At the end of April, Moderne Ventures announced their 2021 Passport Class. Over the next 6 months, each company in the class will receive an industry emersion experience led by Moderne’s team. Geek Estate is about celebrating entrepreneurship, focused on real estate tech (both residential and commercial) and Moderne Venture’s involvement is significant in establishing a global prop-tech ecosystem. This newly announced class has raised over $32 million and has valuations of over $230 Million.
The seven companies selected for the program include:
JoyHub – Culver City, CA: An AI-driven platform providing data aggregation and actionable business intelligence to professional rental property owners and operators.
Kaiyo – New York, NY: A full-service marketplace for gently-used furniture committed to great design, exceptional customer care, and a more sustainable planet.
Peek – New York, NY: An end-to-end solution for virtual-first leasing. The Peek platform combines advanced analytics, content management, integration, and marketing tools.
Piñata – New York, NY: A rent payment platform that allows residents to earn rewards for on-time payments while also increasing their credit.
MotoRefi – Arlington, VA: Transparent autorefinancing. MotoRefi helps car owners save up to $100 per month on their car payments.
Tailorbird – Princeton, New Jersey: Tailorbird saves property owners time and money by using technology to generate instant construction quotes and bid out jobs to preferred contractors.
Trash Butler – Tampa, FL: Doorstep trash & recycling, powered by customer service for property owners and operators.
Please join us in congratulating the 2021 Moderne Ventures Passport Class!
Last year, rising mortgage interest rates chilled the previously hot Southern California housing market.
Buyers backed off, sales plunged and, for the first time in a decade, home prices underwent a sustained slide.
By one measure, prices in the six-county region fell 13% from the peak last spring.
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That might be as low as they go.
In recent months, there have been growing signs home values may have resumed their climb, potentially dashing the hopes of first-time buyers holding out for cheaper housing in the months or years ahead.
What exactly is happening?
According to several data trackers, home prices ticked up in the last few months.
In April, the median sales price for an existing single-family house in Southern California rose 2% from a month earlier to $785,000, according to the California Assn. of Realtors. That was the third straight month prices climbed from the prior month.
Similar increases can be found in data trackers from mortgage company Black Knight and real estate brokerage Redfin.
Butnot all sources show prices rising across the board.
According to Zillow, the typical price in the combined six-county Southern California region continued to fall in April, but the decline was the smallest since values turned negative last year.
Why is this happening?
Essentially, buyers have been more willing than sellers to return to the market this spring.
A decline in mortgage rates from above 7% into the 6% range brought some buyers back, real estate agents say, as did a belief among buyers that rates wouldn’t fall much more if they continued to hold out.
Some agents said they’ve seen mostly first-time buyers return.
“Why pay high rent?” Ramon Sanchez, a Whittier-based agent, said. “They would rather see if they can qualify to buy.”
Jeff Tucker, an economist with Zillow, said first-time buyers may also be “bursting at the seams in their apartment” as their families grow, another reason “a lot of interested first-time buyers are not in a place where it’s easy to wait.”
At the same time, many homeowners are waiting, unwilling to list their homes and trade their sub-3% mortgages to borrow at 6%.
Since the start of the year, the total number of homes for sale in Southern California has dropped 21%, according to data from Redfin.
Despite fewer options, sales increased 34%.
“Inventory is just very low,” Tucker said. “There are enough folks who can afford prices at this height that they are still bumping into each other getting into a little competition.”
If I am looking to buy a home now, what should I know?
Well, there is a little more competition. Compared with a few months ago, open houses should be busier and there’s a greater chance you’ll need to bid against others.
Tracy Do, a Coldwell Banker agent who specializes in the highly sought-after neighborhoods of northeast L.A., said that once again, some homes are selling for more than $100,000 over asking.
In southeastern Los Angeles County, Sanchez isn’t seeing jumps as big, but the last three properties he listed had multiple offers and either sold, or are in escrow, for more than the list price.
“We got more buyers in the market than we have sellers,” Sanchez said.
Although the market is more competitive, it’s nothing like the pandemic housing boom.
In March 2022, buyers paid more than list price in 76% of home sales in Los Angeles and Orange counties, according to Zillow. Fast-forward to March 2023, that percentage was 42%.
Do said buyers — compared with early 2022 — are also more likely to get away with leaving in contingencies, or convincing the seller to pay for repairs.
Pricing is also lower.
According to the California Realtors, though April’s median in the combined six-county Southern California region was up $15,000 from March, it was $52,000, or 6.2%, below April 2022 levels.
In Los Angeles County, the median was 8% less than a year earlier and 17% lower than when prices topped out in the county last September.
In Orange County, April prices were 8% from that county’s peak; in the Inland Empire, 5% below the peak; in Ventura County, 7% below the peak; and in San Diego County 5% below the peak.
Will home prices drop further?
What ultimately happens will be influenced by a variety of factors including the direction of mortgage interest rates and whether the economy enters a recession.
But Tucker, the Zillow economist, said the most likely scenario is home prices rise from here on out, because high mortgage rates should keep many homeowners from listing their homes.
Jordan Levine, chief economist with the California Assn. of Realtors, also predicts rising prices, but like Tucker at a more modest level than during the pandemic.
Levine said still-high mortgage rates and a slowing economy are likely to damp demand enough to keep prices from soaring.
Other experts stressed that values could again turn negative.
“Home prices are still well out in front of what underlying incomes today would support at today’s interest rate levels,” said Andy Walden, vice president of research at Black Knight. “There is still potential price risk out there.”
