interest

Apache is functioning normally

Editor’s Note: Parts of this story were auto-populated using data from Curinos, a mortgage research firm that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our methodology here.

Mortgage rates continue their modest decline this week, although 30-year fixed rates continue to hover well above 7%. According to data from Curinos analyzed by MarketWatch Guides, today’s 30-year fixed rate is down to 7.22% APR. 

On Friday, a stronger-than-expected jobs report led Lawrence Yun, chief economist for the National Association of Realtors, to predict rates will continue to remain above 7% for the next month. 

While high rates continue to affect the housing market, there’s a silver lining for younger and first-time homebuyers. Real estate marketplace Realtor.com released data Tuesday indicating there are more smaller and lower-priced homes on the market than this time last year, based on price-per-square-foot data. Since last May, there has been a 46.6% increase in the amount of homes in the $200,000 to $350,000 price range across the U.S.

Here are today’s average mortgage rates:

  • 30-year fixed mortgage rate: 7.22%
  • 15-year fixed mortgage rate: 6.47%
  • 5/6 ARM mortgage rate: 7.09%
  • Jumbo mortgage rate: 7.15%

Current Mortgage Rates

Product Rate Last Week Change
30-Year Fixed Rate 7.22% 7.40% -0.18
15-Year Fixed Rate 6.47% 6.71% -0.24
5/6 ARM 7.09% 7.07% +0.02
7/6 ARM 7.20% 7.24% -0.04
10/6 ARM 7.27% 7.30% -0.03
30-Year Fixed Rate Jumbo 7.15% 7.25% -0.10
30-Year Fixed Rate FHA 6.89% 7.02% -0.13
30-Year Fixed Rate VA 6.91% 7.04% -0.13

Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Friday, June 14, 2024. Actual rates may vary.

>> View historical mortgage rate trends

Mortgage Rates for Home Purchase

30-year fixed-rate mortgages are down, -0.18

The average 30-year fixed-mortgage rate is 7.22%. Since the same time last week, the rate is down, changing -0.18 percentage points.

At the current average rate, you’ll pay $680.14 per month in principal and interest for every $100,000 you borrow. You’re paying less compared to last week when the average rate was 7.40%.

15-year fixed-rate mortgages are down, -0.24

The average rate you’ll pay for a 15-year fixed-mortgage is 6.47%, a decrease of -0.24 percentage points compared to last week.

Monthly payments on a 15-year fixed-mortgage at a rate of 6.47% will cost approximately $869.46 per $100,000 borrowed. With the rate of 6.71% last week, you would’ve paid $882.69 per month.

5/6 adjustable-rate mortgages are up, +0.02

The average rate on a 5/6 adjustable rate mortgage is 7.09%, an increase of +0.02 percentage points over the last seven days.

Adjustable-rate mortgages, commonly referred to as ARMs, are mortgages with a fixed interest rate for a set period of time followed by a rate that adjusts on a regular basis. With a 5/6 ARM, the rate is fixed for the first 5 years and then adjusts every six months over the next 25 years.

Monthly payments on a 5/6 ARM at a rate of 7.09% will cost approximately $671.36 per $100,000 borrowed over the first 5 years of the loan.

Jumbo loan interest rates are down, -0.10

The average jumbo mortgage rate today is 7.15%, a decrease of -0.10 percentage points over the past week.

Jumbo loans are mortgages that exceed loan limits set by the Federal Housing Finance Agency (FHFA) and funding criteria of Freddie Mac and Fannie Mae. This generally means that the amount of money borrowed is higher than $726,200.

Product Monthly P&I per $100,000 Last Week Change
30-Year Fixed Rate $680.14 $692.38 -$12.24
15-Year Fixed Rate $869.46 $882.69 -$13.23
5/6 ARM $671.36 $670.01 +$1.35
7/6 ARM $678.79 $681.50 -$2.71
10/6 ARM $683.53 $685.57 -$2.04
30-Year Fixed Rate Jumbo $675.41 $682.18 -$6.77
30-Year Fixed Rate FHA $657.93 $666.65 -$8.72
30-Year Fixed Rate VA $659.27 $667.99 -$8.72

Note: Monthly payments on adjustable-rate mortgages are shown for the first five, seven and 10 years of the loan, respectively.

Factors That Affect Your Mortgage Rate

Mortgage rates change frequently based on the economic environment. Inflation, the federal funds rate, housing market conditions and other factors all play into how rates move from week-to-week and month-to-month.

But outside of macroeconomic trends, several other factors specific to the borrower will affect the mortgage interest rate. They include:

  • Financial situation: Mortgage lenders use past financial decisions of borrowers as a way to evaluate the risk of loaning money.
  • Loan amount and structure: The amount of money that bank or mortgage lender loans and its structure (including both the term and whether its a fixed-rate or adjustable-rate).
  • Location: Mortgage rates vary by where you are buying a home. Areas with more lenders, and thus more competition, may have lower rates. Foreclosure laws can also impact a lender’s risk, affecting rates.
  • Whether borrowers are first-time homebuyers: Oftentimes first-time homebuyer programs will offer new homeowners lower rates.
  • Lenders: Banks, credit unions and online lenders all may offer slightly different rates depending on their internal determination.

How To Shop for the Best Mortgage Rate

Comparison shopping for a mortgage can be overwhelming, but it’s shown to be worth the effort. Homeowners may be able to save between $600 and $1,200 annually by shopping around for the best rate, researchers found in a recent study by Freddie Mac. That’s why we put together steps on how to shop for the best mortgage rate.

1. Check credit scores and credit reports

A borrower’s credit situation will likely determine the type of mortgage they can pursue, as well as their rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be the best option for borrowers with a FICO score between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate. 

Mortgage lenders often review scores from the three major credit bureaus: Equifax, Experian and TransUnion. By viewing your scores ahead of lenders considering you for a loan, you can check for errors and even work to improve your score by paying down balances and limiting new credit cards and loans. 

2. Know the options

There are four standard mortgage programs: conventional, FHA, VA and USDA. To get the best mortgage rate and increase your odds of approval, it’s important for potential borrowers to do their research and apply for the mortgage program that best fits their financial situation. 

The table below describes each program, highlighting minimum credit score and down payment requirements. 

Though conventional mortgages are most common, borrowers will also need to consider their repayment plan and term. Rates can be either fixed or adjustable and terms can range from 10 to 30 years, though most homeowners opt for a 15- or 30-year mortgage. 

