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The short answer: In most cases there isn’t an instant fix for improving your credit score. Building, improving or even repairing credit takes time. 

Your credit score is like a snapshot that lenders use to determine your financial trustworthiness. Whether you’re applying for a loan, a credit card, or even renting an apartment, your credit score plays a crucial role in the decisions made about your financial future. But what if you’re in a pinch and need to improve your credit quickly? Can you fix your credit in just a week? 

Why Do Credit Scores Take So Long To Update?

How often do you check your credit score? Everyday? If you have, maybe you’ve noticed in the past how long it takes your credit score to update. The credit reporting process is another reason why it would take longer than a week to update your score – it takes a while for lenders, banks, and the bureaus to record your activity. 

Here’s what you should consider about the reporting process:

1. There are consistent reporting periods

Creditors typically report your account information to the credit bureaus at the end of each billing cycle. This means that any changes you make to your credit behavior, such as paying off a credit card balance or opening a new account, won’t immediately reflect on your credit report. Instead, you’ll have to wait until the next reporting period for these updates to be included.

2. The bureaus need time to verify your information

Even when creditors submit information to the credit bureaus, there is processing time involved. The credit bureaus need to receive, verify, and process the data before updating your credit report. This process isn’t instantaneous and can take several days to weeks, depending on various factors such as the volume of information being processed.

Additionally, the bureaus have specific schedules for updating credit reports, which may vary depending on factors like the bureau’s workload and the frequency of data submissions from creditors.

3. There’s a lag between when your credit reports update and when your score updates

Even after the credit bureaus update your credit report, there may still be a lag before your credit score reflects these changes. This is because your credit score is calculated based on the information in your credit report. While some credit scoring models may update more frequently, others may only update periodically, resulting in delays in your credit score reflecting recent changes.

4. Not everything is strong enough to impact your credit score

Additionally, your credit score may not change significantly if there hasn’t been much recent activity on your credit accounts. For example, if you haven’t made any new credit applications or incurred new debts, your credit report may remain relatively unchanged.

The Reality of Fixing Credit

While some changes to your credit report may occur relatively quickly, significant updates to your credit score typically take time to reflect accurately. It’s essential to be patient and continue practicing responsible credit habits while waiting for your credit score to update.

While you may not be able to fix your credit in a week, there are some strategies you can try to start improving it immediately:

Always Try to Pay Your Bills on Time

Making on-time payments is one of the most important factors in your credit score. Even a single late payment can have a negative impact, so prioritize paying your bills by their due dates.

Pay Down Credit Card Balances

If you have high credit card balances, paying them down can improve your credit utilization ratio, which in turn can positively affect your credit score.

Check Your Credit Report for Errors

Errors on your credit report can drag down your score. By reviewing your report and challenging any inaccuracies, you can potentially see an impact to your score. You can request a free copy of your credit report from each of the three main credit bureaus at AnnualCreditReport.com . 

Become an Authorized User

If you have a trusted family member or friend with good credit, asking to become an authorized user on one of their credit accounts can help boost your score. Just be sure that the primary account holder has a history of responsible credit usage.

Report Rent and Utilities

Rent, utilities, cell phone bills are examples of regular payments you may be making each month that don’t show up on your credit. If you feel confident that you can continue making those payments each month, you can always sign up for a rent and utility reporting service in order to get credit for paying your bills on-time.

The Importance of Patience

Unfortunately, the idea of fixing your credit overnight or even in a week is mostly a myth. 

While it’s understandable to want to improve your credit as quickly as possible, it’s essential to approach the process with patience and realistic expectations. By focusing on making responsible financial decisions over time, you can gradually raise your credit score and achieve your financial goals.

Source: credit.com

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A traditional 401(k) and a Roth 401(k) are tax-advantaged retirement plans that can help you save for retirement. While both types of accounts follow similar rules — they have the same contribution limits, for example — the impact of a Roth 401(k) vs. traditional 401(k) on your tax situation, now and in the future, may be quite different.

In brief: The contributions you make to a traditional 401(k) are deducted from your gross income, and thus may help lower your tax bill. But you’ll owe taxes on the money you withdraw later for retirement.

Conversely, you contribute after-tax funds to a Roth 401(k) and can typically withdraw the money tax free in retirement — but you don’t get a tax break now.

To help choose between a Roth 401(k) vs. a traditional 401(k) — or whether it might make sense to invest in both, if your employer offers that option — it helps to know what these accounts are all about.

5 Key Differences Between Roth 401(k) vs Traditional 401(k)

Before deciding on a Roth 401(k) or traditional 401(k), it’s important to understand the differences between each account, and to consider the tax benefits of each in light of your own financial plan. The timing of the tax advantages of each type of account is also important to weigh.

1. How Each Account is Funded

•   A traditional 401(k) allows individuals to make pre-tax contributions. These contributions are typically made through elective salary deferrals that come directly from an employee’s paycheck and are deducted from their gross income.

•   Employees contribute to a Roth 401(k) also generally via elective salary deferrals, but they are using after-tax dollars. So the money the employee contributes to a Roth 401(k) cannot be deducted from their current income.

💡 Quick Tip: The advantage of opening a Roth IRA and a tax-deferred account like a 401(k) or traditional IRA is that by the time you retire, you’ll have tax-free income from your Roth, and taxable income from the tax-deferred account. This can help with tax planning.

2. Tax Treatment of Contributions

•   The contributions to a traditional 401(k) are tax-deductible, which means they can reduce your taxable income now, and they grow tax-deferred (but you’ll owe taxes later).

•   By contrast, since you’ve already paid taxes on the money you contribute to a Roth 401(k), the money you contribute isn’t deductible from your gross income, and withdrawals are generally tax free (some exceptions below).

3. Withdrawal Rules

•   You can begin taking qualified withdrawals from a traditional 401(k) starting at age 59 ½, and the money you withdraw is taxed at ordinary income rates.

•   To withdraw contributions + earnings tax free from a Roth 401(k) you must be 59 ½ and have held the account for at least five years (often called the 5-year rule). If you open a Roth 401(k) when you’re 57, you cannot take tax-free withdrawals at 59 ½, as you would with a traditional 401(k). You’d have to wait until five years had passed, and start tax-free withdrawals at age 62.

4. Early Withdrawal Rules

•   Early withdrawals from a 401(k) before age 59 ½ are subject to tax and a 10% penalty in most cases, but there are some exceptions where early withdrawals are not penalized, including certain medical expenses; a down payment on a first home; qualified education expenses.

You may also be able to take a hardship withdrawal penalty-free, but you need to meet the criteria, and you would still owe taxes on the money you withdrew.

•   Early withdrawals from a Roth 401(k) are more complicated. You can withdraw your contributions at any time, but you’ll owe tax proportional to your earnings, which are taxable when you withdraw before age 59 ½.

For example: If you have $100,000 in a Roth 401(k), including $90,000 in contributions and $10,000 in taxable gains, the gains represent a 10% of the account. Therefore, if you took a $20,000 early withdrawal, you’d owe taxes on 10% to account for the gains, or $2,000.

5. Required Minimum Distribution (RMD) Rules

With a traditional 401(k), individuals must take required minimum distributions starting at age 73, or face potential penalties. While Roth 401(k)s used to have RMDs, as of January 2024, they no longer do. That means you are not required to withdraw RMDs from a Roth 401(k) account.

