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Apache is functioning normally

June 27, 2024 by Brett Tams

Mortgage Q&A: “Can I mortgage a house that is paid off?”

When you own a home without any associated mortgages, it’s known as a “free and clear” property.

Some view this as a good thing, while others see mortgages as a good debt that doesn’t need to be paid off ahead of schedule (or ever).

Others argue that you shouldn’t take a mortgage into retirement, as you’ll be on a fixed income and it can be a large expense.

If you do happen to have a home that is completely paid off, you might be wondering if you can take out another mortgage. Let’s talk about it.

Yes, You Can Take Out a Mortgage on a Home That’s Free and Clear

Without getting too technical here, the short answer is yes.

If your property is free and clear of any debts or liens, you can take out a mortgage, assuming you qualify otherwise.

This means having the income, assets, employment and credit history to qualify for the loan.

In truth, it shouldn’t be much different than when you got your original loan. Though it would be considered a cash out refinance as opposed to a home purchase loan.

If you own your home outright and there are no existing loans associated with the property, taking out a new loan means tapping equity.

When you tap equity, it’s known as a cash out refinance because you’re taking what you already own and depositing it into your bank account.

The loan process is mostly the same as a purchase transaction minus a few details, like a purchase contract and a down payment.

And instead of taking out a loan to purchase the home, any amount borrowed would go into your pocket, less closing costs.

You would then get a fresh loan term, mortgage rate, monthly payment, and so on.

The Loan Would Be Considered a Cash Out Refinance

As noted, mortgaging a home with no outstanding liens would be treated as a cash out refinance.

Typically, cash out refinances are priced higher than other types of loans and there are more restrictions in terms of how much you can borrow (lower max LTV ratio).

Of course, if the home were completely paid off, chances are you’d have quite a big cushion to take out what you need without hitting that threshold.

Anyway, the word refinance essentially means to finance again and that’s exactly what you’re doing when taking out a loan on a paid-off home.

But it differs from a rate and term refinance, which pays off an existing home loan and results in a new one.

Let’s look at an example:

Say you’ve got a home worth $500,000 that was paid off in full a couple years ago.

Now imagine you need cash for some other expense, such as college tuition or even a different home purchase, perhaps a vacation or investment property.

If mortgage rates aren’t bad, you might consider borrowing from your paid-off home.

Often, a mortgage can be the cheapest option relative to other loan types, whether it’s a credit card, personal loan, etc.

And the lengthy loan terms associated with a mortgage also keep monthly payments low, assuming that’s a feature you’re looking for.

Let’s say you want/need $200,000. You could simply refinance your home, pull out that cash, and you’d now have a $200,000 mortgage on a home valued at $500,000.

You obtain the cash you need but must pay off a $200,000 loan via a corresponding monthly payment, perhaps for the next 30 years.

As a result of the new lien, your home is no longer paid off. And it might be some time until it is, again.

You’ve now got a monthly mortgage payment to make, which can be expensive, especially if you were used to living without one.

And most mortgages feature 30-year loan terms, so it could be with you for a while (though there are shorter terms available like the 15-year fixed and even the 10-year fixed).

Can I Get a Home Equity Loan on a Paid-Off House?

Now I laid out one possible scenario above. But a cash out refinance isn’t the only way to get home equity out of a paid-off house.

There are several alternatives to a cash out refinance, including a home equity loan or a home equity line of credit (HELOC).

While home equity products are typically second mortgages taken out while the homeowner still has their first mortgage, they can be standalone products too.

So it’s entirely possible to take out a HELOC on a home you own outright, borrow only what you need, then pay it back quickly. Then use the credit line again if need be.

Or take a smaller lump sum via a home equity loan and pay it off over a shorter loan term to reduce the interest expense.

The tradeoff with a shorter term is that the monthly payment is higher, but much less interest is paid. That can be a win, but could make it more difficult to qualify too.

Ultimately, you’ll need to determine which loan product offers the best pricing and aligns with your payoff goals.

I’ve already written extensively about cash out vs. home equity loans vs. HELOCs. So if you want a handy guide to compare the programs, be sure to check it out.

Other than that, there are also reverse mortgages for seniors, which don’t carry a monthly payment but reduce your sales proceeds if and when you sell.

And home equity sharing arrangements, which don’t carry a monthly payment at all. But you forgo future home price appreciation, which can be much costlier (I’m not a fan).

In summary, a paid-off home means you’ve got numerous options to choose from if you need to borrow money, whether it’s a refinance or a home equity line/loan.

Just know what you’re getting into and realize that you could be restarting the clock if your goal is to own a home without a mortgage!

(photo: Abhi)

Source: thetruthaboutmortgage.com

Apache is functioning normally

June 27, 2024 by Brett Tams

I’ve heard this argument many times, whether in real life or on social media. That if you hold a mortgage (or two), you don’t actually OWN your house.

The logic is that the bank/lender is the one that truly owns the property because they lent you the money to purchase the property.

And you must pay them each month for the right to continue living in the home. If you don’t, they have the right to repossess the property via the foreclosure process.

On top of that, many home buyers only put down 3-5%, meaning borrowers technically own very little and owe a whole lot to the bank.

So is it true that mortgage holders don’t actually own their homes?

You Still Own Things That Have Loans Attached

While there’s some logic to the idea that a home with loans attached isn’t truly owned, it’s a pretty abstract thought.

Sure, one can argue that if you have a mortgage, it means you only OWN the portion that is paid off.

For example, if you bought a house for $500,000 and put down 20%, you’ve only got $100,000 in ownership, also known as home equity.

When people refer to equity, it means the part of your real estate that is paid off, or simply the present value minus any outstanding liens.

Over time, this same $500,000 property will likely appreciate in value, and the loan will be paid down.

This means ownership will increase as time goes on and with each monthly payment, with a portion going toward the principal balance.

But it starts to become a matter of semantics for what ownership truly is. And it doesn’t serve much purpose to question it.

Homeowners Refi Their Properties and Still Own Them

Take another example. A property is owned free and clear, meaning there isn’t a mortgage. Then the borrower decides to apply for a cash out refinance.

Their property is worth $1,000,000 and they decide to pull out $400,000 to use for other expenses.

Does this mean they owned their home and now they don’t own their home? No, that would be a silly thought.

