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Spring break is just around the corner, and many Americans will soon flock to Mexico’s white sand beaches and bustling cities to enjoy their time off. But those opting for a road trip will need to sort out their car insurance coverage first. Mexico legally requires all drivers, including American tourists, to have liability insurance, and failing to purchase enough insurance could land drivers in jail should they cause an accident.

Standard U.S. auto insurance policies won’t cover drivers south of the border, so it’s vital to purchase Mexican car insurance before making the trip.

Liability car insurance is crucial when driving in Mexico

Many large U.S. insurance companies partner with Mexican insurers to offer Mexican car insurance to their customers. Plans are flexible, starting at a single day of coverage and going for as long as a year. Another option is to purchase insurance from a U.S. broker that specializes in Mexican car insurance.

Mexico requires drivers to hold 100,000 Mexican pesos (around $5,800) for bodily injury and death liability coverage and 50,000 Mexican pesos (around $2,900) for property liability damage. If you’re caught driving in Mexico without this minimum coverage, you may face a fine of at least $200. If you cause an accident while driving uninsured in Mexico and cannot pay for the damages you caused, you could face jail time. That’s because in Mexico, all car accidents are considered criminal offenses, not just civil matters.

“If you don’t have insurance and you cause an accident, you can be held by the authorities,” says Geoff Hill, vice president of business development at Baja Bound, a California-based agency that specializes in Mexican auto insurance. “If you’re at fault, they will hold you until you can come up with the money to pay for the damage you [caused]. If you had insurance, you wouldn’t be on the hook for that.”

Oscar Arrieta, an Allstate insurance agent in El Paso, Texas, stresses the importance of having strong liability coverage above all other protection while driving in Mexico. The country’s liability insurance requirements are likely not enough to protect you and your finances if you cause an accident. “To me, protecting your vehicle is secondary,” he says. “It’s [about] the damage you create.”

Arrieta recommends a policy that has at least a $300,000 combined single limit, which is one larger liability limit to cover both bodily injury and property damage. Baja Bound only sells policies that start at that $300,000 limit and go up to $500,000 in liability coverage.

Other types of car insurance coverage worth having in Mexico

Because there’s a possibility that a car accident could land you in jail, many Mexican insurance policies include legal assistance coverage. This benefit can help you find and pay for an attorney and post bail, up to your policy’s limit.

Mexican insurers also typically offer hands-on support at the scene of an accident. If you’re in a car accident, an adjuster from your insurance company will arrive at the accident to examine the scene and determine how to proceed with other drivers’ insurers. That’s a big difference from how things work in the U.S., where adjusters won’t get involved until later.

To drive with peace of mind, it might be wise to consider strengthening your Mexican car insurance policy by purchasing medical payments coverage, which pays for the cost of treating your and your passengers’ injuries after an accident.

Even though it’s legally required, only a small portion of drivers in Mexico have car insurance, according to Mexico’s National Commission for the Protection and Defense of Users of Financial Services. And those who do might only satisfy the $2,900 property damage liability coverage requirement.

That is why you should also consider buying physical damage coverage and theft coverage which, combined, offer similar coverage to collision and comprehensive insurance in Mexico. These cover the cost of repairing or replacing your own car after it’s stolen or damaged in various situations, up to its current market value. Some U.S. insurance companies offer limited insurance coverage in Mexico, as long as you’re within a certain distance of the border, so check with your insurer to see if damage to your vehicle is covered in Mexico.

But no matter what, if you’re driving in Mexico, it is crucial to purchase liability insurance coverage at the very least — even if your insurer will cover damage to your car while driving in Mexico.

Mexican rental car insurance

If you’re planning to rent a vehicle for your trip, the best move will be to do so once you’re in Mexico. Many U.S. rental companies restrict or prohibit their cars from being driven into Mexico. The coverage options available at Mexican rental counters will all comply with the local minimum requirements, so that will be one less thing to worry about when your only concern should be finding the best taquería in town.

Source: nerdwallet.com

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Hey, I’ve just been featured on CNBC and I want to say hello to all of my new readers. You can read the CNBC article here – 34-year-old mom dropped $50,000 to cruise the world with her family: ‘It was some of the best money I ever spent’ If you are a new visitor –…

Hey,

I’ve just been featured on CNBC and I want to say hello to all of my new readers.

You can read the CNBC article here – 34-year-old mom dropped $50,000 to cruise the world with her family: ‘It was some of the best money I ever spent’

If you are a new visitor – welcome to Making Sense of Cents!

I have received many emails about how I was able to afford this trip. I have a free How To Start A Blog course that you can sign up for here. I also talk about this below and how I’ve been able to earn over $5,000,000 blogging over the years.

If you want to read more about my world cruise trip, I recommend reading Around-The-World Cruise With A Kid (25+ Countries In 4 Months!).

Here are some blog posts that you may find helpful and enjoy:

If you have any questions, please leave a comment below or send me an email.

Thanks for stopping by.

-Michelle Schroeder-Gardner

—-

In addition to reading the CNBC article linked above, I also want to talk about how I grew a blog that has earned me over $5,000,000. I know I will get a lot of questions, so I figured it’s best to lay it all out right here 🙂

What started as just a hobby turned into one of the most life-changing things I’ve ever done – that’s starting my blog, and learning how to make money with it.

Since learning how to monetize a blog over 10 years ago, I have now earned over $5,000,000 from my site. This is still hard for me to believe, and I’m the one who’s lived it!

In the beginning, all I was doing was tracking my own personal finance progress as I finished school and started paying off my student loans. Blogging was a very new concept to me at the time – I heard about it from a magazine – and people were just learning how to monetize blogs back in 2011.

Most bloggers started back then with display ads and sponsored posts, but the options have only increased. 

Because of all of the new ways to make money blogging, like affiliate income and selling your own products, you can make somewhat passive income as a blogger. 

Passive income is my favorite way to make money because it makes blogging even more flexible and something I can do as I work from home, travel, and work whenever I want. 

Blogging has changed my life for the better, and I’m now earning thousands of dollars a month doing something I love.

Learning how to monetize a blog takes work and time, but it’s 100% possible to do. I started earning money after just six months of blogging, and I didn’t even set out to make money when I created Making Sense of Cents. Just think of the potential if you start out knowing that making money blogging is possible!

Starting my blog is one of the best things I’ve ever done for my work, personal, and financial life. And, I urge anyone who is interested to start a blog and learn how to monetize it.

How I earned my first income from blogging

Many of my readers have heard this story, but I love sharing it because I started out like many of you, except I had no idea that blogs could make money. When I started Making Sense in August of 2011, I simply wanted a way to keep track of my financial progress and meet others who had similar goals.

As I started getting to know other bloggers in the community, a blogger friend of mine connected me with an advertiser who was willing to pay me $100 for an advertisement.

I couldn’t believe someone would pay me $100 to advertise on my site! 

While it wasn’t a lot of money, especially considering the amount of time and work I put towards my blog in those 6 months, it was very motivating to see that something I loved doing could actually make money.

After that first $100, I started doing a lot of research on how to monetize a blog, and my blogging income quickly grew from there.

One year after I started my blog, I was earning around $1,000 a month, and I was making around $10,000 monthly two years after I started Making Sense of Cents.

My income only continued to grow, and I am still earning a healthy income from this website today.

How To Start A Blog FREE Course

If you want to learn how to monetize a blog and you haven’t started your blog, then I recommend starting with my free blogging course How To Start A Blog FREE Course.

Here’s a quick outline of what you will learn in this free course:

  • Day 1: Reasons you should start a blog
  • Day 2: How to determine what to blog about
  • Day 3: How to create your blog – in this lesson, you will learn how to start a blog on WordPress, and my tutorial makes it very easy to start a blog
  • Day 4: How to monetize a blog – this is where you learn about the many different ways to make money blogging!
  • Day 5: My tips for earning passive income from your blog
  • Day 6: How to grow your traffic and followers
  • Day 7: Miscellaneous blogging tips that will help you be successful

This is delivered directly to your email inbox, and you will learn how to grow a blog from scratch.

Start with a plan for your blog

Sure, you can start on a whim, and that’s kind of what I did, haha.

But, I do think that creating a plan is a good idea if you want to learn how to monetize a blog. This can help you get an organized start, identify your blog’s niche, decide on your blogging goals, find opportunities for blogging income, and more.

It wasn’t until 2015 that I finally created a blogging plan (that’s 4 years after I started!), and my blog income grew significantly after that.

I credit that growth to creating a plan!

Having a plan would have been a huge help in the beginning, and I wish I would have started with one. I probably missed some income opportunities because I had no real plan or direction in the first couple of years. 

Since creating a blogging plan, I became more focused on goals and motivated toward improving and building Making Sense of Cents.

Here are some questions that you may want to ask yourself when creating a plan for your blog:

  • What will you write about on your blog?
  • How do you want to make money with your blog?
  • What will you do to reach readers on your blog?
  • What are your goals for your blog?

Thinking about, researching, and answering these questions will help guide you on your journey and help you decide what to do next.

Write high-quality and engaging blog posts

Your blog’s content is extremely important. This will be what attracts your readers, has them coming back for more, earns you blogging income, and more.

Now, you don’t need to be an expert or need a degree to start talking about a subject, but you do need to be knowledgeable or interested in what you are talking about. And, always be truthful! This will show in your writing and actually help your readers.

To write high-quality content on your blog, here are some tips:

  • Figure out exactly what it is that you’d like to write about and why you think the content is important. Being passionate about a subject will give you the motivation to write content that people want to read. Just think about it: If you don’t enjoy writing your content, then why should you expect someone else to want to read it?
  • Ask your audience what they want you to write about. Many of my best ideas come from expanding on reader questions.
  • Research your blog topics by reading news articles, going to a library, searching for statistics and interesting facts, and more. 
  • If your blog posts are more personal in nature, then dig deep and share your thoughts, and be personable in your writing – your readers want to hear your story!
  • Write long, helpful content. Sure, some great content may only be a few hundred words, but to be as helpful as possible, long content is usually the best. My content is usually over 2,000 words, and this article is around 5,000. Now, you don’t want to just write a lot of fluff content in order to get more words in – you want to actually be helpful!
  • Reread your content. I used to read my content 10 times or more before I would publish it. Now, I have an editor who makes sure I’m always publishing high-quality content.

Network, network, network

If you want to learn how to monetize a blog, then networking can be extremely helpful.

Networking can mean:

  • Making friends with other bloggers
  • Attending blogging conferences
  • Sharing content that other bloggers have written
  • Following other bloggers in your niche on social media
  • Signing up for other bloggers’ newsletters
  • Joining blogging groups on Facebook

Some bloggers don’t do any of these things and purely see other bloggers as competition. I don’t believe this is the correct way to approach blogging because you will hold yourself back immensely!