For a quick side-by-side comparison, here are the key differences of a Roth 401(k) vs. traditional 401(k):

Traditional 401(k) Roth 401(k)
Funded with pre-tax dollars. Funded with after-tax dollars.
Contributions are deducted from gross income and may lower your tax bill. Contributions are not deductible.
All withdrawals taxed as income. Withdrawals of contributions + earnings are tax free after 59 ½, if you’ve had the account for at least 5 years. (However, matching contributions from an employer made with pre-tax dollars are subject to tax.)
Early withdrawals before age 59 ½ are taxed as income and are typically subject to a 10% penalty, with some exceptions. Early withdrawals of contributions are not taxed, but earnings may be taxed and subject to a 10% penalty.
Account subject to RMD rules starting at age 73. No longer subject to RMD rules as of January 2024.

Bear in mind that a traditional 401(k) and Roth 401(k) also share many features in common:

•   The annual contribution limits are the same for a 401(k) and a Roth 401(k). For 2024, the total amount you can contribute to these employer-sponsored accounts is $23,000; if you’re 50 and older you can save an additional $7,500 for a total of $30,500. This is an increase over the 2023 limit, which was capped at $22,500 ($30,000 if you’re 50 and older).

•   For both accounts, employers may contribute matching funds up to a certain percentage of an employee’s salary.

•   In 2024, total contributions from employer and employee cannot exceed $69,000 ($76,500 for those 50 and up). In 2023, total contributions from employer and employee cannot exceed $66,000 ($73,500 for those 50 and up).

•   Employees may take out a loan from either type of account, subject to IRS restrictions and plan rules.

Because there are certain overlaps between the two accounts, as well as many points of contrast, it’s wise to consult with a professional when making a tax-related plan.

Recommended: Different Types of Retirement Plans, Explained

How to Choose Between a Roth and a Traditional 401(k)

In some cases it might make sense to contribute to both types of accounts (more on that below), but in other cases you may want to choose either a traditional 401(k) or a Roth 401(k) to maximize the specific advantages of one account over another. Here are some considerations.

When to Pay Taxes

Traditional 401(k) withdrawals are taxed at an individual’s ordinary income tax rate, typically in retirement. As a result these plans can be most tax efficient for those who will have a lower marginal rate after they retire than they did while they were working.

In other words, a traditional 401(k) may help you save on taxes now, if you’re in a higher tax bracket — and then pay lower taxes in retirement, when you’re ideally in a lower tax bracket.

On the other hand, an investor might look into the Roth 401(k) option if they feel that they pay lower taxes now than they will in retirement. In that case, you’d potentially pay lower taxes on your contributions now, and none on your withdrawals in retirement.

Your Age

Often, younger taxpayers may be in a lower tax bracket. If that’s the case, contributing to a Roth 401(k) may make more sense for the same reason above: because you’ll pay a lower rate on your contributions now, but then they’re completely tax free in retirement.

If you’re older, perhaps mid-career, and in a higher tax bracket, a traditional 401(k) might help lower your tax burden now (and if your tax rate is lower when you retire, even better, as you’d pay taxes on withdrawals but at a lower rate).

Where You Live

The tax rates where you live, or where you plan to live when you retire, are also a big factor to consider. Of course your location some years from now, or decades from now, can be difficult to predict (to say the least). But if you expect that you might be living in an area with lower taxes than you are now, e.g. a state with no state taxes, it might make sense to contribute to a traditional 401(k) and take the tax break now, since your withdrawals may be taxed at a lower rate.
💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.

The Benefits of Investing in Both a Roth 401(k) and Traditional 401(k)

If an employer offers both a traditional and Roth 401(k) options, employees might have the option of contributing to both, thus taking advantage of the pros of each type of account. In many respects, this could be a wise choice.

Divvying up contributions between both types of accounts allows for greater flexibility in tax planning down the road. Upon retirement, an individual can choose whether to withdraw money from their tax-free 401(k) account or the traditional, taxable 401(k) account each year, to help manage their taxable income.

It is important to note that the $23,000 contribution limit ($30,500 for those 50 and older) for 2024 is a total limit on both accounts.

So, for instance, you might choose to save $13,500 in a traditional 401(k) and $9,500 in a Roth 401(k) for the year. You are not permitted to save $23,000 in each account.

What’s the Best Split Between Roth and Traditional 401(k)?

The best split between a Roth 401(k) and a traditional 401(k) depends on your individual financial situation and what might work best for you from a tax perspective. You may want to do an even split of the $23,000 limit you can contribute in 2024. Or, if you’re in a higher tax bracket now than you expect to be in retirement, you might decide that it makes more sense for you to put more into your traditional 401(k) to help lower your taxable income now. But if you expect to be in a higher income tax bracket in retirement, you may want to put more into your Roth 401(k).

Consider all the possibilities and implications before you decide. You may also want to consult a tax professional.

The Takeaway

Employer-sponsored Roth and traditional 401(k) plans offer investors many options when it comes to their financial goals. Because a traditional 401(k) can help lower your tax bill now, and a Roth 401(k) generally offers a tax-free income stream later — it’s important for investors to consider the tax advantages of both, the timing of those tax benefits, and whether these accounts have to be mutually exclusive or if it might benefit you to have both.

When it comes to retirement plans, investors don’t necessarily have to decide between a Roth or traditional 401(k). Some might choose one of these investment accounts, while others might find a combination of plans suits their goals. After all, it can be difficult to predict your financial circumstances with complete accuracy — especially when it comes to tax planning — so you may decide to hedge your bets and contribute to both types of accounts, if your employer offers that option.

Another step to consider is a 401(k) rollover, where you move funds from an old 401(k) into an IRA. When you do a 401(k) rollover it can help you manage your retirement funds.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Easily manage your retirement savings with a SoFi IRA.

FAQ

Is it better to contribute to 401(k) or Roth 401(k)?

Whether it’s better to contribute to a traditional 401(k) or Roth 401(k) depends on your particular financial situation. In general, if you expect to be in a lower tax bracket in retirement, a traditional 401(k) may make more sense for you since you’ll be able to deduct your contributions when you make them, which can lower your taxable income, and then pay taxes on the money in retirement, when you’re in a lower income tax bracket.

But if you’re in a lower tax bracket now than you think you will be later, a Roth 401(k) might be the preferred option for you because you’ll generally withdraw the money tax-free in retirement.

Can I max out both 401(k) and Roth 401(k)?

No, you cannot max out both accounts. Per IRS rules, the annual 401(k) limits apply across all your 401(k) accounts combined. So for 2024, you can contribute a combined amount up to $23,000 (or $30,500 if you’re 50 or older) to your Roth 401(k) and your traditional 401(k) accounts.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Source: sofi.com

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Kelly Suzan Waggoner
April 8, 2024 at 7:43 AM
Daily mortgage rates for Monday, April 8, 2024 (Dragon Claws via Getty Images)

Rates on popular 30-year and 15-year fixed mortgages start the week at under 7%, though with a week-over-week increase on most terms as of Monday, April 8, 2024.

The current average interest rate on a 30-year fixed mortgage is 6.97% for purchase and 6.99% for refinance — up 9 basis points for purchase and 11 basis points for refinance over the past week. Increases on a 15-year term were a more modest 4 basis points week over week for both purchase and refinance, bringing rates to 6.48% for purchase and 6.42% for refinance. The average rate for a 30-year fixed jumbo mortgage is 7.09%.