It simply means they had no loans on their property and now they have a loan. And that their equity fell from $1 million to $600,000.

What is does mean is they’ll have to make monthly mortgage payments to a bank or lender until the loan is paid off.

And it does mean they’ll receive less proceeds if they decide to sell the property (since they’ll need to repay the loan balance in the process).

But it doesn’t change the fact that the property is still in their name and owned by them.

Certain Rules Do Apply If You Have a Mortgage

While I don’t buy into the you don’t own it if you have a mortgage argument, there are some rules that apply if you’ve got a home loan.

For one, hazard insurance is compulsory. Since the lender does have a financial interest in your property (via that big mortgage), they want protection.

This means an insurance policy to protect them if something happens to it. They assume you won’t pay off their loan if the house is destroyed.

So they require insurance to shield themselves from any big losses.

If you happened to own your property free and clear, you could technically forgo the insurance requirement.

Would you though? Probably not unless the property was worth next to nothing.

The lender may also have restrictions if you wish to put the property into a trust, because again, they have an interest in the home.

Rich People Often Take Out Mortgages Even Though They Don’t Need Them

One more thing to consider when it comes to mortgages and ownership.

It’s very common for the ultra-rich to take out mortgages on the homes they OWN, even if they’ve got the money to pay them off in full.

Ultimately, mortgages are a cheap form of financing (even if mortgage rates are no longer at record lows).

This provides opportunity for the wealthy to leverage their property to generate bigger profits elsewhere.

There are countless examples. Back in 2011, Facebook founder Mark Zuckerberg took out a $5.95 million mortgage on his $7 million Palo Alto, California home purchase.

We all know we could have paid all cash for the home, but he chose not to. Probably because the loan was set at 1.75% and it wouldn’t take much to beat that rate of return.

Remember, a mortgage can be viewed as an investment and its interest rate as the rate of return.

So if you have a 3% mortgage and a typical savings account pays 5%, you could already be ahead by not paying it off early.

Other examples include Jay-Z and Beyoncé’s $52.8 million-dollar mortgage on their Bel Air home.

And Warren Buffett arguing that it was a great time to take out a long-term mortgage in 2013 when rates were at historic lows.

Ultimately, a home loan is just a financial vehicle that can be used by a borrower to allocate money elsewhere.

It doesn’t mean they don’t own their home. It simply means they prefer to borrow instead of paying off their property, which arguably is an illiquid investment.

At the end of the day, this myth is often perpetuated by people who prefer to rent instead of buy.

There’s not a lot of truth to it, and it really only serves to make homeownership look less attractive than it really is.

Source: thetruthaboutmortgage.com

Apache is functioning normally

June 26, 2024 by Brett Tams

Inside: Learn what 15 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.

You’re probably wondering if I made $15 a year, how much do I truly make? What will that add up to over the course of the year? Is $15 a living wage?

Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage?

In this post, we’re going to detail exactly what $15 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.

That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.

By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.

The ultimate goal with money success is to be wise with how you spend your money.

If that is something you want to do, then keep reading. You are in the right place.

$15 an Hour is How Much a Year?

When we ran all of our numbers to figure out how much is $15 per hour is as an annual salary, we used the average working day of 40 hours a week.

40 hours x 52 weeks x $15 = $31,200

$31,200 is the gross annual salary with a $15 per hour wage.

As of June 2023, the average hourly wage is $33.58 (source).

Let’s breakdown how that number is calculated.

Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $15 times 2,080 working hours and the result is $31,200.

That number is the gross income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.

That is just above the $30000 salary, which is a lower starter salary, but well below where you want to start about a $35000 salary.

Work Part Time?

But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $15 an hour.

Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $15 times 1,040 working hours and the result is $15,600.

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How Much is $15 Per Month?

On average, the monthly amount would average $2,600.

Annual Amount of $31,200 ÷ 12 months = $2,600 per month

Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.

Work Part Time?

Only 20 hours per week. Then, the monthly amount would average $1,300.

How Much is $15 per Hour Per Week

This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?

Once again, the assumption is 40 hours worked.

40 hours x $15 = $600 per week.

Work Part Time?

Only 20 hours per week. Then, the weekly amount would be $300.

How Much is $15 per Hour Bi-Weekly

For this calculation, take the average weekly pay of $600 and double it.

$600 per week x 2 = $1,200

Also, the other way to calculate this is:

40 hours x 2 weeks x $15 an hour = $1,200.

Work Part Time?

Only 20 hours per week. Then, the bi-weekly amount would be $600.

How Much is $15 Per Hour Per Day

This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.

8 hours x $15 per hour = $120 per day.

If you work 10 hours a day for four days, then you would make $150 per day. (10 hours x $15 per hour)

Work Part Time?

Only 4 hours per day. Then, the daily amount would be $60.

$15 Per Hour is…

$15 per Hour – Full Time	Total Income
Yearly Salary (52 weeks)	$31,200
Yearly Salary (50 weeks)	$30,000
Monthly Wage (173 hours)	$2,600
Weekly Wage (40 Hours)	$600
Bi-Weekly Wage (80 Hours)	$1,200
Daily Wage (8 Hours)	$120
Net Estimated Monthly Income	$1,985

^{**These are assumptions based off simple scenarios.}

Paid Time Off Earning 15 Dollars an Hour

Does your employer offer paid time off?

As an hourly employee, you may or may not get paid time off.

So, here are the scenarios for both cases.

For general purposes, we are going to assume you work 40 hours per week over the course of the year.

Case # 1 – With Paid Time Off

Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.

In this case, you would make $31,200 per year.

This is the same as the example above for an annual salary making $15 per hour.

Case #2 – No Paid Time Off

Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.

Life happens. There will be times you need to take time off for numerous of reasons – sick time, handling an emergency, or even vacation.

So, let’s assume you take 2 weeks off without paid time off.

That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $15 times 2,000 working hours and the result is $30,000.

40 hours x 50 weeks x $15 = $30,000

You would average $120 per working day and nothing when you don’t work.

$15 an Hour is How Much a year After Taxes

Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.

Also, every single person’s tax situation is different.

On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.

Gross Annual Salary: $31,200

Federal Taxes of 12%: $3,744
State Taxes of 4%: $1,248
Social Security and Medicare of 7.65%: $2,387

$15 an Hour per Year after Taxes: $23,821

This would be your net annual salary after taxes.