3. Compare quotes across multiple lenders

Shopping around for a mortgage goes beyond comparing rates online. We recommend reaching out to lenders directly to see the “real” rate as figures listed online may not be representative of a borrower’s particular situation. While most experts recommend getting quotes from three to five lenders, there is no limit on the number of mortgage companies you can apply with. In many cases, lenders will allow borrowers to prequalify for a mortgage and receive a tentative loan offer with no impact to their credit score.

After gathering your loan documents – including proof of income, assets and credit – borrowers may also apply for pre-approval. Pre-approval will let them know where they stand with lenders and may also improve  negotiating power with home sellers. 

4. Review loan estimates

To fully understand which lender is offering the cheapest loan overall, take a look at the loan estimate provided by each lender. A loan estimate will list not only the mortgage rate, but also a borrower’s annual percentage rate (APR), which includes the interest rate and other lender fees such as closing costs and discount points. 

By comparing loan estimates across lenders, borrowers can see the full breakdown of their possible costs. One lender may offer lower interest rates, but higher fees and vice versa. Looking at the loan’s APR can give you a good apples-to-apples comparison between lenders that takes into account both rates and fees.

5. Consider negotiating with lenders on rates

Mortgage lenders want to do business. This means that borrowers may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower their offered rate by much, but even a few basis points may save borrowers more than they might think in the long run. For instance, the difference between 6.8% and 7.0% on a 30-year, fixed-rate $100,000 mortgage is roughly $5,000 over the life of the loan.

Expert Forecasts for Mortgage Rates

Mortgage rates have cooled significantly over the past several months. After the 30-year fixed-rate mortgage hit 8% last October, it ended 2023 closer to 7%. In fact, the average for Q4 2023 was 7.3%.

Analysts with Fannie Mae and the Mortgage Bankers Association (MBA) both project that rates will fall going into 2024 and throughout next year.

Fannie Mae economists expect rates to drop more quickly, falling below 6% by Q4 2024. Meanwhile, the MBA’s forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.

More Mortgage Resources

Methodology

Every weekday, MarketWatch Guides provides readers with the latest rates on 11 different types of mortgages. Data for these daily averages comes from Curinos, LLC, a leading provider of mortgage research that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our comprehensive methodology here. Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

Source: marketwatch.com

Apache is functioning normally

These summery home decor finds are so chic — and available at Walmart

Sometimes you just want to give your home a little bit of a makeover. The problem with that is keeping up with the latest trends in home decor — and regularly swapping out your furniture and decor pieces for the newest styles — can get very expensive, very quickly. Luckily, you can get tons of chic pieces at surprisingly affordable prices from Walmart.

Right now, Walmart has trendy furniture and decor that’s perfect for anyone looking to give their home a summer refresh. These pieces are light, bright and perfectly on trend — and you won’t be able to resist grabbing some of them for your home once you see these low prices. From side tables with trendy cane accents to Moroccan-inspired area rugs, arched full-length mirrors perfect for checking out your summer outfits and more, you can get everything you need for a mini home makeover fit for the season — and all without breaking the bank.

In this article: Better Homes & Gardens Springwood Caning Side Table, Light Honey Finish, Seven Six Home 5’x7′ Area Rugs for Living Room Washable Rugs Boho Moroccan Area Rug and BEAUTYPEAK Arched Full-Length Floor Mirror 64″x21.1″ Full-Body Standing Mirror

Scroll down below to check out 10 of our favorite summer finds from Walmart. These are so trendy and chic, people won’t believe where you got them — but you’ll love the savings.

If your home needs a refresh, you’ll want to check out these chic, affordable home decor pieces from Walmart

Better Homes & Gardens Springwood Caning Side Table, Light Honey Finish

This light and bright side table features two shelves for storage and trendy cane accents.

Seven Six Home 5’x7′ Area Rugs for Living Room Washable Rugs Boho Moroccan Area Rug

This Moroccan-inspired area rug has a neutral-colored geometric pattern that adds texture to your space but goes with any color palette.

BEAUTYPEAK Arched Full-Length Floor Mirror 64″x21.1″ Full-Body Standing Mirror

You can hang this floor-length arched mirror on a wall or stand it up on the attached stand. All that’s left to do is admire your outfits.

DR.Planzen Store 3FT Artificial Bird of Paradise Plant

No green thumb? No problem. This artificial bird of paradise looks like the real thing but requires no care.

AUSTUFF Irregular Wall Mirror Cloud-Shaped Bathroom Mirror Home 20″x36″

This cloud-shaped, gold-rimmed mirror is perfect for anyone with maximalist decor.

Beautiful Rattan & Glass Coffee Table with Solid Wood Frame by Drew Barrymore, Warm Honey Finish

Drew Barrymore’s furniture line brings us a midcentury-inspired coffee table with clean lines and mixed materials with a wooden base and glass top.

ONLINE 6″ Green Translucent Glass Indoor Tabletop Vase with Natural Rattan Caning Wrap

This decorative vase makes a perfect place to display a summer bouquet of fresh flowers.

Better Homes & Gardens Springwood Caning Coffee Table, Light Honey Finish

This coffee table provides a storage shelf for conveniently tucking away items you don’t use every day behind trendy cane webbing, so they’re partially out of sight.

Crystal Art Gallery Midcentury Modern Geometric Potted Plants, Neutrals

Add some art to your walls with this neutral print of two potted plants inspired by midcentury designs.

Better Homes & Gardens Beige Cactus 20″ x 20″ Pillow by Dave & Jenny Marrs

This linen throw pillow is embroidered with a geometric print to add texture and visual interest to any space.

Prices listed reflect time and date of publication and are subject to change.

Check out our Daily Deals for the best products at the best prices and sign up here to receive the BestReviews weekly newsletter full of shopping inspo and sales.

Copyright 2024 BestReviews, a Nexstar company. All rights reserved.

Source: wtrf.com

Apache is functioning normally

Redwood Trust is the latest nonbank lender to turn to the debt markets to support its operations.

The Mill Valley, California-based real estate investment trust has priced $85 million of senior unsecured notes due in 2029 at 9%. The underwriters have an option to purchase an additional $12.75 million for 30 days to cover over-allotments.

Proceeds can be used for Redwood’s residential and business purpose mortgage lending operations, acquiring mortgage-backed securities for investment and/or for funding long-term portfolio investments and potential acquisitions.