Purchase rates for Monday, April 8, 2024

  • 30-year fixed rate — 6.97%

  • 20-year fixed rate — 6.75%

  • 15-year fixed rate — 6.38%

  • 10-year fixed rate — 6.27%

  • 5/1 adjustable rate mortgage — 6.56%

  • 30-year fixed FHA rate — 6.85%

  • 30-year fixed VA rate — 7.05%

  • 30-year fixed jumbo rate — 7.09%

Refinance rates for Monday, April 8, 2024

  • 30-year fixed rate — 6.99%

  • 20-year fixed rate — 6.74%

  • 15-year fixed rate — 6.42%

  • 10-year fixed rate — 6.28%

  • 5/1 adjustable rate mortgage — 6.42%

  • 30-year fixed FHA rate — 6.94%

  • 30-year fixed VA rate — 7.69%

  • 30-year fixed jumbo rate — 7.08%

Freddie Mac weekly mortgage report

Freddie Mac reports an average 6.82% for a 30-year fixed-rate mortgage, up three basis points from last week, according to its weekly survey of nationwide lenders published on April 4, 2024. The fixed rate for a 15-year mortgage is 6.06%, down five basis points from last week.

Sam Khater, Freddie Mac’s chief economist, says of the report, “While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term. On the plus side, inventory is improving somewhat, which should help temper home price growth.”

Current mortgage rates for April 8, 2024

The Fed rate does not determine mortgage rates, though it sets benchmarks that indirectly affect rates on financial products like mortgages, personal loans and deposit accounts. The Fed has a firm goal of a 2% inflation rate, and with favorable economic reports on the job market, it’s unlikely the reserve will cut rates until that goal is within reality’s reach.

Mortgage rates in the news

Mortgage lenders keep a close eye on the key interest rate set by the Federal Reserve, the U.S.’s central bank. Called the fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts. Mortgage and home loan rates don’t follow the fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation.

Federal benchmark: Summer rate cut expected

At the conclusion of its rate-setting policy meeting on March 20, 2024, the Fed left the federal funds target interest rate of 5.25% to 5.50% unchanged, marking the fifth consecutive time it’s held rates steady since July 2023. In its post-meeting statement, the Federal Reserve repeated earlier concerns about cutting its key interest rate until it’s confident “that inflation is moving sustainably toward 2 percent.” Bankers forecast three rate cuts by the end of the year, predicting the first to come not when the Fed meets again later this month, but instead at its summer meeting in June 2024.

The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic. While inflation has cooled, Consumer Price Index data released on March 12 showed a month-over-month increase in consumer prices — a widely used indicator for inflation. The next CPI report is due for release next week on April 10, with inflation nowcasting from the Federal Reserve Bank of Cleveland suggesting a welcome decrease in rates of inflation.

Government agency Freddie Mac released its March 20 economic outlook on the housing and mortgage market that predicts mortgage rates to stay at 6.5% or higher through the summer.

NAR settlement could change homebuying

The anticipated summer rate cut could coincide with a major change in the way Americans buy and sell homes. On March 15, the National Association of Realtors announced it had agreed to a settlement that, if approved by a federal judge, would bring an end to longstanding real estate broker commissions of up to 6% of a home’s purchase price. The settlement isn’t expected to affect mortgage rates, yet it paves the way for consumers to negotiate what they pay for an agent’s services, potentially saving homebuyers money in the long run — just in time for summer home sales.

4 top factors that affect your mortgage rate

The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.

  • Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.

  • Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.

  • Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.

  • Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.

Frequently asked questions about mortgage rates

What are mortgage lenders?

Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.

What does it mean to refinance a mortgage?

Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender.

What factors influence mortgage rates?

Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.

When is the best time to lock in a mortgage rate?

Mortgage rates can fluctuate daily, so it’s best to lock in a rate when you’re comfortable with the offered rate and conditions of the loan.

Can I negotiate my mortgage rate?

It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.

Editor’s note: Annual percentage yields shown are as of Monday, April 8, 2024, at 7:45 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

Source: aol.com

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Looking for the best jobs that help people? Whether you are looking for a full-time job or a way to make extra income, there are many ways to make money by helping others. Picking a job that matches what you want to achieve personally and lets you help others can feel really good. In lots…

Looking for the best jobs that help people?

Whether you are looking for a full-time job or a way to make extra income, there are many ways to make money by helping others.

Picking a job that matches what you want to achieve personally and lets you help others can feel really good. In lots of different fields, jobs where you can help people have become very popular.

Whether it’s teaching, counseling, healthcare, or responding to emergencies, each job lets you change someone else’s life for the better. If you like the idea of helping out your community and giving assistance to those who need it, there are plenty of rewarding jobs that might be right for you.

Now, that doesn’t mean the jobs below are easy. While you may feel good knowing that you are helping people, many of these jobs are very hard. But, you will know that you are truly helping people and changing the world for the better.

30 Best Jobs That Help People

Below are 30 full-time and part-time jobs helping others in crisis, in your community and at homes.

1. Social worker

If you’re someone who likes to help others, becoming a social worker might be the perfect job for you. Social workers support people who face challenges in their lives. This could mean working with children, families, or even whole communities.

Social workers might work in schools, helping kids and families get through tough times, or in hospitals guiding patients through health challenges.

2. Teacher

A teacher’s job is about more than just giving lessons. The job is to guide and help students understand new information. When you teach, you make a real difference in the lives of your students.

Teachers work in different settings, such as at a public school, private institution, or even provide one-on-one education as a tutor. Some teachers work online too, which is a great option if you’re looking for more flexibility.

You can choose to become a kindergarten teacher, high school teacher, college instructor, or anything in between.

Recommended reading: 36 Best Side Jobs for Teachers To Make Extra Money

3. Nurse

Nurses play an important role in healthcare, helping people feel better and stay healthy.

I have met so many amazing nurses in my life, and it is such a helpful career path. I still very much remember all of the wonderful nurses who helped me when I was in the hospital giving birth to my daughter – these nurses were amazing and helped me so much, and I truly felt like they cared.

Nurses can work from home, in a hospital, or even in a law firm. A similar career path where you can help people is to become a nurse practitioner, with a higher salary and extra responsibilities.

Recommended reading: 27 Best Side Hustles For Nurses To Make Extra Money

4. Personal trainer

If you like staying active and want to help others, becoming a personal trainer could be a great fit for you.

As a personal trainer, you’ll get to work with people every day, helping them achieve their fitness goals. It’s not just about showing exercises; it’s about motivating and guiding people to live healthier lives.

Here are some of the things that personal trainers do:

  • Create workout plans.
  • Show people how to exercise correctly.
  • Keep track of a client’s progress.
  • Teach clients about healthy lifestyle choices.

Personal trainers are found in places like gyms, fitness centers, and sometimes they can even come to your home. Some trainers lead group classes, while others give one-on-one sessions.

5. Occupational therapist

An occupational therapist (OT) helps people of all ages do different activities that are important for their daily lives, work, school, and leisure. Some examples of occupational therapy include:

  • Dressing – OTs help individuals in selecting appropriate clothing and developing strategies to independently dress themselves.
  • Eating – OTs may recommend adaptive equipment or techniques to help individuals with feeding difficulties.
  • Household chores – They provide strategies to make household chores more manageable for individuals with physical or cognitive limitations.
  • Job tasks – OTs help individuals develop skills and strategies to perform job duties effectively and safely.
  • Community integration – They support individuals in participating in community events, clubs, and social gatherings.