To turn that back into an hourly wage, the assumption is working 2,080 hours.

$23,821 ÷ 2,080 hours = $11.45 per hour

After estimated taxes and FICA, you are netting $11.45 an hour. That is $3.55 an hour less than what you planned.

This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.

Plus budgeting on a just over $11 an hour wage is much different.

$15 an hour Salary Calculator

Now, you get to figure out how much you make based on your hours worked or if you make a wage between $15.01-15.99.

This is super helpful if you make $15.25 or $15.35.

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$15 an Hour Budget – Example

You are probably wondering can I live on my own making 15 dollars an hour? How much rent can you afford on 15 an hour?

Using our Cents Plan Formula, this is the best case scenario on how to budget your $15 per hour paycheck.

When using these percentages, it is best to use net income because taxes must be paid.

In this example, we calculated $15 an hour was $11.45 after taxes. That would average $1,985 per month.

According to the Cents Plan Formula, here is the high level view of a $15 per hour budget:

Basic Expenses of 50% = $992.55
Save Money of 20% = $397.02
Give Money of 10% = $198.51
Fun Spending of 20% = $397.02
Debt of 0% = $0

Obviously, that is not doable for everyone when living so close to minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.

To further break down an example budget of $15 per hour, then using the ideal household percentages is extremely helpful.

recommended budget percentages based on $15 per hour wage:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$130
Savings	15-25%	$312
Housing	20-30%	$780
Utilities	4-7%	$130
Groceries	5-12%	$208
Clothing	1-4%	$26
Transportation	4-10%	$104
Medical	5-12%	$130
Life Insurance	1%	$13
Education	1-4%	$26
Personal	2-7%	$48
Recreation / Entertainment	3-8%	$78
Debts	0% – Goal	$0
Government Tax (including Income Taxes, Social Security & Medicare)	15-25%	$615
Total Gross Income		$2,600

^**^{In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.}

A great way to lower your transportation costs is to buy a beater car.

Can I Live off $15 Per Hour?

Living off close to minimum wage can be a very difficult situation.

Is it doable? Absolutely.

You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.

A lot of times when people are making under near the minimum wage mark or slightly above, they feel like they are in this constant cycle that they can never keep up. They are not good enough to make more money. Feeling like they are constantly struggling to keep up with bills and expenses. And things just keep adding on top.

You need to do is change your money mindset.

This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 15 dollar per hour. No going into to debt for me.

In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $15 an hour?

Yes, you can do it, and as you can see it is possible with the sample budget of $15 per hour.

Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.

Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.

5 Ways to Increase Your Hourly Wage

This right here is the most important section of this post.

You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.

Even an increase of 50 cents to $15.50 will add up over the year. Even better $16 an hour! The goal is $20 an hour or more!

1. Ask for a Raise

The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.

If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.

2. Look for A New Job

Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.

It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $15 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.

3. Find a New Career

Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.

For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.

4. Find Alternative Ways to Make Money

In today’s society, you need to find ways to make more money. Period.

There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.

So, you need to find side hustle – another way to make money.

Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.

There are so many legit ways to make 300 dollars fast today!

5. Earn Passive Income

The last way to increase your hourly wage is to start earning passive income.

This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.

By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.

Here is an example:

You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.

One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.

Tips to Live on $15 an Hour

In this last section, grasp these tips on how to live on $15 an hour. On our site, you can find lots of money saving tips to help stretch your income further.

Here are the most important tips to live on $15 an hour. Highlight these!

1. Spend Less Than You Make

First, you must learn to spend less than you make.

If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.

In order to break that dreadful cycle, it means your expenses must be less than your income.

And when I say income, it’s not the $15 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $15 an hour minus all the taxes, FICA, Social Security, and Medicare are taken out. That is your net income.

So, your net income has to be less than your gross income.

2. Living Below Your Means

You need to be happy. And living on less can actually make you happier. Studies prove that less is better.

Finding contentment in life is one thing that is a struggle for most.

We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.

Have you ever taken a step back and looked at you really need?

Once you are able to find contentment with life, then you are going to be set for the long term with your finances.

Here is our story on owning less stuff. We have been happier since.

3. Make Saving Money Fun

You need to make saving money fun.

Save money with the popular 100 envelope challenge.
It could be participating in a no spend challenge for the month.
Start a billionaire morning routine to build a wealth mindset.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.

Find new ways of saving money and have fun with it.

Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.

Here are things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.

And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.

4. Make More Money

If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.

You need to be an advocate for yourself.

Find ways to make more money.

It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.

Whatever path you take, that’s fine. Just find ways to make more money. Period.

5. No State Taxes

Paying taxes is one option to increase what you take home in each paycheck.

These are the states that don’t pay state income taxes on wages:

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.

Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.

6. Stick to a Budget

You need to learn how to start a budget. We have tons of budgeting resources for you.

While creating a budget is great, you need to learn how to use one.

You do not have to budget down to every last penny.

You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.

Budget Help:

7. Pay Off Debt Quickly

The amount that you pay interest on debt is absolutely absurd.

Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.

If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.

Here’s a debt calculator to help you. Figure out your debt free date.

Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.

It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.

Jobs that Pay $15 an Hour

You can find jobs that pay $15 per hour. Polish up that resume, cover letter, and interview skills.

Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.

First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.

Possible Ideas:

Customer service representatives
Paraeducators at schools
Warehouse workers
Retail workers
Cashiers
Housekeeper
Delivery Drivers
Overnight Stockers

Companies that pay more than $15 per hour:

L.L. Bean
Chick-Fil-A
Panera Bread
Torchy Tacos
McDonald’s
Five Guys
Costco
Wayfair
Amazon
Many grocery stores
Best Buy
Target
Wells Fargo
Disney World
Disney Land
Bank of America
JP Morgan
Cigna
Aetna

Maybe working as a virtual assistant with no experience is right for you??

$15 Per Hour Annual Salary

In this post, we detailed 15 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.

How much is 15 dollars an hour annually…

$31,200

In this post, we highlighted ways to increase your income as well as tips for living off your wage.

Use the sample budget as a starting point with your expenses.

You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!

