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Apache is functioning normally

Apache is functioning normally

The United States, as has most of the world, has made stricter and stricter building codes over the years. However, the United States does not have any national building codes the states or local cities make their own rules. I have found the states or areas with the strictest building codes also have the highest prices. The harder it is to build or repair homes, the more expensive they become because people stop building, and when they do build, they have to raise the price for it to make sense. So what areas have the strictest building codes in the US?

How do building codes change over time?

100 years ago there were basically no building codes. Anyone could build whatever they wanted, wherever they wanted with some minor restrictions. Over time, the government decided that houses and commercial properties were not safe enough and there needed to be standards set for construction and even repairs. Some cities, states, and counties choose to have stricter codes than others and the federal government has let local governments make those decisions.

You can see how building codes have changed over time by looking at houses built in different eras. 100 years ago some houses were built with amazing carpentry and we often hear “they don’t build them like they used to”. There were also many houses that were built like shacks that have since fallen down. I have bought many of those shacks as a real estate investor and am surprised many of those houses lasted as long as they did.

You can see improvements in houses by looking at houses from different eras. Houses that are 100 years old may not have any windows in the basement where egress windows are now required. Houses from 50 years ago had very little insulation whereas houses now are required to have a minimum amount. You used to be able to put three layers of shingles on a roof and now most areas only allow one. Areas close to the coast may require hurricane glass and reinforced structures.

The stricter building codes make houses safer and more energy efficient but they also make them more expensive.

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What areas do not have building codes?

Believe it or not, there are still some areas in the US that do not have building codes! These states do not have building codes:

  1. Alabama
  2. Arizona
  3. Colorado
  4. Illinois
  5. Mississippi
  6. Missouri
  7. North Dakota
  8. Tennessee
  9. Texas
  10. West Virginia
  11. Wyoming

While these states do not have standard building codes, the local cities and counties usually do. I live in Colorado and while there is no standard building code for the entire state, Denver and Boulder have some of the strictest building codes in the nation. Louisville, where the Marshall Fires occurred in 2021 requires fire sprinkler systems in all new houses although they did remove that requirement for houses destroyed in the fire!

Here are some counties without building codes (from https://offgridgrandpa.com/states-and-counties-with-no-building-codes/):

  • Delta County in Colorado
  • Montezuma County in Colorado
  • Arcosanti Urban Laboratory in Arizona
  • Brewster County in Texas
  • Wonder Valley in California
  • Marfa County in Texas
  • Terlingua Texas
  • Miller County Missouri

In these areas, you might be able to get away with building whatever you want as long as you are not in a city with more strict codes but remember codes can always change!

Do you need to get building permits?

What areas have the strictest building codes?

I found it interesting but not surprising that the areas with the strictest building codes tend to have the highest prices. When you look at the list below the most strict areas are definitely the most expensive as well.

1. San Francisco-Oakland-Hayward, CA 1.18 18

2. New York-Newark-Jersey City, NY-NJ-PA 1.04 57

3. Providence-Warwick, RI-MA 0.93 14

4. Seattle-Tacoma-Bellevue, WA 0.73 22

5. Los Angeles-Long Beach-Anaheim, CA 0.73 48

6. Riverside-San Bernardino-Ontario, CA 0.68 18

7. Washington-Arlington-Alexandria, DC-VA-MD-WV 0.66 16

8. Miami-Fort Lauderdale-West Palm Beach, FL 0.66 35

9. Phoenix-Mesa-Scottsdale, AZ 0.64 11

10. Portland-Vancouver-Hillsboro, OR-WA 0.60 18

11. Madison, WI 0.60 13

12. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 0.48

13. Albany-Schenectady-Troy, NY 0.47 10

14. Denver-Aurora-Lakewood, CO 0.41 16

15. Youngstown-Warren-Boardman, OH-PA 0.32 10

16. Boston-Cambridge-Newton, MA-NH 0.30 44

17. Indianapolis-Carmel-Anderson, IN 0.30 14

18. Scranton–Wilkes-Barre–Hazleton, PA 0.30 10

19. Syracuse, NY 0.25 11

20. Milwaukee-Waukesha-West Allis, WI 0.24 22

21. Allentown-Bethlehem-Easton, PA-NJ 0.22 14

22. Nashville-Davidson–Murfreesboro–Franklin, TN 0.17 12

23. Dallas-Fort Worth-Arlington, TX 0.17 49

24. Hartford-West Hartford-East Hartford, CT 0.14 14

25. Portland-South Portland, ME 0.13 16

26. Kansas City, MO-KS 0.13 17

27. San Antonio-New Braunfels, TX 0.10 10

28. Buffalo-Cheektowaga-Niagara Falls, NY 0.05 12

29. Harrisburg-Carlisle, PA 0.01 15

30. Lancaster, PA −0.01 14

31. Columbus, OH −0.01 17

32. Houston-The Woodlands-Sugar Land, TX −0.04 16

33. Pittsburgh, PA −0.06 56

34. Minneapolis-St. Paul-Bloomington, MN-WI −0.10 48

35. Chicago-Naperville-Elgin, IL-IN-WI −0.10 94

36. Atlanta-Sandy Springs-Roswell, GA −0.12 27

37. Worcester, MA-CT −0.23 16

38. Cleveland-Elyria, OH −0.28 19

39. Grand Rapids-Wyoming, MI −0.31 24

40. Rochester, NY −0.38 26

41. Charlotte-Concord-Gastonia, NC-SC −0.38 12

42. Cincinnati, OH-KY-IN −0.38 26

43. Detroit-Warren-Dearborn, MI −0.42 60

44. St. Louis, MO-IL −0.51 37

You can read up on how they made the list and what the numbers mean here: https://realestate.wharton.upenn.edu/wp-content/uploads/2022/04/w835.pdf

Why do tougher building codes make it more expensive to build?

You will find that the most expensive places in the world and the US tend to have the strictest building codes. It is not real estate investors that push up prices as many people claim, it is the government. The harder it is to build and repair houses, the more expensive they are going to be when they are built. The harder it is to build houses, the fewer houses that will be built which will also cause an imbalance in the housing market driving prices up even further. You will also find fewer investors in these areas because it is hard to build, expensive to own, and a pain to do business in those areas.

Conclusion

Building codes do make houses safe and more energy efficient but they also make houses more expensive at a time when houses are becoming less and less affordable. If you are pushing for stricter building codes and more energy-efficient homes, you are also pushing for higher prices. While homes in the US seem to be out of range for many people thanks to high-interest rates, remember the US actually has the 5th most affordable housing in the world.

Build a Rental Property Empire

Categories Real Estate

Source: investfourmore.com

Apache is functioning normally

Apache is functioning normally

Is 2023/2024 a good time to move to Tampa?

Famous for its beautiful beaches, lively atmosphere and, as of late, bustling real estate activity, Tampa is clearly a city on the rise. If you’re considering making a move to or investing in the Sunshine State, the Tampa housing market should definitely be on your radar. From median home prices skyrocketing to environmental concerns, there’s much to discuss. Let’s dive into the somewhat murky waters of the Tampa housing market, shall we?

Critical trends in the Tampa housing market

Tampa is becoming a magnet for homebuyers and investors alike. As the city’s popularity continues its upward trajectory, several key trends in the housing market have emerged, shaping the future of Tampa real estate.

Soaring home values and quick sales

Let’s talk turkey, and by that we mean pricing. The median sale price of a home in Tampa has soared to a jaw-dropping $460,000. To give that some context, that’s a 21.1% hike from just a year ago. But it’s not just the overall price; the price per square foot is also showing a robust upward trend. Currently, it sits at $285, up 9.6% year-over-year.

What about how fast homes are selling in the Tampa housing market? Let’s put it this way: if Tampa homes were marathon runners, they’d be close to setting world records. On average, a home in Tampa will receive about three offers and take around 20 days to sell. That’s a touch slower than the 18-day average from last year, but by no means sluggish.