As you can see, OTs help people in so many ways.

They work in places like hospitals, schools, or even patients’ homes are common spots for occupational therapists.

6. School counselor

School counselors play a big part in guiding students toward their future.

They help with class schedules, give advice, or plan big steps like going to college or finding a job. This job is important because school counselors help students do their best and feel good about themselves.

They also help in other ways, such as helping students who are going through a hard time in life, like helping them with handling a mental health issue or even dealing with the passing of a parent. They are very much needed in all schools!

7. Substance abuse counselor

Substance abuse counselors help people fight addiction and get their lives back on track. Their job is important because they guide people through tough times, showing them how to stay away from drugs or alcohol and live a healthier life.

They meet with people and listen to their stories, teach them new ways of dealing with problems without using substances, and support them as they make changes to better their lives.

8. Physician

Being a doctor is a way to make a big impact in your community, as everyone knows.

Depending on the specialty, they can check your health, find out what’s wrong when you’re sick, and give you the right medicine to help you feel better.

Doctors are important because they help us when we’re sick and also keep us healthy. They listen to our concerns, offer comfort, and provide treatments. This makes a big impact on many people’s lives every single day.

9. Lawyer

A lawyer’s main job is to protect the legal rights of their clients. This means giving advice based on the law and, sometimes, defending your client in court.

A lawyer might work at a large law firm, for businesses, or for everyday people with different problems. Lawyers tend to specialize in one area of law, like helping injured people, family issues, working with businesses, traffic tickets, and so on.

10. Paramedic

Paramedics are the people who arrive first when there’s a medical emergency.

Their job is to take care of people who are hurt or very sick, right there on the spot or while they’re on the way to the hospital for further treatment. They give first aid and other medical care, stay calm under pressure, and drive an ambulance if needed.

11. Firefighter

Firefighters are trained to fight fires and keep people, buildings, and nature safe. They rescue people and animals from burning buildings, help at accident scenes, and teach the public about staying safe from fires.

This is a tough job that every community needs.

12. Nutritionist

If you like helping people and love everything about food and health, think about becoming a nutritionist! A nutritionist is someone who helps people eat better and live healthier lives.

A nutritionist is a health expert who knows a lot about food and how it affects our bodies. They look at what people eat, their health goals, and make personalized plans to help them eat better. Nutritionists teach people about healthy eating, help with meal plans, and give support to make lasting changes in lifestyle.

They work in different places like schools, hospitals, or their own offices to help people be healthier through good nutrition.

13. Pediatric sleep consultant

Getting enough sleep is super important for babies and their parents. But sometimes, parents have trouble making sure their baby sleeps well.

This can lead to some parents getting nearly no sleep, and it impacts their life, their job, and their mental health.

That’s where pediatric sleep experts come in handy. They know a lot about helping kids sleep better, which helps families have better nights. If you really like working with kids and want to help them, becoming a sleep coach could be a great career option for you.

This is an area that so many parents need so that they can continue living their lives.

For me, I have taken many tips from pediatric sleep consultants so that I could help my child sleep better, and so that I in turn could get sleep as well. These were life-changing tips!

Recommended reading: How To Become A Sleep Consultant And Make $10,000 Each Month

14. Dentist

Dentists work with teeth and gums, and they help keep your mouth healthy as well as fix problems when they come up.

If you have a cavity, they can fill it. Or if you have something more serious, they can fix it too. Dentists tell you how to take care of your teeth so you can keep them strong and avoid future problems.

15. Psychologist

Psychologists help people deal with their feelings and thoughts by listening to people and understanding their problems. They work in schools, offices, and sometimes even online.

They ask questions, do tests, and figure out the best way to help people feel better.

16. Police dispatcher

Being a police dispatcher is an extremely important job that helps people in crisis.

Dispatchers have an important job in keeping communities safe and making sure everything runs smoothly. They answer emergency calls when you call 911 and send out the right help.

17. Police officer

Police officers in law enforcement keep areas safe by stopping crime and making sure laws are followed. They patrol the streets, keep an eye out for any trouble, and if someone calls for help or there’s an accident, police officers are the first to arrive.

A police officer’s work is very important for everyone’s safety. They are trained to handle many kinds of situations.

Some police officers have a degree in criminal justice, but not all have college degrees.

18. Massage therapist

Massage therapists use their skills to help relax tight muscles and ease pain. They work in many places like spas, hospitals, or sports centers.

This is a career path where you can make others feel physically better, relieve stress, and feel relaxed.

19. Speech and language therapist

Speech therapists (also known as speech-language pathologists) help people of all ages overcome difficulties with communication, as well as swallowing disorders.

Speech therapists work with children and adults who face challenges with speaking and understanding others, help those who have trouble eating or swallowing due to health issues, and create fun and engaging exercises to improve clients’ speech and language skills.

Many, many people use speech-language pathologists these days, especially for young children, and it is such a needed career path right now. Many cities have very long waitlists because there simply are not enough speech therapists, so this can be a very helpful career choice to get into.

20. Rehabilitation specialist

Rehabilitation specialists give support to those who need a little extra help due to health troubles like injuries or mental health challenges.

A day in the life of a rehabilitation specialist could include working with kids or adults, helping them with their skills to live a good life (kind of like teaching and cheering on someone as they learn or remember how to do important daily stuff).

These jobs are often found in places like hospitals, private clinics, or community centers.

21. Caregiver

Caregiving roles are very important careers that help people who really need it.

Caregivers play an important role in the lives of those who need help due to age, sickness, or disability. They provide support and company, making a real difference every day.

Caregivers do things like cook meals, drive people places, or just talk to make someone’s day brighter.

22. Home health aide

A home health aide is somewhat similar to a caregiver. Caregivers and home health aides both help people who need support with daily activities because of sickness, disability, or getting older. However, caregivers usually do a wider range of tasks like keeping people company, driving people places, cooking, and doing chores.

Home health aides focus more on personal care, such as helping with bathing, dressing, and reminding about medications. Home health aides often get formal training and might work under a nurse or another healthcare worker, while caregivers might not have formal training and often work on their own or for agencies.

Home health aides have an important job where they help people who need extra care to live comfortably in their homes. People like seniors or those with disabilities count on them to be there for them.

23. Translator

Translators connect people who speak different languages, and this job is important because they help people understand each other.

Translators work in many places. Some work in hospitals, making sure doctors and patients understand one another. Others translate books or websites, so everyone can enjoy stories or information, no matter what language they speak.

Many translation jobs let you work from home. Some jobs are full-time, and some are part-time. You can find what fits your life.

Recommended reading: 28 Ways To Get Paid To Text And Make Money

24. Environmental engineer

Environmental engineers figure out how to keep nature clean and safe. They sometimes work on projects that prevent pollution or create plans to fix damage that’s already been done, like cleaning up oil spills.

25. Pharmacist

Pharmacists know all about medicine, fill doctors’ prescriptions for patients, and explain how to take the medicine safely. This is a job that helps people because people need medicine in order to feel better.

Pharmacists work in pharmacies, drugstores, clinics, and hospitals.

26. Optometrist

Optometrists are eye doctors that help people see better. They check your eyes, find out if you need glasses or contacts, and can spot eye troubles before they become a bigger issue.

Eyes are important, of course, and so this is a job that definitely helps people.