Networking is important because it can help you enjoy blogging (friends are nice to have, right?!), teach you new ideas (such as how to make money blogging or how to grow a blog), make valuable connections, and more.

Keep in mind that networking is even how I earned my very first $100 blogging. My blogging friend connected me with an advertiser, which helped changed my blogging journey.

I have learned a lot about blogging from the blogging community, and the people I’ve connected with have been a tremendous support as I’ve grown my blog.

Be prepared to put in a lot of hard work

Starting a blog is relatively easy. But, growing and learning how to monetize a blog takes a lot of work. 

You’ll have to:

  • Start a blog, design it, create social media accounts, and more
  • Write high-quality blog posts
  • Attract an audience of readers
  • Monetize your blog
  • Continue learning about blogging
  • And more

Even when I was just a new blogger and had no plans of making money blogging, I was still spending well over 10 hours a week on Making Sense of Cents.

When I was working my full-time day job and earning an income from my blog, I was working around 40-50 hours a week on my blog on top of my day job!

Now that I blog full-time, my hours vary. Some months I hardly work, and there are other months that I may work 100 hours a week.

It’s not easy, and there’s always something that needs to be done.

But, I absolutely love blogging, which makes the hard work a little less tough. 

How to monetize a blog: 4 different ways

There are many different ways you can monetize your blog, including:

  • Affiliate marketing
  • Advertisements and sponsorships
  • Display advertising
  • Create your own product, such as an ebook, course, physical or online products, and more

You could choose to monetize your blog using all of these methods, or even just one. It’s just a personal decision.

For me, I like to be diversified and monetize in many ways, so I do them all.

Below, I am going to dive a little deeper into each way to make money blogging.

1. Affiliate marketing

Affiliate marketing can be a great way to make money blogging because if there is a product or company that you enjoy, all you have to do is review the product and share a unique affiliate link where your readers can sign up or make a purchase. 

In fact, this is my favorite way to monetize a blog. I enjoy it because it can be quite passive – I can create just one blog post and potentially earn an income from it years later. This is because even though a blog post may be older, I am still constantly driving traffic to it and readers are still purchasing through my affiliate links.

Affiliate marketing is a blog monetization method where you share a link to a product or company with your readers in an attempt to make an income from followers purchasing the product through your link. 

Here are some quick tips so that you can make affiliate income on your blog:

  • Use the Pretty Link plugin to clean up messy-looking affiliate links. I use this for nearly all of my affiliate links because something like “makingsenseofcents.com/bluehost” looks much better than the long, crazy-looking links that affiliate programs usually give you.
  • Provide real reviews. You should always be honest with your reviews. If there is something you don’t like about a product, either don’t review the product at all or mention the negatives in your review.
  • Ask for a commission increase. If you are doing well with a particular affiliate program, ask to increase your commissions.
  • Build a relationship with your affiliate manager. Your affiliate manager can supply your readers with valuable coupons, commission increases, bonuses, and more.
  • Write tutorials. Readers want to know how they can use a product. Showing them how to use it, how it can benefit them, and more are all very helpful.
  • Don’t go overboard. There is no need to include an affiliate link 1,000 times in a blog post. Include them at the beginning, middle, and end, and readers will notice it. Perhaps bold it or find another way for it to stand out as well.

You can learn more about affiliate marketing strategies in my course Making Sense of Affiliate Marketing.

Advertisements and sponsorships example

2. Advertisements and sponsorships

Advertising on a blog is one of the first ways that bloggers learn how to monetize a blog. In fact, it’s exactly how I started!

This form of blogging income is when you directly partner with a company and advertise for them on your website or social media accounts.

You may be writing a review for them, a tutorial, talking about their product or company, taking pictures, and so on.

If you want to learn how to increase your advertising-income, I recommend taking my Making Sense of Sponsored Posts course. 

Display advertising example

3. Display advertising

Display advertising is one of the easiest ways to make money blogging, but it most likely won’t earn you the most, especially in the beginning.

I’m sure you’ve seen display ads before. They may be on the sidebar, at the top of a post, within a blog post, and so on.

The ads are automatically added when you join an advertising network, and you do not need to manually add these ads to your blog.

Your display advertising income increases or decreases almost entirely based on your page views, and once you place the advertisement, there’s no direct work to be done.

If you want to learn how to monetize a blog through display advertising, then some popular networks include Adsense, MediaVine, and AdThrive.

Personally, I use AdThrive for my display advertising network. I don’t have many display advertisements on my blog, but it is easy income.

Sell your own product example

4. Sell your own products

Another popular way to monetize a blog is to create a sell your own products. 

This could be an online product, something that you ship, and so on, such as:

  • An online course
  • A coaching program
  • An eBook
  • Printables
  • Memberships
  • Clothing, candles, artwork, hard copy books, and anything else you can think of

And the list goes on and on. I have seen bloggers be very successful in selling all kinds of things on their blogs.

What’s great about selling your own product is that you are in complete control of what you are selling, and your income is virtually unlimited in many cases.

I launched my first product about 5 years after I created Making Sense of Cents, which was a blogging course called Making Sense of Affiliate Marketing. I regret not creating something sooner because this has been an excellent source of income and has helped many people along the way.

Have an email list

If you really want to learn how to monetize a blog, I recommend that you start an email list from the very beginning.

I waited several years to start my email list, and that was a huge mistake!

Here’s why you need an email list right away:

  • Your newsletter is YOURS. Unlike social media sites, your newsletter and email subscribers are all yours, and you have their undivided attention. You don’t have to worry about algorithms not displaying your content to readers, and this is because they are your email subscribers. You aren’t fighting with anyone else to have them see your content.
  • The money is in your email list. I believe that email newsletters are the best way to promote an affiliate product. Your email subscribers signed up to hear what YOU have to write about, so you clearly have their full attention. Your email list, over any other promotional strategy, will almost always lead to more income and sales.
  • Your email subscribers are loyal to you. If someone is allowing you to show up in their inbox whenever you want, then they probably trust what you have to say and enjoy listening to you. This is a great way to grow an audience and a loyal one at that.
  • Email is a great way to deliver other forms of content. With Convertkit, I am able to easily create free email courses that are automatically sent to my subscribers. Once a reader signs up, Convertkit sends out all the information they need in whatever time frame I choose to deliver the content.

Attract readers

As a new blogger, you’ll want to find ways to attract a readership to your blog and your article.

No, you don’t need millions and millions of page views to earn a good living from blogging. In fact, I know some bloggers who receive 1,000,000 page views yet make less money than those with 100,000 monthly page views.

Every website is different, but once you learn what your audience wants, you can start to really make money blogging, regardless of how many page views you receive.

Having a successful blog is all about having a loyal audience and helping them with your content.

Even with all of that being said, if you want to learn how to monetize a blog, learning how to improve your traffic is valuable. The more loyal and engaged followers you have, the more money you may be able to make through your blog.

There are many ways to grow your readership, such as:

  • Write high-quality articles. Your blog posts should always be high-quality and helpful, and it means readers will want to come back for more.
  • Find social media sites to be active on. There are many social media platforms you can be active on, such as Pinterest, Facebook, Twitter, Instagram, TikTok, Youtube, and others.
  • Regularly share new posts. For most blogs, you should publish content at least once a week. Readers may forget about you if you go for weeks or months at a time without a blog post.
  • Guest post. Guest posting is a great way to reach a new audience, as it can bring new readers to your blog who will potentially subscribe to it. 
  • Make sure it’s easy to share your content. I love sharing posts on social media. However, it gets frustrating when some blogs make it more difficult than it needs to be. You should always make sure it’s easy for readers to share your content, which means your social media icons should be easy to find, all of the info input and ready for sharing (title, link, and your username tagged), and so on. Also, you should make sure that when someone clicks on one of your sharing icons the title isn’t in CAPS (I’ve seen this too many times!). 
  • Write better titles. The title of your post can either bring readers to you or deter them from clicking over. A great free tool to write better headlines is CoSchedule’s Headline tool.
  • Apply SEO strategies. SEO (search engine optimization) is not something I can teach in this small section, but I go over it below in another section.
  • Have a clean and user-friendly blog design. If you want more page views, you should make it as easy as possible for readers to navigate your blog. It should be easy for readers to find your blog homepage, search bar, blog posts, and so on.

Now, I also want to talk about helpful resources, courses, and more that can help you to learn how to grow your page views on your blog.

Below are some of my favorite blogging resources to help you improve your traffic:

Grow through SEO

SEO (search engine optimization) is how you get organic search traffic to your blog. 

When you search a phrase on Google, you’ll see a bunch of different websites as the results. This is the result of these websites applying SEO strategies to their blog.

This is a great way for readers to find your blog, and SEO is important to pay attention to as you learn how to monetize a blog!

Below are some of my favorite SEO resources:

  • Stupid Simple SEO: This is my favorite overall SEO course, and one of the most popular for bloggers. I highly recommend taking it. I have gone through the whole course, and I constantly refer back to it.
  • Easy On-Page SEO: This is an easy-to-follow approach to learning on-page SEO so your articles can rank on Google. I have read this ebook twice, and it is super helpful.
  • Easy Backlinks for SEO: This ebook will show you 31 different ways to build backlinks, which are needed for SEO.
  • How To Get 50,000 Pageviews per Month With Keyword Research: This ebook shares the steps for keyword research so that you can get SEO traffic to your website.

Common questions about how to monetize a blog

Below, I’m going to answer some questions I’ve received about how to start a blog such as:

  • How many views do you need to monetize a blog?
  • How do beginner bloggers make money?
  • Why do bloggers fail?
  • How many posts should I have before I launch my blog?
  • How many times a week should I post on my blog?

How many views do you need to monetize a blog?

The amount of page views needed to make money blogging varies, and there is no magic number that you should be aiming for.

This is because it depends on so many factors, such as how you will monetize your blog, your niche, the number of email subscribers you have, the quality of your website, and more.

You may see success with 10,000 page views a month, or you may see success with over 100,000 page views a month. It simply depends on the factors above.

How do beginner bloggers make money?

Beginner bloggers can make money in many different ways, such as display advertising, affiliate marketing, creating their own products, and sponsorships.

You can start any of these right from the very beginning.

Display advertising is usually the easiest way to begin monetizing a blog, but the payoff is not very high, especially in the beginning when your page views are not high.

How many posts should I have before I launch my blog?

I recommend just launching your blog as soon as you have one blog post and a design. Building a huge backlog of blog posts isn’t usually needed, and it can prevent you from ever getting started!

How many times a week should I post on my blog?

The more blog posts you have, then the more traffic you may get. That’s because it’s more opportunities to show up in Google searches or share your posts on social media.

I recommend publishing a new blog post at least once a week. Anything less isn’t advised.

Publishing blog posts consistently is smart because readers know to expect regular content from you.

Why do bloggers fail?