Current inventory in Tampa’s real estate market

In August 2023, the Tampa housing market saw the sale of 609 homes. This might seem like a busy month, but it’s slightly down from 626 homes sold in August of the previous year. Whether this slight drop is an anomaly or a signal of things slowing down is yet to be seen. We’ll keep you updated on the Tampa housing supply as time passes.

Migration trends to and from the Tampa area

From beach bums to young professionals fresh out of college to newly minted retirees looking to lay down roots one last time, people are making their way to Tampa in droves. And with good reason.

The appeal of the Tampa housing market

The Tampa housing market isn’t just pulling Floridians; it’s drawing interest from other metro areas as well. Specifically, house hunters from New York, Washington and Chicago are paying special attention to Tampa. This accounts for 2% of total homebuyer interest, and given the size of the national market, that’s significant.

Staying local vs. moving out

While Tampa is attracting outsiders, many residents are choosing to stay put. From June to August 2023, 69% of Tampa homebuyers were looking to stay within the Tampa metropolitan area. However, the wanderlust still exists for a good chunk (31%) of the population, who are exploring greener pastures in Sarasota, FL, Orlando and even Asheville.

Tampa real estate market risks

Like all housing markets, Tampa’s comes with its fair share of risks. While Florida may be known for year-round stellar weather, coastal winds, heavy rains and heat damage are always on the table in The Sunshine State.

Environmental concerns

Life’s a beach until you have to consider natural hazards, right? The Tampa housing market isn’t exempt from environmental risks. According to data from the First Street Foundation:

  • Flood: A whopping 43% of properties have extreme flood risks over the next 30 years.
  • Fire: Only about 15% of properties are at wildfire risk.
  • Wind: Hold on to your hats; 100% of properties in Tampa are at risk for severe wind events.
  • Heat: Almost every property — 99% — faces an extreme heat risk.

Transportation compared to national average

When considering a move, commute and accessibility are vital. In terms of walkability, Tampa has room for improvement, scoring 50 out of 100. Public transport isn’t Tampa’s strong suit either, with a score of 31. However, if you’re a cycling enthusiast, rejoice! Tampa scores a 55 in bikeability.

Concluding thoughts on the Tampa housing market

The Tampa housing market is a blend of rapid growth, diverse buyer interest and environmental risks. Prices are soaring, and homes are selling fast. It’s a market that demands swift decision-making, but also due diligence, especially when it comes to natural hazards.

From local residents switching neighborhoods to out-of-staters seeking sunnier days, Tampa’s allure is undeniable. Whether you’re a buyer, a seller or an investor, understanding these complexities will stand you in good stead in navigating the ever-changing Tampa housing market.

Tampa rental market

Switching gears, let’s examine another vital aspect of the Tampa housing market, rentals. With the surge in home prices, many people are instead settling down in apartments, albeit at increasing costs. The Tampa rental market has seen its own set of fluctuations:

The average rent for apartments in Tampa oscillates between $1,667 and $1,910, depending on the number of bedrooms you need.

Rental price ranges

If you’re wondering about the range of price in rents, here’s how it looks:

  • Less than $1,000: Around 5% of apartments fall within this bracket.
  • $1,001-$1,500: About 10% of apartments lie here.
  • $1,501-$2,100: This is where 32% of apartments are priced.
  • Above $2,100: A surprisingly large proportion, 53%, fall in this high-rent category.

Neighborhood trends in the Tampa rental market

Different neighborhoods, naturally, command varying rents. While Northwest Tampa saw a dramatic 49% increase in average studio rents to $1,875, areas like Channel District, Harbour Island and Southeast Tampa have seen decreases, ranging from 4% to 5%. On the more affordable end, North Tampa, Terrace Park and Lowry Park North offer one-bedroom apartments for around $1,250 to $1,295 on average.

For those seeking luxury, the Hyde Park Historic District and Harbour Island top the list, with one-bedroom apartments renting on average for more than $2,600. Popular neighborhoods like South Seminole Heights and Tampa Heights offer one-bedroom apartments for averages of $1,500 and $1,300, respectively.

How Tampa rent compares to other cities

For a broader perspective, let’s compare Tampa to other nearby cities. In Tarpon Springs, a studio will cost you around $2,100. Saint Petersburg has seen a 7% increase in one-bedroom rentals, now at $1,954. Sarasota, on the other hand, has seen a 3% decrease in rental prices, now at an average of $1,600 for a one-bedroom apartment.

Final thoughts on the Tampa rental market

Whether you’re buying or renting, the Tampa housing market is a hotbed of activity, with tons of opportunities and challenges. Rising rents reflect the growing demand and low supply, much like the situation in the home-buying market. Neighborhoods offer a range of options, from the affordable to the luxurious, each with its own set of pros and cons.

In summary, understanding the intricacies of the buying and rental markets in Tampa is essential for making an informed decision. After all, whether you’re settling down permanently or just passing through, the Tampa housing market has something for everyone, at every price point.

So, come for the sunshine, stay for the lifestyle — just make sure you’re well-prepared for the financial journey that lies ahead. Your dream place in Tampa is just a few clicks away.

Rent prices are based on an average from Rent.’s multifamily rental property inventory as of July 2023.
Other demographic data comes from the U.S. Census Bureau.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

Apache is functioning normally

Apache is functioning normally

Cybersecurity, CE, CRM, Warehouse Products; Disaster News and Insurance – Scaling Back in FL and CA

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Cybersecurity, CE, CRM, Warehouse Products; Disaster News and Insurance – Scaling Back in FL and CA

By:
Rob Chrisman

Tue, Oct 3 2023, 11:00 AM

How will you always know that this Commentary is not produced by some AI thingy? Because of mistakes like yesterday, leaving Illinois off the list of top pumpkin growing states as several folks pointed out (thank you). Here are pumpkin stats out the proverbial wazoo. What autumn would be complete without this map of when fall foliage is peaking across the nation? While we’re on maps, the U.S. Census Bureau released an interactive map illustrating 2020 Census data about homeownership by the age, race, and ethnicity of the householder. The map provides data at the national, state and county levels and data from the 2010 Census for comparison. The Census Bureau also released the brief Housing Characteristics: 2020, which provides an overview of homeownership, renters, vacant housing and other 2020 Census housing statistics previously released through the 2020 Census Demographic and Housing Characteristics File (DHC). (Today’s podcast can be found here and this week’s is sponsored by TRUE. TRUE creates accurate data that powers automation and optimizes every step of the lending lifecycle, helping lending organizations rapidly process loans, dramatically cut costs and risk, and radically improve the customer experience. Interview between Robbie and Rob Chrisman on chatter from the capital markets and why people should tune in to their weekly Mortgage Matters video show each Wednesday.)

Lender and Broker Software, Programs, and Services

Not many lenders know this, but you can buy down points with down payment assistance (DPA). DPA has evolved over the years, and there are 2,373 to choose from today according to Down Payment Resource’s Q2 HPI report. What’s more, consumer interest in DPA is savage, and lenders who offer it have a competitive edge. Just ask anyone who originated one of the 2,300 CalHFA programs that disappeared in just 11 days. DPA is one of the best tools lenders have in today’s market and for the foreseeable future. Want to know how many homebuyer assistance programs are offered in your markets or to learn more about how Down Payment Resource makes it easy to support DPA? Schedule a demo with the Down Payment Resource team today.

The MBA Annual Conference & Expo is just around the corner. Be sure to book time with the key players at Flagstar Bank if you’re headed to Philly for the big event. Right now, you can secure private meetings with their top execs in Corporate Mortgage Finance, Secondary Marketing, Specialized Mortgage Banking Solutions, Treasury Management, TPO Sales, and more. Don’t miss your chance to get a scoop on what’s ahead for this $119 billion asset bank, from product enhancements to tech rollouts and warehouse lending opportunities. Connect with your RM or AE to reserve a time today. If you’re not a partner yet, sign up here.