With the economy in a slump, more and more people are finding it difficult to afford insurance. It is certainly no help that so many factors affect insurance premiums, or if one is even eligible for insurance.
Since insurance companies are precise about who is given coverage and what their premium will be, even people who have a clean bill of health may be denied coverage. This is because even the family history of the person applying for coverage will affect whether or not that person receives coverage.
In fact, family history could be one of the biggest factors that the insurance company looks at when you apply for a life insurance policy. Things such as a family history of cardiovascular diseases, death by cancer, or family history of high blood pressure and diabetes will result in higher premiums or no coverage at all.
Your family’s health history can haunt you
When applying for an insurance policy, the applicant is asked questions about their family’s medical history. These questions are limited to parents and siblings. The applicant is asked whether family members under age sixty have suffered from certain diseases or medical conditions. It is customary that family members over the age of sixty will not be taken into account.
However, if the applicant has a family member or family members that have died from cardiovascular related illnesses, smoking related illnesses or cancer before the age of sixty, then this will negatively affect the applicant. The same goes for any family history of stroke, kidney disease, heart disease, Alzheimer’s disease, mental illness, and Parkinson’s disease, just to name a few.
The applicant could be in perfect health and have never experienced any of these themselves, but having a family history of these health problems will always be taken into account by all of the top life insurance companies.
Family medical history affects medical insurance rates because in the case of hereditary diseases, it is more likely that the applicant will succumb to those diseases as well. When configuring insurance rate premiums, the insurance writer will calculate the applicant’s life expectancy. It may sound cruel, but the insurance industry is a complex industry. It is easier to determine premiums based not only on one’s health, but also on the future possibility of the deterioration of one’s health. Family medical history affects insurance rates in this way. Being at greater risk for dying early means having to pay a higher premium, or worse, not getting coverage at all.
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How family medical history affects medical insurance rates varies by the insurer
For example, if the applicant only has one family member who suffered from diabetes, then that may not have such a great effect on the premium. However, if there are several family members in the applicant’s family history that suffered from heart disease, for instance, that will have a greater effect on the premium rate. It does vary depending on the insurer, so some insurers may raise premiums based on just one family member’s illness, while others may ignore that completely.
If your family history is littered with health problems and disease, don’t worry, there is still a great chance that you’ll be able to get a life insurance policy. Even if you’ve been denied coverage because of your family’s health history, there are still plenty of insurance options that you can choose from multiple insurance companies.
Conversely, an insurer may just not cover the particular illness or illnesses, and cover all of the others. When looking for coverage, it is best to compare rates of different companies to see which one offers the best plan.
Why it matters
There are millions of people that simply skip getting a life insurance policy for whatever reason, but that is one of the worst mistakes that you can make for you and your family. Life insurance provides peace of mind knowing that if anything were to happen to you, your family would have the funds they need to get through that difficult time in their lives.
Losing a loved one is never easy, but it becomes even more difficult if you left behind thousands of dollars in debt. If you were to pass away, how much debt would you leave your loved ones? Would they be responsible for mortgage payments, car loans, and credit card bills? For a grieving family, all of those bills piling up can make the whole process a nightmare. This is where life insurance comes in. Having a large enough policy will give your family the money they need to pay off all of those debts without adding any financial stress.
Because each company is different, they are all going to look at an application differently. It’s important to find a company that will work with you to get the policy that you want at the cheapest rate for term life insurance. If you have a family history of health complications, you need to find a company that will look more favorably at your specific situation.
You could spend hours on the phone talking with different agents and it could take you months of research to find the perfect company, or you can let us do all of that for you. Our agents are well versed in the health insurance market and can find the perfect company to get the policy that fits you the best.
Getting approved for a life insurance policy
There is nothing that you can do about your family history, but there are a lot of things that you can do about YOUR health. One of the best ways to get approved, even if you have an awful family history, is to be in excellent health. Being in great shape will help you get approved and secure excellent monthly rates that will save you money. If you’re looking to increase your chances of being approved for a policy, there are a couple of changes that you need to make.
Put down the cigarettes. This is one of the best things that you can do for your insurance premiums. Smoking cigarettes or using tobacco is going to drastically decrease your chances of getting approved for your plan, and if you do get approved, it’s going to cause your premiums to double or triple.
Aside from quitting smoking, losing weight can also give you a much better chance of being approved for your policy. Being overweight or obese increases your risk of having severe health complications later in life, which means that you are a bigger risk to the life insurance company. Getting to a healthy weight through regular exercise and a diet is a great way to ensure that you get the life insurance coverage that you and your family deserve.
What you need to know
The first thing that you need to know is, be honest with the agent. Lying about your family history or about anything else on the applications, is an awful idea that could have drastic consequences.
If there is something that you weren’t fully honest about, and you were to die from that complication or a related complication, there is a chance that the insurance company can rule your policy null and void, which means that your family wouldn’t get the payout from the policy.
Update 6/15/23: Petal 2 card is being replaced with the Petal 1 Rise card (Chase won’t be happy) and this card charges a monthly fee of $8.
Correction: Petal is designed for people with no/low credit history rather than bad credit history.
The Petal Credit Card is a card for people with no credit history/score and unlike competitors comes with no annual or sign up fees. We first reviewed the card back in 2017. The major criticism we had is that the card came with no rewards program, starting Tuesday May 14th this will change.
Petal will offer all cardholders 1% cash back on all purchases and if you pay your card back on time you’ll earn higher cash back. The more ontime payments you make the more than cashback increases. The breakdown of increased cash back is as follows:
Make 6 on time payments and your cash back will increase to 1.25%
Make 12 on time payments and your cash back will increase to 1.5%
This new rewards program will also apply to existing cardholders and any purchases made from May 1st onwards will earn rewards (e.g even purchases that were made earlier this month before the rewards program was introduced).