Bloggers fail for many different reasons. These reasons may include:

  • Giving up too soon. It takes time to make money blogging, and sadly, many people give up just a few months into starting a blog.
  • Not publishing consistently. I recommend publishing content at least once a week, as described in the previous section. Some new bloggers may go months without publishing, and this will take them much longer to make money blogging as they are simply not dedicating enough time to their blog.
  • Not spending enough time learning about blogging. Blogging is not as easy as you may think. There is a lot to learn in order to make it work. You may need to learn about how to grow your blog’s traffic, how to monetize a blog, how to write high-quality content, and more.
  • Not having your own domain and self-hosting. If you want to make money blogging, I highly recommend owning your domain name and being self-hosted. The longer you put this easy step off, the longer it will most likely take for you to make money blogging. You can learn more at How To Start a WordPress Blog.

And much more. Blogging is like any business – there are things to learn, things to improve on, and more.

How do I start a blog?

If you have any other questions related to starting a blog, I recommend checking out What Is A Blog, How Do Blogs Make Money, & More. In this article, I answer more questions related to blogging such as:

  • How do I come up with a blog name?
  • What blogs make the most money?
  • How do you design a blog?
  • How many views do you need to make money blogging?
  • How many blog posts should I have before launching?
  • How do I get my blog noticed by Google?
  • How long until a blog makes money?
  • How do blogs make money?
  • How do bloggers get paid?

And more.

Please leave a comment if you have any questions.

Thanks for reading!

Source: makingsenseofcents.com

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Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics

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Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics

By:
Rob Chrisman

6 Hours, 35 Min ago

“I saw a woman at Walmart with March Madness teeth… She was down to the final four.” No one is talking about 30-year mortgage interest rates heading down into the 4’s; many would be happy if they came down into the 5’s. Heck, forget about mortgage interest rates because they’re going to do what they’re going to do. Originators are equally interested in potential or existing borrowers. New data reveals that Americans are spending nearly as much on interest payments for credit cards and other kinds of consumer debt as they are on mortgage interest. But hey, if your client has their debt under control, LOs can help them by passing along Home Facts so that they can do an analysis of where they might like to live. (Found here, this week’s podcast is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. Hear an interview with Lending Tree’s Jacob Channel on the rent-versus-buy debate and just how far people should stretch their finances to achieve the dream of homeownership.)

Lender and Broker Services, Products, and Software

Collecting interim servicing payments is a pain, but not with Fee Chaser. With its seamless integration into Encompass® by ICE Mortgage Technology™, Fee Chaser automates upfront fee collection and can handle those pesky interim servicing payments as well. Check out Fee Chaser by LenderLogix here.

Today’s mortgage landscape demands greater efficiency. Xactus, a leading verification innovator, makes it easy to obtain all the verifications lenders need to be more efficient and advance the modern mortgage. For example, with its ICE Mortgage Technology Encompass Partner Connect™ integration, you can streamline your consumer verifications. Encompass Partner Connect provides direct access to Xactus verification products including Credit ReportX, Flood ReportX, Undisclosed Debt VerificationX, Tax TranscriptX, Employment VerificationX, Income VerificationX, Fraud ReportX, and Social Security VerificationX. In fact, Xactus was the first third-party service provider to integrate credit with Encompass Partner Connect, and won the 2023 ICE Innovation Award for Lenders’ Choice for Innovative Service Provider. Heading to the ICE Experience in Las Vegas? Experience Xactus’ award-winning innovation. Stop by Xactus’ booth or email [email protected] to schedule a meeting. For the latest updates and news about important industry innovations, follow Xactus on LinkedIn.

If you thought McDonald’s® invented the combo meal, you’d be wrong. The honor actually belongs to defunct fast-food chain Burger Chef, which introduced the classic trio of burger, fries and a drink as one meal. Known as “The Triple Threat,” it sold for just $0.45. While that kind of pricing belongs to a bygone era, lenders using Fannie Mae’s Desktop Underwriter® (DU®) validation service can enhance their validation processes by leveraging AccountChek by Informative Research to validate income, employment and assets with a single report. By using direct deposit banking data to evaluate income and employment, lenders can streamline borrower eligibility. Additionally, current AccountChek users don’t have to change their process. The AccountChek report they have been using for years already provides the needed transaction data to DU. To get started, visit Fannie Mae’s webpage, and submit the request form to begin the activation process.

Most lenders are painfully aware of rising loan origination costs, which is a common trend in a down market. But certain costs like credit (surging by 400 percent) and verifications (up by 141 percent) have soared disproportionately, with incumbent providers exploiting their market dominance as virtual monopolies. Yet some lenders are fighting back… Like Lower, which has found a way to save as much as 80 percent on these operational line items and win more loans. Sign up for this exclusive webinar taking place on March 21 at 2pm ET, featuring Rob Chrisman, James Duncan and Donielle Geiser (Lower), and Richard Grieser (Truv), where they’ll share their take on today’s market and how they’ve reduced costs on operational line items previously thought to be beyond a lender’s control. RSVP today!

Introducing the All-New Quarterly Conversations About QC Newsletter! Get the latest quality control news delivered directly to your inbox with QC Ally’s new email newsletter. Designed to be your trusted loan quality resource, you’ll get the latest industry headlines, helpful tools designed to inspire your business, and regulatory updates each quarter. Recent features include eGuides to strengthen your QC processes, webinars discussing how to successfully implement new requirements, and industry conference takeaways. Sign up today to stay in-the-know on updates designed to spark discussion and inspire your business!

TPO, Broker, and Correspondent Product News

Renovation lending fuels loan production, boosts profits, and fortifies housing inventory in competitive markets. Explore the rising demand for renovation loans with Planet Home Lending’s Guide to Renovation lending, tailored for correspondent lenders. From seizing opportunities to fostering robust partnerships, it offers a step-by-step roadmap. Request your exclusive copy today.

Freedom Mortgage Wholesale reminded brokers that it is historically, currently, and forever wholesale, and has posted some solid numbers about its status. In 2023 Wholesale increased its sales force by 20 percent, 25 percent of whom were rehires. Wholesale increased its Ops staff by 125 percent, 70 percent of whom were rehires. Freedom doubled its production two months in a row and is still growing.

But not to be overlooked is that Freedom is very active in the philanthropic arena through Freedom Cares. Last year it donated $660,000, used a holiday toy drive to raise $60,000 to support Children’s Hospital of Philadelphia (CHOP), The Salvation Army, and Toys for Tots, has, for 11 years, donated over $100,000 and nearly 2,000 backpacks (with school supplies) to Rucksacks to Packpacks. Freedom Mortgage’s employees and vendors raised $50,000, providing 500,000 meals for people facing hunger through Feeding America’s “Freedom from Hunger, and in 2023, through Project Gratitude, sent 1045 handwritten and video thank you messages to active-duty service members. And let’s not dismiss the 2,300 logged hours of employee volunteer engagement.

The real estate investment trust affiliated with Angel Oak Companies posted a $28.6 million profit in the fourth quarter. For the full year of 2023, the REIT generated a profit of $33.7 million; all but forgotten is 2022’s reported loss of $187.8 million. Angel Oak REIT participated in four non-qualified mortgage securitizations in 2023, contributing $662 million in unpaid principal balance to the issuance. The REIT’s earnings increased after it sold off non-QMs with relatively low interest rates. Its statistics reflect the industry’s: The REIT held $380 million in whole loans at the end of the fourth quarter, up from the $284 million held at the end of the third quarter. The company increased the weighted average coupon on its whole-loan portfolio to 6.78 percent as of the end of the fourth quarter compared with an average WAC of 5.83 percent at the end of the third quarter. As of the end of February, the WAC on the REIT’s portfolio had increased to 7.14 percent.

One should know the big news from Fannie Mae: Lenders now will be able to validate assets, income, and employment with a single 12-month asset report in Desktop Underwriter®. That same asset report will also identify the borrower’s positive rent payment history and cash flow history. This could be a boon for both lenders and homebuyers: Think faster cycle times, less paperwork, and enhanced access to credit, not to mention the ability for lenders to get Day 1 Certainty®, which can help improve loan quality and reduce the risk of repurchase. “Fannie Mae is continually focused on modernizing the mortgage finance experience and exploring new ways to help our lenders open more doors for aspiring homeowners in a responsible and sustainable way. With this new update in Desktop Underwriter, we are removing a hurdle from the loan application process and bringing greater speed, simplicity, and certainty to both lenders and borrowers,” said Cyndi Danko, Fannie Mae’s SVP and Single-Family Chief Credit Officer. The enhancement goes into effect in DU on March 29. Reach out to your Fannie Mae representative for help getting started.

Capital Markets

Interested in learning more about moving from best efforts to mandatory loan sales? Maybe you’ve already moved to mandatory and are looking for even more pickup and ways to mitigate risk? Join MCT’s Moving to Mandatory Loan Sales webinar on April 4th at 11am PT to learn how mandatory loan sales is helping lenders improve profitability while reducing risk. In this webinar, MCT’s Scott Holtz, Vice President of South Regional Sales, will discuss how to leverage mandatory loan sales to improve profitability, manage risk with pipeline hedging, and operational changes needed for the transition. Register for the webinar or join MCT’s newsletter to receive the latest educational content.

Between Fed Chair Powell testifying before the House Financial Services Committee and the latest Beige Book, there was a lot of Fed news for investors to digest yesterday. A slew of stronger-than-expected economic data has raised concerns that the FOMC is preparing to walk back its anticipated 75 basis points of easing in 2024, and the Fed Chair told the House panel that he’s in no rush to lower rates, though doing so will probably be appropriate “at some point this year.” He repeatedly stated that he does not see a risk of recession right now. Powell will be back on Capitol Hill today to appear before the Senate Banking Committee, though the potential for market-moving remarks is low.

The Fed’s Beige Book for March described overall economic activity since the last report as having “expanded at a modest pace since earlier in the year.” Consumers showed more sensitivity to rising prices and spending softened in recent weeks as businesses found it harder to pass through higher costs to their customers. Leisure and hospitality sectors varied from District to District, the Fed said in its survey of regional business contacts. Manufacturing activity was little changed while residential real estate demand improved. Employment rose at a slight to modest pace while price pressures persisted. If the economy evolves broadly as expected, the Fed is likely to begin dialing back policy interest rates 25 basis points between three and four times this year.

Ahead of February payrolls this Friday, we received a couple of labor market indicators yesterday. Job openings fell slightly in January to 8.86 million, and the number of job openings per unemployed worker was little changed at 1.45. The ADP Employment Change report pointed to the addition of 140k payrolls in February, slightly less than 150k expectations, while the January increase was revised up to 111k from 107k. The JOLTS data signal that the jobs market is slowly settling down, consistent with wage inflation pressures cooling and without a troubling slowdown in net job creation and overall economic activity. The gradual softening in the labor market will likely keep the FOMC comfortable in waiting a little while longer before beginning to cut rates.

