The White House. So they’ve certainly got the talent to make a difference.
Now let’s talk about what Clara offers aside from transparency and technology.
As noted, the company allows you to purchase a home or refinance an existing mortgage, including tapping home equity.
They say they specialize in conventional, conforming mortgages, which seems to include loan amounts above the traditional $417,000 loan limit.
You can get a fixed-rate mortgage, including a 30-year fixed, 25-year fixed, 20-year fixed, or 15-year fixed, or an ARM, including a 7/1 ARM, 5/1 ARM and 3/1 ARM.
I plugged in a $336,000 loan amount at 80% LTV for a rate and term refinance on a single-family, owner-occupied home for a borrower with excellent credit (720+) and it spit out the rates seen above.
Clara shows you the lender (and third-party) fees in detail as well, which is the transparency piece mentioned earlier.
The process begins when a quote is generated online. If you’re happy with what you see you can create a login, at which point you’ll be assigned a licensed loan specialist.
Their contact information will appear in the online loan portal on the Clara website and you’ll be able to keep track of the loan’s progress from there.
The standard documentation is required for a Clara mortgage just as it is any other mortgage, though I think they allow you to autofill forms and speed through the paperwork a lot faster with their tech platform in place.
That same technology should lower the cost of offering mortgages, meaning origination fees can be contained while also delivering competitive mortgage rates.
When it comes to rate locks, Clara has a default 45-day lock for purchases and a 60-day lock period for refinance transactions. It’s unclear what happens if you exceed these time periods.
While they don’t guarantee a specific time-to-close, they aim to fund loans on your timeline.
Clara also sells all the mortgages it originates, but stresses that it is not a mortgage broker. I guess that makes it a mortgage banker because all of their loan officers, processors, and underwriters are in-house at their San Francisco headquarters.
At the moment, Clara is only offering mortgages to California homeowners. But if things go well, there’s a good chance they’ll expand to other nearby states and eventually nationwide. So if you don’t reside in CA, stay tuned.
Update: Clara was acquired by SoFi in early 2018.
(photo: Manjo.)
Source: thetruthaboutmortgage.com
A reverse mortgage may help older Americans who find they need more money in retirement. It’s common for inflation and rising medical costs to be issues. A reverse mortgage allows them to convert some of their home’s equity into cash, which can benefit their financial situation.
Protections established over the past few years by the U.S. Department of Housing and Urban Development (HUD) focus on lowering the risk previously associated with reverse mortgages. What’s more, the federal and state governments have taken aim at deceptive marketing practices that can minimize the complex aspects of reverse mortgage agreements.
That said, it’s wise to proceed with caution. There are still considerable cons to reverse mortgages, and borrowers may be unaware of the finer points. One important fact: It is possible to lose one’s home if you don’t comply with all the loan terms. Take a closer look at this topic here.
A reverse mortgage allows qualifying homeowners age 62 and older to convert part of the equity they’ve built up in their primary residence into money they can use to pay off their existing mortgage or for any other expenses that come up in retirement (from health-care costs to home repairs).
The big selling point for reverse mortgages is that the loan usually doesn’t have to be paid back until the last borrower, co-borrower, or eligible non-borrowing spouse dies, moves away, or sells the home. And when it is time to repay the loan, neither the borrower nor any of the borrower’s heirs will be expected to pay back more than the home is worth.
There are three basic types of reverse mortgages. The most common is a home equity conversion mortgage (HECM), which is the only reverse mortgage insured by the U.S. government and is available only through an FHA-approved lender. An HECM can be used for anything, but there are limits on how much a homeowner can borrow.
There are also proprietary reverse mortgages, which are private loans that may have fewer restrictions than HECMs — including how much a homeowner can borrow.
And there are single-purpose reverse mortgages, which are typically offered by nonprofit organizations or state or local government agencies that may limit how the funds can be used. Most of the time, when someone refers to a reverse mortgage, though, they’re talking about an HECM.
There are safeguards in the reverse mortgage process that protect borrowers, but there are also loan terms borrowers are required to uphold or risk defaulting and potentially triggering a mortgage foreclosure. They include:
Borrowers must stay up to date on property taxes, homeowners insurance, homeowners association fees, and other costs, or they could risk defaulting on the loan. An assessment of a borrower’s ability to pay for those ongoing expenses is part of the reverse mortgage application process, and if it looks as though money might be tight, a lender may require a borrower to set up a reserve fund, called a “set-aside,” for those costs. (In this way, it’s akin to an emergency fund, which is there to cover expenses if needed.)