If you have existing credit or good credit then obviously this card isn’t attractive as other cards earn at higher rates. If you are just getting started then this is an attractive option. My go to recommendation is still the Discover it Secured, as that card will earn 1% cash back on all purchases (doubled to 2% in the first year) and has 2% categories as well (doubled to 4% first year). That being said it’s a secured card and requires a security deposit so something like that isn’t always an option for people tight on funds.
I also really like the fact that Petal tries to encourage cardholders to make on time payments to increase the amount of rewards earned and the fact that the rewards program is being retroactively added to purchases already made in May for existing cardholders.
Mortgage rates are at or near record lows and you could save a ton of money by refinancing your mortgage.
There. I won’t say it again because I know how cliché and annoying it is to talk about how much money you could save by doing “X.”
The funny thing is I tell my family the same exact thing, though they don’t bother looking into refinancing either.
They bring it up to me here and there, but don’t do much beyond that. And you can only tell someone something so many times before you give up.
Perhaps this explains why there are millions of homeowners out there with mortgage rates well above current rates that are indeed “refinanceable.”
Update: I finally convinced my sister to refinance and she’s savings hundreds every month. She has since thanked me repeatedly and told me she should have done it sooner. Better late than never! We all procrastinate, especially when it’s something as awful sounding as a mortgage.
Don’t Have the Time to Refinance?
While a refinance might take time
Consider the return on investment
For putting in a few hours of research
And a month of back and forth with a lender
For some reason, most folks I know haven’t bothered looking into a refinance. Maybe they don’t have any spare time to do so? Or it could be that the task is seemingly so daunting that they avoid it altogether.
It’s kind of like putting off a dentist appointment, but continuing to endure the pain every day, or only chewing with one side of your mouth.
Maybe they don’t want to deal with a shady mortgage lender or a crusty mortgage broker?
The reasons are probably endless, but it still blows my mind that more homeowners don’t take action, considering “how much money you can save!”
It could just be that it sounds so darn “sleazy” to refinance, given all the negative attention the mortgage industry has received over the past five years.
So, how many homeowners are actually missing out on this opportunity to save potentially hundreds per month and thousands over the life of the loan?
Do You Have an Above-Market Mortgage Rate?
Millions of homeowners pay more than they need to each month
Because their existing home loan interest rates
Are above current market rates
The only thing stopping them is not bothering to shop their rate
Well, a couple months back, a company by the name of CoreLogic noted that some twenty million borrowers with positive equity, or 53 percent of all “above-water borrowers,” had above market mortgage rates.
They defined an above market mortgage rate as 5.1% (or higher), which is more than a percentage point above current rates for the popular 30-year fixed-rate mortgage.
[The refinance rule of thumb.]
Pretty surprising, no? I thought the number was high, considering all the news about the “record low rates” that seems to permeate the airways these days.
But no, many of us still don’t bother, and instead continue making inflated monthly mortgage payments year in and year out.
It’s Not Always a No-Brainer
Contrary to advertisements you might come across
It’s not always the right move
Depending on your unique situaiton
But you should at least know where you stand
All that said, it doesn’t make sense for everyone to refinance all the time. Like anything else in the world, it can be a good or bad deal, depending on your unique financial situation and future plans.
On top of that, it’s a lot more difficult to actually get approved for a refinance these days, so it’s not the slam-dunk it was back during the boom. See 7 reasons why you can’t refinance your mortgage for more on that.
But if nothing else, you should at least look into refinancing your mortgage if you haven’t lately. Rates really have come down a lot, and there’s a decent chance you’re one of the lucky 20 million homeowners out there who stands to benefit.
Heck, there are few other things in life you can do to save so much money so easily, even if the process does seem painful and daunting.
So I was driving out in Los Angeles today, listening to ESPN radio or some other sports station, when a mortgage ad came on the air.
It was for “Crestline Funding’s MyFi,” which allows mortgagors to choose their own loan term.
When I got home I did a quick search on Google, but didn’t see anything about it, so I don’t know the exact guidelines, or even if it’s spelled that way. Or if it’s offered outside California.
But they did mention a few details on air. Essentially, they let you choose any mortgage term you’d like, ranging from five to 40 years, instead of being confined to the typical 15- or 30-year term.
MyFi and the Quicken YOURgage
Some mortgage lenders let you pick your own mortgage term
Instead of simply offering a standard 30- or 15-year fixed
This can be beneficial if you have a specific goal in mind
Or want to save even more money on your mortgage
For the record, I did come across a similar product offered by Quicken Loans known as the “YOURgage.”
It’s an unfortunate name to say the least, but apparently the same idea as the MyFi, though you can only choose a term between eight and 30 years.
Simply put, if you don’t want a standard 30- or 15-year loan term, you can ask them to refinance your mortgage into an 18-year fixed or a 24-year fixed loan. Or anything else in between.
Presumably this will save you money because the interest rate should be slightly lower if you take a shorter term.
For example, a 15-year fixed will always price lower than a 30-year fixed. In fact, 15-year fixed mortgage rates are about 0.75% cheaper than 30-year rates at the moment.
(30-year fixed vs. 15-year fixed)
So if you choose a 13-year fixed, you may be able to save a little bit more money than if you went with a 15-year fixed.
Even if the interest rate isn’t discounted, you’ll also save money with a shorter loan term as less interest will be paid over a shorter amount of time.