27. Midwife

Becoming a midwife might be a great job for you if you enjoy helping people and have an interest in healthcare. Midwives are healthcare professionals who help women before, during, and after they have a baby.

Midwives work in different places, such as in a hospital, in a clinic, or visiting moms at their homes.

I had a midwife and doctor team for my pregnancy, and the midwife was amazing. She made me feel comfortable and was very friendly and calming.

28. Conservationist

Conservationists get to spend their days outdoors, helping plants and animals survive and stay healthy. They research and learn about different species and find ways for humans to live alongside them without causing harm.

The planet is home to incredible animals and places, but some are at risk. Conservationists help protect these natural wonders and make sure there are plenty of wild areas for animals to thrive in. They also work to keep the air and water clean for everyone to enjoy.

29. Dental hygienist

Dental hygienists are important in preventing and treating oral diseases. It’s more than just cleaning teeth.

They also teach patients how to take care of their mouth, show them the right way to brush and floss, and help them understand why oral health is so important.

30. Blogger

Okay, so I realize that this option is not like any of the rest.

But, I have personally helped thousands of people over the years with my blog, so I think being a blogger definitely helps people. I have received many emails and letters from readers who have said that I helped them pay off their debt, stop living paycheck to paycheck, reach retirement, and more.

With a blog, you can help people understand different topics, learn actionable tips, get motivated to reach their goals, and more.

If you enjoy writing and sharing stories or expertise, becoming a blogger might be right up your alley. A blogger creates content for a blog, which is an online space for posting thoughts, knowledge, and insights.

Your blog can become a helpful resource on topics you’re passionate about. Whether it’s cooking, personal finance, or even traveling, your words could be valuable to someone else.

I started Making Sense of Cents back in 2011. Since then, my blog has made over $5,000,000.

I didn’t plan to make money when I started the blog. It was just a way for me to keep track of my own money journey. At first, I didn’t even know people could make money from blogging or how to make a successful blog!

But after only six months, I started earning money from my blog.

You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).

Frequently Asked Questions

Below are answers to common questions about how to find jobs that help people.

What is the best career to help others?

The best careers to help others include becoming a social worker, teacher, nurse, therapist, counselor, and firefighter.

What job helps people with their money?

Financial planners or advisors help people manage their money effectively. They provide advice on investments, savings, and budgeting to help individuals achieve their financial goals and secure their future financial stability.

What job can I do to make people happy?

Many of the jobs above can help people become happy, such as being a teacher, personal trainer, school counselor, nutritionist, pediatric sleep consultant, psychologist, and massage therapist.

What are some jobs that help people’s mental health?

Mental health counselors and therapists give support and treatment to people dealing with mental illnesses. They play an important part in improving their clients’ emotional and psychological well-being.

What are some creative jobs that help others?

Art therapists help people deal with stress, trauma, or sickness by using creative activities. They combine the healing power of art with counseling techniques to support healing and personal development.

What are jobs that help people in crisis?

Jobs that help people in crisis include substance abuse counselors, social workers, registered nurses, and art therapists.

What are jobs helping others without a degree?

A bachelor’s degree, master’s degree, or doctoral degree is not required for all jobs that help people. For example, home health aides and personal care aides help people with daily tasks and give companionship. Typically, formal education is not required, but training and a caring personality are important to actually help people.

Best Jobs That Help People – Summary

I hope you enjoyed this article on the best jobs that help people.

When you think about jobs that help others, you might think of social work or healthcare right away.

But there’s a wide range of options, including jobs in teaching, therapy, public service, and even technical fields like translation or environmental engineering.

Each of these jobs is important for making our community better and healthier, often by working directly with people to make their lives better. These roles give more than just a paycheck – they give you the satisfaction of knowing that your work helps people outside of the office too.

What do you think are the best jobs that help people and pay well?

Recommended reading:

Source: makingsenseofcents.com

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CRM Product; STRATMOR CD Workshop; FHFA on Lock-In Effect; Training and Webinars

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CRM Product; STRATMOR CD Workshop; FHFA on Lock-In Effect; Training and Webinars

By:
Rob Chrisman

Fri, Apr 5 2024, 11:47 AM

I head to Central Texas today (A53 on Southwest; something about maybe seeing an eclipse); statewide Texas home ownership rate is about 64 percent. This is a shade lower than the 66 percent nationwide. (Home ownership & operational challenges facing lenders are a couple of the topics Mike Metz with Arizona’s V.I.P. Mortgage will discuss today at 2PM CT.) And a huge percentage of those homeowners have low fixed rates. People can be “locked-in” or constrained in their ability to make appropriate financial changes, such as being unable to move homes or sell assets due to tax burdens. In the U.S., nearly all 50 million active mortgages have fixed rates, and most have interest rates far below prevailing market rates, creating a disincentive to sell. These frictions, whether institutional, legislative, personal, or market-driven, are a real problem. The FHFA, Fannie & Freddie’s conservator, has a research piece on this since residential real estate exemplifies this challenge with its physical immobility, high transaction costs, and concentrated wealth. (Found here, this week’s podcasts are sponsored by Loan Vision. With Loan Vision, the mortgage banking industry’s premier mortgage accounting solution, you can take your accounting department from “cost center” to “revenue generator,” operating more efficiently and profitably. Hear an interview with HireAHelper’s Miranda Marquit on a new study that shows that as Millennials age, they’re moving less than ever.)

Customer Relationship Management

Discover Velma CRM, a plug-n-play, simple CRM solution geared especially for small to mid-size lenders, brokers, credit unions, and banks. With all the features you need and not a bunch that you don’t, Velma CRM by KensieMae offers an extremely cost-effective solution with zero implementation fees, a quick setup, and budget-friendly pre-seat pricing, yet provides powerful and trusted features, marketing engagement, and tools to drive and enhance borrower communication and engagement. Don’t wait, get Velma CRM today and start saving!

STRATMOR’s Consumer Direct Workshop

The Fed has indicated that it plans to cut rates later in the year, but even though the timing remains unclear, to remain competitive, Consumer Direct lenders will have to stay on their toes and prepare for the effect it will have on mortgage rates. The time to develop a strategy for attracting, nurturing, converting, and closing purchase business to hold or grow your market share is now. STRATMOR Group will host its semiannual virtual Consumer Direct Workshop on May 7, 8 and 9. STRATMOR experts and peer lenders will discuss how to better understand the needs of purchase borrowers, craft marketing messages that will appeal to them, tweak your processes for purchases and train LOs to close this business. Register up to three executives from your organization today.

Events, Training, and Webinars

Lending marketing, sales, and operations leaders! This is what your teams need to hear right now to increase volume and run a more efficient business. Greg Sher, Managing Director, NFM Lending, Steve Majerus, CEO, Synergy One Lending, Brian Vieaux, CEO, Finlocker, and Richard Grieser, VP of Marketing, Truv are going to share strategies and real examples of how you can fill the top of your funnel with a more informed and prepared borrower BEFORE loan application, during the application, and after closing. You’ll also hear firsthand how your technology can work with you to improve the borrower experience, as opposed to against you! Come join us on April 10 at 1 pm CT and invited your teams!

Loan officers are the lifeblood of any successful lender. Lenders who can recruit and retain talented producers will be able to ensure an active pipeline and exceed their revenue goals. Competition and compliance challenges in the current market demand that you set up a scalable recruiting function to target the right talent that aligns with your business. Join Total Expert on Wednesday, April 17 as we sit down with InGenius CEO Jeff Walton to discuss strategies for identifying, engaging, and converting loan officers who are the right fit for your business. Save your digital seat.