Borrowers (and eligible non-borrowers) must use the home as their primary residence — the home they occupy for most of the year. If they move out of the house or leave the home for more than six months, or receive care at a nursing home or assisted living facility for more than 12 consecutive months, it could result in the lender calling the loan due and payable.
The lender also may choose to accelerate the loan if the borrower sells the home or transfers the title to someone else, or if the borrower dies and the property isn’t the principal residence of a surviving borrower.
Because the home is collateral and may have to be sold to repay the loan, lenders may require borrowers to do basic maintenance that will help the property keep its value (e.g., repairing a leaky roof or fixing a problem with the electrical system). If an inspector feels the home is not being properly maintained, the lender could take action.
If the homeowners default, the first thing that could happen is that future loan payments may be stopped. And if the problem isn’t corrected within the lender’s stated timeline, the loan may become due and payable, which means the money the lender has distributed to the borrower, plus any interest and fees that have accrued, must be repaid. In that case, the borrower typically has four options:
• They can pay the balance in full and keep their home.
• They can sell the home for the lesser of the balance or 95% of the appraised value and use the proceeds to pay off the loan.
• They can sign the property back to the lender.
• They can allow the lender to begin foreclosure.
No matter what the homeowners decide to do, the process could take months to complete. HECM lenders may offer borrowers additional time to fix the problem that put them into default, or the borrowers may qualify for extensions or a repayment plan.
But in the meantime, there could be other implications — if the homeowners are no longer getting money they need to pay their bills or if the lender reports the default to credit monitoring agencies — that could affect the homeowners’ credit scores.
The advertisements some lenders use to sell their reverse mortgages can be convincing, and some seniors may see these loans as a convenient way to get some extra cash or as a much-needed lifeline.
But, as with any financial decision, there are advantages and disadvantages — and alternatives — to be considered. There are other ways homeowners may be able to get help that could be less complicated and less limiting than a reverse mortgage.
Here are a few options:
• Borrowers may wish to tap into their home’s equity with a traditional home equity loan or home equity line of credit. They’ll have to make monthly payments, and their income and credit history will be considered when they apply, but the terms may be more flexible and the overall cost may be lower than a reverse mortgage. Because the home is used as collateral, there’s still a risk of foreclosure.
• Low interest-rate personal loans might be another option for homeowners who qualify for a competitive interest rate based on their income and credit. Borrowers who don’t have much equity in their home may choose to look into this type of loan, which is unsecured and is paid out in a lump sum. While foreclosure is not a worry with a personal loan, there still may be consequences to the borrower’s credit rating if they don’t uphold the loan terms.
• Borrowers who are struggling to keep up with their bills in retirement may find that refinancing a mortgage with a new, lower-cost mortgage might be an option to help them lower their monthly payments and stay on track with their budget.
Or, if they need extra cash right away and can get a low enough interest rate, they may want to look into a “cash-out refinance,” which would involve taking out a new loan for a larger amount based on the equity they’ve built up during the years they’ve lived in the home.
Unfortunately, no matter which type of loan homeowners might choose, there could be risks.
The government requires a counseling session for reverse mortgage borrowers for a reason: They’re complex, and it can be helpful to have someone cover all the rules and costs involved.
Homeowners also may want to pay a financial advisor and tap their expertise about what type of loan, if any, fits with their needs, goals, and where they are in their retirement.
Though reverse mortgages are available to homeowners starting at age 62, borrowers who expect to have a long retirement may choose to wait until they’re older to tap into their home equity, so they don’t risk running out of money in their later years.
For many retirees, the equity they have in their home is their biggest asset. Armed with knowledge about the pros and cons of each type of loan and a long-term plan, borrowers can better protect that asset and their financial security.
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 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.
*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.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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Source: sofi.com
Investors who chafe at having to take required minimum distributions (RMDs) each year have a new tool to help them reduce the tax bite of these withdrawals – and provide retirement income for life.
A financial advisor can help you manage your RMDs and tax liability in retirement.