However, the monthly mortgage payment will be higher if the loan term has a shorter duration, so there are some drawbacks as well.
Shorter Term Mortgages Can Save You Big Money
The shorter the loan repayment period
The less interest you’ll pay over the life of the loan (all else being equal)
So if you can manage to pay your home loan off in a shorter amount of time
You have the potential to save a lot of money
That got confusing, so let’s sum it up real quick.
Shorter mortgage term = lower mortgage rate. Shorter mortgage term = faster amortization. Shorter mortgage term = less interest paid.
As you can see, there are two benefits to going with a shorter-term mortgage. You can often snag a lower interest rate, and you pay less because the loan amortizes faster.
So it’s a double reward. But is it really necessary to pick a loan term in between the standard stuff that’s offered?
Why Choose Your Own Mortgage Term?
To match your unique budget
Or to meet a specific time goal like retirement
To avoid extending your mortgage term when refinancing
And to simply stay on course if you wish to pay off your mortgage in full
Well, Quicken’s argument for its YOURgage is that you can choose a term based on your budget, or a term that matches up perfectly with specific life events.
For example, if you plan to retire at a certain age, you can set the mortgage term to finish right as you’re retiring.
Or you can pick a certain term that comes with a mortgage payment that works seamlessly with your budget.
And if you’re refinancing but don’t want to “reset your mortgage,” you can choose a term that keeps the combined term at the standard 30 years.
So if you’ve had your existing mortgage for seven years, you can refinance into a 23-year fixed.
The big question remains whether the savings justify the unconventional loan term. How much will going with a 13-year fixed vs. a 15-year fixed really save you?
And are these lenders your best option? If mortgage rates are cheaper with another lender, you don’t need to pick a funky term to save money.
Additionally, you can set your own payment schedule manually and make larger payments to pay off your loan in a certain period of time if need be.
Simply pay X amount more each month toward principal to pay off your mortgage by Y date. It’s pretty straightforward.
In other words, you may be better off shopping around and gathering more mortgage quotes to obtain the lowest rate rather than worrying about term.
There have been a lot of so-called mortgage disruptors entering the space of late, but this might be the biggest yet. Could Amazon Mortgage be in the works? One recent clue says yes.
Earlier this week, HousingWire noted that Amazon appears to be in the process of setting up a mortgage shop, and is apparently hiring talent from a nonbank in the top 10 HMDA lenders.
I believe that includes the likes of Quicken Loans, loanDepot, and Caliber Home Loans, though it’s unclear if any of their former employees are actually involved.
All the publication could say beyond that is Amazon is looking for someone to head up their “newly-formed mortgage lending division.”
A 1-Click Mortgage Sounds Kind of Nice, But…
Amazon makes shopping really easy
Allowing millions of customers to buy millions of items with one click
But mortgages are a different beast
Though the hope is technology will make them a lot easier and faster
If you use Amazon, which I’m going to assume you do, you’re probably familiar with how easy they make everything.
For example, you can setup 1-click ordering that allows you to purchase items you see on the site with a single click of the mouse.
Or you can use a Dash Button to quickly reorder an item you use on a regular basis. You can also get most items delivered to your door in two days, though getting a mortgage in two days is another story.
While home loans will inevitably never be this simple, Amazon does seem to have a knack for making things a little less painful.
Some of the disruptors like Better Mortgage, Rocket Mortgage, and SoFi are already making things easier by allowing loan documentation to be pulled direct from the source, instead of having to print it out and upload it.
I’m not sure how Amazon would innovate in this space, but I’m sure they’d think of a way to do things faster, and perhaps in a more productive fashion while maybe driving the price down.
It probably wouldn’t be good news for mortgage loan officers, who could stand to lose their jobs to automation.
Why Would Amazon Want to Offer Home Loans?
If you’re wondering why Amazon would bother with mortgages
It might be because they see a big opportunity to disrupt
A very antiquated business model that hasn’t changed much in decades
New lines of business are the only way to grow bigger
The next logical question is why? Why on earth would Amazon want to get into the loan origination game? Don’t they realize how chaotic and stressful this business is?
Well, maybe that’s exactly why. Maybe they see an opportunity to make something that hasn’t changed for a long, long time, better.
They recently announced plans to fix the healthcare system, an initiative partly driven by the fact that Amazon has some 840,000 employees to take care of.
Amazon also recently launched a generic line of medicine called “Basic Care” to compete with the likes of Advil and other household names in the space.
Maybe they want to make it easier for their near-million strong workforce to buy homes too, or refinance their existing mortgages.
It’s hard to say right now. The more likely reason is they might just want to be involved in everything.
After all, with a market cap of around $762 billion, it’s not very easy to grow without entering into new lines of business.
This might explain why Amazon bought Whole Foods and then launched an automated grocery store. Their latest acquisition was Ring, which makes those video doorbells.
They May Start with Basic Banking Services First
Expect Amazon to offer checking accounts
Before they offer mortgages to customers
But after that they might aim to become a one-stop financial shop
Much like what they are in the retail space today
HousingWire also mentioned that Amazon was planning to start by offering checking accounts, and then make their way into other offerings, like mortgages.
There’s already an Amazon credit card, though it’s a co-branded effort backed by Chase.
The checking account service sounds like a competitive move aimed at Walmart, which coincidentally launched a huge marketing campaign recently to tout its free home delivery service.
The ad campaign features colorful Walmart boxes and free 2-day shipping with no membership fee. So it’s clear that it’s game on.
At the moment, Walmart and Amazon employees can actually get a discount on their mortgages via a partnership with BBMC Mortgage.