“Why should you integrate your mortgage and consumer loan origination systems? We’re sharing five key ways MeridianLink’s end-to-end digital LOS can help you break down silos, facilitate seamless communication, boost cross-sell potential, and enhance the overall borrower journey. Learn more now.”

Making meaningful, in-person connections is critical for success and at the heart of ICE Experience. Registration opened this week for ICE Experience 2024, taking place on March 18-20 at the Wynn Las Vegas, and the agenda is packed full of even more ways for mortgage professionals to grow their skillset and professional network. Plus, registration fees for this year’s conference are at a new low price of $995 when you register by January 31, 2024. If you are an ICE customer, now is the time to secure your seat to soak up the latest information, address your most pressing challenges, see new innovative solutions up-close and strengthen the relationships that are the foundation of your business. Click here to learn more.

OptiFunder announces the release of Greyhound, a highly configurable and automated system for Warehouse Lenders. OptiFunder has changed the game for IMBs by optimizing and automating the historically manual funding process. As we continue our mission to connect the primary and capital markets, we’re expanding our software offering to include a highly configurable, automated Warehouse Lending System, called Greyhound. Greyhound connects warehouse lenders with all major LOS systems, giving lenders the ability to easily onboard new clients, receive loans, and manage their entire portfolio. Leveraging OptiFunder’s LOS integrations means warehouse lenders are directly connected to over 70 percent of total industry loan volume. Greyhound offers real-time insights into pipeline management, loan/collateral tracking, operational reporting, automated LOS data import, investor shipping requests, purchase advise matching, document imaging, and more. IMBs and Warehouse Lenders should meet with OptiFunder at MBA Annual to discuss automating funding through loan sale to the capital market.

Are you well prepared to manage your servicing portfolio heading into 2024? As inflation continues to cool and the labor market starts to weaken, economists at Fannie Mae recently stated they expect a mild recession in the first part of 2024. Your servicing portfolio is a sound investment and can generate positive returns, but what happens when your portfolio starts to show signs of trouble, such as an increase in delinquencies? How will you ensure your distressed loans are making it through the proper pipeline and loss mitigation steps? It is more important than ever to ensure your servicing portfolio is ready to handle the uncertain economic future, and the team at Velocity Servicing, a LoanCare division, is ready to help! Backed by LoanCare Analytics, a proprietary data analytics platform with real-time access to portfolio data, Velocity Servicing helps lenders manage troubled loans with speed and accuracy. If you want to learn more about how Velocity Servicing can change your servicing game, email Matt Stadler or click here to schedule a time to meet with them at the MBA Annual in Philadelphia!

There is a celebration going on in Denver. It’s the 15th anniversary of a company that has been providing great software for 28 years. How is this possible? Usherpa was founded in 1995 at the second largest retail mortgage company in the country and rebranded in 2008 and is truly a firm that was “Born in a Branch; Forged in a Meltdown.” It has since grown into the largest privately held CRM company in the real estate and mortgage industries. Usherpa’s Smart CRM is the industry’s most sophisticated, cloud-based Customer Engagement Platform with the most powerful CRM and Marketing Automation systems in existence. It’s helped thousands of Loan Officers stay connected with partners and clients, helping hundreds of thousands of borrowers fulfill their dreams of homeownership. Usherpa users convert 46 percent more prospects, close 2X more deals and increase repeat business by 57 percent. They show you the studies! Win more business even in this market. Find out how here.

Autumn is not just about the vibrant leaves and cooling weather; it’s also the crucial period for renewing your NMLS license! As the seasons transition, ensure your professional credentials don’t fall behind. Diehl offers the top-tier Continuing Education (CE) you need! Our live, interactive webinars aren’t just about compliance; they’re engaging, insightful, and designed to meet NMLS requirements for the 2023 renewal season. We make mandatory learning enjoyable! With multiple dates to choose from, we have a class that works for you. Don’t wait until it’s too late! Sign up today before spaces run out!

“With over 35 years of experience in mortgage banking, Richey May knows the industry from every angle. Many of our team members are credentialed industry experts who dedicate much time to building up other industry experts. From this expertise, Richey May has created a wealth of services and products to help lenders stay ahead: audit and tax services, cybersecurity solutions designed to protect company assets and sensitive borrower information, intelligent automation tools for streamlined operations…you name it! Whether you’re leveraging our innovative platforms or having us work as your extended team for outsourced internal audit or accounting services, get ready to tackle challenges faster with some serious firepower on your side. Everything you need: contact our experts today!”

Disasters and Insurance

Many will say that it doesn’t matter whether or not you believe in climate change, manmade or natural. What matters is that investors in mortgages, servicers, and insurance companies do, as that pricing impacts people in those areas, and therefore clients and borrowers.

Progressive insurance is rebalancing its exposure in the state of Florida, and will not renew 47,000 DP-3 policies and 53,000 high-risk homeowner’s policies in the state. DP-3 policies tend to cover vacation homes and properties that are not a primary residence. That said, Progressive plans to transfer the policies to Loggerhead Insurance in a deal that will affect 100,000 policyholders. Multiple insurers are winding down parts of their business in Florida as an insurance crisis hits the state, which has high exposure to natural disasters and a ruthless roofing scam industry that has made it difficult for insurers to operate there. This has driven many homeowners to the state-backed insurer of last resort, Citizens Property Insurance Corp, which now has 1.3 million policies, up from 500,000 as of July 2020.

Florida isn’t alone. Several top insurance companies (like Farmers, State Farm and Allstate) have reduced their footprint in California over the last several months. State Farm and Allstate say they’re not writing any new homeowner insurance policies in California moving forward due to it being too expense. And just ask a homeowner in a low-lying area of Florida, Louisiana, or the Carolinas how it’s going.

Recall that in August the Biden administration urged a federal judge to reject a challenge by Florida and other states to an overhaul of the National Flood Insurance Program that has led to higher premiums for many property owners.

Nearly every part of the United States faces natural disasters, whether they be earthquakes, hurricanes, tornadoes, forest fires, drought, or volcanoes. A declaration by FEMA triggers lender and servicer policies and procedures.

On 9/19/2023, with Amendment No. 9 to DR-4720, FEMA updated the Incident Period End Date to 7/21/2023, for Vermont counties affected by severe storms, flooding, landslides, & mudslides from 7/7/2023 to 7/21/2023. See AmeriHome Mortgage Announcement 20230909-CL for inspection requirements.

PHH Correspondent posted information regarding Illinois DR-4728: New Disaster Declared, Mississippi DR-4727, and Vermont DR-4720. Go to the PHH company library to view the announcements and for all disaster declared counties, requirements, procedure.

In addition to the previously declared counties, a disaster declaration is being issued or modified pertaining to Hurricane Idalia landing causing wide-spread damage around Florida. Until FEMA has officially announced all Declared counties, PHH needs to cover this gap for areas determined to be of considerable concern to be declared a disaster by FEMA. Areas in Florida of concern not yet declared: Flood Zones only in both Hillsborough and Wakulla Counties. Go to the PHH company library to view the announcements and for all disaster declared counties, requirements, procedure.

Capital Markets

As foreign and bank buying of fixed-income securities has declined, you’ll notice all talk of an inverted yield curve leading to a recession has vanished. (The 2-year is yielding 5.12, the 10-year is at 4.73 percent.) Remember when that was trendy? A recession will happen at some point, but probably not in the near future. As markets adjust to continuously high interest rates, it is creating a new reality for bond yields, with investors now wondering how high they can go. Over the last few months, the markets were wrong because they thought inflation would come down quickly and central banks would be very dovish. Everything will depend on how inflation lands over the medium to long run, but it’s fair to say that we have changed from the ultra-low-yield regime.