Among the many provisions in the new SECURE 2.0 Act is an option that allows IRA holders to combine qualified charitable distributions (QCDs) with a little-known vehicle called a charitable gift annuity. The result? Your charitable donations can help fund your lifestyle in retirement. Here’s how it works.
Anyone turning 73 this year is required to take a taxable required minimum distribution (RMD) from their IRA (the rules and ages vary according to birth dates). Someone turning 73 with an IRA worth $500,000 at the end of 2022 would need to withdraw $18,868 by the end of the year. That money is taxed as ordinary income.
Contributions to qualified charities can be made directly from an IRA for up to $100,000 each year, with that money being tax-exempt and counting toward the annual RMD amount. As of Jan. 1, retirees ages 70 1/2 or older can donate up to $50,000 of that $100,000 in one single tax year only to a charitable gift annuity.
In exchange for the donation, the charity makes a fixed annual annuity payment to the donor for the rest of their life or for the lifetime of the donor and donor’s spouse. The payment must be 5% of the donation or more. Most charities set the annuity payouts using the American Council on Gift Annuities suggested rates, according to The Wall Street Journal.
A recent article uses the example of a 70-something retiree who donated $25,000 from her IRA to her alma mater, which immediately reduced the taxable income from her required minimum distribution (RMD) by that amount. By directing the money to her college’s charitable gift annuity program, she has a fixed 7% annuity that will pay her $1,750 a year for the rest of her life. If she lives another 15 years, she’ll receive more from the annuity than the amount of her original gift.
While this strategy can help lower your tax bill in a given year, keep in mind that the annuity payments are considered ordinary income, so you’ll owe taxes on the money. Additionally, any money left over after the death of the donors goes to the charity.
While the $50,000 contribution must be made in a single year, it can be broken up into smaller amounts and distributed to different charities that offer charitable gift annuities.
However, both the $100,000 charitable donation limit and the $50,000 charitable gift annuity limit adjust for inflation after 2023. The annuity is backed by the assets of the charity.
Gift annuities allow donors to make contributions to charities that they otherwise might not be able to afford if they weren’t going to receive the annuity payments in return, since it provides some income for the rest of the donor’s life.
Recent changes to the laws surrounding required minimum distributions (RMDs) from IRAs and other tax-deferred accounts have given retirees a bit more flexibility about how to handle their withdrawals and the resulting taxes. Using RMD money to make a charitable donation reduces the amount of taxable income from the distribution. Making a donation from an IRA to a charity offering a gift annuity provides some lifetime income for donors who might otherwise not be able to afford to make a donation.
Photo credit: ©iStock.com/FG Trade, ©iStock.com/donald_gruener, ©iStock.com/izusek
Source: smartasset.com
North Carolina is experiencing a boom these days, with record employment growth and an increasing population. If you live in the state, you already know there’s plenty to offer, including beautiful tourist attractions, breathtaking scenery, and a rich history that makes it unique.
But North Carolina also has plenty to offer when it comes to banks and credit unions. Whether you’re looking for an interest-bearing checking account or retirement accounts that offer the biggest bang for your buck, the best bank is the one that suits your needs.
If you’re on the hunt for a new bank or credit union, you’re in luck. North Carolina has a little of everything when it comes to bank accounts, from that small local bank with a focus on community service to large banks with branches in the state. This list of the best banks in North Carolina covers a variety of areas to ensure you find the best place to park your cash.
U.S. Bank offers customers the unique combination of local access with the extensive services of a nationwide bank. By opening a Bank Smartly® Checking account with U.S. Bank, clients can potentially earn up to $300. The qualification process involves two steps within the first 90 days of opening the account online:
This promotional offer is subject to specific terms and restrictions and will remain valid until July 11, 2023. As a member of the FDIC, U.S. Bank ensures customer deposits are protected up to the FDIC’s established limits.
Fees:
Balance requirements:
ATMs:
Interest rates:
Additional perks:
Founded in North Carolina in 1898, First Citizens Bank has expanded over the years. You’ll find First Citizens Bank branches in 21 states, but the majority of its locations are in North Carolina and South Carolina.
If you frequently travel, though, check the service area. You’ll pay a $2.50 out-of-network ATM transaction fee if you can’t locate a First Citizens ATM while you’re away from home.