Today’s economic calendar kicked off with Challenger job cuts for February: U.S.-based employers announced 84,638 cuts in February, up 3 percent from last month and 9 percent higher than the 77,770 cuts announced in the same month in 2023. Markets have also received the latest European Central Bank decision and remarks from ECB head Lagarde in her press conference, the latest jobless claims (217k last week, unchanged from 217k), trade deficit (high at $67.4 billion, a subtraction from growth), and productivity and unit labor costs (3.2 and .4 percent respectively). Chair Powell will be back on Capitol Hill before the Senate Banking Committee to testify on the Monetary Policy Report later this morning, and other releases of note include Treasury releasing the details of the mini-Refunding consisting of $56 billion 3-years, $39 billion reopened 10-years, and $22 billion reopened 30-years, remarks from Cleveland Fed’s Mester, Freddie Mac’s Primary Mortgage Market Survey, and January consumer credit. After the initial salvo of news, we begin Thursday with Agency MBS prices better .125-.250, the 10-year yielding 4.07 after closing yesterday at 4.10 percent, and the 2-year at 4.53.

Employment and Transitions

Unlock success with PrimeLending’s East Meets West Podcast! Join EVPs Karen Blakeslee and Al Velasco, the production leaders from the Eastern and Western divisions, for a lively discussion about the pulse of the housing market. Discover how PrimeLending empowers our loan officers to compete and win. Karen and Al also discuss leveraging new products to create more opportunities. Tune in for exclusive access to the wisdom of Dallas-based Branch Manager and perennial top producer, Mark Raskin (NMLS# 176513). Mark shares invaluable insights and proven tips, providing a backstage pass to success in today’s market. Check out East Meets West to learn why PrimeLending loan officers rank our engaged, experienced leadership as a game-changer. If you’re a top producer ready to turn up the volume on your career, contact Nic Hartke today!

Landmark Bancorp, Inc. announced that it has appointed Abigail (Abby) Wendel to serve as president and chief executive officer of the Company and Landmark National Bank, its wholly owned bank subsidiary, effective March 29. Wendel also will join the respective boards of directors of the company and bank, and succeeds current President and CEO, Michael Scheopner, who will serve in a non-executive role until his retirement at the end of the year. Congratulations!

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Despite feelings of optimism expressed by loan originators in the opening weeks of 2024, the road to more normalized levels of reverse mortgage volume and securities issuances may be longer than expected.

Home Equity Conversion Mortgage (HECM) endorsements fell 11.8% to 1,900 loans in February, a drop telegraphed by lagging case numbers and sluggish endorsement activity in January, according to data compiled by Reverse Market Insight (RMI).

HECM-backed Securities (HMBS) issuance also recorded lower performance in February, dropping to $429 million. That was down 3.6% from the $445 million figure in January, according to Ginnie Mae data and private data compiled by New View Advisors. The data prompted New View analysts to term February’s performance as a “Valentine’s Day Massacre.”

HMBS issuance will have a fairly long road to recover to 2023 levels, which were already severely reduced from the record-setting issuance of 2022 brought about by elevated HECM-to-HECM refinance activity during the COVID-19 pandemic.

Industry remains optimistic

Every tracked geographic region recorded lower volume in February, but the largest — Pacific/Hawaii — recorded the least severe drop of 6.2%, according to RMI. Despite an overall drop in activity, the fact that the Pacific region remained more resilient than others is a good sign, according to RMI President John Lunde.

“It’s great to see the largest region drop less than most others, as that has a disproportionate impact on the overall industry,” Lunde told RMD. “Secondly, the Southwest also held up relatively well among the top three.”

Based on interviews RMD conducted with reverse mortgage originators and managers in the opening weeks of the year, most professionals relayed a sense of optimism about the number of inbound inquiries they were receiving. They also shared the progress they have made in building up loan pipelines, especially compared to the end of last year.

When asked whether this optimism may be misplaced considering the endorsement volume declines over the past two months, Lunde wasn’t so sure.

“I think about this differently in that originators could very well be seeing bright shots at a recovery and the endorsements simply haven’t caught up to that yet given the inherent lag,” he said. “The first sign we’ll get [a rebound] is case [numbers] issued, but that reporting has been later than usual the past few months, so we might not see it for a few more weeks.”

Professionals who have spoken with RMI are also generally optimistic, but Lunde said that could simply be an attribute of people within the industry.

“I’ve mostly heard some optimism, but I feel like all of us in the industry tend toward that by default on a pure survivor’s bias effect.”

Leading lenders

Among the top 10 lenders, only Goodlife Home Loans (a dba of Traditional Mortgage Acceptance Corp.) and Longbridge Financial recorded increases for the month. Lunde said that’s particularly encouraging in the case of Longbridge, considering its trajectory over the past four months and the volume declines of other top 10 lenders in February.

As for what other industry participants can do to keep business moving in a positive direction, Lunde said that recent changes to the HECM for Purchase (H4P) program could illustrate that the little-used reverse mortgage variation could be approaching its breakout point.

“I think the best places to focus right now are giving the H4P a muscular new push due to the seller concessions update, and working with forward mortgage distribution and servicing opportunities to convert forward loans into new reverse borrowers,” he said.

As for professionals who work in the country’s smaller regions, which recorded more severe decreases in February, Lunde said this could translate to opportunity for tenacious local professionals.

“There’s always an opportunity to be a big fish if you’re in a small pond and dominate your local area,” he said. “There may also be some easy, repeatable practices you can take from higher-volume regions that haven’t been fully explored in smaller markets yet. Smaller-market local media could be cheaper and still impactful there in ways that stopped working years ago in the bigger ponds.”

HMBS issuance

HMBS issuance in February came in $16 million lower than January’s figure. It was also the second-lowest monthly issuance ever recorded outside of the earliest days of Ginnie Mae’s HMBS program in 2009, according to New View.

“One would have to look to 2014 to find lower monthly volume,” New View stated in its commentary accompanying the February data.

Despite the fact that the former Reverse Mortgage Funding (RMF) portfolio continues to not produce any HMBS pools, New View partner Joe Kelly explained to RMD that there isn’t much pressure on the larger program because of that.

“No pressure, really — the Ginnie Mae market is very liquid,” he said.

One potentially positive development is that New View had originally predicted that HMBS production would be lower than it actually is, due to larger factors that influence pool production.

“Low issuance is caused by higher interest rates, resulting in lower Principal Limit Factors (PLFs), combined with the high upfront Mortgage Insurance Premium (MIP),” Kelly explained. “Until the upfront MIP is restructured, it will keep origination volume down. Most industry growth must come from proprietary loans.”

A recent addition to the HMBS program that allows for smaller aggregate pool sizes below $1 million is also seeing more buy-in from issuers each month, but it remains in line with expectations, Kelly explained.

Looking back

When asked to compare the low-issuance figures from 2014 with the current market, Kelly referred RMD to its blog post that detailed HMBS results for April 2014.

“Beginning with FY 2014, HECM principal limits were cut once again, and FHA imposed new restrictions on the initial draw allowed for certain borrowers,” the 2014 blog post stated. “The resulting lower HECM production inevitably reduces HMBS production.”

Contextualizing this with the current market, Kelly said that lenders closed more loans in anticipation of the impending changes, which had an adverse impact on that year’s loan production. But other factors influenced the industry then, so 2014 will likely be a better year for issuance than 2024 based on current projections, Kelly said.

“The reverse mortgage industry (in 2014) was in transition,” Kelly explained. “The big banks had just left and new lenders were gearing up: American Advisors Group (AAG), RMF and others. Still, HECM production and HMBS issuance finished strong in 2014 and nearly made it to $7 billion in total issuance, more than 2023 and much more than 2024 at its current trend.”

Despite these lower figures, liquidity is less of a concern, Kelly noted.

“The HECM program is on strong financial footing and the HMBS program is providing excellent liquidity,” he said. “Also, The HMBS program will be greatly improved if Ginnie Mae creates an ‘HMBS II’ securitization program for buyouts. Finally, HMBS execution has improved somewhat [so far] in 2024.”

Source: housingwire.com

Apache is functioning normally

The South by Southwest (SXSW) festival in Austin, Texas, starts this weekend. The annual festival of panels, film screenings, parties and exhibitions across technology, film, media, education, comedy and music runs March 8-16.

According to organizers, over 340,000 people visited the festival in 2023. If you’re planning to attend SXSW in Austin this year, here’s what you need to know to get around efficiently and affordably.

What to expect at SXSW

SXSW has some events reserved for attendees and others are free for anyone to attend. The festival doesn’t have a single venue; all sessions and events (official and unofficial) are located in or around downtown Austin, with most of the larger tech-focused sessions at the Convention Center.

Due to its central location, walking is one of the easiest ways to get between sessions, shows, restaurants, coffee shops and Lady Bird Lake trails.

Heavy traffic and road closures can make navigating SXSW by car — and finding parking — challenging. Austin’s public transportation or the free SXSW shuttle route can help visitors avoid the hassle of driving.

Getting from the airport to downtown Austin

Austin-Bergstrom International Airport (AUS) is 7 miles from downtown Austin, offering SXSW attendees numerous options to get to downtown Austin and most hotels.

Rental car

For longer stays before or after SXSW, a rental car is a good option for exploring more of central Texas. The Austin airport hosts most major rental car companies on site, but Enterprise is an official partner of SXSW, so it offers deals for festival registrants.

Rideshare and taxis

If you’re not renting a car, you can use rideshare services or traditional cab companies to get to the airport. The Austin airport has a designated rideshare and taxi pickup zone across from the terminal, behind the Red Garage.

SXSW attendees can also use a special link to get a discounted shared ride from Carter Transportation Austin, which is part of the SuperShuttle network.

Bus

The MetroAirport Flyer is a convenient public transportation option to get to and from the Austin airport. Austin’s CapMetro Route 20 can get you from AUS to downtown in about 35 minutes. Buses run every 15 minutes from the neon guitar-shaped bus stop and cost $1.25 per ride or $2.50 for a day pass.

SXSW Austin transportation options

From downtown Austin, SXSW attendees without a rental car have plenty of alternate transportation options to venues.

SXSW shuttle

Attendees have access to a free SXSW shuttle service to get from the Convention Center to most venues. The shuttle departs from Trinity Street and runs from 9 a.m. to 2 or 2:30 a.m. most nights.

CapMetro bus and rail

Public transportation is another convenient and affordable option for Austin visitors.

As far as bus routes, CapMetro Rapid routes 801 and 803 will operate with high frequency for the duration of SXSW. Night Owl Routes will run regular service from midnight to 3 a.m. as well to help shuttle people from late-night events. A CapMetro Bus fare is $1.25 for a single ride, $2.50 for a day pass or $11.25 for a seven-day pass.