BBMC offers a rate match guarantee and $1,000 off closing costs, and has loan options ranging from FHA loans to jumbo loans to USDA loans.
For the rest of us, the best we can do at the moment is buy mortgage books on Amazon. Stay tuned if and when that changes.
Amazon Buying loanDepot?
The latest rumor related to Amazon’s impending mortgage move
Is a buyout of mortgage lender loanDepot
Though it didn’t seem to be based on any real truth
But it’s been doing the rounds lately
If, and this is a big if at the moment, Amazon makes a foray into the wonderful world of home loans, they could do so via a takeover, similar to their Whole Foods purchase.
After all, it’s sometimes easier to just throw money at something than start a new venture from scratch.
One rumor that began circulating recently was a potential Amazon and loanDepot tie-up, though it didn’t seem to be based on any real truth.
Sure, sometimes whispers proceed a major announcement, and are often spot on. But in this case it sounds more like fantasy.
To squash the rumors, even loanDepot founder Anthony Hsieh took to LinkedIn (his favored social media platform) to say the following:
“Just talked to an industry titan that asked if we are under an agreement to sell to amazon. I responded how much was the deal for? Rumors are simply amazing and this one is a good one. mmca.”
For the record, mmca stands for “making mortgages cool again.” Other than that, it doesn’t sound like there’s much here.
If you already have a semester or two of college under your belt, you might be asking yourself, “How much do I owe in student loans?” It’s hard to keep track of your student loan balance, especially since the pause on federal student loan payments has been in effect since March 2020. But with that pause expected to end in the summer of 2023, it’s important to know what you owe.
The amount might startle you. One year after leaving school, graduates have an average of $33,500 in student loan debt, according to the most recent numbers from EducationData.org.
The sooner you find out your student loan amounts, the sooner you could make a plan to pay them off. Here’s how to check your student loan balance.
How to Find Out How Much You Owe in Federal Student Loans
Federal student loans typically come in two types: unsubsidized loans and subsidized loans. If you’re a graduate student, you might also have a Graduate PLUS federal student loan. So then, how to check a student loan balance? Fortunately, information on all your federal student loans can be found in one spot. You can look up your balance on the Federal Student Aid (FSA) website.
To check your student loan balance, simply log into your account at studentaid.gov with your FSA ID and password. There, you’ll find your current student loan balance, the interest that has accrued on your account, payment status, and your loan servicer. If your loan servicer has changed, that information will be there as well.
How to Find Out How Much You Owe in Private Student Loans
There’s no one central website to check your balance for private student loans. One method to figure out how much you owe in private loans would be to contact each loan servicer individually.
If your loans have new servicers and you’re having trouble tracking them down, call your original lenders and ask who the new servicers are. Your school’s financial aid office should also have this information.
Another way to find your loan servicers is to check your credit report. You can get a free copy of your credit report from the three main credit bureaus (Equifax, Experian, and TransUnion) and also from AnnualCreditReport.com.
Your report will list your student loans, the loan servicers, and how much you borrowed. From there you can call each server to find out how much you currently owe. Keep in mind, private student loan providers set their own terms, including loan term length, interest rates, and repayment plans.
It might be a good idea to organize your private student loans and determine when the repayment phase kicks in for each, as it could be different from the federal student loan repayment plan.
Keeping Student Loan Debt Manageable
If this is your first time looking up how much you owe in student loans, you might be feeling major sticker shock. Take a deep breath. Keeping track of student loans can be a big undertaking, so don’t panic.
One way to help manage your student loan debt while you’re in college is to get a part-time job. You could look for opportunities to become a paid tutor, intern, or residence assistant. If working part-time during school isn’t possible, you could plan on getting a full-time job in the summer and live off the savings throughout the school year.
In addition to picking up paying jobs, you could also explore scholarships. These help pay for your education and you don’t have to pay them back. All it takes is some dedicated time looking for the right match. You could check with your university and any organizations you’re involved with to see if you can help fund your tuition this way.
Paying Off Your Student Loans
Once you’ve learned how to check your student loan balance and then determined how much you owe, it’s time to develop a master plan to pay your loans off. This is important, especially since the median monthly student loan payment is $250, according to EducationDate.org, which is no small change.
These are some of the ways you could pay off what you owe.
Use our Student Loan Payoff Calculator to get an idea of when your loan payoff date will be.
Using a Government Repayment Plan
If you have federal student loans, you’ll likely repay your loans using a government repayment plan. This includes income-driven repayment plans where the minimum payment is based upon factors like your income and family size, and the repayment term can be stretched out to 25 years in some cases.
One downside of these options is that they typically increase the total amount you pay back when compared to the standard 10-year repayment plan.
You could also look into Public Service Loan Forgiveness (PSLF), as long as you meet the requirements. To qualify, you must work for a government agency or certain types of nonprofit organizations.
Making an Extra Payment Each Month
If you want to pay off your student loans more quickly, there are a few ways to go about it. First, you could make extra payments. You want to make sure the bulk of your extra payment goes toward your principal, not the interest, so it might make sense to contact your servicers or lenders to let them know if you want to do that.
It will be helpful to see all of your expenses and income together to determine how much extra cash you can put toward your loans. Drawing up a budget can help you determine how much extra money you can put toward your student loan balance.
DIY Student Loan Debt Payoff Ideas
You could organize your student loan debt by either the highest interest rate or by the lowest total outstanding balance. These methods are commonly referred to as the debt avalanche and debt snowball, respectively.
Paying off the debt with the highest interest rate could help save you money in the long-run, whereas paying off the smallest loan balance could give you a quick win.