The new funds can also be used to purchase or pay down prior debt, including the 5.75% exchangeable senior notes due 2025 issued by one of its subsidiaries or the 7.75% convertible senior notes due 2027. The notes will be traded on the New York Stock Exchange. It is expected to close on June 18.

Net proceeds from this offering are expected to be approximately $81.7 million, or about $94 million if the underwriters exercise their over-allotment option in full.

This is Redwood’s second debt offering this year. In January, it sold $60 million of senior unsecured notes at a 9.125% interest rate, with the primary reason being to pay down or repurchase the older debt above, as well as from the 5.625% convertible senior notes due 2024 offering.

In the latest offering, note payments will be made on the first day of each quarter, starting on Sept. 1. They can be redeemed in whole or in part anytime after Sept. 1, 2026.

Morgan Stanley & Co., Goldman Sachs & Co., RBC Capital Markets, Wells Fargo Securities, Keefe, Bruyette & Woods and Piper Sandler & Co., are acting as joint book-running managers for this offering, while Citizens JMP Securities is the co-manager.

In the first quarter, Redwood Trust had GAAP net income of $29 million. It locked $1.8 billion of jumbo mortgages during the period, up from $1.2 billion in the fourth quarter. 

The REIT participated in three jumbo securitizations during the quarter totalling $1.2 billion, as well as whole loan sales of $202 million. 

Redwood Trust also funded $326 million of residential investor loans in the first quarter, down from $343 million in the fourth quarter of 2023.

In March, Redwood Trust entered into an agreement with the Canada Pension Plan Investment Board for a $750 million transaction. The deal included a $250 million corporate secured revolving financing facility CPP provided to Redwood Trust, as well as creating a $500 million joint venture that will invest in residential investor bridge and term loans.

The CPP facility has a two-year term, with a one-year extension option.

Among some recent debt transactions involving publicly traded nonbank mortgage lenders includes Loandepot exchanging nearly $500 million in 6.5% notes coming due in 2025 for 8.25% notes due in 2027. 

Rithm Capital, the parent of Newrez that is also structured as a REIT, in March conducted a $775 million offering of 8% unsecured senior notes to come due in 2029.

A January $1 billion debt offering from Mr. Cooper was one of the factors that pushed its common stock to a new high at that time. Subsidiary Nationstar Mortgage Holdings priced the senior notes at 7.125%, and they are due on Feb. 1, 2032.

Pennymac upsized its December debt sale by $100 million to $750 million of senior unsecured notes at a 7.875% rate.

Source: nationalmortgagenews.com

Apache is functioning normally

Are you excited to find the best version of yourself possible?

If you are, then you were in the absolutely correct place right now.

When trying to form a new habit or break a bad habit, many times we get lost in the overwhelming feeling that we are just not capable of making any changes. That is why these 30 day challenge ideas will help you become the person that you desire to be.

We cover a bunch of different thirty day challenge ideas across many contrasting areas in your life.

In this post, you are bound to find something that you will want to do.

For me personally, I have jumped on the 30 day challenge concept because I know that just a couple of days of trying a new habit isn’t going to last. I need to do something over a longer period of time to actually have it become ingrained as a habit or part of my life.

So, let’s dig into the best 30 day challenge ideas to get you started.

And don’t worry, we cover what are some fun 30 day challenges!

What is a 30 day challenge?

Simply put, a 30 day challenge is thirty days in a row that you challenge yourself to do something specific.

There are many things that you can do within these 30 days.

But, the goal is to use a thirty day challenge tracker and cross it off each and every day.

If you are not sure what can be achieved in 30 days, then you have never tried one of these challenges. You are able to accomplish more than you thought possible by sticking to the challenge.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Does the 30 day challenge really work?

Yes, you will be transformed at the end of the month if you cross off a majority of your thirty days.

If you have not read Atomic Habits by James Clear, then I highly recommend getting this book ASAP.

This book will help you realize some of the things that you were doing without even realizing it, and causing you to have good or bad habits. Plus, it will help drive the desire to build good habits in your life.

For me personally, this book has helped me to build better habits and make progress. And I wished I read it when it first came out in 2018!

You need to get rid of bad habits that make your life a struggle. Thus, a 30 Day Challenge will help.

This is only true if you are committed to putting in the effort in time.

While you may skip a day and there is absolutely nothing wrong with that. As long as you jump back on the bandwagon and continue the next day.

Types of Fun 30 Day Challenges:

Well, let’s be honest if you’re not going to make it fun, then you shouldn’t do it at all! Because it is much easier to complete a fun 30 Day Challenge rather than something that you’re forced to be doing.

So, in order to keep it fun, you can always have a reward tied to the end.

Once you complete your 30 day challenge, then this is your reward for completion.

Too many times we look at thirty day challenges as “what should I give up for a month,” when in reality, you are not really depriving yourself for a month, you are trying to build a better you and better habits.

Here are the fun categories for all of our thirty day challenges:

How to Do a 30 Day Challenge?

As you will see shortly, there are lot of ways that you can intertwine these 30 day challenges together in your life and your schedule.

You may do one of these challenges while you’re sitting in the car waiting to pick up children from their activities. You may carve out time, specifically to work on a new skill, how and when you accomplish these challenges is up to you.

At the end of 30 days though, you are going to find a new level of happiness, enjoyment and fulfillment by sticking to these challenges.

The best way for success is to track your progress! There are resources at the bottom to help you out.

If you fall off the bandwagon for a day or two, that’s okay. Shake it off, and jump right on.

Don’t skip, more than a day. You got to get back on and complete your challenge.

30 Day Challenge Health & Fitness

First of all, I don’t like the sound of a 30 day wealth loss challenge because managing your health and fitness is a lifelong skill.

While thirty day challenge will give you a kickstart, you need to continue focusing on your overall health and fitness level.

Here are quick things to improve your health and fitness in the next month with one of these 30 day health challenge.

1. Do Workouts at Home

There is no reason you must go to the gym, so find a workout that you can do at home. There are plenty on YouTube, as well as subscription services to get you started.

Are 30 day workout challenges good? Personally, I have found that they keep my motivation going and accountable.

2. Daily Yoga

This is a challenge that I completed in the month of September is every day to do yoga. Some days it may be just 10 minutes, other days I may do an hour, but it is just a simple challenge to keep improving my flexibility and movement. Here is my favorite yoga instructor.