Rates continued their rise to open the quarter, which means that government shutdown fears weren’t the main driver of recent yield increases. That was also despite economic activity in the manufacturing sector contracting in September for the 11th consecutive month following a 28-month period of growth, per the latest Manufacturing ISM report. PMI did exceed both expectations and August’s reading. The report will be construed as an economy tracking more for a soft landing than a hard landing at this juncture. Total construction spending increased 0.5 percent month-over-month in August, as expected. On a year-over-year basis, total construction spending was up 7.4 percent.

There was increased talk over the last week as to whether a “soft landing” will be achieved as the elevated inflationary environment experienced over the last two years subsides. New home sales declined to a worse than expected 8.7 percent in August as the recent move in interest rates towards 8 percent moves potential buyers to the sidelines. Builders have been able to take advantage of low inventory this year, however the recent home builder survey from the NAHB reported buyer traffic at a seven-month low in September. This has increased the number of builders offering discounts to 32 percent, the highest share since December 2022.

Meanwhile consumer confidence fell for the second straight month as consumers weighed the effects of rising food and gas prices, higher interest rates, and generally persistent elevated inflation. It is possible that consumers may finally start to pull back on spending as labor market growth slows, interest rates remain higher for longer, savings dwindle, and student loan payments resume.

Today’s economic calendar gets under way with remarks from Atlanta Fed President Bostic, and will be followed by Redbook same store sales, JOLTS job openings for August, and the latest monetary policy decision from the RBA. We begin the day with Agency MBS prices worse .125-.250 and the 10-year yielding 4.73 after closing yesterday at 4.68 percent.

LO Job Openings

A team of warehouse experts seeks an operations leader, with 5 plus years of experience managing internal warehouse operating platforms. This is a ground floor opportunity to launch and build a national warehouse lending business. If interested in this COO role, please send your confidential resume to Anjelica Nixt and specify this opportunity.

In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

423 cases per 100,000 resident for state with highest identity theft

This post originally appeared on Finder.com.

As the world continues to cope with COVID-19, America is seeing cases of identity theft soar to record highs. Of the 3.2 million reports to the FTC’s Consumer Sentinel Network Data Book in 2019, 20% — or 650,572 — related to identity theft. And already in the first quarter of 2020, reports of fraud and identity theft are up 20.1% from the previous quarter. 

The numbers could rise as more people continue to work from home and new reports of coronavirus-related fraud and scams come in. 

Among these all-time-high cases, credit card fraud leads the charge. 

  • I just watched a documentary on the dark web, and I will never feel safe using my credit card again!

  • Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.

  • I need that peace of mind in my life. What else do you get with ExtraCredit?

  • It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.

  • It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.

  • …we live in Oklahoma.

Identity Theft vs. Account Takeover

Identity theft involves the unauthorized access of personal information, such as your name and Social Security number. Account takeover is when a fraudster accesses account information, such as credit card numbers, with the intent of committing fraud on existing accounts. 

In 2019, victims reported $160.3 million worth of losses resulting from identity theft, according to the FBI. Credit card fraud made up the overwhelming majority of that $160.3 million.

This number represents only what was reported through the FBI’s Internet Crime Complaint Center. However, and doesn’t account for reports made directly to field agents. 

Most Common Types of Identity Theft

Swiping the competition in 2019 was credit card fraud, which accounted for 41.78% of all identity theft reports to the FBI, followed by other identity theft, which includes fraud conducted via email and social media. The least common was government documents or benefit fraud at 3.54%.

Identity Theft and Credit Card Fraud by State

The dubious honor of state with the most identity theft reports goes to Georgia, with the Peach State logging 423 cases per 100,000 people in 2019–176 of those falling under the credit card fraud umbrella. 

Florida came in just south of Georgia with 154 cases of credit card fraud per 100,000 people, followed by California and Texas. 

The state with the fewest number of reports was South Dakota, with 47 reports of fraud per 100,000 people, followed by Vermont and Wyoming. 

Several states in the middle of the country also came in at the middle of the pack, like Missouri and Colorado, with 41 and 45 reports of credit card fraud per capita, respectively. 

Credit Card Fraud by Metro Area

Georgia maintains its top spot in individual metropolitan areas, accounting for three of the five areas with the most reports of identity theft per capita–Warner Robins, Atlanta-Sandy Springs-Roswell and Macon-Bibb County. A person convicted of financial transaction card fraud of more than $100.00 within a six-month period in Georgia can be charged with a felony. The ramifications can be a fine of up to $5,000.00 or a prison term of one and five years.  On the flip side, Muncie, Indiana, logged the least number of reports at 37 per 100,000 people, followed by Glens Falls, New York, and Tullahoma-Manchester, Tennessee.

Top 10 metropolitan areas with highest identity theft per 100,000 residents – data

Rank Metropolitan area Reports per 100,000 residents Number of reports
1 Warner Robins, GA Metropolitan Statistical Area 661 1,281
2 Atlanta-Sandy Springs-Roswell, GA Metropolitan Statistical Area 570 33,940
3 Miami-Fort Lauderdale-West Palm Beach, FL Metropolitan Statistical Area 556 34,458
4 Macon-Bibb County, GA Metropolitan Statistical Area 455 1,045
5 Memphis, TN-MS-AR Metropolitan Statistical Area 446 6,027
6 Columbus, GA-AL Metropolitan Statistical Area 433 1,322
7 Columbia, SC Metropolitan Statistical Area 411 3,420
8 Los Angeles-Long Beach-Anaheim, CA Metropolitan Statistical Area 410 54,553
9 Houston-The Woodlands-Sugar Land, TX Metropolitan Statistical Area 367 25,656
10 Dallas-Fort Worth-Arlington, TX Metropolitan Statistical Area 367 27,637

Top 10 metropolitan areas with lowest identity theft per 100,000 residents – data

Rank Metropolitan area Reports per 100,000 residents Number of reports
1 Muncie, IN Metropolitan Statistical Area 32 37
2 Tullahoma-Manchester, TN Micropolitan Statistical Area 34 35
3 Glens Falls, NY Metropolitan Statistical Area 34 43
4 Lewiston-Auburn, ME Metropolitan Statistical Area 38 41
5 Appleton, WI Metropolitan Statistical Area 41 97
6 Owensboro, KY Metropolitan Statistical Area 41 49
7 Wenatchee, WA Metropolitan Statistical Area 42 50
8 Bismarck, ND Metropolitan Statistical Area 41 54
9 Ogdensburg-Massena, NY Micropolitan Statistical Area 43 46
10 Eau Claire, WI Metropolitan Statistical Area 43 72

Methodology

Finder sourced all data from the Consumer Sentinel Network Data Book 2019, released by the Federal Trade Commission in January 2020. The Consumer Sentinel Network Data Book uses reports in its Sentinel secure online database available to law enforcement only. These consumer reports are about fraud, identity theft and other consumer protection topics, with more than 3.2 million consumer reports filed in 2019.

The reports in Sentinel are sourced directly from: 

  • People who call the FTC’s call center or report online
  • Reports filed with other federal, state, local and international law enforcement
  • Organizations like the Better Business Bureau and Publishers Clearing House

Source: credit.com

Apache is functioning normally

Apache is functioning normally

By the end of 2022, 27 million Americans had an outstanding personal loan balance with the average amount owed being $11,116. The interest rates of these loans are also the highest they’ve been since 2011 at 11.23 percent.

Sources: TransUnion and the St. Louis Federal Reserve

As of the second quarter in 2022, Americans owed over $192 billion in personal loans, according to TransUnion®.  This was a 31% increase from 2021 and is thought to be due to the financial hardships Americans experienced during the COVID pandemic that overwhelmed the nation in 2020.

If you’re one of the many Americans who took out a personal loan in early 2022, the good news is that interest rates were very low, according to the St. Louis Federal Reserve. Since then, rates have reached new highs, so many Americans are struggling to pay back these loans.

Understanding the current trends in personal loans can help you see where you stand financially. We’ve gathered 10 personal loan statistics that include the most common reasons people take out personal loans, delinquency rates and which states have the highest personal loan debt to help you make better financial decisions if you’re accumulating too much debt.