The CapMetro rail runs to and from downtown Austin, with a stop near the Austin Convention Center on East 4th Street. Rail service during SXSW will run extended hours daily until midnight. On Fridays and Saturdays, rail service will be extended to 2:30 a.m. The cost is $3.50 for a single ride, $7 for a day pass or $27.50 for a seven-day pass.

Rideshare and taxis

Uber, Lyft and taxis offer door-to-door convenience during SXSW. However, anticipate longer wait times and surge pricing throughout the week. If you want to book a taxi, zTrip Austin or ATX Co-op Taxi operate in the city.

🤓Nerdy Tip

Certain American Express cardholders and Chase Sapphire Reserve® cardholders get rideshare benefits that help cut Uber and Lyft costs.

Pedicabs

Licensed pedicabs operate in downtown Austin around 38th Street, Oltorf Street, MoPac and Pleasant Valley Road. They’re easy to hail down during SXSW and offer an eco-friendly way to get around the festival. Pedicab drivers charge a per-block fare or accept tips.

Bikes and electric scooters

Austin’s MetroBike bike-share program is a popular way to get around as well. According to the City of Austin Transportation and Public Works Department, there are currently more than 80 stations and 800 bicycles. About 43% of the bikes are electric, which makes pedaling even easier. There’s a pay-as-you-ride option, as well as a $13 Explorer day pass and a $20 three-day Weekender pass.

Electric scooter use also spikes during SXSW. Ride Report, a company that tracks mobility, reported 14,000 scooter rides in a single day during SXSW last year. The average number of rides per day in the first quarter of 2023 was 6,800.

Austin visitors can use Bird, Lime or Link to rent electric scooters on a pay-as-you-ride basis.

Saving on SXSW transportation

Traveling by car might be the slower and least cost-effective way to get around Austin during SXSW. To save time and money, festival attendees will want to consider taking free shuttles, public transportation or walking.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com

Apache is functioning normally

In a world where speed and convenience have been the siren song to consumers, there’s a movement toward buying more mindfully, sustainably, “slowly.”

You’ve heard of slow fashion. Slow food. Slow travel. And when it comes to the home, “slow decorating.”

A reaction against rooms filled with mass-produced “fast furniture,” slow decorating embraces a more deliberate approach that prioritizes a personal connection to the stuff we live with. It might mean giving new life to heirloom or found pieces. Or buying new things that have the quality to last.

The journey of creating a space is as important as the destination.

New York City designer Gideon Mendelson thinks the movement echoes the Japanese philosophy of “ikigai,” which centers around finding meaning and purpose. Applied to interiors, it’s about creating spaces that promote all-around well-being.

“To me, good design makes room for living and doing. Decorating with meaningful pieces isn’t about chasing an aesthetic, but curating spaces that resonate with authenticity and personal stories,” he says.

“It’s not just about how it looks; it’s about how you want to live.”

And you don’t have to spend a lot, he says. He framed some inexpensive yet eye-catching vintage deli signs, adding a playful element to the Hamptons dining room of a family of five.

The trend toward “slower,” more thoughtful interior design, Mendelson thinks, lies in subtleties: “The cherished heirlooms, and the intimate connection between a space and its inhabitants.”

TOSSING HAS BECOME TURNING

Fast furniture’s association with cheaper materials, excessive packaging and frequent replacement clashes with consumers’ growing interest in minimizing our lasting impact on the planet.

Now, we’re buying more mindfully, but we’re also having a lot of fun DIYing.

During the pandemic, slow assembly lines and stalled container ships meant a lot of brand-new homewares weren’t getting made or sent to market, so upcycling stuff we had or found became hobby, and often necessity.

If you could find a great credenza at a flea market or online reseller that just needed a little TLC, why not?

Not too long ago, decor trade shows would include a handful of studio labs offering reclaimed wood items and organic textiles. Today, at global fairs like Ambiente in Frankfurt, Salone in Milan and Paris’ Maison et Objet, hundreds of companies show new design made with environmental and social impact in mind. Fair trade manufacturing. Fast-growing renewables like hemp, bamboo and cork. Cushions made of soy-based foam instead of petroleum-based foam. Recycled glass and metal accessories.

Mid 20- and 30-somethings are seen as drivers of the slow design trend. TikTok and Instagram feeds are full of refinish-and-reveal videos, and modest abodes full of found treasures.

Stephen Orr, editor in chief of Better Homes & Gardens, says he’s spent the past couple of years renovating a 1760s house on Cape Cod.

“The first year was during the pandemic, so antiques and flea markets were a godsend considering all the supply chain disruptions,” he says.

“But during that process, we came to the realization that pieces with a patina of age better celebrate the house’s long history anyway.”

He also added some new, modern pieces “so it doesn’t look like we should be dressed in period Colonial Williamsburg costumes.”

SHOPPING TIPS

Furniture for sitting, sleeping and eating is where you should spend more money on quality, says Jillian Hayward Schaible of Susan Hayward Interiors.

“We encourage clients to invest in pieces like sofas/sectionals, beds, dining tables and upholstered items, because you can really feel the difference when these items are well-made,” she says.

Peter Spalding of the designer furniture sourcing platform Daniel House Club notes that imitations of Chippendale and other legacy-style pieces — think cabinets and wingback chairs, for example — were common in the ‘80s and early ’90s.

“Now, the imitations aren’t very valuable, but the originals remain highly sought after,” he says. “As you collect ‘slow furniture,’ buy the most authentic versions you can afford.”

Dan Mazzarini of BHDM Design and ARCHIVE echoes the advice.

“If you’re looking for a good investment, go straight to vintage. Things that have already stood the test of time often have another 50 years left in them! Side tables, desks, even cabinets are great pieces to look for,” he says.

Mendelson mentions a pair of vintage French plaster shell sconces in his Sagaponack, New York, home. He bought them 15 years ago “and they still feel fresh and relevant today.”

“I think a desire for one-of-a-kind and bespoke is at least starting a conversation about handmade,” he says. “Quality vs quantity. Living with intention.”

STORES ON BOARD

Many retailers are getting seats on the slow train. West Elm, for instance, was early among home retailers in joining Fair Trade USA, which ensures that suppliers maintain good workplaces and wages, and support their communities.

The global reforestation project One Tree Planted gets part of every purchase from furniture brand Joybird. Herman Miller’s rePurpose program gets used furniture to nonprofit organizations. And Ikea has initiatives like moving to bio-based glue, and instituting a buy-back/re-sell program that saw 230,000 items given a new life in 2022.

For the past five years, the United Nations Refugee Agency’s MADE51 initiative has helped artisans partner with fashion and home accessories businesses worldwide to create sustainable, fairly traded goods.

—-

New York-based writer Kim Cook covers design and decor topics regularly for The AP. Follow her on Instagram at @kimcookhome.

For more AP Lifestyles stories, go to https://apnews.com/hub/lifestyle.

Source: apnews.com

Apache is functioning normally

Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.

Comparing mortgage rates is key to keeping your mortgage costs lower. It’s also why you should shop around if you’re looking for a new mortgage deal. Whether you’re ready to compare mortgages right now or want to keep tabs on the latest mortgage rates in the UK, everything you need is here.

Partner Spotlight

Compare Mortgage Rates

Tell us what you’re looking for and see current UK mortgages available, including rates, repayments and product information. Continue online to our partner L&C for fee-free mortgage help and advice.

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How to get the best mortgage rates and deals

Mortgage rates vary depending on the type of mortgage you’re looking for, your financial situation and your credit score. But when we talk about getting the best mortgage rate, it’s important to find the best rate among the mortgage deals that suit you and your circumstances. 

Mortgage fees and the features you want in a mortgage should always be considered alongside the mortgage rate when making mortgage comparisons and shopping around for any mortgage deal. 

If you’re in any way unsure or want help finding the best mortgage deal for you we recommend you seek mortgage advice.  

Are mortgage rates going down?

Mortgage rates have mainly been rising in the past week, continuing the upward trend seen during much of February. The average rate on two-year fixed-rate mortgages increased to 5.15% in the week to 28 February, rising from 5.08% a week earlier, according to Rightmove. At the same time, the average rate on five-year fixed-rate mortgages increased to 4.80%, up from 4.72%. 

Many of the big UK lenders have increased the cost of their fixed-rate mortgages in recent weeks. However, average rates remain lower than at the beginning of the year, due to the significant rate cuts seen during the mortgage rate price war in January.

Some experts are predicting that more mortgage rate rises may be on the way. This is mainly because of expectations that the Bank of England base rate may need to stay higher for longer, to get inflation down.

What are current UK mortgage rates? 

The average two-year fixed-rate mortgage rate, if you have a 25% deposit or equity, increased to 4.99% over the past week, up from 4.90%, while the average rate on a similar five-year fixed-rate mortgage rose to 4.70%, from 4.61%. If you have a smaller deposit or equity of 5%, the average two-year fixed rate remained unchanged at 5.79%, while the average five-year rate increased to 5.38%, from 5.35%. All rates are according to Rightmove as at 28 February 2024.

Latest average two-year fixed-rate mortgage rates

Loan to value (LTV) 21 February 2024 28 February 2024 Week-on-week change ⇩ ⇧ 
60% LTV 4.50% 4.62% +0.12% ⇧ 
75% LTV 4.90% 4.99% +0.09% ⇧
85% LTV 5.08% 5.14% +0.06% ⇧ 
90% LTV 5.31% 5.38% +0.07% ⇧ 
95% LTV 5.79% 5.79% No change ⇔

Latest average five-year fixed-rate mortgage rates

Loan to value (LTV) 21 February 2024 28 February 2024 Week-on-week change ⇩ ⇧
60% LTV 4.19% 4.30% +0.11% ⇧ 
75% LTV 4.61% 4.70% +0.09% ⇧ 
85% LTV 4.67% 4.73% +0.06% ⇧ 
90% LTV 4.86% 4.93% +0.07% ⇧ 
95% LTV 5.35% 5.38% +0.03% ⇧ 

Data sourced from Rightmove/Podium. Correct as at 28 February 2024.

Average rates are based on 95% of the mortgage market and products with a fee of around £999.

What mortgage do I need?

If you’re looking for a mortgage, you’ll usually fall into one of the following categories of mortgage borrower.

If you’ve never owned a home before, you’ll usually need a first-time buyer mortgage. Knowing that you’re just starting out, the deposit requirements on most first-time buyer mortgages are generally small. You should also be able to find mortgage deals where upfront fees are kept to a minimum. However, mortgage rates for first-time buyers tend to be higher than if you’re already on the property ladder. This is because you’re likely to require a larger loan relative to the value of your property – so borrow at a higher loan-to-value (LTV) – making you a riskier proposition in the eyes of lenders. As it’s your first mortgage, lenders also have less to go on when trying to assess your reliability as a mortgage borrower.