3. Drink Only Water, Tea & Coffee

Without realizing it, it is really easy to add a lot of liquid into your body that may not be the best. So, a quick and easy health challenge is to only drink water, tea, and coffee.

Eliminate all extra drinks, especially mixed cocktails, sodas, or energy drinks.

4. Stop Snacking

In today’s society, we are bombarded with eating small meals, and snacking is good for us. However, with the constant influx of food, we are more in a habit of snacking, rather than out of hunger for food.

To stop snacking, focus on your main meals for 30 days. Evaluate how you feel afterward a month.

5. Walk Before Lunch or Dinner

Walk before you sit down to eat a meal. Get outside, stretch your legs and take a walk around the block. It does not have to be for long; it can be 10 minutes or 30 minutes.

But, by taking that time to walk beforehand, you are burning calories and at an opportune time before you eat your main meals.

6. Focus on Core Strength

A quick 10 minute abs / core strength exercise helps us in everyday life. Yet, we tend to forget about building up the strength in our core.

Head to YouTube and do a 10 minute ab workout. It is very quick and easy.

You can easily fit in, when you go to take a break, instead of jumping on Facebook or Instagram. Do a quick 10 minute ab workout, and that will improve your health and fitness level by the end of 30 days.

7. Check out Fasting

Fasting is not for everyone. However, this statement intrigued me… the word breakfast means breaking your fast.

We are bombarded with food options 24/7, but maybe our bodies need a break from eating consistently. Check out this book for more info and talk to your doctor first.

8. Fit Bride-to-be Workout

If you are an upcoming bride, you probably want to be at the best possible fitness level that you are capable of doing. So here is a 30 day workout challenge, just for brides.

30 Day Challange Happiness & Gratitude

We all need a little bit more happiness in our life, and we all could express more gratitude. It does not have to be difficult.

These are simple concepts, but we get too focused on everything that is going wrong in our life. Thus, we do not look around and see the beauty and all of the good that is happening.

9. Walk Outside for Fresh Air

Did you know that fresh air is beneficial for your health? Also, it instantly improves your happiness level. So, all you have to do is step outside and take a fresh breath.

10. Start a Gratitude Journal

This helps you focus on three things. Each day wrote down three positive moments in your life. After you do this over the course of 30 days, your happiness level will improve, as well as your gratefulness.

11. Take Control of Your Phone

There is a great book written by two previous Google employees on how to use your technology appropriately and not have your technology take over your life. Check it out. You need to use your phone for the purposes of your phone, and not as a distraction tool.

12. Take a Social Media Break

Every day you are overwhelmed with the picture-perfect life of everybody else on Instagram and Facebook. Studies prove that will leave you discouraged and unhappy with your real life.

Take a thirty-day break from social media and stop focusing on everybody’s highlight reel. During those 30 days, connect with real people and have real conversations, and let your mind focus on the reality around you.

13. Buy a Bouquet of Flowers

Every once in a while, I splurge and buy a bouquet of flowers to put on the table – just because it brings a smile to my face every time I walk through that room. It is something very easy. Plus for my frugal side, I always buy flowers under $10.

14. What Brings Joy in Your Life?

For a quick minute, think about what just brings that extra joy in my life. Focus on those things. Plan to dedicate extra time to what you want out of life and not what others want for your life.

15. Take a Day for You

This is true for everyone, but right now I am going to speak directly to the mamas out there first. As a mom, we put our family and our kids first. We always make sure that we are available and ready to help them in every possible way. This will leave us drained over the course of a day, week, month and year.

Plan a day for yourself. Take a mental break from being in that role of a mom.

This applies to everyone; take a day to recharge your batteries. Then, you will be able to come back for another day with a fresh gusto!

16. Say Yes to that Hobby

We always have a reason or excuse why we are not going to start that hobby that we have thought about for many years. So, what better time to be happy, and give it a try? Try your new hobby for thirty days and see how it works out.

Resources for More Happiness & Gratitude Ideas:

30 day Financial Challenge

One of the hardest parts of managing money is it takes time to make progress. In a couple of days, you are not going to notice a significant change in one direction or another with your money.

At the end of 30 days, you can actually start to see progress with your money and your habits.

Here are the best financial challenges that you can do within a 30 day time period.

17. No Spend Challenge

If you have never participated in no spend challenge this 30 Day financial challenge is just for you. Learn how you spend money, and why you spend money.

That will help you evaluate whether spending money is worth it or not. Check out how to participate in a no spend month.

18. Have a 24 Hour Buy Period

Oh, retailers love to make a spend, spend, spend. This is your “conscious” way to pause your spending. Wait 24 hours before you could buy anything.

While this may not be convenient, it is a good way to see if you actually truly wanted that item, or if you are buying it for no specific need.

19. Envelope Challenge

With this super popular 100 envelope challenge, there is absolutely no reason that you cannot just do 30 days. Your results will vary on how much you end up saving. But, something is more than nothing!

If you decide to just do the numbers one through thirty, you will end up saving $465 at the end of the challenge. If you keep all the numbers 1-100 and randomly pick thirty envelopes, then your results are going to be different based on what envelopes you pick.

But either way, it is a good way to start saving money.

20. Financially Stable Habits

Regardless of where you are on your money journey, you can pick one of the financially stable habits and focus on those for the month. Pick a few habits to focus on for 30 days. If you want to be successful with money long term, you need to learn how to be financially stable.

21. Pick a Habit of a Thrifty Person

Being thrifty is a great quality to have! You are not cheap with your money, you know when to spend on quality, but a lot of times people look frown upon those who are thrifty.

By being thrifty, you will actually end up saving money in the long term. And that will impact your finances, so learn a quality of a thrifty person.

22. 30 Day Money Saving Challenge – Save $465

Our money saving challenges, here at Money Bliss, are extremely popular,
and for good reason, it sets you up for financial success.

There are plenty of options to save money in thirty days. You can save $5 a day over the course of 30 days, and end up saving $350. Or find ways to stop spending money and save $20 a day, then you accumulate $600 in just one month.

30 Day Journaling Challenge

In this section, some people either love or absolutely hate it because journaling can be overwhelming (mostly thanks to Pinterest). We always feel like our journaling is not as good as others, or our handwriting is not as pretty. Or that you do not have the time to dedicate to journaling.

So when it comes to this 30 Day journaling challenge, I challenge you to do what you can do and not compare yourself to others.