(A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.)

Today is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. This Friday’s is co-hosted by VIP’s Mike Metz!

Angel Oak’s Non-QM webinar series will provide information on industry trends, strategies for finding non-QM borrowers, and actionable tips for growing your mortgage origination business. Join the panel of Non-QM experts on Tuesday, April 9th and take a detailed look at innovative solutions for self-employed borrowers, real estate investors, and other underserved borrowers. Non-QM Second Mortgage Options.

Join FHA Home Equity Conversion Mortgage (HECM) Policy Update Virtual Webinar sessions:

Session I will begin with an overview of the HECM section’s style and structure, followed by origination processing and credit policy. April 10th, 2-4:00 PM (Eastern).

FHA is offering In-Person, Free Underwriting Training in Denver, CO., April 10, 9:00 AM – 12:00 PM MST. Training will provide an overview of FHA underwriting procedures as outlined in FHA’s Single Family Housing Policy Handbook 4000.1 and addresses several industry-related frequently asked questions (FAQs). This training will also take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation; manual underwriting; automated underwriting systems (AUS); closing; and more.

FHA is offering In-Person, Free FHA Appraisal Training in Denver, CO., April 10, 1– 4 PM MST. Training will provide an overview of FHA appraisal protocol and updates to FHA appraisal policy as outlined in FHA’s Single Family Housing Policy Handbook 4000.1. This training will also take an in-depth look at a variety of appraisal-related topics including property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements; and more.

Attend ICE’s complimentary webinar to learn all about the world of automated valuation models (AVMs). You’ll find out why AVMs are considered a credible, objective option for collateral risk management, how they can help your business (from lead generation and portfolio management to cost reduction and more), and when to use an AVM to address challenges in the current valuation landscape. The webinar hosted by ICE is “When, Why and How AVMs Drive Business Performance” and will be on Wednesday, April 10, at 2 p.m. ET. Register today.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT join Robbie Chrisman and Justin Demola for a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Next Wednesday features Kathy Kraninger, former director of the Consumer Financial Protection Bureau from 2018 to 2021, now CEO of the Florida Bankers Association.

Check out National MI’s upcoming April 2024 webinar sessions: Mastering LinkedIn for Mortgage Professionals – Session Four ​​​​​with Brynne Tillman, April 9th at 3pm E.T. P&L and Balance Sheet Analysis for Self-Employed Borrowers ​​​​​with Marianne Collins, April 11th at 1pm E.T. Conquering Call Reluctance for Loan Originators with Rebecca Lorenz, April 16th at 1pm E.T. Navigating Today’s Appraisal Process ​​​​​​​​​​with Luke Tomaszewski, April 18th at 1pm E.T.

Join the MBA of NJ, in partnership with HUD for the 2024 HUD Housing Counseling Session, April 11th, 2-4PM at the Federal Reserve Bank of NY., Keys to Homeownership: Building Strategic Partnerships. Session II will cover policies for underwriting the property, closing, and endorsement requirements. April 11th, 2-4:00 PM ET.

Acquire a greater perspective from industry experts at American Mortgage Conference from April 15 – 17. Held in a new location this year at the Marriott Savannah Riverfront in Georgia. Co-hosted by ABA and the North Carolina Bankers Association, this premier conference is the only mortgage event that blends business and regulation to assure you are fully up to date and fully connected to crucial professional networks. 

Capital Markets

After a quiet opening three days to the trading week, Thursday brought a couple of headlines that put some uncertainty into markets. There were geopolitical headlines pointing to ramping tensions in the Middle East with Iran warning Israel that retaliation was coming soon, and there were Fed headlines from Minneapolis Fed President Kashkari delivering hawkish remarks by saying that interest rate cuts may not be needed this year if progress on fighting inflation stalls, especially if the economy remains robust.

Both headlines triggered a flight to safety, rising bond prices and lowering yields. Traders increasingly see the Fed lagging behind other central banks when it comes to rate cuts. The latest weekly jobless claims report, up 221k for the week, showed a larger than expected number of claims.

Today brings the all-important March payrolls report. Headline payrolls (303) versus 170k expectations and 223k previously. The unemployment rate (3.8 percent) when it was seen ticking down 0.1 percent to 3.8 percent. Average hourly earnings (+.3) versus expectations of increases of 0.3 percent month-over-month and 4.1 percent year-over-year, and 0.1 percent and 4.3 percent in February. Later today brings February consumer credit and more scheduled Fed speakers. After the employment news Agency MBS prices are worse .125-.250 than Thursday’s close and the 10-year yielding 4.39 after closing yesterday at 4.31 percent; the 2-year is up to 4.71.

Jobs and Transitions

Highlands Residential Mortgage is thrilled to announce the hiring of Josh Moody as VP-Production Manager, and his team across various locations in Texas. Josh joins Highlands with an incredible reputation for driving strong production volume over the course of his 20+ year career having closed in excess of a billion dollars in mortgage loans during that time span. He has been recognized amongst the nation’s very best annually by the Scotsman Guide, Mortgage Executive Magazine, and National Mortgage News. Josh brings his extensive experience, innovative strategies, and a track record of success that aligns perfectly with Highlands’ commitment to excellence and our continued expansion efforts across the country. “Josh is a proven leader in our industry and an outstanding addition to our growing team at Highlands.” said, Brian Bennett, President. “I feel the experienced and trustworthy executive team at Highlands will enable us to offer a broader and more comprehensive product suite for our customers and allow our team to adapt rapidly to a constantly shifting mortgage environment,” said Josh Moody.

“At Evergreen Home Loans, we recognize the evolving needs of homeowners and strive to equip our Loan Officers with advanced tools and products to meet these demands.

A highlight of our offerings includes our specialized focus on innovative products and debt consolidation solutions, enabling our team to provide comprehensive financial strategies that benefit our clients. Joining Evergreen Home Loans means aligning with a team that values innovation, support, and a deep commitment to making a difference. If you are a Loan Officer or run a Branch looking to elevate your career, we invite you to explore the opportunities at Evergreen Home Loans. Visit our Careers page to learn more about how you can be part of a team that’s setting new standards in lending while fostering community growth and resilience.”

“Merchants Bank, a financial institution with $16 billion in assets and a top 5 warehouse lender, is seeking a Product Development Manager for its residential mortgage division. This position will play an instrumental role in expanding Merchants’ product offerings across the retail, wholesale, and correspondent channels. The ideal candidate has experience in developing and implementing non-Agency underwriting guidelines with an emphasis on Prime Jumbo and the Private Label Securitization market. Preferred candidates will have knowledge of the non-Agency market in areas such as underwriting guidelines, pricing, rating agency, third party review process, exception handling and credit. The candidate will be a key member of their Capital Markets team and will take the lead on building out their non-Agency prime jumbo product guidelines. This is an excellent opportunity for a self-starter with a committed and financially strong financial institution. For consideration, please send us your resume.”

Ready to scale your builder volume? Planet Home Lending lays the foundation for MLOs’ success with cutting-edge tools, exclusive offerings, and unique products tailored to new home builders and buyers. If your focus is on private builders crafting 20-300 homes annually, seize this opportunity. Reach out to SVP Doug Long at (407) 399-5505 and discover how Planet’s innovations can drive your career growth.