Fees:
Balance requirements:
ATMs:
Interest on balance:
Additional perks:
Chime is ideal for those who do most of their banking virtually. While you won’t find any brick-and-mortar locations, Chime does offer 24/7 phone support and access to cash through more than 60,000 ATMs nationwide. You can also deposit cash at more than 90,000 retail partners, including CVS and Walmart.
Fees:
Balance requirements:
ATMs:
Interest on balance:
Additional perks:
North Carolina residents interested in online banks should take a look at CIT Bank, which is based in Raleigh, North Carolina. This national bank recently merged with First Citizens Bank, which means CIT Bank customers can enjoy brick-and-mortar banking at any CIT location.
You’ll get everything you need to manage your money in CIT’s mobile banking app, as well as refunds of up to $30 in out-of-network ATM fees each month.
Fees:
Balance requirements:
ATMs:
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Credit unions tend to offer perks you won’t find with banks, and Coastal Federal is no exception. You can qualify if you’re with one of the employers or associations approved for membership or if you live or work in one of the North Carolina cities CFCU services.
As with many credit unions, though, CFCU’s real value comes with its interest rates. Not only will you enjoy an interest checking account, but you can also find great rates on share certificates, which are the credit union version of CDs.
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Another online-only bank is GO2bank, which stands out for its cash accessibility. Not only can you withdraw cash, fee-free, at any Allpoint ATM, but you can deposit cash at more than 90,000 retailers nationwide.
All you need to waive monthly maintenance fees is at least one direct deposit monthly, either from an employer or the government. Those looking to build credit should check out the secured credit card, which you can get with no credit check. Pay your bill on time each month and GO2bank will report your activity to the three credit bureaus, helping you boost your score.
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Ally Bank is an online and mobile banking option that puts a priority on budgeting and wealth building. The fee-free checking account comes with no minimum requirements and gives you access to more than 53,000 ATMs nationwide. But one of the best features of Ally Bank is its annual percentage yield on savings and CDs. You’ll earn 4.00% APY on savings and up to 5.00% APY on CDs.
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Like Bank of America, Chase Bank is one of the biggest banks in North Carolina, with more than 4,700 branches and 16,000 ATMs across the country. Currently, Chase is offering a $100 bonus for new checking account customers as long as you complete at least 10 qualifying transactions within the first 60 days.
Whether you go with Chase for your regular banking or not, though, take a look at Chase’s credit card offerings. Chase has multiple card options, with each offering perks like bonuses and cash back rewards.
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First Horizon Bank is a regional bank with branches in 11 states across the Southeast, including a heavy presence in North Carolina. One standout feature of First Horizon is its money market rates, which currently go as high as 5.38%. You’ll find ATMs throughout the Southeast, but you can also use your debit card at any Allpoint ATM nationwide without a fee.
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In 2019, BB&T and SunTrust Banks merged to become Truist Bank. Although Truist has a limited ATM footprint, the Truist One checking account makes it worth it. You’ll get a 10% loyalty bonus based on your monthly balance in addition to a 10% bonus if you choose a Truist credit card.
The interest rates also make Truist a suitable option, since you’ll earn 5.00% APY on 7-month CDs. To waive the $12 monthly service fee on your checking account, you’ll need at least $500 in direct deposit activity each month.
Other options include a combined daily balance of $500 across all your Truist accounts, a Truist credit card or qualifying loan, or a linked business checking account. Students 25 and younger also qualify for a fee-free checking account.
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You may know it as M&F Bank, but it actually started under the name of Mechanics & Farmers Bank in 1907. Throughout the 1900s, it was known as one of the most influential Black-owned businesses in the state of North Carolina. Today, M&F has locations throughout North Carolina and access to 44,000 ATMs nationwide, thanks to partnerships with Bank of America, JPMorgan Chase, and Wells Fargo.
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First National Bank has branches throughout North Carolina, as well as in DC, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. The free checking account is Freestyle Checking, but it does come with overdraft fees, and the exact fee amount isn’t disclosed until you sign up for an account.
You’ll also only get fee-free transactions at First National Bank ATMs, and they’re limited to the First National Bank service area.
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PNC Bank has branches in 29 states, including 107 branches in North Carolina. Currently, new customers are eligible for bonuses of up to $400. You’ll get a $50 bonus simply for opening a Virtual Wallet with a basic checking package, but that bonus bumps up to $200 if you add a Performance Spend checking account and $400 if you upgrade to a Performance Select account.