If you already have a mortgage but want to switch to a new one, you are looking to remortgage. You may want to remortgage because your current fixed-rate or discounted term is at an end and you don’t want to move on to your lender’s standard variable rate (SVR), which may be higher. Other reasons you may remortgage include to raise funds to pay for home improvements, or because falling interest rates or a rise in the value of your home means remortgaging could save you money. If you’ve built equity in your property since taking out your current mortgage, it may be possible to borrow at a lower LTV for your new mortgage – and the lower your LTV, the lower mortgage rates tend to be.

If you already have a mortgage but are moving home, you may be able to take your current mortgage with you – this is called porting. Alternatively, you may want to arrange a new mortgage altogether, either with your current lender or a different one. Whichever option you’re considering, it’s important to weigh up the costs of either porting or exiting your existing deal, along with any potential fees you may need to pay on a new mortgage deal.

If you’re buying a property to rent out to tenants, you’ll be looking for a buy-to-let mortgage. You’ll normally need a larger deposit for a buy-to-let mortgage than you would for a residential mortgage, and buy-to-let mortgage rates tend to be higher too. Lenders will also want to see that the rental income you expect to receive will more than cover your monthly repayments. 

How mortgage rates work 

Mortgage rates are the interest rate you pay to a lender on the mortgage balance you have outstanding. The lower your mortgage rate, the lower your monthly mortgage repayments tend to be, and vice versa.  

Different types of mortgage

The type of mortgage you take out can affect the mortgage rate you pay, and whether it may change going forward.  

Fixed-rate mortgage

A fixed-rate mortgage guarantees that your mortgage rate, and therefore your monthly repayments, won’t change during the set fixed-rate period that you choose. 

This can help with budgeting and means you are protected against a rise in mortgage costs if interest rates begin to increase. However, you’ll miss out if interest rates start to fall while you are locked into a fixed-rate mortgage.  

Variable rate mortgages

With a variable rate mortgage, your mortgage rate has the potential to rise and fall and take your monthly repayments with it. This may work to your advantage if interest rates decrease, but means you’ll pay more if rates increase. Variable rate mortgages can take the form of:  

  • a tracker mortgage, where the mortgage rate you pay is typically set at a specific margin above the Bank of England base rate, and will automatically change in line with movements in the base rate. 
  • a standard variable rate, or SVR, which is a rate set by your lender that you’ll automatically move on to once an initial rate period, such as that on a fixed-rate mortgage, comes to an end. SVRs tend to be higher than the mortgage rates on other mortgages, which is why many people look to remortgage to a new deal when a fixed-rate mortgage ends. 
  • a discount mortgage, where the rate you pay tracks a lender’s SVR at a discounted rate for a fixed period.

Offset mortgages

With an offset mortgage, your savings are ‘offset’ against your mortgage amount to reduce the interest you pay. You can still access your savings, but won’t receive interest on them. Offset mortgages are available on either a fixed or variable rate basis. 

Interest-only mortgages

An interest-only mortgage allows you to make repayments that cover the interest you’re charged each month but won’t pay off any of your original mortgage loan amount. This helps to keep monthly repayments low but also requires that you have a repayment strategy in place to pay off the full loan amount when your mortgage term ends. Interest-only mortgages can be arranged on either a fixed or variable rate.   

» MORE: Should I get an interest-only or repayment mortgage?

How rate changes could affect your mortgage payments

Depending on the type of mortgage you have, changes in mortgage rates have the potential to affect monthly mortgage repayments in different ways. 

Fixed-rate mortgage

If you’re within your fixed-rate period, your monthly repayments will remain the same until that ends, regardless of what is happening to interest rates generally. It is only once the fixed term expires that your repayments could change, either because you’ve moved on to your lender’s SVR, which is usually higher, or because you’ve remortgaged to a new deal, potentially at a different rate. 

Tracker mortgage

With a tracker mortgage, your monthly repayments usually fall if the base rate falls, but get more expensive if it rises. The change will usually reflect the full change in the base rate and happen automatically, but may not if you have a collar or a cap on your rate. A collar rate is one below which the rate you pay cannot fall, while a capped rate is one that your mortgage rate cannot go above.    

Standard variable rate mortgage

With a standard variable rate mortgage, your mortgage payments could change each month, rising or falling depending on the rate. SVRs aren’t tied to the base rate in the same way as a tracker mortgage, as lenders decide whether to change their SVR and by how much. However, it is usually a strong influence that SVRs tend to follow, either partially or in full.  

» MORE: How are fixed and variable rate mortgages different? 

Mortgage Calculators

Playing around with mortgage calculators is always time well-spent. Get an estimate of how much your monthly mortgage repayments may be at different loan amounts, mortgage rates and terms using our mortgage repayment calculator. Or use our mortgage interest calculator to get an idea of how your monthly repayments might change if mortgage rates rise or fall.

Can I get a mortgage?

Mortgage lenders have rules about who they’ll lend to and must be certain you can afford the mortgage you want. Your finances and circumstances are taken into account when working this out.

The minimum age to apply for a mortgage is usually 18 years old (or 21 for a buy-to-let mortgage), while there may also be a maximum age you can be when your mortgage term is due to end – this varies from lender to lender. You’ll usually need to have been a UK resident for at least three years and have the right to live and work in the UK to get a mortgage. 

Checks will be made on your finances to give lenders reassurance you can afford the mortgage repayments. You’ll need to provide proof of your earnings and bank statements so lenders can see how much you spend. Any debts you have will be considered too. If your outgoings each month are considered too high relative to your monthly pay, you may find it more difficult to get approved for a mortgage.

Lenders will also run a credit check to try and work out if you’re someone they can trust to repay what you owe. If you have a good track record when it comes to managing your finances, and a good credit score as a result, it may improve your chances of being offered a mortgage. 

If you work for yourself, it’s possible to get a mortgage if you are self-employed. If you receive benefits, it can be possible to get a mortgage on benefits. 

Mortgages for bad credit

It may be possible to get a mortgage if you have bad credit, but you’ll likely need to pay a higher mortgage interest rate to do so. Having a bad credit score suggests to lenders that you’ve experienced problems meeting your debt obligations in the past. To counter the risk of problems occurring again, lenders will charge you higher interest rates accordingly. You’re likely to need to source a specialist lender if you have a poor credit score or a broker that can source you an appropriate lender.

What mortgage can I afford?

Getting an agreement or decision in principle from a mortgage lender will give you an idea of how much you may be allowed to borrow before you properly apply. This can usually be done without affecting your credit score, although it’s not a definite promise from the lender that you will be offered a mortgage. 

You’ll also get a good idea of how much mortgage you can afford to pay each month, and how much you would be comfortable spending on the property, by looking at your bank statements. What is your income – and your partner’s if it’s a joint mortgage – and what are your regular outgoings? What can you cut back on and what are non-negotiable expenses? And consider how much you would be able to put down as a house deposit. It may be possible to get a mortgage on a low income but much will depend on your wider circumstances. 

» MORE: How much can I borrow for a mortgage?

Joint mortgages

Joint mortgages come with the same rates as those you’ll find on a single person mortgage. However, if you get a mortgage jointly with someone else, you may be able to access lower mortgage rates than if you applied on your own. This is because a combined deposit may mean you can borrow at a lower LTV where rates tend to be lower. Some lenders may also consider having two borrowers liable for repaying a mortgage as less risky than only one.

The importance of loan to value

Your loan-to-value (LTV) ratio is how much you want to borrow through a mortgage shown as a percentage of the value of your property. So if you’re buying a home worth £100,000 and have a £10,000 deposit, the mortgage amount you need is £90,000. This means you need a 90% LTV mortgage. 

The LTV you’re borrowing at can affect the interest rate you’re charged. Mortgage rates are usually lower at the lowest LTVs when you have a larger deposit.

What other mortgage costs, fees and charges should you be aware of?

It’s important to take into account the other costs you’re likely to face when buying a home, and not just focus on the mortgage rate alone. These may include:

Stamp duty

Stamp duty is a tax you may have to pay to the government when buying property or land. At the time of publication, if you’re buying a residential home in England or Northern Ireland, stamp duty only becomes payable on properties worth over £250,000. Different thresholds and rates apply in Scotland and Wales, and if you’re buying a second home. You may qualify for first-time buyer stamp duty relief if you’re buying your first home. 

» MORE: Stamp duty calculator

Mortgage deposit

Your mortgage deposit is the amount of money you have available to put down upfront when buying a property – the rest of the purchase price is then covered using a mortgage. Even a small deposit may need to be several thousands of pounds, though if you have a larger deposit this can potentially help you to access lower mortgage rate deals.

Mortgage fees

Among the charges and fees which are directly related to mortgages, and the process of taking one out, you may need to pay:  

Sometimes also referred to as the completion or product fee, this is a charge paid to the lender for setting up the mortgage. It may be possible to add this on to your mortgage loan although increasing your debt will mean you will be charged interest on this extra amount, which will increase your mortgage costs overall. 

This is essentially a charge made to reserve a mortgage while your application is being considered, though it may also be included in the arrangement fee. It’s usually non-refundable, meaning you won’t get it back if your application is turned down. 

This pays for the checks that lenders need to make on the property you want to buy so that they can assess whether its value is in line with the mortgage amount you want to borrow. Some lenders offer free house valuations as part of their mortgage deals. 

You may want to arrange a house survey so that you can check on the condition of the property and the extent of any repairs that may be needed. A survey should be conducted for your own reassurance, whereas a valuation is for the benefit of the lender and may not go into much detail, depending on the type requested by the lender.    

Conveyancing fees cover the legal fees that are incurred when buying or selling a home, including the cost of search fees for your solicitor to check whether there are any potential problems you should be aware of, and land registry fees to register the property in your name. 

Some lenders apply this charge if you have a small deposit and are borrowing at a higher LTV. Lenders use the funds to buy insurance that protects them against the risk your property is worth less than your mortgage balance should you fail to meet your repayments and they need to take possession of your home. 

If you get advice or go through a broker when arranging your mortgage, you may need to pay a fee for their help and time. If there isn’t a fee, it’s likely they’ll receive commission from the lender you take the mortgage out with instead, which is not added to your costs.  

These are fees you may have to pay if you want to pay some or all of your mortgage off within a deal period.  Early repayment charges are usually a percentage of the amount you’re paying off early and tend to be higher the earlier you are into a mortgage deal.

Government schemes to help you buy a home

There are several government initiatives and schemes designed to help you buy a home or get a mortgage.   

95% Mortgage Guarantee Scheme 

The mortgage guarantee scheme aims to persuade mortgage lenders to make 95% LTV mortgages available to first-time buyers with a 5% deposit. It is currently due to finish at the end of June 2025.  