Once you select a method, you might want to make sure you’re actually making a dent in the balance. One way to do that is to regularly check your balances and see what kind of progress you’ve made. If that method isn’t decreasing your student loan debt as quickly as you’d like, you could switch to a different one.
Refinancing Your Student Loans
Alternatively, you may want to work on ways to reduce your student loan payments. In that case, you could explore student loan refinancing.
When you refinance with a private lender, you replace your old loans with a new private loan, ideally one with a lower interest rate and better terms. Using a student loan refinance calculator can help you figure out how much you might save by doing this.
Once you know the potential savings involved, consider this critical question: Should you refinance your student loans? If it could save you money, refinancing might be worth pursuing. However, it’s important to know that if you refinance federal student loans, they will no longer be eligible for federal deferment or forbearance, loan forgiveness programs, or income-driven repayment. If you’re certain you won’t need access to these programs, refinancing may make sense.
Still not sure? This student loan refinancing guide is full of useful information that could help you decide whether refinancing is the right choice.
SoFi Student Loan Refinancing
If you decide to move ahead, student loan refinancing with SoFi could help lower your monthly payments, shorten your student loan term, or save you money on interest. You can choose low fixed or variable rates, and there are no fees. Plus, you can prequalify and get your rate in just two minutes.
Ready to refinance your student loans? Get started with SoFi.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. 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.
SoFi Student Loan Refinance If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.
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Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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.
According to the FTC, Americans have lost $610 million to “income illusions” since 2016 – and $150 million of that was in the first nine months of 2020 alone.
Predatory get-rich-quick schemes have become so audacious, so prevalent that the federal government has launched a full-scale operation targeting them: Operation Income Illusion.
So what are all the modern scams and schemes that young people should look out for? How can you spot the especially sneaky ones? What are the early warning signs of a bad online business course or a phony job listing?
And how can you convince that one relative of yours that they’re in an MLM?
Let’s cover this and more as we explore modern get-rich-quick schemes (and how to spot them).
What’s Ahead:
Common signs of a get-rich-quick scheme
Before we get into specifics, it’s worth pointing out some of the most common signs of any get-rich-quick scheme:
A promise or guarantee of income.
Payment requested upfront to cover supplies/training/application fees.
Sketchy websites or email addresses.
Zero online reviews or ratings.
Hyperbolic marketing language (achieve your dreams, become your own boss, etc.).
The perfect opportunity somehow found you (instead of the other way around).
A request for sensitive info: credit card info, SSN, or a photo of your passport/ID.
They give you a bad gut feeling. When you have a bad gut feeling about a person in real life, you walk away. Do the same online.
1. Cryptocurrency
Ah, crypto.
Perhaps no other investment in history has produced as much FOMO as Bitcoin. After all, everybody knows of somebody who got rich off of it, or alternatively, some rare altcoin (read: any crypto that isn’t Bitcoin) that exploded overnight.
It would be an overreach to call cryptocurrency a scam, but it’s certainly not the investor gravy train it’s made out to be.
Read more: The Top 10 Things You Need To Know About Bitcoin
What they promise
A $10,000 investment in Bitcoin in 2017 became $640,000 just four years later. Invest your money and buckle up, because you’re about to get rich.
Or, alternatively, keep your eyes on the crypto forums. If you get in on the ground floor of a new crypto before it explodes, that’s another easy way to 100x your investment overnight.
What really happens
A $10,000 investment in Bitcoin in November, 2021 would be worth $6,175.36 in February 2022.
Cryptocurrency values are 100% speculation, upheld by investor demand alone. There’s simply no guarantee (or even near-guarantee) that your investment will grow in value in the short- or long-term.
That’s especially true of new or obscure “altcoins” that trade for pennies a pop. Sure, a small percentage of them may blow up – but many more are simply scams or pump-and-dump schemes – and it’s extremely difficult to detect which is which.
Read more: From High Risk To High Cost: Why You Shouldn’t Buy Bitcoin
How to spot a crypto scam
Any crypto that promises to multiply in value is a scam. Again, the only thing propping up crypto values is investor interest, which is fickle, fleeting, and unpredictable.
Bitcoin, Ethereum, and other bonafide cryptos aren’t scams, but they’re ultra-risky investments nonetheless. For more on why, check out Crypto Crash Course – Everything You Need To Know About Bitcoin, Blockchain, And More.
2. Multi-level marketing schemes
MLMs are notorious for using psychology and manipulation to lure unsuspecting income-seekers into their midst. Then, they squeeze capital out of them on the dangling promise of eventually multiplying their returns.
Now that John Oliver and others have shone a light on the industry, the MLMs have had to get even sneakier.
What they promise
Join [Herbalife, Amway, Infinitus] and you’ll become your own boss, get free training, and earn six figures in your first year!
Who doesn’t want to become their own CEO for a small initial investment of just $150, especially when you can make 1000x within 10 months!
What really happens
99% of MLM participants lose money, according to the Consumer Awareness Institute. Anyone appearing like they’re making money from an MLM on social media is simply trying to dupe others into distributing for them.
How to spot an MLM scheme
If you’re wondering whether the sales opportunity you’re considering is part of an MLM, or you’re trying to convince someone that they’re in an MLM, here are a few steps that you can take:
See if it’s already a known MLM. TitleMax (of all places) published a helpful list of the top 25 MLMs by revenue. If your future “employer” is on the list, take a hard pass.
Search for complaints about the company. Reddit, The Better Business Bureau, and your state Attorney General’s office website are all helpful places to find consumer ratings, reviews, and official complaints.