In This Piece

Must-know Personal Loan Statistic Findings

Millions of Americans are taking out personal loans, and the following are some of the most interesting facts on the topic.

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  • 27 million Americans have personal loan debt (TransUnion)
  • At the end of 2022, the average new loan amount was $8,018 (TransUnion)
  • The average amount owed in personal loan debt was $11,116 at the end of 2022 (TransUnion)
  • In November of 2022, personal loan interest rates were the highest they’ve been since May of 2011 (St. Louis Federal Reserve Bank)
  • New Jersey has the highest average new personal loan account balance at $13,494 (TransUnion)

Average Personal Loan Debt in America

According to TransUnion, Americans owed roughly $9,896 on average as of the first quarter in 2022, the highest it’s been in recent years. Americans took out loans at an average of $6,656 per loan, which was over $1,000 more than in the previous quarter of 2022.

The amount owed per borrower dropped significantly between Q2 and Q3 in 2022, but by the end of the fourth quarter, the average amount owed increased by over 100 percent with the new loan amount dropping to $8,018.

The increase in personal loan debt may have been due to the inflation the country experienced in 2022. TransUnion also reports that there were more loans approved to “super prime borrowers,” or those with credit scores over 720, stating, “On a percentage basis, personal loan originations for subprime and near-prime borrowers increased in the single digits [year over year] whereas super prime borrowers experienced a 33% rise in the third quarter.”

How Many Americans Have Personal Loans?

The amount of Americans taking out personal loans increased 12 percent from 23.9 million in the first quarter of 2022 to 27 million by the fourth quarter.

Prior to the beginning of the COVID-19 pandemic, the total amount of personal loan borrowers was 23.3 million at the end of 2019 and dropped to 21.2 million by the end of 2020. The number of borrowers then grew back to 22.8 million in the following fourth quarter of 2021 and continued to grow as the pandemic regressed.

Quarter

Q4 2022 Average new account balance

Q4 2019

23.3 million

Q4 2020

21.2 million

Q4 2021

22.8 million

Q4 2022

27 million

The Most Common Reasons to Take Out a Personal Loan

LendingTree conducted a survey of their users in 2022 and found that the most common reason consumers took out personal loans was to pay down other debts. Over 58 percent of borrowers used these loans to pay down debt, and the other main reasons included credit card refinancing, home improvements and other major purchases.

Rank

Reason

Percentage of respondents

1

Debt consolidation

41%

2

Other

17.3%

3

Credit card refinance

17.3%

4

Home improvements

6.2%

5

Major purchase

4.1%

6

Medical expenses

3.0%

7

Moving/relocation

2.9%

8

Everyday bills

2.9%

9

Car financing

1.7%

10

Car repair

1.1%

11

Business

0.9%

12

Vacation

0.5%

13

Homebuying

0.4%

14

Wedding expenses

0.4%

Average Personal Loan Interest Rates

During the second quarter of 2022, the Federal Reserve Bank of St. Louis reported that interest rates reached an all-time low of 8.73 percent. By the end of the year, these rates were the highest they’ve been since 2011 at over 11.2 percent.

Personal Loan Debt Compared to Other Debts

Based on TransUnion data, personal loans account for less than four percent of the total number of accounts when compared to other types of loans, such as credit cards, home and auto loans.

Account type

Number of accounts

Percentage of accounts

Credit card

518.4 million

76.3%

Auto loan

81.2 million

11.9%

Mortgage loan

52.6 million

7.83%

Personal loan

27 million

3.97%

It’s also important to note that not all credit card accounts carry a balance.

Personal Loan Delinquency Rates

Delinquent accounts are accounts 60 days or more past due and can hurt your credit score. The Q4 TransUnion report shows that the delinquency rate dropped year over year between 2019 and 2020, but was up 53 percent as of 2022, with an overall delinquency rate of 4.14 percent.

Quarter

Delinquency rate

Q4 2019

3.48%

Q4 2020

2.7%

Q4 2021

3%

Q4 2022

4.14%

TransUnion’s 2022 Credit Snapshot shows that in the last month of the report, those with the lowest credit scores have the highest delinquency rate of 23.9 percent, while super prime borrowers are only at 12 percent.

Credit score range

Percentage of delinquent borrowers

Subprime (300 to 600)

23.9%

Near prime (601 to 660)

23.7%

Prime (661 to 720)

23.3%

Prime plus (721 to 780)

17%

Super prime (781 to 850)

12%

Personal Loan Statistics by State

TransUnion’s 2022 Credit Snapshot reports that New Jersey has the highest average new account balance at over $13,000, and Oklahoma has the lowest at $3,170. Although Oklahoma has the lowest new account balance, they have the highest delinquency rate at 7.73 percent.

State

Q4 2022 Average new account balance

Q4 2022 Delinquency rate

AK

$10,296

2.9%

AL

$4,362

6.59%

AR

$7,089

5.18%

AZ

$9,343

3.78%

CA

$10,454

3.47%

CO

$12,322

2.03%

CT

$11,712

2.57%

D.C.

$9,016

6.55%

DE

$9,146

4.04%

FL

$8,379

3.94%

GA

$8,621

5.18%

HI

$12,224

2.28%

IA

$7,443

2.94%

ID

$9,072

4.38%

IL

$9,236

3.46%

IN

$7,439

2.97%

KS

$8,349

3.05%

KY

$6,875

3.36%

LA

$6,797

5.07%

MA

$12,518

2.24%

MD

$10,956

2.77%

ME

$6,651

1.67%

MI

$7,052

3.21%

MN

$10,692

3.73%

MO

$6,522

6.69%

MS

$5,179

4.96%

MT

$9,326

2.53%

NC

$10,035

3.03%

ND

$8,051

1.89%

NE

$7,755

3.65%

NH

$11,719

2.31%

NJ

$13,494

3.49%

NM

$5,418

6.31%

NV

$8,839

3.74%

NY

$11,843

2.77%

OH

$7,595

3.75%

OK

$3,170

7.73%

OR

$10,523

2.93%

PA

$10,418

3.06%

RI

$8,744

2.14%

SC

$5,924

4.89%

SD

$9,945

2.06%

TN

$5,355

5.38%

TX

$4,952

6.33%

UT

$7,966

4.23%

VA

$9,875

3.37%

VT

$6,180

0.82%

WA

$9,570

2.94%

WI

$6,489

3.95%

WV

$10,864

1.96%

WY

$7,698

2.66%

Personal Loan Statistics by Type of Lender

More and more Americans are turning to financial technology companies, also known as FinTech, for their personal loans. These are online banking services that are done via a company’s website or mobile app, and 32.9 percent of all personal loans are done through these types of companies.

Lender type

Distribution of total balances

FinTech

32.9%

Banks

20.5%

Credit unions

19.7%

Other finance companies

26.9%

Can Personal Loan Debt Affect Your Credit Score?

If you’re one of the 27 million Americans with a personal loan, you don’t have to let your debt harm your credit score. As you’ve learned from these personal loan statistics, many Americans have turned to personal loans to pay off other debts, but many people are delinquent with their payments, which can hurt their scores.

Credit.com provides a variety of credit tools and tips to help you work to repair and improve your credit. You can learn more about our services, like ExtraCredit, or click here to get your free credit report card.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

In the United States, it’s illegal to drive a car without car insurance. Depending on the state you’re driving in, the consequences of doing so can range from a fine to a misdemeanor on your record. So, if you’re planning on hitting the road anytime soon, be sure to purchase car insurance to avoid penalties. 

In this article, we’ve researched the average cost of car insurance by state to give you a better idea of how much to budget.  