Shared Ownership 

The Shared Ownership scheme in England allows you to buy a share in a property rather than all of it and pay rent on the rest. Similar schemes are available in Scotland, Wales and Northern Ireland.   

Help to Buy

The Help to Buy equity loan scheme, designed to help buyers with a smaller deposit, is still available in Wales, but not in England, Scotland and Northern Ireland. 

Forces Help to Buy

The Forces Help to Buy Scheme offers eligible members of the Armed Forces an interest-free loan to help buy a home. The loan is repayable over 10 years.  

First Homes Scheme 

Eligible first-time buyers in England may be able to get a 30% to 50% discount on the market value of certain properties through the First Homes scheme.

Right to Buy

Under this scheme, eligible council tenants in England have the right to buy the property they live in at a discount of up to 70% of its market value. The exact discount depends on the length of time you’ve been a tenant and is subject to certain limits. Similar schemes are available in Wales, Scotland and Northern Ireland, while there is also a Right to Acquire scheme for housing association tenants.

Lifetime ISAs 

To help you save for a deposit, a Lifetime ISA will see the government add a 25% bonus of up to £1,000 per year to the amount you put aside in the ISA.

How to apply for a mortgage

You may be able to apply for a mortgage directly with a bank, building society or lender, or you may need or prefer to apply through a mortgage broker. You’ll need to provide identification documents and proof of address, such as your passport, driving license or utility bills.

Lenders will also want to see proof of income and evidence of where your deposit is coming from, including recent bank statements and payslips. It will save time if you have these documents ready before you apply.  

» MORE: Best mortgage lenders    

Would you like mortgage advice?

Taking out a mortgage is one of the biggest financial decisions you’ll ever make so it’s important to get it right. Getting mortgage advice can help you find a mortgage that is suitable to you and your circumstances. It also has the potential to save you money. 

If you think you need mortgage advice, we’ve partnered with online mortgage broker London & Country Mortgages Ltd (L&C) who can offer you fee-free advice. 

Key mortgage terms explained 

Loan to value (LTV) Your loan-to-value ratio is the amount you wish to borrow through a mortgage expressed as a percentage of the value of the property you’re buying.
Initial interest rate This is the interest rate you’ll pay when you’re still within the initial fixed-rate period of a mortgage deal.
Initial interest rate period This is the period of time your initial interest rate will last, before your lender switches you over to its SVR.
Annual Percentage Rate of Charge (APRC) The APRC is a single percentage figure designed to help you compare the annual cost of different mortgage deals.
Annual overpayment allowance (AOA) This is the amount a lender will let you overpay on your mortgage each year without being charged a fee.
Early Repayment Charge (ERC) This is a charge you may need to pay if you want to pay off some or all of your mortgage earlier than you agreed with your lender.
Mortgage term A mortgage term is the full period of time over which the mortgage contract is taken out for – it should not be confused with the deal term. At the end of the term you will have paid off the full debt or all of the interest depending on what type of mortgage you took.

The current average rate on a five-year fixed-rate mortgage for a 10% deposit or equity is 4.93%, up from 4.86% a week earlier. For an equivalent two-year fixed-rate mortgage, the average rate of 5.38% has increased from 5.31%. If you have a 40% deposit/equity, the average five-year fixed rate is 4.30%, up from 4.19% a week earlier, while the average two-year fixed rate is 4.62%, rising from 4.50%. All rates are according to Rightmove as at 28 February 2024.

A mortgage rate is the interest rate a lender charges on the mortgage amount that you borrow. Mortgage interest rates may be fixed, guaranteeing that they will remain the same for a certain length of time, or variable, meaning it may fluctuate. 

Mortgage providers regularly review the mortgage rates that they offer to take into account the costs involved with funding its lending activities, their latest priorities in terms of target borrowers, and wider conditions in the market. As a result, when searching for a new mortgage, it’s always a good idea to consider various lenders and take the time to compare different mortgages. Crucially,  you need to bear in mind that a deal offering the best mortgage rate may not necessarily be the one that is most suitable for you. The mortgage rate is important, but at the same time, you need to consider other factors, such as the charges and fees attached to a mortgage, the type of mortgage that you need, and the mortgage term that you want.

While mortgage rates have been rising in recent weeks, many commentators still expect to see mortgage rates fall across 2024 as a whole.   

The next move in the Bank of England base rate, which currently sits at 5.25%, is widely forecast to be down. But with inflation remaining unchanged in January, and wage growth easing by less than expected, some experts predict the first rate cut may not be made until September. Towards the end of 2023, some believed the rate could begin falling in March. 

The uncertainty makes it even more difficult than usual to predict what may happen to mortgage rates next. 

The interest rate is the percentage of a loan amount that a lender charges for borrowing money, whereas the APRC, or annual percentage rate of charge, is a calculation expressed as a percentage that takes into account both the interest rate and associated costs of a mortgage across its lifetime. The aim of the APRC is to help borrowers make meaningful comparisons between mortgage deals.

Taking the time to compare mortgage rates and deals, making sure your credit score is in good shape, saving for a larger deposit and paying off existing debts can all help improve your chances of getting a good mortgage deal.

When looking for a mortgage it is vital that you compare mortgage lenders and the rates and deals on offer. Taking the time to carry out a mortgage comparison can improve your chances of finding the best mortgage for your circumstances.

A mortgage is a loan you take out to help you buy a property you don’t have the money to pay for up front. You may be a first-time buyer, remortgaging, securing a buy to let, or moving to your next home. The amount you need to borrow will depend on the purchase price of the property, and how much you can put down as a deposit or already hold in equity in your current property. The mortgage is secured against the property, which means your home is at risk if you don’t meet the repayments.

With a capital repayment mortgage, your monthly repayments pay off your interest and some of your original loan amount each month, so that everything should be paid off by the time you reach the end of your mortgage term. The alternative to a repayment mortgage is an interest-only mortgage, where you will repay only the interest each month before needing to pay off your original loan amount in its entirety at the end of the mortgage term.

A mortgage term is the period of time you agree with a lender over which you intend to entirely pay off your mortgage and interest. A typical mortgage term in the UK is usually considered to be 25 years, but you may opt for a shorter period or a longer one, if allowed. Some lenders offer mortgage terms of up to 40 years. If you have a longer term, your monthly repayments will be lower, but you’ll pay more interest overall.

The cost of your mortgage will depend on many factors, including how much you borrow, the size of your deposit, the length of your mortgage term, the mortgage rate you’re paying, and whether you can afford to make overpayments. Your mortgage lender must provide you with the full cost of the mortgage before you apply.

» MORE: How much could your mortgage cost you?

Besides making sure your monthly repayments are affordable, there are many other costs associated with arranging a mortgage. These may include arrangement, survey, valuation and mortgage broker fees.

If you’ve previously owned a home and the property you’re buying is worth more than £250,000, stamp duty will be payable as well; if you’re a first-time buyer, stamp duty only becomes payable on properties worth over £425,000.

To get a mortgage as a first-time buyer you’ll usually need at least a 5% deposit and a regular income. Most lenders offer first-time buyer mortgages aimed primarily at those with smaller deposits. First-time buyers may also be able to secure a mortgage with the help of close relatives through a guarantor mortgage.

Some lenders offer buy-to-let mortgages that can be arranged on a property you want to rent out to a tenant, rather than live in yourself. You’ll usually need a larger deposit for a buy-to-let mortgage than for a residential mortgage, and interest rates are often higher. You may also need to already own your own home or have a residential mortgage on another property.

It may be possible to get a mortgage with bad credit but you’ll probably have fewer mortgage deals to choose from and need to pay higher mortgage rates.

You may want to consider remortgaging if your initial fixed-rate period is close to ending and you want to avoid moving on to your lender’s SVR. Choosing to remortgage has the potential to save you money if you find the right mortgage deal.

» MORE: How remortgaging works

It’s always important to think about your plans, particularly when it comes to choosing the type of mortgage that will suit you best. For instance, if you plan to move in perhaps two years, choosing a five-year fixed-rate mortgage may mean you have to pay early repayment charges if you need to get a new mortgage.

Getting an agreement in principle, or AIP, from a lender will give you an idea of how much you may be able to borrow for your mortgage without needing to formally apply. Getting an AIP usually involves a soft credit check, which shouldn’t affect your credit score. However, having an AIP does not guarantee that a lender will offer you a mortgage. An agreement in principle is also sometimes referred to as a decision in principle or a mortgage promise.

Yes, some providers offer halal or Islamic mortgages in the UK. These are compliant with Sharia law and allow people to borrow but not pay interest.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.

Information on this page is a guide. It does not constitute advice, recommendation or suitability to your needs or financial circumstances. Seek qualified mortgage advice before proceeding with a mortgage product.

NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products and services are presented without warranty. When evaluating products, please review the financial institution’s Terms and Conditions.

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Source: nerdwallet.com

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Today’s mortgage rates

Average mortgage rates just inched lower yesterday. And they were effectively unchanged over the last seven days.

Next week, the direction those rates take will probably hinge almost entirely on Friday’s jobs report and appearances before Congress of the Federal Reserve’s chair. (More on those below.) Of course, nobody knows what they will say. So, once again, I’m forced to say mortgage rates next week could go either way.

Find and lock a low rate

Current mortgage and refinance rates

Program Mortgage Rate APR* Change
Conventional 30-year fixed 7.27% 7.29% -0.02
Conventional 15-year fixed 6.68% 6.71% -0.02
Conventional 20-year fixed 7.11% 7.14% -0.02
Conventional 10-year fixed 6.59% 6.61% -0.03
30-year fixed FHA 6.31% 6.98% -0.08
30-year fixed VA 6.64% 6.75% Unchanged
5/1 ARM Conventional 6.31% 7.39% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.

Find and lock a low rate

Should you lock a mortgage rate today?

There’s no such thing as certainty in future mortgage rates. However, the chances of their gently gliding lower in 2024 are good. Unfortunately, it’s looking unlikely that the happy trend will arrive before late spring, and possibly well into the summer.

So, my personal rate lock recommendations are now:

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • LOCK if closing in 45 days
  • LOCK if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.

What’s moving current mortgage rates

Next week’s jobs report

Two monthly economic reports vie for the top spot as the most consequential for mortgage rates. One, the jobs report, is due next Friday. And the other, the consumer price index (CPI), is scheduled for the following Tuesday.

We’ll deal with the CPI next week. But let’s look at what the jobs report (formally called the employment situation report) for February might do.

With almost all economic data, mortgage rates tend to fall when the figures in a report are lower than markets are expecting. One exception crops up in the jobs report. It’s better for mortgage rates when the unemployment rate is higher than expected.