“AFR Wholesale® is on an exhilarating growth trajectory, and on the lookout for forward thinking Sales and Operations Leaders. Are you a modern mortgage leader with a knack for crafting strategies that turn customers into raving fans and elevate the experience beyond expectations? Then you’re exactly who we need to steer our expanding team towards unparalleled success. At AFR, we value leaders who are leveraging technology to battle the complexities of the industry but are also passionate about making homeownership dreams a reality. As an equal opportunity employer, we’re dedicated to fostering an inclusive and supportive work environment. Joining AFR means being part of a dynamic team that’s dedicated to helping families achieve their dream of homeownership. Don’t miss this exciting opportunity to be part of AFR’s growth journey and make a meaningful difference in the lives of others. Want to have a confidential discussion about your career? Email us.”

Cornerstone Home Lending, a division of Cornerstone Capital Bank (“Cornerstone”), announced the appointment of 25-year industry vet Michael A. Iorio as SVP of Strategic Partnerships where he will “spearhead the expansion of Cornerstone’s Homebuilder Partnership business across targeted builder accounts nationwide, with a focus on cultivating new relationships and enhancing service offerings.” Congratulations!

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

Source: mortgagenewsdaily.com

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With rate cuts predicted for later this year, mortgages could potentially become slightly cheaper.

Getty Images


While more stable over the past nine months, the economy was highly volatile from 2020 through the first half of 2023. 

After the pandemic hit, the Fed dropped the fed funds rate to zero and demand surged in the housing market causing home values to skyrocket. Then, inflation began to run away and the Fed hiked rates 11 times. Meanwhile, the average 30-year fixed mortgage interest rate went from 2.8% in late 2021 up to a 22-year high of 7.79% in October 2023. 

Since December, mortgage rates have been more stable, fluctuating between 6.5 and 7%. However, many are now wondering if rumored Fed cuts will change that. 

“As the market gains more certainty and as inflation curbs, it is very likely that there will be rate cuts this year,” says Scott Haymore, senior vice president and head of mortgage capital markets and product management at TD Bank. “Currently, Fed Funds futures contracts have three rate cuts built in starting in the second half of this year,” he says.

If Fed rate cuts do happen as many expect, how far can you expect mortgage rates to drop, if at all? We asked some experts for their rate predictions.

See how low of a mortgage interest rate you could secure here now.

How far will mortgage rates fall when the Fed cuts rates?

Here’s where three experts predict mortgage rates are heading: 

  • Around 6% or below by Q1 2025: “Rates hit 8% towards the end of last year, and right now we are seeing rates closer to 6.875%,” says Haymore. “By the first quarter of 2025, mortgage rates could potentially fall below the 6% threshold, or maybe even lower.”
  • Hold steady through 2024: Afifa Saburi, a capital markets analyst for Veterans United Home Loans, doesn’t think rates are going to drop much this year. “Mortgage rates won’t fall much from where they are today because the rate cuts that the Fed has penciled in are already priced in by the markets. This means that almost all of the rate relief that we would see from rate cuts is already here,” Saburi explains. 
  • Hold steady through mid-2025: Jeremy Schachter, branch manager at Fairway Independent Mortgage Company, says he expects rates will stay in the higher 6% range and won’t fall much in 2024 or even early to mid-2025. “With goals of the Federal Reserve to get inflation around the 2% mark, I don’t expect the Feds to lower rates until September or later in 2024,” Schachter says. “Unfortunately, we still have to have a bit more pain in the economy with higher unemployment to see the Federal Reserve lower rates.”

The bottom line? While rates may drop modestly, we likely won’t be getting back to the 3 to 5% rates that were the norm from 2010 to 2020 in the upcoming year. 

Learn more about today’s mortgage rates online now.

Should you wait to buy a home?

If you find a great home and the financing fits into your budget, experts say you typically don’t want to wait.

“The best advice is still: When you find a home you love inside your budget, buy it. Mortgage rates are unpredictable but, right now, home values are not,” says Dan Green, chief executive officer at Homebuyer.com. If rates do drop, you can always refinance to secure a lower rate but you won’t always be able to buy a particular home. 

You should also consider the opportunity cost of waiting. “On average home appreciation is between 4 and 5% each year. If you decide to hold off until 2025, how much will that home be worth vs. purchasing it now?” asks Schachter. He explains that if you decide to wait and time the market, a home that is worth $500,000 now could have appreciated $25,000 in 2025 (a 5% increase). “The adage, buy the home, date the rate is a perfect example of this scenario,” Schachter added.

A drop in rates also often causes more buyers to enter the market which drives up home prices. “I believe we will see rate cuts come in the fall if at all this year. Along with that, you will see buyers come back to the fray and it will make competition even harder in a housing shortage-dominated market. Yes, rates will be lower but prices may be much higher,” predicts Ralph DiBugnara, president of Home Qualified and senior vice president at Cardinal Financial. 

Source: cbsnews.com

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Today’s average mortgage rates


Today’s average mortgage rates on Apr. 08, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.

Current mortgage rates

If you’re in the market for a home, here are today’s mortgage rates compared to last week’s.

Product Rate Last week Change
30-year fixed 6.91% 6.91% -0.00
15-year fixed 6.36% 6.42% -0.06
10-year fixed 6.27% 6.38% -0.10
5/1 ARM 6.61% 6.63% -0.02
30-year jumbo mortgage rate 7.00% 7.02% -0.02
30-year mortgage refinance rate 6.96% 6.92% +0.04

Average rates offered by lenders nationwide as of April 3, 2024. We use rates collected by Bankrate to track daily mortgage rate trends.

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

Mortgage rate news

Over the last few years, high inflation and the Federal Reserve’s aggressive interest rate hikes pushed up mortgage rates from their record lows around the pandemic. Since last summer, the Fed has consistently kept the federal funds rate at 5.25% to 5.5%. Though the central bank doesn’t directly set the rates for mortgages, a high federal funds rate makes borrowing more expensive, including for home loans.

Mortgage rates change daily, but average rates have been moving between 6.5% and 7.5% since late last fall. Today’s homebuyers have less room in their budget to afford the cost of a home due to elevated mortgage rates and steep home prices. Limited housing inventory and low wage growth are also contributing to the affordability crisis and keeping mortgage demand down.

Mortgage predictions for 2024

Mortgage forecasters base their projections on different data, but most housing market experts predict rates will move toward 6% by the end of 2024. Ultimately, a more affordable mortgage market will depend on how quickly the Fed begins cutting interest rates. Most economists predict that the Fed will start lowering interest rates later this summer.

Since mortgage rates fluctuate for many reasons — supply, demand, inflation, monetary policy and jobs data — homebuyers won’t see lower rates overnight, and it’s unlikely they’ll find rates in the 2% range again.

“We are expecting mortgage rates to fall to around 6.5% by the end of this year, but there’s still a lot of volatility I think we might see,” said Daryl Fairweather, chief economist at Redfin.

Every month brings a new set of inflation and labor data that can change how investors and the market respond and what direction mortgage rates go, said Odeta Kushi, deputy chief economist at First American Financial Corporation. “Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates,” Kushi said.

Here’s a look at where some major housing authorities expect average mortgage rates to land.