Now, find low stress jobs that don’t need a degree and pay well!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

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Source: moneybliss.org

Apache is functioning normally

June 26, 2024 by Brett Tams

You can typically remove yourself from a joint bank account, but financial institutions’ policies on this may vary. It’s wise to check with your bank about how to separate yourself from a shared account.

Joint bank accounts can work well for many banking customers. Spouses may find it easier to budget together with a joint bank account, and parents may open a bank account with a child to help them learn how to manage their money. But what happens when you no longer want to be on the joint bank account?

Read on to learn more about your options.

What Is a Joint Bank Account?

A joint bank account is a checking or savings account that is shared between two or more people. Each person has full access to the money, meaning they can withdraw, deposit, and spend funds without having to get the other account holder’s approval.

The account holders are equally liable for the checking or savings account, including any debts and fees it incurs. For instance, if the account goes into overdraft, the joint account will incur fees, even if only one party was responsible.

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Reasons to Remove Yourself From a Joint Bank Account

As time passes, joint account holders may no longer need or want to share an account. Here are a few reasons why someone would want to remove themselves from a joint account.

Separation or Divorce

When breaking up with a partner or divorcing a spouse, you’ll likely want total control of your own money.

That means you’ll need to close any joint bank accounts (and joint credit cards) and start anew — or simply remove yourself from the account and start your own while your ex maintains the existing account, if allowed by the bank.

End of Business Partnership

If you and a business partner are closing your enterprise and going your separate ways, you will want to shut down your business checking account and/or business savings account. If you’re stepping down from the business but the partner is going to continue running it, it might be possible to remove your name from the account rather than close it completely.

Child Getting Their Own Account

Some parents may choose to be a joint account holder on their child’s first bank account. This can help parents teach a child about money management and monitor financial decisions closely. When children go to college, this can be an easy way to ensure they have enough money for food, rent, books, and other expenses.

But at a certain point, it makes sense for a parent to remove themself from the child’s checking account.

Reduction of Financial Ties

There are other specific scenarios where joint account holders may want to sever their financial ties. For instance, if the other account holder (non-spouse) is being sued, you may want to remove them from the account to protect the assets. Removing someone else from a joint account, however, typically requires that individual’s consent and may depend on bank policy or state law.

Steps to Remove Yourself From a Joint Bank Account

In terms of how to remove yourself from a joint bank account, some banks will allow one party to exit, often with the other person’s consent. Other banks, however, may require the account to be closed in full, rather than remove a single account holder.

Assuming your bank allows you to remove yourself from the joint account and you have alerted the other account holder(s), here are the steps you’ll typically need to follow:

Request Account Closure or Complete Paperwork

The first step to removing yourself from a joint bank account is reading your bank’s policy or reaching out to a customer service representative to understand the process. In some cases, the bank may simply require you to close the account entirely. State laws and individual bank policies typically require all joint bank account holders to approve the closure before you can move forward.

In the event that the bank will let you remove your name from a joint account, follow the bank’s guidelines, which may require one or both individuals to visit a local branch or fill out a form online.

Pay Fees

Before a joint account can be closed, a bank will require you to pay any outstanding fees. But in the case of simply removing yourself from a joint account but keeping it open in the other account holder’s name, you should work out if you’re responsible for paying off any account debts before taking yourself off the account.

Withdraw Remaining Funds

You and the joint account holder should review the current balance and determine how much, if any, of the funds you should withdraw for yourself. This will need to be addressed whether you are closing the account or removing your name from the joint bank account.

You won’t have access to withdraw money once your name is taken off, so make sure you know how to withdraw money from any checking account and savings account you share before moving forward.

Required Documentation

Your bank will spell out specific documentation required when removing yourself from a joint bank account. Typically, you will need to provide:

• Proof of identification

• Proof of account ownership, like a bank statement and debit card

• Written approval from the other joint account holder(s), as noted above

Recommended: Should Married Couples Have Joint Bank Accounts?

Issues to Be Aware Of

When removing yourself from a joint bank account (or closing the account entirely, if the bank doesn’t allow a single account holder to remove themselves), there are a few things you’ll want to consider.

Outstanding Checks and Automatic Payments

If you’ve written any checks or have any transactions that are currently processing, you’ll want to make sure those go through before you withdraw your portion of the funds from the account. Similarly, if you have automatic bill payments set up, you’ll need to switch these to your new bank account before removing yourself.

Otherwise, the remaining joint account holder will inadvertently pay your next set of bills. Or, if the joint account needs to be closed, you could wind up with a slew of returned (unpaid) payments.

Direct Deposits

Similarly, if you have direct deposit set up with your employer or a government entity (such as for Social Security benefits or tax refunds), make sure you redirect those to your new bank account. This ensures you don’t miss any money sent to you.

Remaining Account Holder Approval

Before taking yourself off a joint bank account, you’ll need to let the other account holder know. Banks that allow one account holder to take their name off the account may require you to submit written approval from the other account holder or might even require that all parties visit a local branch in person.

Potential Bank Fees

Your bank may charge a fee to remove your name from a joint bank account. When speaking with a bank representative about the process, ask about these fees so you know what to expect.

Alternative to Removal

If a bank does not allow you to remove your name from a joint bank account for some reason, the main alternative is to close the account altogether. You’ll need the consent of all account holders to close the account.

You can follow the steps for how to close a joint bank account if this is the route you need to take.

The Takeaway

Opening a joint bank account can add flexibility for people with shared financial goals and responsibilities. However, there may come a time when you no longer want to be on a joint bank account. While some banks may permit you to remove one of the account holders, others may require that you close the account entirely, with each joint member then opening their own new account, if they like.

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FAQ

Can one person remove themselves from a joint bank account?

Some banks may allow one person to remove themself from a joint bank account, but there are typically clear guidelines for how to go about this. That may include written permission from the other account holder. In some scenarios, banks and credit unions may require that the account be closed and each person start fresh on their own.

Do I have to notify the other person on the account?

If you plan to remove yourself from a joint bank account, you need to let the other person know. In fact, banks that allow you to remove your name from a joint account without closing it may require written permission from the other account holder.

What if other owners don’t approve the removal?

If you would like to be removed from a joint bank account but the other account holder won’t approve, work with your financial institution to determine the next steps, as they may vary from bank to bank and state to state. Sharing money can be hard enough, but when account holders aren’t seeing eye to eye, things can get tricky.