Personally, my handwriting and the beauty of my journals are not great either. I do bullet points mostly and that works for me. I just find ways to clear my head and write down my thoughts.

23. Set a Time to Journal

You must dedicate time to journaling. Block out time to journal. If not, It is not gonna happen. You need to set a time for you to journal, whether it is five minutes, ten minutes, thirty minutes, or an hour!

Take time for whatever you need to journal what is on your heart.

24. Find Journaling Prompts

Do not go into your journaling time without an idea of what you should journal about. In advance, look for journaling prompts that work for you where every day you focus on a different part of your life.

For example… Day one is work. Day two is your family. The third day is your friends, and keep going from there.

Or start with these money affirmations to guide you.

25. Create a Bucket List

We all have goals, aspirations, and dreams. Nevertheless, have you ever written them out on a list? This is your time to create a bucket list. Start thinking about what you want to do, where you want to go, and how it is going to happen.

26. Write a Letter

Letters are a great way to share your thoughts with others. You may find finishing a letter may take a little bit longer than one day (and that is completely okay).

These letters could be written for future events like once a person graduates from college, gets married, finds their first job, or has a baby – whatever it may be, the letters share your heart now to be opened later down for a future.

27. Journal about your Pet Peeves

If you have certain pet peeves that drive you crazy, then why not journal about them? Then, you can notice signals to stop them before they start or get worse. Consequently, you can also find happiness at the same time.

28. Learning Opportunities

Write a list of all the things that you want to learn. Next, journal about the action steps you need to take in order to start learning and doing.

29. Describe your Life in 5 Words

Sometimes we do not want to write at all, sometimes we want to write a ton, and that is completely okay. If somebody asked you today, describe your life in five words, what would you say? Journal about that.

30 day Self-Care Challenge

It is okay to participate in self care. This is extremely important for your mental health.

Don’t keep putting this off until tomorrow. Wellness at home is extremely important!

This is your chance at self care if not all the other people in your household will be begging for your attention.

30. Extra Time for You

We go through the day focused on everything that needs to be done and a lot of times we do not take a breath. Blocking out time for you is extremely important for self care. Right now, set a timer in your phone for 5-30 minutes of just extra time, just for you, and spend it how you choose.

31. Be Still

Plan the time to take an extra 10 minutes to get away and have time for yourself. Just to be still. It could be when you get ready in the morning, be early to a meeting, or while waiting for kids to be picked up. Give yourself an extra 10 minutes to get ready.

32. Get a Massage

Work out all those kinks in your neck and your back plus all that tension. Get a massage for yourself. If you cannot afford regular massages, then look at the handheld massager to use at home.

33. Take a Detox Bath

Soaking in a bathtub is a great way to help with self care. Even soaking your feet is an indulgent experience. By doing a detox bath, you are able to draw out the impurities in your skin. Here are good detox sea salts to evaluate your soaking time.

34. Get Enough Sleep

If you are not sleeping well, then you need to get to the core of the problem. Everybody needs around eight hours of quality sleep. So, pull the drapes, cool the room, and get the rest you truly need.

35. No Phone for a Day

This one is probably going to be a challenge for most of us, but by having a phone-free day you will realize how different you react to things and how different your life actually feels. Sundays are a great day to do this!

36. Get your Hands Dirty

For some people, this may be gardening in the dirt. For others, it may be kneading dough in the kitchen. Whatever it is, getting your hands dirty and activating your hand muscles is therapeutic.

37. Listen to your Favorite Music

Indulge in your favorite tunes. Take time to fill your mind with music that you enjoy! Even better, upgrade the subscription so you have ad-free listening time. Did you know with Amazon Prime, you have access to over 2 million songs for free.

38. Get Dressed Up – Just Because

Dressing nicely brings out confidence. You do not need a reason to dress up. Pick out your favorite dress or dazzle an outfit with fun heels or jewelry. Just because.

Resources for More Self Care Ideas:

30 day Self-Improvement Challenge

You cannot just say you want to improve. You have to put action behind those plans.

Self-improvement is one of the hardest areas to overcome.

We feel like there is too much self-improvement to be done. So, go into this section on simple habits you can start doing today that will make a difference in the long run.

39. Write a List of Areas to Improve

You may have grand goals for everything you can do for self-improvement. But, in reality, we cannot accomplish all those things overnight. So, write a list of areas that you can improve in. Then, focus on certain aspects over the next 30 days. Stick with only three to five of those items on your list.

40. Say Yes

There are many times that we are too afraid to do something new that we will not even give it a try. If you want to improve something in your life, then take the initiative and go ahead and say yes to trying something.

41. Read a Book

Spend at least 10 minutes reading a book. Ultimately, you should spend at least thirty minutes or more a day of reading. Pick a nonfiction book in an area you improve in your life. Make sure it is a topic you enjoy.

Great Self-Improvement Books:

42. Improve your Habits

As said in the book Atomic Habits, you are unable to make progress in life if you don’t start building solid habits. There is no faster way to improve than my daily progression of your habits. Grab a habit tracker and commit to the best 30 days.

43. Write Down Future Goals

If you’re not sure where you want to go in life. If you want to improve in areas you don’t even know where to start. So create a list of goals of what you want to do.

Find: 100 Self Care Ideas For A 30-Day Self-Improvement Challenge

30 Day Productivity Challenge

By being productive, you can get more done. Just because you are getting more done, it doesn’t mean that you need more time.

It means that you are more effective with the time you have in what you can get done.

44. Use a Timer

This is the best way to get focused quickly. Use a timer, set it for 30 minutes, and get to the task at hand. Get it done and move on. By focusing on one thing at a time, you are more likely to be extremely productive during that time.

This is the timer I use.

45. Limit Distractions

If the distractions are notifications on your phone or on your laptop, remove those while you are trying to be productive in whatever you are currently working on. Do not be tempted to do something else. Move the distractions to a different area (hint: your phone)!

46. Habit Tracker

If you really want to be productive, then use a habit tracker! You can cross off all the habits you are specifically focusing on each and every day. By doing this, you are able to be consistent and focus on building those good habits.

47. Plan your Day in Advance

Don’t let life plan you. You must be planning your day in advance. Make a list of the things that you want to accomplish. That is how you become productive.

48. Track Your Time

Use a tool like Toggl or a written plan to track your time. This is different than planning your time in your calendar. This is how you actually spend your time. Also, this helps you to realize where your infinity pools of wasted time happen and you can dedicate time towards self car.