Mortgage terms and types

When picking a mortgage, consider the loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. You’ll also need to choose between a fixed-rate mortgage, where the interest rate is set for the duration of the loan, and an adjustable-rate mortgage. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market’s current interest rate. Fixed-rate mortgages offer more stability and are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 6.91%, which is a decline of 0 basis point compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.36%, which is a decrease of 6 basis points from seven days ago. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 6.61%, a decrease of 2 basis points compared to a week ago. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.

What factors affect mortgage rates?

While it’s important to monitor mortgage rates if you’re shopping for a home, remember that no one has a crystal ball. It’s impossible to time the mortgage market, and rates will always have some level of volatility because so many factors are at play.

“Mortgage rates tend to follow long-date Treasury yields, a function of current inflation and economic growth as well as expectations about future economic conditions,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans.

Here are the factors that influence the average rates on home loans.

  • Federal Reserve monetary policy: The nation’s central bank doesn’t set interest rates, but when it adjusts the federal funds rate, mortgages tend to go in the same direction.
  • Inflation: Mortgage rates tend to increase during high inflation. Lenders usually set higher interest rates on loans to compensate for the loss of purchasing power.
  • The bond market: Mortgage lenders often use long-term bond yields, like the 10-Year Treasury, as a benchmark to set interest rates on home loans. When yields rise, mortgage rates typically increase.
  • Geopolitical events: World events, such as elections, pandemics or economic crises, can also affect home loan rates, particularly when global financial markets face uncertainty.
  • Other economic factors: The bond market, employment data, investor confidence and housing market trends, such as supply and demand, can also affect the direction of mortgage rates.

Calculate your monthly mortgage payment

Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.

How to find the best mortgage rates

Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.

  1. Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
  2. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
  3. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
  4. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
  5. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.

Source: cnet.com

Apache is functioning normally

When you hear of a company “going public,” one route is via an initial public offering, or IPO — but a company can also go public through a direct listing, where no new shares are created and underwriters are not required.

Direct listings, also known as the direct listing process (DLP), direct placement, or direct public offering (DPO), are a way for companies to raise capital by selling existing shares without the complexity of engaging investment banks and other intermediaries.

While a direct listing is typically less expensive than an IPO, and typically there’s no lock-up period, there is a risk in direct listing shares without the support of underwriters.

Table of Contents

What Is the Difference Between Direct Listings and IPOs?

A direct listing is one method by which a company can list shares of stock on a public exchange such as the New York Stock Exchange (NYSE) or Nasdaq directly, without using underwriters to create new shares, as you might with an IPO.

While some listing choices involve selling shares of stock to investors, IPOs and direct listings have many differences. The main difference between the two is that with an IPO a company issues and sells new shares of stock, while with a direct listing shareholders sell existing shares.

Comparing the Direct Listing and IPO Process

The differences between using a direct listing vs. an IPO to take a company public are pretty straightforward.

How a Direct Listing Works

If a private company is interested in going public, but doesn’t want the hassle of working with underwriters, they may choose to do a direct listing. With a direct listing, anyone who owns shares in the company can sell them directly to the public once the new company is listed on a public exchange. Shareholders may include investors, promoters, and employees.

By choosing a direct listing over an IPO, a company can avoid using an underwriter, which potentially saves money and time. Underwriters fulfill multiple roles in the IPO process, including working with the fledgling company to meet regulatory standards and set the initial price per share. These are important steps, but not necessary if a new company is only selling existing shares.

Further, because no new shares are created with a direct listing, existing shares won’t get diluted.
💡 Quick Tip: Access to IPO shares before they trade on public exchanges has usually been available only to large institutional investors. That’s changing now, and some brokerages offer pre-listing IPO investing to qualified investors.

How an Initial Public Offering Works

When a company offers shares of stock to the general public for the first time, it’s known as an initial public offering (IPO).

Before an IPO, a company is considered private, which means that shares of stock are not available for sale to the general public. Also, a private company is not generally required to disclose financial information to the public.

To have an IPO, a company must file a prospectus with the Securities and Exchange Commission (SEC). The company will use the prospectus to solicit investors, and it includes key information like the terms of the securities offered and the business’s overall financials.

Initial public offerings are a popular choice for companies looking to raise capital. The company works with an underwriter (typically part of an investment bank), who helps navigate regulations and figure out the initial price of the shares. They may also purchase shares from the company and sell them to investors (such as mutual funds, insurance companies, investment banks, and broker-dealers) who will in turn sell them to the public.

One benefit of working with an underwriter is the greenshoe option. This is an agreement that a company can enter into with the underwriter in which the underwriter has the right to sell a greater number of shares during the sale than they originally intended to, if there is a lot of market demand. This can help the company gain additional investment.

Working with an underwriter creates some security for the company, which is one reason so many companies go the route of the IPO.

Pros and Cons of Direct Listings

There are advantages and disadvantages for companies and investors when it comes to direct listings vs. IPOs.

Pros of a Direct Listing

Less expensive than an IPO for the company

Unlike IPOs, direct listings do not require underwriters, since no new shares are being created. Typically, an underwriter charges a fee between 3% and 7% per share. Depending on the scope of the IPO, these fees can add up to hundreds of millions of dollars.

In addition, underwriters often purchase shares below their agreed-upon market value, so companies don’t receive as much investment as they may have had they sold those shares directly to retail investors.

No lock-up periods for shares

If a company goes through an IPO, existing shareholders are generally not allowed to sell their shares to the public during the sale and for a period of time following the sale. These lock-up periods are required in order to prevent stock prices from decreasing due to an oversupply.

The direct listing model is essentially the opposite, in which existing shareholders sell their stock to the public and no new shares are sold.

Provides liquidity for existing shareholders

Anyone who owns stock in the company can sell their shares during a direct listing.
💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.

Cons of a Direct Listing

There are also some potential drawbacks when it comes to direct listings.

Risk that shares won’t sell

With a direct listing, the amount of shares sold is based solely on market demand. Because of this, it’s important for a company to evaluate the market demand for its stock before deciding to go the route of a direct listing.

Companies best suited to direct listings are those that sell directly to consumers and have both a strong, recognizable brand and a business model that the public can easily understand and evaluate.

No help from underwriters with marketing and sales

Underwriters provide guarantees, promotion, and support during the listing process. Without an underwriter involved, the company may find that shares are difficult to sell, there may be legal issues during the sale, and the share price may see extreme swings.

No guarantee of stock price

Just as there is no guarantee that shares will sell, there is also no guarantee of stock price. In contrast, having an underwriter can help manage potentially extreme price swings.

This chart outlines the main points covered above.

Pros of Direct Listings Cons of Direct Listings
Less expensive than an IPO Potential for initial volatility
No lock-up periods Risk that shares won’t sell
Liquidity for existing shareholders No help from underwriters
No stock price guarantee

The Takeaway

Direct listings are an appealing alternative to IPOs for private companies who want to go public, thanks in part to lower costs and reduced regulations. A direct listing may also be appealing to retail investors who want to purchase shares from companies that are going public.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

Why would a company do a direct listing?

A direct listing offers a more direct path to going public on a stock exchange. The company doesn’t have to issue new shares, as only existing shares get sold in a direct listing. This eliminates the need for intermediaries like underwriters.

Can anyone buy a direct listing stock?

Yes, investors can buy a direct stock listing as they would any other stock listed on an exchange.

Is a direct offering good for a stock?

Since direct listings bypass the middleman and eliminate the need for underwriters, they can be less expensive for a company vs. IPOs, but the lack of marketing support could hurt the stock price and initial sales.

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Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.

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Source: sofi.com