The PNC Bank basic account only requires $500 in monthly direct deposits or a combined $500 balance between accounts.
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Fifth Third Bank focuses operations on the Midwest and Southeast U.S. regions, with 1,087 full-service locations in 11 states. You’ll find a variety of banking products, from savings and checking accounts to investment and retirement accounts. Fifth Third Bank offers competitive interest rates on CDs, with a 7-month CD currently offering 5.00% APY.
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If you prefer what national banks have to offer, you can’t go wrong with Bank of America, which is one of the biggest banks in the country. You’ll find ATMs and branches across the country, as well as a wide variety of services. Although Bank of America does have competitive interest rates on CDs, the basic checking account comes with a $12 monthly fee and a $100 deposit to open.
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North Carolina has a large selection of banks, some paying more in interest than the national average. In putting together this list, we kept in mind that each person has different criteria when choosing savings and checking accounts. Your choice of bank will largely depend on your own banking habits. If you tend to do all your banking online, a user-friendly app might be a top priority, while those who prefer the in-person experience might put nearby branches first.
Our top goal was to bring a variety of banking options to this list. We’ve combined local, regional, online, and national banks to help you choose. We also looked at fees and interest rates to help you protect and grow your earnings.
You have questions, and we have answers. Here are some of the most frequently asked questions about banks in North Carolina.
Lately, financial security has been a top priority for account holders in search of a new bank. The top thing to look at is a bank’s Federal Deposit Insurance Corporation coverage. This insurance protects each deposit holder for up to $250,000 if a financial institution goes belly up.
Once you’ve verified a bank is FDIC insured, pay attention to any news of mergers or buyouts involving your bank. Selling can be a sign of financial distress.
See also: Safest Banks in the U.S. for 2023
That’s a tough question because the definition of “best bank” can vary from one person to another. If you think the best checking accounts come with an annual percentage yield and a mobile app to manage it all, you’ll be looking at different criteria from someone who wants a local bank with personalized customer service.
If you’re going for customer satisfaction ratings, J.D. Power gives high marks to both Capital One and Chase, which both have a heavy presence in North Carolina. But if you’re looking for that local banking experience, you can’t go wrong with First Citizens Bank or M&F Bank.
There are several credit unions in North Carolina, but the one that impressed us most was Coastal Federal. CFCU’s fee-free checking and annual percentage yield on savings and share certificates makes it stand out. But it’s also important to take a look at the interest rates on personal loans and compare them to banks in the area to make sure you’re getting the best deal.
One issue with credit unions is that they tend to come with strict membership requirements. You may find you’re limited to only those that will accept your employer or city of residence, and those credit unions might not have financial accounts that meet your needs. However, there are also some credit unions that anyone can join.
If you do most of your banking in North Carolina, you might not care if your debit card works at ATMs across the country. In that case, you’ll need a bank with plenty of branches and ATMs in the areas where you work and live.
When it comes to sheer branch numbers, take a look at Truist Bank and Wells Fargo. Both have a heavy branch presence throughout the state. For smaller banks, First Citizens and First Horizon both have substantial branch coverage in North Carolina.
However, you’ll also need to check your neighborhood. If you’re interested in that in-person bank experience, you’ll be disappointed if you have to drive a half hour or more to get to the closest branch.
North Carolina isn’t just a thriving state filled with business opportunities. The state is a financial center in itself. Not only does Charlotte have smaller banks like M&F Bank and First Citizens Bank, but both Bank of America and Truist Bank are headquartered in North Carolina, as well.
This heavy financial presence has made North Carolina great for finding banking services. The many banks in the state are eager to win your business and offer competitive rates to ensure it happens. That means it’s more likely that checking accounts come with low fees and savings accounts earn top-dollar interest rates. When combined with the many online bank options, the biggest issue will be narrowing the list to just one.
From high-yield savings accounts to fee-free checking accounts, North Carolina has it all. Shopping around will help you choose from the best banks so that you can find the perfect banking partner for you.
Source: crediful.com
We made it to Friday once again. The good news for borrowers is that mortgage rates are improving right now. This makes right now a great time for anyone looking to purchase or refinance to lock in a rate. So give us a call or fill out our simple online form to get started. Read on for more details.