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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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Source: sofi.com

Apache is functioning normally

June 26, 2024 by Brett Tams

HELOC, Live Pricing Data, VOIE Tools; LO Survey, Webinars and Training

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HELOC, Live Pricing Data, VOIE Tools; LO Survey, Webinars and Training

By:
Rob Chrisman

Tue, Jun 25 2024, 11:54 AM

Everyone’s above average, right? If you are a lender and making money, you’re in the majority. It’s not that you’re not special, it’s just that with cuts and servicing income, and unprofitable companies going away, most companies are in the black: In the first quarter, 59 percent off all mortgage banking companies were profitable per the MBA Performance Report, buy it for details. Is our government profitable? Of course not, almost regardless of Administration. The federal budget deficit is expected to swell to around $1.9 trillion this year, according to the Congressional Budget Office, which was higher than its previous estimate of $1.5 trillion. This takes into account increased spending for student loans and Medicaid as well as the recently passed $95 billion foreign aid package. National debt is even poised to top $56 trillion over the next 10 years, or 122 percent of GDP, surpassing the 106 percent seen in 1946 after World War II. Meanwhile, the eurozone is facing debt issues of its own, with the ECB warning eight of its members (including Belgium, France, and Italy) over their excessive budget deficits. Today’s podcast is found here and this week’s is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a warranty, eliminating repurchase worries. Hear an interview with FinLocker’s Brian Vieaux on bringing consumer permission data to property searches and originations.

Software, Products, and Services for Lenders and Brokers

“Truv is the only consumer-permissioned VOIE platform approved with both GSEs, solidifying our commitment to delivering top-notch verification services tailored for mortgage lenders, banks, and credit unions. What does this mean for your business? Faster turn times, lower buyback risks, compliance assurance, and reduced operational costs. Read about why this matters for your business here.”

“Did you know that Polly is the rate engine for HousingWire’s Mortgage Rates Center? We offer the same capability to display live rates on lender websites, helping borrowers better assess your competitive edge against other lenders. This live data ensures that as the market fluctuates, prospects get real-time insights into your rates. Because in the current rate environment, having accurate, up-to-date rate intel on your homepage is crucial. It signals transparency, allowing potential borrowers to make informed decisions faster, without needing to supply personal information. This convenience can significantly increase your site’s engagement and drive more volume your way. On the flip side, NOT displaying live rates may deter potential borrowers, as they could perceive higher costs or simply prefer quick access to this information. Now, let’s take it several steps further; Polly’s Lender Intelligence will help you keep your rates competitive, ensuring you stay at the forefront of your peers. Let’s talk about it.”

“Calling all loan originators: We need your insights! Take the annual Loan Originators Survey from MGIC and Loan Officer Hub to weigh in on how you handled the challenges and opportunities of the past year. Get a head start on comparing your strategies to your peers’: Complete the survey by June 30 and you’ll receive exclusive early access to the full survey report this fall!”

Optimal Blue announced its new Competitive Data License today. In a news release, the company described its new data solution as a collection of key national mortgage pricing data that empowers lenders to price products competitively, operate more profitably, and react swiftly to changing market conditions. This product from Optimal Blue includes loan-level data from the industry’s most widely used product, pricing, and eligibility engine, providing a full price trace from borrower/buy-side to investor/sell-side pricing. Optimal Blue’s new data solution equips lenders with the ability to benchmark every aspect of their pricing strategy, providing extensive insights into markups, loan-level price adjustments (LLPAs), servicing-released premiums (SRP), concessions, loan officer compensation, base price, and PAR rate. Optimal Blue will be hosting a webinar on July 10 for those interested in learning more about Competitive Data License and its other data solutions.

HELOC borrowers can pay off debt to qualify and still close in as little as 1 day! With trillions of dollars in accessible home equity nationwide, there’s never been a better time to become a REMN Partner. REMN Wholesale, leading the way in Wholesale Digital HELOCs nationally, now provides the DEBT ELIMINATOR feature to its EQUITY ACCESS Digital HELOC. DEBT ELIMINATOR gives borrowers the ability to pay off debt to qualify. With loan amounts from $25k to $400k and recent rate reductions, REMN’s Digital HELOC is designed for fast closings. Additional features: Instant Income Verification for the vast majority of W-2 borrowers; automated analysis of bank statements to determine Income for both W-2 and Self-employed borrowers; single AVM up to $400k (appraisal options available); Broker Portal with robust functionality and real-time detailed status on all pipeline loans. Minimum FICO 640 and max 80% CLTV (see rates/guides). Flexible: Hybrid platform is digitally fast with humans to solve real-life complexities! And they provide fast payout (utilizing ACH). White Label: Brand your company/MLO. REMN is only wholesale! Contact Carl Markman.

Webinars and Shows

“Unlock the key to closing more loans in a competitive market. Join us on Thursday, June 27 at 2 pm ET / 11 am PT for the NMP Webinar “Build Your Personal Brand (and Close More Loans) by Optimizing Borrower Credit Scores.” Hosted by Mike Darne, a seasoned marketing executive who has led branding efforts at Capital One and Marriott, this webinar will share proprietary research from CreditXpert on what borrowers seek in a lender and how credit optimization meets those needs. Discover how you can help borrowers qualify, access better loan programs, lower their cost of homeownership, and reduce LLPA premiums. Learn to leverage credit optimization to build your personal brand, stand out in the marketplace, and ultimately close more loans. Don’t miss this chance to enhance your skills and grow your business: Register for the webinar here.”

Podcast: How the NAR Ruling Will Impact Lenders (& the Entire Home-Buying Process). The groundbreaking NAR settlement has real estate agents, lending professionals, and home buyers scrambling to understand its ramifications. Here to weigh in is Maxwell’s Clear to Close crew: In this conversation, Alan, Bryan, and Anthony channel their experience in the industry to walk through possible outcomes of the ruling. Specifically, this episode explores how new policy changes are likely to impact lead generation, methods to earn borrower business, and more—and how lenders can get ahead of the major ways the home-buying process is about to change. Click here to listen to How the NAR Ruling Will Impact Lenders (& the Entire Home-Buying Process).

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.