Don’t just guess how you spend your day; actually, figure out how you spend every single hour of your day.

49. Understand Time Freedom

If you have never heard of time freedom, then you are missing out on the best self improvement tool available. If you’re wasting a good portion of your day doing things that are not going to make a difference at the end of the day, then what is the point?

Your time is important. Make sure you experience all life has to offer!

30 Day Creativity Challenge

Just for those of us who feel not creative enough, this is for you!

You do not have to worry about being super creative; just by using that other side of your brain, you are able to create new neuropathways and lower many aging conditions.

50. Color Daily

You can pick up a great coloring book for adults that are beautiful and you can spend time coloring yourself. Start with coloring for ten minutes a day and see how you feel.

51. Sidewalk Art

Let your creativity escape onto the sidewalks and driveways. Every day write an inspirational message for others to read. You may start a trend of people stopping daily on their walks.

52. Dance Like Nobody’s Watching

Let your mind and your body move just because you are enjoying the song. Move to how you feel your body needs to move. Let that creativity come out in ways that you have not experienced since you were a child.

53. Drawing Challenge

Drawing is not my strength. However, over the past year, I have been working with my daughter on drawing challenges for kids. It has helped to overcome my fears, actually improve, and given me more confidence to draw. Here is a great drawing channel to help you start.

54. Play Music

Find ways to be creative and just play music. Just play to play. Do not play to practice. Play for pure enjoyment.

55. Try a New Craft

Head to the craft store and find something that you want to do. There are plenty of crafts to suit your personality. Plus some are a great way to decompress and destress.

One of my friends started knitting hats as a way to pass the time while she was waiting for kids at sports activities.

30 Day Organization Challenge

By far, the most popular 30 day challenges are for organizing your home, your life, your stuff, your clothing, etc. More than likely, it is probably what you first associate with any 30 day challenge ideas.

Organize, declutter, spring clean … Get rid of the extra stuff in your house.

Take time to clean those areas that you have been neglecting. All great ideas, so let’s dig in!

56. Spring Clean

There is a great feeling of getting rid of stuff and the process of spring cleaning. You can feel this freshness in the area. Honestly, this is something we all should be doing each year. Here is a great spring cleaning checklist to help you get started.

57. Sell Your Stuff

Get rid of extra stuff in your house. If you have not used it for the last month, then you more than likely probably do not need it in your house. Start selling your stuff and here is a great resource to help you.

58. Declutter. Declutter Declutter.

There are lots of resources on decluttering. Just remember, decluttering is extremely important because every single day we have more and more stuff coming into our life, but we are not getting rid of more and more stuff.

Take time and declutter by doing a 30 day challenge. You are only focusing on a small area every single day and by the end of thirty days, you have made great progress.

Decluttering Resources for You:

59. Big 30 Day Decluttering Projects

Let’s face it, not every place in our house, we can organize in a day and sometimes they take a month. Perfect examples are the basement or garage. So on those bigger areas, you can still break them down and every day check one thing off the list.

During the overall decluttering challenge, focus on one area or one shelf per day in that space that needs help. Also, give yourself the grace to actually accomplish what you need to get done.

60. Keep a Clean House

Guilty of not being the best housekeeper? Don’t worry most of us are not great. Thankfully, you can easily check off tasks with this clean house checklist!

61. Take in Less

This is something that you can do on a daily basis. Your goal is to nothing or very little into your house, and have zero impact on the trash and waste. Your home slowly producing a minimalistic vibe. This is known as frugal green.

62. Minimalism

One of the best ways to live life with less and spend less money on a regular basis is to be a minimalist. You can choose your level of minimalism. This means that your cupboards are not allowed to overflow with extra stuff; those shelves must fit only what you need and what you use. Check out this minimalism challenge.

30 Day Challenge For Kids

Let’s not forget why we are trying to build good habits for ourselves, we can also instill good habits into our kids!

These are the 30 day challenge specifically designed for kids. All of them are fabulous 30 day challenge for students!

63. Teach Kids to be Grateful

Most children in America are extremely privileged and have access to things, and resources than most of the world and more than their own parents. They have become accustomed to the little things in life and take everything for granted.

So, we must teach our kids to be grateful. Here is a great gratitude challenge for kids.

64. Kindness Challenge

We all know the trouble that happens at our schools. Also, we know kids are choosing mean words, without realizing it, or maybe doing it on purpose. Either way, we need to instill kindness into our children. Here’s a great kindness challenge for kids to get you started.

65. Money Challenge for Kids

Kids need to be taught to save money. There is no way around it. If they are not taught at home, they will not have those lessons as adults. So, teach them to save their age, every single year growing up.

If they start this at age three, by the time they graduate, they will have over $2,000, not including interest in their accounts. Here is the Save Age challenge for kids.

66. Drawing Challenge for Kids

Every kid wants to learn to draw. Let them use their creative side and have fun. It is a simple project to complete each day. Plus when someone joins them, it becomes a fun experience to share. Use this drawing challenge to get the creative juices flowing!

67. Back to School Decluttering

Get the kid’s help on back-to-school decluttering! They need to learn to be responsible for their things too! Make it fun with a scavenger hunt with this back to school calendar decluttering list.

Success happens when you are able to track your progress!

Are you Ready for your Thirty Day Challenge?

The goal of this post is to get you motivated to find fun 30 day challenges for 2021!

It is not overwhelming with all of the possibilities that you could do in order to become fitter more healthy, improve your self care, improve your productivity, or clean out your house.

The goal of these challenges is to provide opportunities for you to choose what you want to do. You can find plenty of 30 day challenges on Instagram, TikTok, or Pinterest. But, don’t get caught up in trying to find all of these challenges.

Pick the thirty day challenge that is on your heart and you want to do. The best 30 day challenge is one that you deep down you need to accomplish.

No one else can write that, or find the challenge for you – only you can do that.

Right now, set a timer for five minutes and think about what areas would you like to do a 30 day challenge.

We have given you plenty of 30 day challenge ideas, but now you need to decide what works for you.

One of the great things about many of these challenges is they overlap.

Above you will find all of the their day challenge examples. Which one is your favorite challenge idea?

Know someone else that needs this, too? Then, please share!!

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!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

A cloudy mortgage outlook might cause consternation among lenders, but it is opening the door a bit wider for growth in home equity investments.