Key findings: 

  • According to AAA, the national average cost of car insurance for a full-coverage policy was $1,588 in 2022.
  • On average, the cheapest states for full coverage car insurance are Ohio, Maine and Idaho, while the most expensive states are Florida, Louisiana and Michigan. 
  • USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico and Nationwide offer the cheapest full-coverage insurance. 
  • The average cost of car insurance tends to decrease with age, but starts to rise again around age 70. 
  • Individuals with high credit scores pay lower car insurance premiums on average compared to those with poor credit. 

How much is car insurance?

According to AAA, the national average cost of car insurance for a full-coverage policy was $1,588 in 2022. This figure is based on an under 65 years old driver who lives in the city or suburbs, has over six years of driving experience, and has not been involved in any accidents. 

Average cost of car insurance by state

When calculating the cost of car insurance, the state you live in plays a role in how much you can expect to pay. This is because factors like population density, climate, road conditions and crime rate in your area can play a part in the likelihood that you’ll file a claim.  

According to insurance.com, the cheapest states for car insurance if you’re looking for minimum coverage are Iowa, South Dakota and Wyoming costing an average of $263, $267, and $293, respectively. Meanwhile, the cheapest states for full coverage auto insurance are Ohio ($1,023), Maine ($1,116), and Idaho ($1,121). 

The most expensive states for car insurance in terms of minimum coverage are New Jersey, Florida, and New York where drivers pay an average of $989, $908 and $875, respectively. For full coverage insurance, drivers in Florida ($2,560), Louisiana ($2,546), and Delaware ($2,137) pay the most in the country on average. 

State

Minimum coverage

Full coverage

AK

$336

$1,359

AL

$420

$1,542

AR

$422

$1,597

AZ

$494

$1,617

CA

$582

$2,115

CO

$467

$1,940

CT

$773

$1,750

DE

$821

$2,137

FL

$908

$2,560

GA

$567

$1,647

HI

$389

$1,306

IA

$263

$1,321

ID

$326

$1,121

IL

$484

$1,578

IN

$384

$1,256

KS

$389

$1,594

KY

$717

$2,105

LA

$726

$2,546

MA

$523

$1,538

MD

$607

$1,640

ME

$330

$1,116

MI

$711

$2,133

MN

$479

$1,493

MO

$525

$2,104

MS

$434

$1,606

MT

$389

$1,692

NC

$396

$1,368

ND

$340

$1,419

NE

$350

$2,018

NH

$411

$1,307

NJ

$989

$1,901

NM

$376

$1,505

NV

$683

$2,023

NY

$875

$2,020

OH

$308

$1,023

OK

$352

$1,797

OR

$551

$1,244

PA

$398

$1,445

RI

$648

$1,845

SC

$628

$1,894

SD

$267

$1,581

TN

$368

$1,373

TX

$520

$1,875

UT

$526

$1,469

VA

$469

$1,321

VT

$306

$1,158

WA

$505

$1,371

WI

$375

$1,499

WV

$474

$1,610

WY

$293

$1,736

Average cost of insurance by company 

Another factor that’s going to influence how much you can expect to pay for car insurance is the specific company you purchase your plan through.  

According to U.S. News & World Report, USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico, and Nationwide offer the least-expensive full-coverage insurance. 

Farmers, Progressive, and Nationwide offer the most expensive minimum coverage rates while Allstate, Farmers, and Progressive offer the most expensive full coverage plans. 

Insurance company

Minimum coverage

Full coverage

Allstate

$1,961

$2,138

American Family

$1,327

$1,388

Farmers

$1,782

$2,059

Geico

$1,064

$1,238

Nationwide

$1,347

$1,338

Progressive

$1,440

$1,650

State Farm

$1,191

$1,348

Travelers

$1,290

$1,448

USAA

$948

$1,056

Average cost of insurance by age 

According to CarInsurance.com, the cost of both minimum and full coverage car insurance tends to decrease with age, as seen in the chart below. However, there is an uptick around age 70 where rates start to go back up.  

Age

Minimum coverage

Full coverage

20

$1,109

$3,532

30

$539

$1,785

40

$520

$1,682

50

$496

$1,581

60

$482

$1,511

70

$554

$1,661

Average cost of insurance for young drivers

Young drivers are the most expensive age group to insure. Although there are a few exceptions, insurance rates decrease with age among young drivers. 

Age

Minimum coverage

Full coverage

16

$2,402

$7,203

17

$1,971

$5,924

18

$1,706

$5,242

19

$1,234

$3,874

20

$1,109

$3,532

21

$884

$2,864

22

$794

$2,593

23

$736

$2,415

24

$690

$2,267

Average cost of insurance by credit score 

According to the Insurance Information Institute, your credit score is a good indicator of how many insurance claims you’ll file. As a result, insurance companies use credit scores to determine risk, and those with a good credit score pay cheaper premiums. The Zebra found that individuals with poor credit pay approximately 114% more than those with great credit. 

Credit score

Average annual rate

Very poor (300-579)

$2,887

Average (580-669)

$2,296

Good (670-739)

$1,912

Excellent (740-799)

$1,606

Exceptional (800-850)

$1,350

What factors affect your car insurance rate?

As you can see from the above charts, the cost of car insurance varies by the following factors: 

  • Age: Typically, young drivers under the age of 25 and senior drivers over the age of 65 are charged more for car insurance. 
  • State of residence: Since the minimum coverage required varies by state, your location is one of the factors that will influence the price. 
  • ZIP code: In addition to your state of residence, your ZIP code will also play a role in the cost of insurance since your vehicle is more likely to be damaged in certain areas, such as ZIP codes with high crime rates. Typically, the cost of car insurance will be greater in cities than in rural areas. 
  • Marital status: Statistically, married drivers are less risky than single drivers resulting in a lower insurance cost. 
  • Gender: Based on risk, male teenage drivers tend to have the highest cost of car insurance of any demographic. 
  • Credit history: Those with a low credit score tend to pay higher premiums than individuals with good credit. 
  • Driving record: Since car insurance premiums are based on risk, individuals with a good driving record can expect to pay lower premiums, while those with a poor driving record may experience increased rates. 
  • Car make and model: You may pay less if you drive a vehicle that insurance companies deem safe. On the other hand, you’re likely to pay more if you drive a small sports car since they pose a higher risk. 
  • Mileage: Higher annual mileage increases the risk you’ll get into an accident and will likely raise your premiums. 
  • High-risk violations: Driving under the influence and at-fault accidents are examples of violations that may result in you being considered a high-risk driver. 

What’s the difference between full and minimum coverage? 

Minimum coverage car insurance — liability coverage — is required in most states and is used if you’re at fault in an accident. This coverage will pay for damages and injuries of the other party when you’re responsible for the incident. 

On the other hand, full coverage insurance, or collision coverage, includes liability coverage plus damage caused to your own vehicle. Keep in mind that lenders often require you to obtain full coverage insurance before you get an auto loan. 

FAQ

Below, we’ve answered some common questions regarding the cost of auto insurance. 

Can my driving record affect my car insurance rate? 

Your driving record is one of the factors that affects your car insurance rate. As a result, those with traffic violations or accidents on their record can expect to pay higher premiums. 

Does your car insurance cost go down after you pay off your car?

Your care insurance cost doesn’t typically go down after your pay off your car. However, you do have the option to decrease the amount of coverage on your vehicle once it’s paid off. 

Which car insurance company is the cheapest?

As mentioned above, insurance companies that offer the cheapest plans include Geico, Auto-Owners, USAA and Erie.

Does car insurance decrease annually? 

For young drivers in particular, car insurance rates decrease each year you renew your policy without filing a claim. You can expect to see the biggest drop in price at age 25. 

The average cost of car insurance varies by factors including state, age, insurance company and credit score. Some factors, such as your age, are beyond your control, but other factors, such as your credit score, can be improved. 

Check your credit score for free today to see if it’s a reason your car insurance is high. 

Source: credit.com

Apache is functioning normally

Apache is functioning normally

This article originally appeared on The Financially Independent Millennial and was republished here with permission.