Join Kristin Messerli and Robbie Chrisman today at 10am PT/1pm ET for the latest episode of Mortgages with Millennials as they share some new research on NextGen money trends, this time based on a personality quiz she developed to better understand the mindset, planning style, and behaviors of millennials when it comes to money and homebuying. sharing some new research on NextGen money trends, this time based on a personality quiz she developed to better understand the mindset, planning style, and behaviors of millennials when it comes to money and homebuying.

Every Tuesday at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders. Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.

In support of the Credit Score Models and Credit Reports Initiative, FHFA has announced a new stakeholder forum, an “Overview of Historical Credit Scores,” that will take place today from 3-4 p.m. (ET). FHFA, Freddie Mac and Fannie Mae will provide details regarding the Enterprises’ forthcoming publication of historical credit scores to support the implementation of the VantageScore® 4.0 credit score model.

MBA’s Single Family Research Showcase 2024 Virtual Meeting, June 25 & 26, 1:00 – 5:00 pm. MBA’s Research & Economics team will take you on a deep dive behind the data during our one-of-a-kind Single-Family Research & Economics Showcase. Led by MBA’s Chief Economist, Mike Fratantoni, Ph.D., this two-day online event highlights the most current results and insights from our popular residential surveys, forecasts, and reports. For those unable to attend, meetings will be recorded on both days. Register to receive the recordings.

Capital Markets

As optimism about a US Treasury rally grows among investors, a key bond market indicator suggests high interest rates could persist, potentially hampering the Federal Reserve’s ability to cut rates. Market forecasts indicate that the economy’s neutral rate, crucial for balancing growth, is significantly higher than the Fed’s current projection, hinting at long-term elevated borrowing costs.

While we do have some significant data later this week (GDP, inflation, consumer sentiment, home prices, etc.), this final week of June began yesterday on a quiet note without much market movement. This week also brings the quarterly refunding, which sees an increased flood of Treasury issuance that investors will be asked to absorb: $211 billion in new debt this week alone, with all of it coming on the front end of the curve. Today, markets will receive $69 billion 2-year Treasury notes.

Today’s economic calendar kicked off with the non-market moving Chicago Fed National Activity Index for May (better than expected) and Philadelphia Fed non-manufacturing for June. Later today brings Redbook same store sales for the week ending June 22, April house price indices from FHFA and Case-Shiller, the Consumer Confidence report for June, Richmond Fed manufacturing and services/revenues in June, and Dallas Fed Texas services for June, followed by the aforementioned Treasury note auction. Two Fed Governors are scheduled to make appearances: Governor Bowman and Governor Cook. We begin the day with Agency MBS prices little changed from Monday’s close, the 10-year yielding 4.22 after closing yesterday at 4.25 percent, and the 2-year at 4.72.

Employment

Mortgage Equity Partners (“MEP”), a mid-cap IMB headquartered in Massachusetts, is proud to be recognized as the fastest-growing IMB in the state measured in both units closed and volume funded in 2023 and YTD 2024. MEP has added production in many of its 22 states over the last 12-14 months. “As a mid-cap, we inherently have a flatter management structure, are more nimble, and can adapt to change quicker. Consistently, we see LOs migrate from large-cap IMBs because, as architects of their own businesses, LOs want quicker access to decision-makers. Those LOs want to operate at their own cadence and not be bogged down with layers of management. Our environment has a positive impact on LOs as strong business partners to support their referral sources,” said Sean Riley, CEO and General Counsel. To learn more about MEP, visit meploans.com or contact John Cabral, National Sales Director.

A seasoned Mortgage Executive is seeking a new opportunity to help lead a mortgage lender or vendor toward achieving their growth goals. Are you a mortgage lender or vendor (established or new) in need of leadership to navigate the current market and drive future growth? This executive has extensive sales leadership experience in all production channels (TPO, Retail, and DTC) and is an expert in all product types (Agency, Non-QM, and Private Money Lending). They also have deep knowledge of the vendor and technology space. Please send inquiries to Anjelica Nixt to pass along to the candidate and specify the listing.

(Remember: job seekers can post their resumes for free on www.lendernews.com where employers can view them for several months for a nominal charge.)

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

Source: mortgagenewsdaily.com

Apache is functioning normally

June 26, 2024 by Brett Tams

MINNEAPOLIS — Last year, after Deb Jerikovsky’s husband died, she decided to swap the lake home where they planned to spend retirement for a house in the metro that’s closer to family.

She put that plan on hold, however, once she realized 7% mortgage rates would force her to dip too deeply into her savings. Instead, she moved in with her daughter, hoping she’d eventually score a lower rate.

She didn’t have to wait long.

$121,398: That’s how much you need to make to afford a mortgage in Dallas

Mortgage rates were still hovering near 7% last October when she ran across a listing for a townhouse in Coon Rapids, Minnesota, that touted a KitchenAid fridge, electronic blinds and an unexpected extravagance: a low-interest assumable mortgage.

“It was like winning the lottery,” said Jerikovsky, who assumed the seller’s 2.25% mortgage rate.

The deal saved her about $700 a month compared with today’s rates and gave her enough room in her budget to buy a new car and spend part of the winter with her aunt in Florida. Her $349,900 townhouse is one of hundreds of listings in the Twin Cities with an assumable mortgage eligible sellers can transfer to qualifying buyers, teleporting them back to a time of record-low rates.

Though they now account for only a fraction of all house listings, these government-backed mortgages — courtesy of the Federal Housing Administration (FHA), Veteran Affairs (VA) and U.S. Department of Agriculture (USDA) — are an overlooked home-buying hack saving a growing number of buyers hundreds of dollars a month and tens of thousands of dollars through the life of their mortgages.

“Most agents aren’t even aware of what it entails and what to look for,” said Tyler Miller, a Minnesota broker who has been involved with several sales involving assumable mortgages with astoundingly low rates.

Miller recently listed a four-bedroom house in Blaine with an assumable 2.25% FHA mortgage with a monthly payment that’s about $1,700 less than it would be at the going rate. To tout the listing, he posted a TikTok video promoting the benefits.

“I had some people tell me I was lying,” Miller said. “I said, ‘No, this is real.’”

Assumable mortgages have been lurking in the shadows of unusually low rates in recent history. Such mortgages were last popular in the 1980s when rates hit a record 18.1%.