A confluence of events over the past few years, including rising interest rates, a dearth of refinances and surging property values are driving some consumers to borrow against home equity. With a spate of securitizations and new issuers recently entering the market, investors are seeing a range of opportunities on offer as a result, coming from both established home equity lines of credit or loans and new alternative credit platforms. 

“It will take years and years for the market to recover. And our thought is that even if interest rates were to fall 100 basis points, you’re still not going to see a refi boom,” said Bill Banfield, chief business officer at Rocket Cos. 

Rocket Mortgage introduced a closed-end home equity loan in 2022 and has since issued three securitizations backed by its originations, with hopes to at least double that total for the remainder of 2024. The Detroit-based lender rolled out the lien in the same period several other nonbanks launched similar products.

Since that upswing in product offerings, the secondary market has seen a wave of aggregators or originators offering HELOC-backed residential mortgage-backed securities, including Figure, Achieve, JPMorgan and Goldman Sachs all with issuances over the past 12 months. As the number of securitizations increase, it brings with it better pricing.

“In 2022, there was really no liquidity. There was not a secondary market for HELOC or home equity loans. Now that’s materially changed,” Banfield said.

“We’ve gone from taking the leap of faith that we’re going to use portfolio money to do proper risk management around that, to building out a buyer base, to then ramping up our securitization platform,” he said about Rocket’s strategy.

Huge potential — on a theoretical basis 
While growing, numbers today just represent a tiny slice of the total addressable second-lien market that totals into trillions. In May, ICE Mortgage Technology reported home equity rising to a record $17 trillion in the first quarter this year, but other reports estimate it to be as high as $35 trillion. Home equity totals hit a record high in 2017 and the amount only increased in the years since, according to Vadim Verkhoglyad, vice president and head of research at dv01, a Fitch Rating subsidiary. 

“This is a real market, massive, huge,” he said. “It’s a borrower-demand question much more than a supply question at this point.”

According to Clayton, a due diligence solutions provider and reviewer of MBS pools prior to issuance, $12 to $14 billion worth of second-lien products are expected to be securitized in 2024 based on current trends. Volumes have grown by at least threefold in the past three years, the company said.  

The rate of growth the market sees depends on what the consumer decides to do. “Borrowers in general, homeowners in America — are just not using that much debt,” Verkhoglyad said.

Although home equity securitizations have existed for years, the growth in issuances coming to market over the past several months may seem like a new development to some in the investment community, leading to hesitation. But the sentiment is largely shifting, as issuers have addressed some of the initial reasons driving investor wariness.  

Concerns emerged in some industry offerings that included both closed-end junior loans and HELOCs, according to Banfield. “It made it more difficult to be transparent.”

“The investor has to understand what they’re investing in,” he said. 

Rebuilding a market framework and investor confidence
With home equity originations languishing for a prolonged period when mortgage rates were at historically low levels, the financial structure supporting the secondary market also had to be created.

“The correspondent relationship had to get redeveloped around second liens,” said Pete Pannes, chief business officer at Covius, parent company of Clayton. 

“It was something that had to re-emerge from the credit crisis,” but as those issues have resolved, “I think the market became very efficient,” Pannes said.

“There were entities that came to the table, like our clients, to regenerate capital to put back into the market and go upstream to the originators,” he said, referring to independent mortgage banks and other nonbalance sheet lenders. 

Meanwhile, borrower performance also eased worries, according to Kyle Enright, Achieve’s president of lending. Since late 2022, the personal finance company has issued four rated securitizations backed by HELOCs from its home loan unit. Target customers for the HELOCs are concentrated among consumers with credit scores under 700, below the average of American homeowners.

For Achieve’s first securitization, “Nobody really looked at it seriously,” Enright said. 

“We basically didn’t talk to almost anybody who was a traditional RMBS buyer because it was just too weird,” he added. But sentiment has shifted as some of the first originations reach their five-year point. 

“I think a lot of the questions that investors had back early in the day have been answered for the most part. Other people joining the party has helped us,” Enright added.

HEIs bring something new to the table
The growth in home equity is also driving an influx of alternative credit platforms entering the field in recent years, including companies such as Aspire, Button Finance and Easyknock. Through equity sharing agreements with originators, homeowners tap into their appreciating property values for financing needs.

Home equity investment, or HEI, products represent a new frontier for the secondary markets, though, as they are based on what seems like an unfamiliar business model. “It’s not a loan. It’s junior, and you’re living in equity appreciation,” Verkhoglyad said.

HEIs’ recent arrival means much of the industry will be learning about product performance and possible risk in real time, particularly if homeowners end up struggling or face foreclosure.

With the first lien prioritized, “There’s not going to be equity appreciation because you’re taking sales proceeds,” according to Verkhoglyad. 

“The servicer is going to advance; they are going to be recouped. Legal fees, they’re going to be recouped. All those things are kind of going into the fold.” 

A more significant question in the short-term might be whether HEI volume can build to a point to sustain demand in secondary market trading. 

“Where do you consistently find these borrowers?” said Pannes, whose company also provides originations services for companies in the home equity investment community.

“There’s certainly enough equity out there. Can you find those borrowers? Can those borrowers find you to create substantial, substantially sized securities consistently enough, so it’s not a flash in the pan?” he asked. 

Still, despite the unanswered questions, HEI securitizations are hitting the market, recently coming from the likes of Unison and Point, which issued its third in mid 2024. Other platforms have publicly announced intentions to issue transactions later this year. 

The aggregators and investors drawn to the newer HEI products thus far appear to fit a different profile than purchasers of more established loans. 

“We’ve got a set of clients that are your more traditional securitizers and investors that are dealing in closed-end seconds and HELOCs. We’ve got some of the newer folks in the niche for HEI. There is a little bit of crossover but not much to speak of at all,” Pannes said.

Recognition by stakeholders
A potentially pivotal point for HEI development in the investment community came with the addition of a ratings methodology by Morningstar DBRS a year ago. Kroll Bond Rating Agency followed with its own in early 2024.

“Based on the feedback we have received from the issuers, rated transactions allow for expanded investor base (and consequently better pricing) as certain investors are mandated to invest only in rated securities,” Morningstar’s leaders and researchers said in a comment. 

In an April 2024 primer, the ratings service said it “anticipates continued interest in the features of the HEI product as it is a diversified source of funds for homeowners, as well as an attractive source of returns and diversification for investors.” 