Well, we persevered through the week and arrived at Friday once more. The big news today in the market is the Employment Situation for March (a.k.a. the monthly jobs report).
This report is almost always once of the most influential reports every month, and this time around was no different. The headline reading in today’s report showed that 103,000 jobs were added to the U.S. economy in March.
That’s a big miss from the 175,000 that analysts had expected. It’s even below the low end range of 112,000. It’s not all bad, though, as average hourly earnings did hit the expected mark with a 0.3% monthly rise.
Most economists aren’t too troubled by the headline reading either, despite it being the lowest in six months. They see it as a one-off dip that isn’t reflective of the long-term trend.
Nevertheless, that isn’t stopping money from going out of stocks and into bonds, pushing down Treasury yields. The yield on the 10-year Treasury note is down about three basis points to 2.80% today.
Mortgage rates typically move in the same direction as the 10-year yield and are similarly a little lower as we head into the weekend. As we saw in the Freddie Mac Primary Mortgage Market Survey (PMMS) yesterday, rates improved for the second straight week this week.
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Here is what the Freddie Mac’s Economic and Housing Research Group had to say about rates this week:
“After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week. Mortgage rates followed and fell for the second consecutive week; the U.S. weekly average 30-year fixed mortgage was 4.4 percent in our survey this week. Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor marking is helping home purchase demand weather modestly higher rates. The Mortgage Bankers Association reported in their latest Weekly Mortgage Applications Survey that the Purchase Index was up 5 percent from a year ago indicating that this spring is on track for a modest expansion in purchase mortgage activity.”
With mortgage rates moving lower to end the week right now is a great time to lock in a rate on a purchase or refinance.
Long-term, rates are still expected to rise so borrowers who act now are likely going to get the better deal.
It only takes a few minutes with our online mortgage builder or a quick phone call to one of our loan experts to get started.
*Terms and conditions apply.
Source: totalmortgage.com
Miami is one of those cities that almost has too much to offer. From apartments with amazing views, compliments of amenity-filled rooftops, to luxury features like high-class fitness centers, it’s not always easy to narrow down your options in this abundance.
One must-have amenity in any Miami apartment is a killer outdoor space. You need some greenery and a perfect gathering spot, to enjoy the wonderful weather with friends. That’s why finding places with solid courtyards or gardens in Miami is essential, and these 10 apartments will totally fit the bill.
There are a couple of cool courtyard-like spaces up and down Alea, which uses its vertical space very well, The actual courtyard hosts the community’s dog run, but this colorful spot gives you a great view and a patch of greenery. The bright mural on the wall, ceiling and pillars of this outdoor space provides character that’s totally Miami, offering up a unique space for a moment of relaxation, shaded from the Florida sun.
Known as the historic center of the city, living in the Miami Central Business District puts you in the hub of so much activity. You’re close to work and fun within the six city blocks that make up this downtown neighborhood. Public transportation makes it easy to get around this dynamic area as well, whether you’re heading out to eat, checking out an art gallery or simply heading off to work.
Planting up rather than out, the front of Opera Tower gives you a vertical garden of greenery to enjoy. Set higher than the palm trees lining the entrance, lush bushes seem to grow straight from the building itself. This funky garden not only adds a great pop of color to the pristine building but really makes the space stand out.
Sitting along the shores of Biscayne Bay, the Edgewater neighborhood isn’t far from the center of everything happening in Miami. It offers a perfect mix of parks, shops, restaurants and waterfront recreation. Margaret Pace Park, also nearby, gives you easy access to trails, tennis and superb picnic spots, while Biscayne Boulevard is where you’ll find posh shops and great places to eat. It’s all right outside your door waiting for you.
A sleek courtyard surrounded by tall palms and shapely landscaping highlights a great hangout space at Gables Ponce. Curved couches face into a small fountain with cabana-style seating off to the side. There are even outdoor cabanas, a must in this Central Gables neighborhood.
About seven miles from Miami’s center, you’ll hit the beautiful suburb of Coral Gables. Known for its tree-lined streets and historic landmarks, this area is also home to the University of Miami, so you’ll find a nice dose of college students. There’s also amazing shopping and dining along the city’s Miracle Mile and a beautiful dose of nature at the Fairchild Tropical Botanic Garden.