At the end of 2020 and into early January 2021, rates fell to record lows, hovering around 3% for much of 2021 and causing home sales and prices to soar. That buying binge locked in thousands of mortgages at rates that likely won’t be that low again for decades. An estimated 80% of all VA mortgages, like the one Jerikovsky assumed, now have a rate that’s less than 4%, and many of those rate-holders are now ready to sell.

Today, the average 30-year fixed-rate mortgage is about 7%. Though that’s still below historical averages, there’s a generation of buyers yearning for a time of low rates that’s unlikely to re-emerge anytime soon.

An estimated one-third of all mortgages in the U.S. are assumable now. Because many owners will hold onto those rates as long as possible, assumable mortgage listings represent only a fraction of homes currently for sale, making them one of the best-kept secrets for homebuyers these days.

While some agents will include an assumable mortgage in the listing details, many homeowners don’t even know they have one — the details are buried in the fine print of their contract, which many buyers don’t carefully read. In Minnesota, just shy of 5% of the more than 30,000 houses listed on Realtor.com had assumable mortgages. The website only started including a search feature for assumable mortgages in February.

Ryan Carrillo and Louis Ortiz started their Assumable.io website, which is dedicated to assumable mortgages, after Carrillo discovered the 2.75% FHA mortgage on his own house was assumable.

The site lets you search for listings city by city, including detailed mortgage data such as the assumable rate and payment compared with the payment at current rates. All of the more than 30,000 nationwide listings on the site have an assumable mortgage, including other key details such as the required down payment and the interest savings through the remaining mortgage.

“It’s a huge opportunity,” Carrillo said, nothing that traffic to the site has doubled every month since its launch.

A recent listing for a nearly new townhouse in Maple Grove initially priced at $485,000 came with an assumable mortgage that’s half the current rate, saving a would-be buyer about $1,000 a month. Through the life of the loan, that lower rate would save nearly $400,000 in interest payments.

Roam, which doesn’t yet post listings in the Twin Cities, is another new website focused solely on assumable mortgages. It charges buyers 1% of the purchase price to help navigate the process. On average, the company claims, buyers who use the site save $15,000 in mortgage payments annually.

“It’s not a panacea and won’t work for every transaction and every buyer,” Ortiz said. “But it provides buyers the opportunity to afford more house if they can make the equity gap work.”

That equity gap is often the biggest hurdle. Because the buyer is essentially taking on the existing mortgage rather than receiving a new one, the buyer has to pay the seller the difference between the original mortgage balance and the current asking price.

Though it’s only been a couple years since rates spiked, that equity gap can be significant given how house prices have steadily risen. To eliminate that barrier, Ortiz and Carrillo said they’re now offering lenders willing to do a second mortgage access to their site.

Chris Birk — vice president of Veterans United Home Loans, which has a national network of agents who specialize in working with military buyers — said there’s been a 600% increase in the number of VA mortgage assumptions from 2022 to 2023.

“We’re seeing marked increase interest in these,” he said. “But it’s a foreign concept for so many buyers but also sellers.”

He said while any lender or servicer should be able to complete the transaction, it helps to work with professionals who are familiar with the process.

Brady Holland, the agent who helped Jerikovsky buy her townhouse, said assuming a mortgage can be a bit more complex because both the buyer and seller have to provide documentation. That’s especially true for the seller, who is essentially “selling” the mortgage to the buyer.

“It was a little tricky,” he said. “I had to call [the processor] every other day to check on things. … It takes a team to make it happen.”

Many VA mortgage holders are reluctant to let another buyer assume their mortgage because once they do, they forfeit the right to use the benefit to buy another one. Unlike FHA mortgages, VA mortgages are considered a government benefit with perks that include the ability to forgo private mortgage insurance and no, or a low down payment and competitive low rates.

A VA mortgage holder is entitled to transfer those benefits to a qualifying nonveteran, as long as the seller doesn’t plan to buy a home with another VA loan.

In the case of the house that Jerikovsky bought, the seller was a widow who moved to an apartment, enabling her to waive her right to additional VA mortgage benefits because she doesn’t plan to buy again.

Though a mortgage assumption can take longer than a new, traditional mortgage, that wasn’t the case for Jerikovsky’s purchase, which closed less than two months after she first saw the house. For her, the most challenging part of the process, she said, was filling out online forms and applications. But her tech-savvy daughter helped with that.

“I didn’t know if I would be living with my daughter for six months or a couple years until rates went down,” she said. “That (assumable) rate made all the difference in the world.”

– Jim Buchta for the Star Tribune

Source: dallasnews.com

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June 26, 2024 by Brett Tams

They may seem old-fashioned compared to digital payment methods, but checks are still very much a part of many people’s financial lives. In fact, there are a whopping 14.5 billion checks circulating every year in the U.S.

If you receive checks, you have options in terms of how to deposit them, including in person at a bank, at an ATM, or via a mobile app. Here’s what you need to know about the different methods for depositing a check and the easiest way to get the job done.

How To Deposit a Check in 5 Steps

Typically, depositing a check involves these five simple steps (unless of course you automate the process with direct deposit). Follow these guidelines to successfully get a check into your bank account where you can then use it.

1. Select Your Preferred Method

Your financial institution may have different ways you can deposit a check, including in person, at an ATM, or through their mobile app. The method you choose will affect the specifics of what you need to do to deposit your check. If you choose to go in person, double check the bank’s open hours. For mobile apps, you will need to download the app. Most ATMs will let you deposit a check as long as the machine is in your bank’s network.

2. Gather What You Need

Aside from your paper check, the exact type of documentation you’ll need will depend on how you go about depositing a check:

• In person: This procedure can vary depending on your financial institution. At some banks, you may be able to use your debit card at a teller’s window to deposit a check, no deposit slip required.

In other cases, you may need to get and fill out a deposit slip. This piece of paper outlines how much you want to deposit and to which account. Information you will need to fill out includes your name, account number, and deposit amount. In many cases, banks may also need to see a government-issued photo ID when you make the deposit.

• Mobile app: You will need to log into your bank’s mobile app on your device. Be prepared to take a photo of the front and back of the check. Typically taking a photo against a dark background helps the app take a clearer photo.