The value of a rating assigned to any type of home equity loan pool can be significant, making some attractive to a set of investors who might look for long-term returns based on creditworthiness, Enright said.  

“These folks have been there since day one, participating in the AA tranche, buying that AAA slice, and they continue to do so,” he said of Achieve’s issuance history. “I think that appetite is also growing quite substantially,” he said.

Recent developments shone a spotlight on the role home equity liens might end up having in the home finance system, with Freddie Mac’s proposal to potentially purchase some closed-end home equity loans. The controversial plan garnered a range of reactions, with concerns raised that the government-sponsored enterprises might displace current issuers. Some leaders, though, welcomed the likelihood of additional liquidity it would bring should the proposal come to pass.

No resolution appears to currently exist that the entire industry would likely find agreement. Freddie Mac said it intends to make a decision on the proposal in June.   

But the suggestion of GSEs participating in the second-lien market points to how recent trends have shifted the conversation within the home finance system, as mortgage originations return at a slower pace than what many lenders would prefer. 

The future of the market, though, is not entirely in lenders’ hands. 

“We’re still talking about a space that is largely very nascent, and the question of how much it’s going to grow is far more a question of what borrowers want to do than lenders,” said Verkhoglyad.

Source: nationalmortgagenews.com

Apache is functioning normally

A mortgage commitment letter is a step beyond prequalification and preapproval and could give a homebuyer an edge in a competitive market. It lays out the loan details and indicates that a buyer has an agreement for a mortgage.

But who should obtain a mortgage commitment letter and when? Let’s take a look at those answers and more.

What Is a Mortgage Commitment Letter?

A mortgage commitment letter — conditional or final — is a step closer to finalizing a mortgage but short of “cleared to close.” The letter signals to the seller that the buyer and a chosen financial institution have forged an agreement.

Buyers may seek a conditional mortgage commitment letter when they’re house hunting, and a final commitment letter when they’re ready to make an offer on a specific home.

In both types of loan commitments, the lender outlines the terms of the mortgage.

Recommended: Buying in a Seller’s Market With a Low Down Payment

Types of Mortgage Loan Approvals

In the mortgage loan process, buyers will hear “approval” thrown around a lot. But not all approvals are built equally, and each type signifies a different part of the process.

Prequalification

Getting prequalified is often an early step for buyers in the home search. It’s quick, can be done online, and doesn’t require a hard credit inquiry.

To get prequalified, buyers provide financial details, including income, debt, and assets, but no documentation, so this step serves as an estimate of how much home they can afford.

Prequalification can help buyers create a realistic budget, but the amount, interest rate, and loan program might change as the lender gets more information.

Preapproval

Preapproval is slightly more complicated, requiring a hard credit inquiry and documentation from the buyer. Lenders may ask for the following:

•   Identification

•   Recent pay stubs

•   W-2 statements

•   Tax returns

•   Activity from checking, savings, and investment accounts

•   Residential history

Armed with this information, a lender will give buyers a specific amount they’ll likely qualify for.

Preapproval also shows sellers that a buyer is serious about a home, as it means a lender is willing to approve them for a mortgage.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Conditional vs Final Commitment

Prequalification and preapproval can be important steps during the home search. But especially in a seller’s market and in certain cities, the mortgage commitment letter can become an important tool.

While a mortgage loan commitment letter can show a seller that the buyer is serious, not all letters are the same.

A conditional mortgage approval letter, the most common type, means that the lender will approve buyers as long as they meet certain conditions.

Conditions could include:

•   No change to the buyer’s finances before the closing date

•   Proof of funds to cover the down payment and closing costs

•   Passing of a home inspection

•   An appraisal

•   Proof of homeowners insurance

•   No liens or other problems with the property title

A final commitment letter means the lender has unconditionally approved the buyer for a loan to purchase a home. However, this doesn’t mean the buyer is guaranteed a loan; it just means the lender is ready to approve the mortgage.

Having a mortgage commitment letter in hand is a good way to ensure that nothing will go wrong during underwriting.

Recommended: See Local Housing Market Trends by City

How to Know If You Need a Mortgage Commitment Letter

Buyers don’t need to provide a mortgage commitment letter to a seller. Still, that extra step beyond preapproval indicates how serious they are about a property.

Since it may require a little extra work, it shows sellers that a buyer is less likely to back out, especially due to financing issues.

A mortgage commitment letter could convince a seller to take a buyer more seriously in a seller’s market. And it could calm the nerves of buyers who face home-buying angst, including the challenge of covering a down payment and closing costs (even if they plan to roll closing costs into the loan).

How to Get a Mortgage Commitment Letter

Getting a mortgage commitment letter might sound like a hassle during an already stressful home-buying process, but doing so could save buyers time and provide a sense of relief as they creep closer to closing.

First off, buyers will need to be preapproved. If they have chosen a home, once under contract, their lender or underwriter will want more information, which may include:

•   A gift letter if another party is helping with the down payment

•   Employment verification

•   Explanation of any late payments

•   Proof of debts paid and settled

From there, it could be a back-and-forth between the lender and buyer, with the lender asking for clarification or additional documentation. Common issues that arise include:

•   Tax returns with errors or inconsistencies

•   Unexplained deposits into buyer bank accounts

•   Multiple late payments or collections on a credit report

•   Unclear pay stubs

At this point, the lender may grant a conditional commitment letter, with the caveat of additional information and an appraisal. If the buyer has an appraisal and meets lender expectations with documentation, they’re likely to get a final commitment.

Contents of a Commitment Letter

A commitment letter will vary from lender to lender but generally include the following details:

•   Loan amount

•   Loan number

•   What the loan is for

•   Mortgage loan term

•   Type of loan

•   Lender information

•   Expiration date of the commitment letter

What happens after the commitment letter? The lender and underwriter will continue to iron out the mortgage details, aiming for cleared-to-close status before the closing date on the property.

The Takeaway

A mortgage commitment letter is like a short engagement before the wedding: It signals an agreement before the real deal. Buyers in an active seller’s market might find a mortgage commitment letter advantageous.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How long does it take to get a mortgage commitment letter?

It typically takes 20 to 45 days to get a mortgage commitment letter. The average closing process takes 50 days.

Does a mortgage commitment letter expire?

Yes.

How long is a mortgage commitment letter valid?

Timing can vary by lender, but the length of commitment is typically 30 days.

Photo credit: iStock/MartinPrescott

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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.

SOHL-Q224-1917095-V1

Source: sofi.com