Before each report, analysts come up with a consensus forecast. And many investors trade ahead of publication based on the forecast, pricing it into mortgage rates and assets. So, when the forecast is wrong, investors are left scrambling to buy or sell assets as they rebalance their portfolios to reflect reality. The asset that largely determines mortgage rates is a type of bond called a mortgage-backed security (MBS).

So, let’s see what markets are expecting, according to MarketWatch, from the jobs report:

  • Nonfarm payrolls (new jobs added during the month) — 210,000 in February, down from 353,000 in January
  • Unemployment rate — 3.7% in February, unchanged from January
  • Hourly wages — 0.2% in February, down from 0.6% in January

To be clear, mortgage rates tend to fall when economic data are worse than expected. So, we’d like nonfarm payrolls to be below 210,000, hourly wages to have risen more slowly than 0.2%, and the unemployment rate to be higher than 3.7%.

Chances are, the jobs report will on Friday swamp the effects of all the other economic reports next week. But a few of the lesser ones might cause some volatility earlier in the week.

Other important reports next week

The ones most likely to do so are:

  • January factory orders on Tuesday — Expected to fall to -3.1% from December’s +0.2%
  • February purchasing managers’ index (PMI) from the Institute for Supply Management (ISM) — Expected to fall slightly
  • February ADP employment report for the private sector on Wednesday — Expected to rise to 150,000 from 107,000 in January. Sometimes seen as a bellwether for the jobs report
  • January job openings and labor turnover survey (JOLTS) on Wednesday — Openings are expected to dip slightly to 8.9 million from 9 million in December. A helpful peek under the labor market’s hood
  • Second reading of productivity during the last quarter of 2023 (Q4/23) on Thursday — Expected to be a shade lower than the first reading at 3.1% compared to 3.2%

We’d need to see big variations from the analysts’ consensus forecasts for these to move mortgage rates far or for long. But any of these might push those rates up or down.

The Fed

Although these and other reports routinely move mortgage rates even when inflation and the Federal Reserve are not front of mind, things are different now. Investors tend to view the data through the prism of how they might affect the Fed’s decisions on the timing and scope of future cuts to general interest rates.

One way they can gauge that is by listening to what top Fed officials say in public. And those have nine speaking engagements next week.

Most importantly, Fed Chair Jerome Powell is due to provide evidence to Congress next Wednesday and Thursday. His voice is highly influential and his testimony could easily move mortgage rates.

The Fed will next decide on rate policy on Mar. 20. Very few expect it to cut general interest rates that day. But Wall Street hopes it will strongly hint at cuts at the May or June meetings of its rate-setting committee.

Economic reports next week

See above for details about the more important economic reports next week.

In the following list of next week’s reports, only those in bold typically have the potential to affect mortgage rates appreciably. The others probably won’t have much impact unless they contain shockingly good or bad data.

  • Monday — Nothing
  • Tuesday — February ISM PMI. Also factory orders for January
  • Wednesday — Fed Chair Jerome Powell testifies to Congress. Also February’s ADP employment report and January’s JOLTS
  • Thursday — Fed Chair Jerome Powell testifies to Congress (again). Plus productivity in Q4/23. And initial jobless claims for the week ending Mar. 2
  • Friday — February jobs report

The jobs report is by far the most important publication next week. But watch out, too, for the Fed chair’s appearances before Congress.

Time to make a move? Let us find the right mortgage for you

Mortgage rates forecast for next week

Once again, mortgage rates are unpredictable next week. Whether they move higher or lower will largely depend on the jobs report (which regularly confounds analysts’ forecasts) and on what Fed Chair Jerome Powell tells Congress.

How your mortgage interest rate is determined

A bond market generally determines mortgage and refinance rates. It’s the one where trading in mortgage-backed securities takes place.

And that’s highly dependent on the economy. So mortgage rates tend to be high when things are going well and low when the economy’s in trouble. But inflation rates can undermine those tendencies.

Your part

But you play a big part in determining your own mortgage rate in five ways. And you can affect it significantly by:

  1. Shopping around for your best mortgage rate — They vary widely from lender to lender
  2. Boosting your credit score — Even a small bump can make a big difference to your rate and payments
  3. Saving the biggest down payment you can — Lenders like you to have real skin in this game
  4. Keeping your other borrowing modest — The lower your other monthly commitments, the bigger the mortgage you can afford
  5. Choosing your mortgage carefully — Are you better off with a conventional, conforming, FHA, VA, USDA, jumbo or another loan?

Time spent getting these ducks in a row can see you winning lower rates.

Remember, they’re not just a mortgage rate

Be sure to count all your forthcoming homeownership costs when you’re working out how big a mortgage you can afford. So, focus on something called you “PITI.” That stands for:

  • Principal — Pays down the amount you borrowed
  • Interest — The price of borrowing
  • Taxes — Specifically property taxes
  • Insurance — Specifically homeowners insurance

Our mortgage calculator can help with these.

Depending on your type of mortgage and the size of your down payment, you may have to pay mortgage insurance, too. And that can easily run into three figures every month.

But there are other potential costs. So, you’ll have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repairs and maintenance costs. There’s no landlord to call when things go wrong!

Finally, you’ll find it hard to forget closing costs. You can see those reflected in the annual percentage rate (APR) that lenders will quote you. Because that effectively spreads them out over your loan’s term, making that rate higher than your straight mortgage rate.

But you may be able to get help with those closing costs and your down payment, especially if you’re a first-time buyer. Read:

Down payment assistance programs in every state for 2023

Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The result is a good snapshot of daily rates and how they change over time.

Source: themortgagereports.com

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If you’re considering booking a flight with Turkish Airlines or redeeming Miles&Smiles miles for a flight operated by a partner airline, it’s good to be aware of its cancellation and refund policies. If your plans aren’t firm, you can weigh the pros and cons of making the booking in the first place.

But even with the best laid plans, things might need to be changed at the last-minute. Below is what you need to know about Turkish Airlines’ cancellation policy for cash and award tickets.

Turkish Airlines 24-hour cancellation policy

The Turkish Airlines refund policy abides by the U.S. Department of Transportation 24-hour rule.

Free cancellations are available within 24 hours on flights to or from the United States booked at least seven days before departure. You may receive a full refund back to the payment card if you cancel a flight within this risk-free cancellation period.

Turkish Airlines flight cancellation policy

Turkish Airlines’ cancellation policy varies depending on your destination, ticket type and fare class.

The airline sells various tickets across two cabins, economy and business. For example, for domestic travel in economy class, you can book an EcoFly, ExtraFly or PrimeFly ticket.

Let’s break it down.

Turkish Airlines cancellation policy for domestic flights (within Turkey)

Cancellations made within one hour of departure

Not allowed.

Not allowed.

Not allowed.

Not allowed.

Cancellations made between one and 12 hours before departure

Not allowed.

Penalty of 560 Turkish lira ($18.35).

Penalty of 490 Turkish lira ($16.06).

Penalty of 820 Turkish lira ($26.87).

Cancellations made more than 12 hours before departure

Penalty of 525 Turkish lira ($17.20).

Penalty of 375 Turkish lira ($12.29).

No penalty.

No penalty.

Non-refundable fare classes

Q, T, L, V, P, W, U.

V, P, W, U.

The cancellation policy differs for Turkish Airlines flights between Turkey and Cyprus. You can find those fare policiesh here.

Turkish Airlines cancellation policy for international non-branded fares

Semi-flexible

Not allowed.

Permitted, subject to deductions.

Permitted, subject to deductions.

Not allowed.

Permitted, subject to deductions.

Permitted, subject to deductions.

Turkish Airlines cancellation policy for international branded fares

The following rules apply to economy tickets.

Not allowed.

$70 change fee. No refunds.

$0 change fee. $140 refund fee.

And the following rules apply to business class fares.

BusinessFly

BusinessPrime

$70 change fee. No refunds.

$0 change fee. $0 refund fee.

How to cancel a Turkish Airlines flight

You can cancel a Turkish Airlines flight by accessing your booking information from the Manage Booking page. Enter the record locator and the passenger’s last name, and your booking details will populate on the next page. From there, you’ll have the option to change or cancel your flight.

You also can cancel your flight by dialing the Turkish Airlines call center at 800-874-8875. Follow the prompts, and a customer service agent will be available shortly.

How to cancel a Miles&Smiles award flight

If you need to cancel a Turkish Airlines award flight booked with Miles&Smiles miles, you can do so online or by calling the Turkish Airlines U.S. call center at 800-874-8875.

To get your miles redeposited, you must pay a fee of:

  • 150 Turkish lira ($4.91) for domestic flights.

  • $70 for international flights.

In case of a no-show, you can get your miles back as well for the following fee:

  • 200 Turkish lira ($6.55) for domestic flights.

  • $150 for international flights.

Depending on how many Turkish Airlines miles you redeemed, the fees to get them back in your Miles&Smiles account aren’t terribly high.

Other ways to get your money back

Even if you’ve purchased a ticket that doesn’t allow refunds, you may still be able to get your money back, depending on how you booked and if you’re covered with travel insurance.

Cards with travel insurance benefits

Chase Sapphire Preferred® Card

on Chase’s website

Chase Sapphire Reserve®

on Chase’s website

The Platinum Card® from American Express

Ink Business Preferred® Credit Card

on Chase’s website

Annual fee

Travel protections (not a comprehensive list)

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Trip delay: Up to $500 per ticket for delays more than 6 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Trip delay: Up to $500 per trip for delays more than 6 hours.

• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Lost luggage: Up to $3,000 per passenger.

Terms apply.

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

Learn more

For The Platinum Card® from American Express, note the following disclaimers:

Trip delay:

  • Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

  • Underwritten by New Hampshire Insurance Company, an AIG Company.

Trip cancellation:

  • Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

  • Underwritten by New Hampshire Insurance Company, an AIG Company.

Trip interruption:

  • Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

  • Underwritten by New Hampshire Insurance Company, an AIG Company.

Loss luggage:

Assuming your reason for cancellation meets certain eligibility requirements, you can get a refund. Examples of covered reasons to cancel a trip include a qualifying illness or injury, severe weather, jury duty, quarantine and more.

It’s also possible to purchase travel insurance from a third party to ensure you’re covered for your trip.

🤓Nerdy Tip

If you’re not certain of your travel plans, purchase an upgrade called Cancel For Any Reason (CFAR) insurance, which allows you to cancel your bookings and receive up to 75% of your money back, regardless of why you cancel.

The bottom line

Depending on where you’re traveling and the fare you booked, Turkish Airlines flights can be eligible for refunds, but the less expensive fares tend to include a penalty clause for you to get your money back.

The Turkish Airlines 24-hour risk-free cancellation policy allows you to cancel a U.S.-bound or U.S.-departing flight for free as long as it departs more than seven days in the future.

As far as canceling award tickets, you’ll be charged up to $70 to get the miles redeposited into your Miles&Smiles account.

To view rates and fees of The Platinum Card® from American Express, see this page.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com