• ATM: When heading to the ATM, you’ll need your debit card. Check to see if the ATM accepts check deposits for your financial institution. Also, a few ATMs still require that checks be put into envelopes (provided at the machine) for deposit.

3. Endorse Your Check

Endorsing your check means to sign your name on the back of it in the appropriate place (it typically says “Endorse here” or provides a line to sign on). You can write “for deposit only” on the back when making a deposit so that the money can only go to your account.

Some checks also have a box you can tick if you’re making a mobile deposit. Or your bank may request that mobile deposit checks are endorsed with your name and a phrase like, “for electronic deposit at [bank]” or “for mobile deposit at [bank].”

4. Confirm Deposit Amount

If you deposit a check in person, you may need to indicate the amount on the deposit slip. If you’re using your bank’s mobile app, you may have to enter in the payment amount of your check. Same goes if you deposit it at an ATM.

Before confirming your deposit, make sure you have indicated the correct information. Being even one digit off from your account number, for example, could result in delays to access the funds you’ve deposited.

5. Wait for Confirmation

Once you’ve successfully deposited a check in person, the bank teller may give you a confirmation slip reflecting the transaction or you can request one. You can also check your bank’s website or app to see the pending deposit.

With mobile deposits, you may receive a pop-up confirmation message or an email acknowledging receipt of the check. Some banks may show the pending transaction in the app right away.

At an ATM, you usually receive a receipt of the transaction. Hang onto this piece of paper until you confirm that the deposit has indeed been posted to your account.

In terms of how long it will take for the check to deposit and be cleared, that will vary depending on such factors as how you deposited it, the amount, and the bank it’s drawn on. It could take between one and several days.

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Ways of Depositing a Check

When it comes to depositing a check, the method you choose will depend on what your bank offers and what feels most convenient for you.

In Person

Though not always convenient, you can take your check to your local bank and deposit it into your account. (Worth noting: Some banks may allow you to cash checks without an account there, but you may have to pay a fee.)

Mobile App

Many banks and credit unions offer mobile apps for their customers. A popular feature is mobile check deposit, which allows you to snap a photo of the check with your device and deposit it remotely…no trip to a bank or ATM required.

ATM

Traditional and some online-only banks offer the convenience of depositing a check at an ATM, whether to your checking or savings account. Read your account’s fine print or contact customer service to see if this needs to be at an ATM in your bank’s network.

💡 Quick Tip: Want a new checking account that offers more access to your money? With 55,000+ ATMs in the Allpoint network, you can get cash when and where you choose.

Keeping Safety in Mind When Depositing Checks

No matter which method you choose, it’s important to be safe when depositing checks. Keep these safety tips in mind:

• One key step is to make sure a check is valid and comes from a legitimate source. If you’re not expecting a payment and receive a check in the mail, you’re not wrong to be suspicious. It could be part of a scam. The same holds true for checks you were expecting but that arrive for a higher amount of money than you anticipated.

• If you want to verify a check, or see if it’s legitimate, hold the check up to the light to see if there are any watermarks (which are a good thing) or if there’s any evidence that it’s been tampered with (a bad thing). In addition, get a feel for the paper the check is printed on; if it feels thin, like the paper you put in a printer, it may be fraudulent.

• Checks also have a safety feature called an MICR (magnetic ink character recognition) line. Located at the bottom of the check, this usually shows details like the issuing bank’s routing number. The ink should look flat and dull. If it looks shiny when you hold it under the light, it may be a fake check.

Think you have a fake check in hand? Talk to your bank about how to proceed, and you may want to report it to the Federal Trade Commission (FTC) or the Better Business Bureau (BBB), which has a Scam Tracker department.

One last suggestion: You might also keep in mind that mobile deposit and even direct deposit (bypassing checks altogether) are often good options in terms of safety. These techniques can be preferable to looking for a bank branch or ATM that can accept your check, especially at night or in bad weather.

Recommended: Cashier’s Check vs Certified Check

The Takeaway

Depositing a check typically involves five simple steps: Select a deposit method, gather materials, endorse the check, confirm its amount, and be sure that it’s hit your account.

While checks are a common, time-honored way to receive funds, you have plenty of options today to send and receive money. Check out what different banks offer (and how much services cost) to make sure you have the right banking partner for you.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

How do you deposit a check into your account?

You can deposit a check in your account either in person, through your bank’s mobile app, or at an ATM. Once you decide on a method, you gather what you need, endorse the check, confirm its amount, and receive acknowledgement that it’s in your account.

How do you deposit a check at an ATM?

You can deposit a check at an ATM by going to a machine that will accept your deposit — your bank may stipulate which ones are acceptable. Insert your debit card and enter the correct PIN number, then follow the prompts to deposit your check.

How do you deposit a check without going to the bank?

You can deposit a check without going to the bank by doing it through your bank’s mobile app or at an ATM.

Photo credit: iStock/AndreyPopov

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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Source: sofi.com

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Know what to expect at the sales pitch

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Dark and Stormy Is How They Take Their Décor

Apache is functioning normally

Yes, You Can Take Out a Mortgage on a Home That’s Free and Clear

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Let’s breakdown how that number is calculated.

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What Is a Joint Bank Account?

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Reasons to Remove Yourself From a Joint Bank Account

Separation or Divorce

End of Business Partnership

Child Getting Their Own Account

Reduction of Financial Ties

Steps to Remove Yourself From a Joint Bank Account

Request Account Closure or Complete Paperwork

Pay Fees

Withdraw Remaining Funds

Required Documentation

Issues to Be Aware Of

Outstanding Checks and Automatic Payments

Direct Deposits

Remaining Account Holder Approval

Potential Bank Fees

Alternative to Removal

The Takeaway

FAQ

Can one person remove themselves from a joint bank account?

Do I have to notify the other person on the account?

What if other owners don’t approve the removal?

HELOC, Live Pricing Data, VOIE Tools; LO Survey, Webinars and Training

Option 1: Copy and send this link

Determine the value of the promotion, then negotiate

Understand the restrictions and limitations

Know what to expect at the sales pitch

Be in the ‘no’

Simply pack up and go

How to maximize your rewards

How To Deposit a Check in 5 Steps

1. Select Your Preferred Method

2. Gather What You Need

3. Endorse Your Check

4. Confirm Deposit Amount

5. Wait for Confirmation

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!

Ways of Depositing a Check