If you’ve been paying attention to the housing market recently, you will have noticed it’s on fire. From Seattle, WA, to St. Petersburg, FL, there isn’t a market that hasn’t been affected by the low mortgage rates and high millennial demand for housing. The market hasn’t seen this much activity ever (even more so than the housing financial crisis of 2008).

Given the recent interest in home buying, we thought it would be prudent to discuss exactly how Americans can afford such large homes. And, why now?  After all these years, why are mortgages and refinances becoming popular all of a sudden? Let’s first discuss the basics of a mortgage and what its advantages are. They’re equally complex and beneficial, so it’s important to ensure we cover all the bases.

What Is a Mortgage Loan?

Simply put, your home secures the mortgage loan. It might be a house, a store, or even a piece of non-agricultural land. Banks and non-banking financial institutions both offer mortgage loans.

The lender gives the borrower cash, and charges them interest on it. Borrowers then pay back the loan in monthly installments that are convenient for them. Your property acts as security against the mortgage. And, your lender retains a charge until the borrower pays the loan in full. As a result, the lender will have a legal claim to the property for the duration of the loan. If the buyer fails to pay the debt, the lender has the power to seize the property and sell it at auction.

What Are the Different Types of Mortgage Loans? 

No matter what anyone tells you, always remember: A mortgage is a debt. Debt is a very polarizing topic to discuss with friends because many of us were raised on the premise that debt is bad. The truth is, some debt is bad, some debt is okay, and some debt is good. Many today would argue that mortgage debt is good since the rate is so low and it affords you a bigger home. 

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Some people believe that debt should be prevented at all costs. Others view it as a means of improving one’s quality of life or as a means of increasing fortune. What’s awful about debt, factually, is reckless credit usage.

Here’s a rundown of the many types of mortgage programs, along with their benefits and drawbacks, to help you determine which is best for you.

A mortgage with a fixed rate

The interest rate is fixed for the duration of the loan. These loans provide a consistent monthly payment and a low-interest rate. Borrowers who wish to pay off their mortgage quicker can typically make extra payments toward the principal, as prepayment penalties are uncommon.

Pro: It’s predictable because the monthly payment is fixed.

Con: Taking out a fixed-rate loan while the interest rates are high means you’re stuck with it for the duration of the loan. The only way out is to refinance at a lower rate.

A mortgage with an adjustable rate (ARM)

After a fixed-rate cycle of months to years, the interest rate on an adjustable-rate mortgage (ARM) varies. Lenders sometimes publish ARMs with a pair of numbers, such as 7/1 or 5/1. Usually, a 5/1 ARM has a fixed rate for five years and then adjusts every year, rounding off if that option exists.

Pro: An ARM’s opening interest rate is often lower than that of a standard fixed-rate loan, so it’s easy to get lured in by the teaser rate. But, it might wind up costing more in interest over the term of your mortgage than a fixed-rate loan. An ARM may be the ideal option for someone who plans to market their home before the rate changes.

Con: Future rate hikes might be significant, leaving many adjustable-rate mortgage borrowers with significantly elevated monthly payments than if they chose a fixed-rate mortgage.

Refinance loan or second mortgage

Sometimes, a homeowner already has a mortgage but wants to change the terms. Maybe they want a lower rate or a longer term. Or maybe, they want to take out more equity from their home. Whatever the case, many options are available! The most common would be refinancing the home mortgage. With mortgage refinance, the homeowner closes out their original mortgage, and obtains another one – ideally with more favorable terms. 

With interest rates so low these past couple of years, refinancing has become much more popular. How often a homeowner refinances is usually a personal decision, but they should consider at least these factors:

  • market interest rate vs their current mortgage interest rate
  • length/term of their loan vs the new one they want to get
  • cost of the loan (“closing costs”) vs keeping still
  • [cash-out refinance only] what to do with the funds

Pros: If you can secure a lower interest rate than your current loan, and the closing costs aren’t significant, then it could definitely be worth refinancing. On the other hand, if you need the money for home renovations, a cash-out refinance may be your best bet.

Cons: Refinancing costs money, so make sure the math works in your favor. 

Conventional loan

The standards for conventional loans are generally more stringent than those for government-backed house loans. When reviewing traditional loan applications, lenders usually look at credit history and debt-to-income ratios.

Pro: A conventional mortgage may be used for a range of property kinds, and PMI would help borrowers qualify for a conventional loan even if they have less than 20% for the down payment.

Con: Compared to government loans, conventional loans have tougher qualification standards and may demand a larger down payment.

Interest-only mortgage

The average age of home purchases has decreased, and an increasing number of millennials are now purchasing their first houses. Typically, the loan duration is determined by the debt-to-income (DTI) ratio and the sum of interest negotiated on the mortgage. For homebuyers, a longer contract means a lower payment, but a longer time to pay off that debt.

Some lenders may offer an interest-only mortgage, meaning the borrower’s monthly fees will cover only the interest. As a result, it’s best to have a strategy in place to ensure that you can have enough money to return the entire sum borrowed at the end of the period.

Interest-only loans may be appealing since your monthly payments are low. But, unless you have a strong strategy to reimburse the capital, at some point, a fixed loan could be the better option.

Pro: Interest-only mortgages allow the borrower to place their capital elsewhere, such as in dividend stocks, a rental property, or other investments. 

Con: Borrowers who aren’t careful with their budget may find themselves never being able to pay off the loan.

Read more: 15 Ways to Generate Passive Income from Real Estate

FHA loan

FHA loans and VA loans are mortgage loans insured by the government and available for potential homebuyers. FHA loans are available to lower-income borrowers and typically require a very low down payment. Also, borrowers get competitive interest rates and loan costs. 

The government does not directly grant Federal Housing Administration (FHA) loans. FHA loans can be issued by participating lenders, and the FHA guarantees the loans. FHA mortgages might be a viable option for those who have a high debt-to-income ratio or a bad credit score.

Pro: FHA loans need a smaller down payment and credit score requirements are lower than conventional loans. Moreover, FHA loans may enable applicants to use a non-resident co-signer to assist them to be qualified.

Con: Unless a borrower puts down 10%, the monthly mortgage insurance will remain a part of the payment for the loan’s life. If a borrower ever wants to remove the monthly mortgage insurance, they must qualify and refinance into a conventional loan.

Read more: How to Improve Your Credit Score

FHA 203(k) loan

An FHA 203(k) loan is a government-insured mortgage allowing funding borrowers with one loan for both home renovation and house purchase. Current homeowners may also be eligible for an FHA 203(k) loan to help pay for the repairs of their current house.

Pro: An FHA 203(k) loan can be utilized to purchase and renovate a home that would otherwise be ineligible for a traditional FHA loan. It just takes a 3.5% down payment.

Con: You must be eligible for the full property value, as well as the price of anticipated improvements, with these loans. The rate may be greater than on a normal FHA loan. You’ll also have to pay both a one-time, and monthly mortgage premium insurance payments.

VA (Veterans Affairs) loan

Home loans for veterans, reservists, and military or National Guard members, as well as qualified surviving married partners, are backed by the US Department of Veteran Affairs. 

In fact, nearly 90% of all VA-backed home loans are made without a down payment.

Pro: You won’t have to put any money down, or deal with PMI payments every month.

Con: On purchase loans, a one-time VA “funding charge” varies from 1.4% to 3.6%.

Fannie Mae homestyle loan

The Fannie Mae homestyle mortgage needs just 3%–5% down, but a credit score of 620 is an option for fixer-uppers.

Pro: You don’t have to pay for mortgage insurance beforehand, and you can terminate it after twelve years or when you have 20% equity on your house. The rate is frequently cheaper than an FHA 203(k) loan.

Con: Credit score requirements must be met.

Reverse mortgage loan

Homeowners aged 62 and above can use a reverse mortgage to convert some of their property value into cash. The age of the youngest homeowner, the loan rate and fees, the heir’s wishes, and payout type are all aspects for the lender to consider.