You’ll find the soothing rock garden at the very front of Brickell 1st Apartments. Every time you enter, this pool is here to greet you as the small fountains agitate the water so it trickles over the smooth stones. It’s like having a tiny zen garden to help you transition into being back at home, hopefully helping your daily stressors fall away before you reach your front door.
The true urban jungle of Miami, Brickell is the financial center of the city, so living here puts you in proximity to plenty of tall buildings. It’s also where you’ll find great rooftop bars, art galleries and fashionable shops. It’s the downtown you’d expect to find in Miami.
A good courtyard is a functional courtyard, and thanks to the ample seating at WYND 27 & 28, you get just that. Funky flooring defines the space, while a planter with a tall and lanky tree sits front and center. Long rows of cushioned benches surround the space, providing a woodsy feel to this great hangout spot.
Giving you a dense concentration of the arts, the Wynwood Arts District combines art galleries, museums and amazing pieces of street art to create a truly unique and eclectic neighborhood. Among all this unfettered creativity, you’ll find cool antique shops, fun bars and quirky places to eat, so the vibe stays true no matter what you’re doing.
The best way to take in the courtyard at Cordoba Luxury Rentals is through a wide angle. The mass of tall palm trees makes it hard to get a view of the whole space at once, although they create a great park-like atmosphere. A little hardscape and some clusters of bushes add to the easily navigable area thanks to paved pathways.
For those who love to travel, or find themselves on frequent work trips, Cordoba may be the perfect neighborhood for you. It’s only six miles from Miami International Airport. College students may also eye this area since it’s also near Florida International University. Aside from its ideal location, the area boasts fantastic parks, shopping and a few golf courses.
A sweet courtyard with a stately fountain provides a stellar first impression of Villa Majorca. Two tall palm trees frame the entrance with tropical plant life filling in the rest of the landscaping. Another Coral Gables gem, this tranquil space is a truly unique amenity.
This smaller community provides residents with luxury living in the heart of Coral Gables Apartments are very spacious, and community amenities include a fitness center and hot tub. You also get the perk of enjoying the surrounding simplistic and clean Mediterranean-style architecture.
Every courtyard needs a decent seating area, and at Blue Lagoon 7 the combination of white furniture with green grass gives everything a pristine look. Snag a seat on the circular lawn and hang out with friends, or settle into the couch under the cabana. This is just one piece of the expansive courtyard that includes other pods of seats, along with nice landscaping.
Big on luxury and outdoor space, Blue Lagoon 7 provides an array of green and blue retreats to absorb that fresh Miami air. Sitting right on the waterfront, there’s no shortage of crystalline views. A great pool, outdoor gaming area and multiple gas grills add even more to the outdoor space here. You can take a dip, play a game of ping pong or lawn chess and grill up some goodness all in one swoop.
The garden at Platform 3750 is very interesting. Rather than on the ground, it fills an entire wall above the parking garage. Flowers bloom vertically and plants hang down on this special spot that takes gardening to the next level, literally. A beautiful palm tree stands out from a bricked planter as well to draw the eye to one of the most interesting gardens in Miami.
Known as Miami’s oldest, continually inhabited neighborhood, Southwest Coconut Grove is another great spot to call home. Living here puts you close to dining, shopping, entertainment and pristine beaches. There’s a lot of charm and history here as well, which manifests in the funky shops and delicious restaurants.
An outdoor lounge sits within a tropical garden at Avalon Doral. Find tranquility in this space just off the pool thanks to the rounded chairs and four-top tables surrounded by leafy greenery and palm fronds. Funky lighting makes this space usable even after dark, and the overall tropical ambiance really puts you in the Florida state of mind.
Downtown Doral may be a few miles away from Miami’s city center, but it’s a happening spot all the same. Walk along the main street for shopping, food and fun things to do, or explore Downtown Doral Park. This park covers three acres right in the heart of this suburb and includes a playground, picnic tables and a great jogging path.
Finding that perfect Miami apartment is never easy, so make sure you know what’s really important before you really start your search. From the location to the pool to plenty of other amenities, don’t forget about that stellar outdoor space as well. You can get a great place to chill outside even at home, with the sun and amazing weather of Miami at your fingertips.
Source: rent.com