Vet the products. MLMs tend to sell sketchy products with dubious or unsubstantiated research proving their efficacy. If you wouldn’t buy the product, you definitely shouldn’t sell it.
ID the “startup fee”. If a company has a flat fee for upfront training or especially your first round of inventory, it’s most likely an MLM.
Get a second opinion. Ask the company to provide all of its contracts and legal documents, and have a friend, mentor, or your attorney look over everything with a skeptical eye. Don’t try to convince them it’s legit; ask them to convince you that it’s an MLM.
3. The lottery
There’s no more open and honest get-rich-quick scheme than the lottery!
Playing the lotto in tiny doses can be fun when you expect to lose. My better half and I buy a ticket or two per year and fantasize about how we’ll fill our 20-car garage.
Then we lose and laugh.
But playing the lottery with even the faintest expectation that your investment will eventually pay off is a slippery slope – both financially and psychologically.
Read more: Why You Should Never Play The Lottery – And How To Better Spend Your Money
What they promise
Whether it’s $10,000 or $10,000,000, you’re just a scratch away from winning life-changing money.
What really happens
It’s better to gamble your money in Vegas than to play the lottery.
I say that because generally speaking, you have a 5% to 30% chance of beating the house in a Vegas casino (WSJ). Your chances of winning the lottery are 1 in 300 million (CNBC).
But what about a non-jackpot? Can you profit from buying scratch-offs?
“Scratchies” typically list their odds of winning on the back of a card, usually between 5% and 20%. Your chances of winning something are better – but your chances of profiting are still extremely low.
Lotteries are also inherently problematic and controversial. Supporters say they benefit society by generating tax revenue – but it’s worth considering where that revenue is originating.
A mass study on the lottery’s net impact on society found that “the percentage of income spent on the lottery is significantly higher for players with low family incomes and low education,” hence the lottery’s ignominious nickname: “a tax on the poor.”
While it may be more transparent, make no mistake – the lottery is just as bad of a get-rich-quick scheme as an MLM (just with much worse odds).
4. Phony job listings
This one’s more of a straight-up scam than a scheme – and even as far as scams go, it’s pretty nefarious. FBI Special Agent, Jeanette Harper writes:
“Fake Job Scams have existed for a long time but technology has made this scam easier and more lucrative.”
What they promise
A supposed rep from a legit-looking company – or even one pretending to be from a company you’ve heard of – will reach out and say they’re hiring for a high-salary role.
They either say “no experience necessary” or that you’d be perfect for it, and since they want to fill the role right away, they’ll just do the interview via a chat window.
Before your start date for your high-salary role, they’ll need to add you to payroll and benefits – so you’ll need to pass along your W-9, 1099, and/or a scan of your ID.
What really happens
The scammer uses this sensitive information to steal your money and/or identity.
How to spot a phony job listing
Fake job opportunities are pretty insidious, but at least they’re pretty easy to spot. Here are some of the telltale signs:
The job listing appeared on social media (nearly all legit companies recruit via job boards, LinkedIn, or by referral only).
The rep’s email address doesn’t match the company name.
The company has no website/social media/LinkedIn presence (or a sketchy one).
The rep won’t reveal themselves – they won’t share their own personal data nor will they get on a video call with you – they insist on communicating via chat.
Everything they’re telling you seems oddly vague.
The interview process is moving oddly quickly – you’re accepted in minutes or hours, when the real-world process takes days or weeks.
The rep wants money – such as a $25 fee to submit your application.
5. COVID-era robocall scams
At the risk of sounding indelicate, the COVID-19 pandemic has created a target-rich environment for robocallers who peddle MLMs, phony jobs, or shady website building services.
To give an example, the FTC is going after scam company National Web Design for sending out millions of illegal robocalls specifically targeting people who’d just lost their jobs, guaranteeing them passive income if they just paid a little upfront.
I try not to use the term evil lightly…
What they promise
Here’s what National Web Design told its victims: you could earn up to $400 a day as an Amazon affiliate. Just let us build your site for $2,000 and your passive income awaits.
What really happens
The scammers may actually deliver a product, but it never works as advertised. You’re out $2,000 and they never pick up the phone.
How to spot a robocall scam
If someone calls you offering a job or passive income opportunity, it’s a scam. But don’t just hang up – report their call as spam on your phone and report the company to the FTC using this form.
BONUS: how to prevent robocalls in the first place
You can help stem the flow of robocalls to your own phone by adding your number to the official Do Not Call Registry. Don’t worry, it’s free and 100% legit.
The second thing you can do is to never, ever, ever give your phone to a business unless it’s essential to your wellbeing. Even companies that claim to “protect your privacy” will still sell your data to their partners (since it’s not a violation of their own privacy policy).
6. Bad online business courses
Here’s one that I fell for.
To my credit, it wasn’t named so blatantly – and I can tell that the instructor was being sincere in his advice – but it was still bad advice that I paid an embarrassing amount of money for.
Bad online courses always seem like good investments upfront. They’re taught by people who’ve “made it” in the industry and who promise to tell you all of their “best money-making secrets.”
They’re also sold to you at a weirdly high discount (e.g. 97% off) and sometimes, you even have to apply to be in the course.
But crappy online courses aren’t just dangerous due to high cost and missed expectations – they can teach you the wrong things that actually hinder your progress and take months to unlearn.
What they promise
Sellers of “How To Get Rich In XYZ Industry” courses promise exactly that – that you can make millions in a certain industry by simply following in the instructor’s footsteps.
What really happens
The advice you learn in an unaccredited online course can range from good to bad to downright toxic. And if you’re new to an industry, it can be hard to distinguish which is which.