Pro: There are no monthly payments required, and the homeowner can select between a one-time balloon payout, a monthly payout, a line of credit, or a combination of the three.

Con: The interest rate may be greater than that of a typical mortgage. Mortgage insurance, a direct charge, an initiation fee, and third-party expenses are usually paid by the homeowner.

Final Thoughts

Mortgage loans are given to those who have enough income and assets vs. their debt. Mortgages also aid in the development of credit. They enable homeowners to invest in a home, with the advantage of having a forced-savings component. However, like with any loan, borrowers should be responsible when taking out a mortgage. It’s easy to get carried away and buy more than is necessary (and become house-poor).

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Foreclosure activity increased eight percent in July from June and was up 55 percent from the same period a year earlier, according to the latest report from RealtyTrac.

A total of 272,171 properties were in some stage of foreclosure last month, with one in every 464 households in the nation receiving a foreclosure notice in July.

And while preliminary filings like notices of default accounted for much of the activity, the final stage of the process is also exploding.

“Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July, posting a 184 percent year-over-year increase — compared to a 53 percent year-over-year increase in default notices and an 11 percent year-over-year increase in auction notices,” said James J. Saccacio, chief executive officer of RealtyTrac, in a press release.

“The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale. RealtyTrac now has more than three quarters of a million properties in its active REO database, a number that represents approximately 17 percent of the inventory of existing homes for sale reported in June by the National Association of Realtors.”

As always, Nevada led the nation with the highest foreclosure rate of one filing per 106 households, followed by California at one per 182 households, and Florida at one per 186 households.

More startling however, was the fact that bank repossessions were up 384 percent in Nevada, 427 percent in California, and a whopping 627 percent in Florida, compared to the same period a year ago.

The highest foreclosure rate among 230 metro areas tracked by RealtyTrac was Cape Coral-Fort Myers, FL with one filing per 64 households, followed by Merced, CA with one in every 73 households, and Stockton/Modesto, CA with one in every 82.

That’s a lot of missed mortgage payments…

Source: thetruthaboutmortgage.com

Apache is functioning normally

Nestled along the Emerald Coast, this picturesque beachside city is not only famed for its stunning beaches and clear turquoise waters but also for its diverse and delectable dining scene. From fresh-off-the-boat seafood joints to upscale eateries offering gourmet experiences, Destin has something to satisfy every taste bud. So whether you’ve just moved to a new home in Destin or you’re a long-time local, check out some of the must-try restaurants in Destin, FL.

#1: Donut Hole Bakery Café

Cuisine Type: Donut Shop, Café
Location: 635 Harbor Blvd, Destin, FL 32541
Website: Donut Hole Bakery Cafe

Known for its delicious assortment of donuts and charming café atmosphere, Donut Hole Bakery Café is a favorite spot for locals and tourists alike. In addition to their classic glazed donuts, the Donut Hole offers unique flavors such as maple bacon, red velvet, and blueberry cake. Alongside their donuts, they also serve a variety of breakfast items, sandwiches, and coffee.

#2: Harbor Docks

Cuisine Type: Sushi Restaurant, Seafood Restaurant
Location: 538 Harbor Blvd, Destin, FL 32541
Website: Harbor Docks

Harbor Docks is a popular sushi and seafood restaurant located in Destin that offers a wide variety of options including sashimi, nigiri, sushi rolls, and traditional seafood favorites like shrimp, oysters, and crab. The restaurant has a laid-back and casual atmosphere, perfect for enjoying a meal with friends or family. With its waterfront location, Harbor Docks provides beautiful views of the harbor while you dine.

#3: Pepito’s Mexican Restaurant

Cuisine Type: Mexican Restaurant
Location: 36112 Emerald Coast Pkwy, Destin, FL 32541
Website: Pepito’s Mexican Restaurant

Another popular restaurant in Destin, FL is Pepito’s Mexican Restaurant. You can find a variety of Mexican favorites on the menu, including tacos, enchiladas, and fajitas.

#4: Marina Cafe

Cuisine Type: Sushi Restaurant, Steakhouse
Location: 404 Harbor Blvd, Destin, FL 32541
Website: Marina Cafe

Marina Cafe is a unique combination of a sushi restaurant and steakhouse, offering an eclectic menu that caters to all palates. From fresh and flavorful sushi rolls to succulent steaks cooked to perfection, Marina Cafe has something for everyone.

#5: Louisiana Lagniappe

Cuisine Type: Cajun and Creole Restaurant, Seafood Restaurant
Location: 775 Gulf Shore Dr, Destin, FL 32541
Website: Louisiana Lagniappe

From gumbo to jambalaya, guests can enjoy a variety of authentic Cajun and Creole dishes at Louisiana Lagniappe.

#6: Boshamps Seafood & Oyster House

Cuisine Type: Cajun and Creole Restaurant, Seafood Restaurant
Location: 414 Harbor Blvd, Destin, FL 32541
Website: Boshamps Seafood & Oyster House

Boshamps Seafood & Oyster House is a beloved restaurant located in Destin, FL. Specializing in Cajun and Creole cuisine, as well as mouthwatering seafood dishes, this restaurant offers a unique dining experience. From their fresh oysters to their Cajun-spiced shrimp, Boshamps offers a variety of flavorful dishes that will satisfy any seafood lover.

#7: Red Rooster Café

Cuisine Type: Breakfast Joint, American Restaurant
Location: 385 Harbor Blvd Ste 102, Destin, FL 32541
Website: Red Rooster Café

If you’re in search of a great breakfast spot in Destin, add Red Rooster Café to your list. The café offers a wide variety of breakfast dishes, from traditional pancakes and omelets to unique creations like their famous stuffed french toast. The cozy atmosphere and friendly staff make it a perfect place to start your day in Destin.

#8: Buck’s Smokehouse

Cuisine Type: BBQ Joint
Location: 303 Harbor Blvd, Destin, FL 32541
Website: Buck’s Smokehouse

Buck’s Smokehouse is a renowned BBQ joint located in Destin, FL. With a rustic and inviting atmosphere, the restaurant offers a wide variety of smoky and flavorful dishes. From their perfectly smoked ribs to their mouthwatering pulled pork, Buck’s Smokehouse guarantees a memorable dining experience. Don’t forget to try their famous homemade BBQ sauce, a perfect companion to their tasty fare.

#9: Boathouse Oyster Bar

Cuisine Type: Seafood Restaurant
Location: 288 Harbor Blvd, Destin, FL 32541
Website: Boathouse Oyster Bar

From oysters on the half shell to shrimp po’ boys, Boathouse Oyster Bar is a great casual restaurant in Destin to enjoy a delicious meal with a waterfront view.

#10: Burrito del Sol

Cuisine Type: Mexican Restaurant
Location: 517 Harbor Blvd, Destin, FL 32541
Website: Burrito del Sol

Burrito del Sol is a favorite Mexican restaurant among Destin locals. Known for their delicious burritos, tacos, and other specialties, Burrito del Sol offers tasty, classic Mexican dishes.

#11: Brotula’s Seafood House & Steamer

Cuisine Type: Bar, Seafood Restaurant
Location: 210 Harbor Blvd, Destin, FL 32541
Website: Brotula’s Seafood House & Steamer

Brotula’s Seafood House & Steamer is another popular bar and seafood restaurant located in Destin, FL. They offer a wide variety of fresh seafood dishes, including their famous seafood boils and steamed shellfish. With a beautiful waterfront location, Brotula’s provides a relaxed and casual atmosphere, perfect for enjoying delicious seafood while taking in the scenic views of the harbor.

#12: Dewey Destin Harborside

Cuisine Type: Seafood Restaurant
Location: 202 Harbor Blvd, Destin, FL 32541
Website: Dewey Destin Harborside

Last but not least is Dewey Destin Harborside. Known for its fresh catch and traditional seafood dishes, this restaurant offers a wide variety of options on its menu with a casual and laid-back atmosphere.

Source: redfin.com