You could be paying for advice that could win new clients – or immediately turn them off.
That’s why you’ll want to be extremely careful who you learn from. Some instructors truly are at the top of their industry and their tips are worth their weight in gold.
But others are on their way out – their way of doing things in their industry no longer works, so they’re packaging and selling bad and outdated advice to make up for lost income.
How to spot a bad online course
Part of the challenge to spotting bad online business courses is that they’re often marketed exceedingly well – so well, in fact, that if it’s a course in How To Make Millions Selling Bad Online Courses, maybe it’s worth it!
Facetiousness aside, here are some of the signs that the course you’re considering isn’t worth it:
The instructor has limited, outdated, or vague experience – e.g. they’ve “worked with dozens of Fortune 500 companies” but won’t say who, in what capacity, or how much they actually earned.
The course promises or downright guarantees income. No course can guarantee income, so that’s a huge red flag.
High-pressure sales tactics. If the vendor of an online business course gives you a short time window to decide, or says the price will increase in 13 hours, just shrug and hang up the phone.
No reviews or ratings. If the instructor can’t point to a single successful past student, that’s probably a sign that one doesn’t exist – and you won’t be the first.
A high price tag. Finally, if a 3-day “Mastermind” costs thousands of dollars, that could be a sign that the instructor values his or her advice. It could also mean that they need the money because their clients dried up.
7. Mystery shopper scams
Mystery shopping is when a restaurant, retailer, or third-party data company will hire you to go into a store or restaurant and report back on your experience. Mystery shoppers are often paid a flat fee per assignment, and sometimes even get the product/meal reimbursed, too.
From what I’ve heard, it’s a fun gig if you can get it. But since lots of folks are interested, the scammers are taking advantage.
What they promise
Mystery shopping scams often start with a text stating that you can earn $200 to $500 per assignment by becoming a secret/mystery shopper or “filling out a survey.”
All you have to do is visit a retail store, purchase a product or a gift card, send it to a specific address, and report on your experience. You’ll be compensated upon completion. Easy $500.
This may sound like an obvious scam, but in the victims’ defense, this isn’t too far removed from how legit mystery shopping works.
What really happens
In the case of the scam, you send the product or gift card and are never compensated. To rub salt on the wound, the scammer may sell or abuse the personal data you gave them.
How to spot a mystery shopping scam
Luckily, the Mystery Shopping Professional Association (MSPA) publishes a running list of all the mystery shopping scams they’ve seen.
If you don’t see the potential scam listed there, cross-reference it with their free online directory of legitimate mystery shopping companies.
Summary
To a pandemic-stricken society, get-rich-quick schemes are becoming harder to spot and more seductive all at once.
But by helping yourself and your loved ones avoid them, you can protect your money and ride out the storm.
Located in the heart of California’s Central Valley, Stockton is a vibrant city with a rich history and a diverse array of cultural, economic, and recreational offerings. Nestled along the San Joaquin River, Stockton has a strategic position as an inland port, contributing significantly to the state’s economy.
In this article, we will explore what Stockton is known for, shedding light on its notable features, industries, attractions, and overall appeal. Whether you’re searching for homes for sale, considering Stockton apartments, or you just want to learn more about the area, this Redfin article will uncover the essence of what makes Stockton a truly remarkable California city.
1. Agricultural hub
Stockton’s prime location in the agricultural heartland of California has made it a vital hub for agricultural production and distribution. The city benefits from its proximity to fertile farmlands, allowing it to flourish as a leading center for the processing, packaging, and transportation of various crops such as asparagus, tomatoes, cherries, almonds, and wine grapes. Stockton’s agricultural prowess has earned it the title of “California’s Inland Port.”
2. Inland port and transportation
Stockton’s designation as an inland port stems from its access to an extensive network of transportation infrastructure. The city boasts a deepwater port, providing a direct link to the Pacific Ocean via the San Francisco Bay. This facilitates the movement of goods and makes Stockton an important hub for international trade. Additionally, its central location between major cities like San Francisco and Sacramento makes it a strategic transportation nexus within California.
3. Cultural diversity
Stockton takes pride in its multicultural heritage, with a diverse population representing a wide range of ethnicities and cultures. The city celebrates this diversity through various festivals, events, and community initiatives. The Haggin Museum offers a glimpse into Stockton’s cultural history, housing an extensive collection of art and artifacts, while the Cambodian Buddhist Temple is a stunning architectural gem that showcases the city’s rich Cambodian community.
4. Educational Institutions
Stockton is home to several renowned educational institutions, including the University of the Pacific, which ranks among the top universities in California. The university offers a range of academic programs and is known for its exceptional schools of business, law, and dentistry. San Joaquin Delta College, a respected community college, provides affordable education and vocational training to students.
5. Natural beauty and outdoor recreation
Anyone living in or moving to Stockton will be blessed with picturesque surroundings and a wealth of outdoor recreational opportunities. The city is situated along the California Delta, offering stunning waterways for boating, fishing, and kayaking. Nearby, the 3,000-acre Oak Grove Regional Park provides ample space for picnicking, hiking, and bird-watching. For golf enthusiasts, Stockton boasts numerous well-maintained courses, including the prestigious Reserve at Spanos Park.
6. Sports and entertainment
Stockton’s sports scene is thriving, with the Stockton Ports minor league baseball team attracting fans to Banner Island Ballpark. The Stockton Arena hosts various sports events and concerts throughout the year, catering to a wide range of tastes. Additionally, the Bob Hope Theatre, a beautifully restored historical venue, offers a platform for performing arts, including Broadway shows, live music, and dance performances.