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Though mortgage rates remain high compared to a few years ago, improved economic data and signs of cooling inflation have triggered rates to fall over the past three weeks. Experts say it’s been a welcome surprise for homeseekers, who are facing the worst housing affordability in four decades.

A handful of closely followed mortgage rates crept higher over the last seven days. The average 15-year fixed and 30-year fixed mortgage rates both saw growth. For variable rates, the 5/1 adjustable-rate mortgage receded.

The surge in mortgage rates, together with limited for-sale inventory and expensive home prices, has resulted in a reservoir of pent-up demand from anxious and ready homebuyers, said Jared Antin, managing director at the real estate agency Elegran. As soon as average 30-year fixed mortgage rates fell below 8% earlier this month, home loan applications began to increase, according to the Mortgage Bankers Association. Last week, applications for a mortgage hit their highest level in six weeks, but were still 20% lower than the same time last year, per the MBA’s weekly survey..

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

There’s always volatility when it comes to mortgage interest rates, which are influenced by an interplay of macroeconomic factors, such as inflation, job growth and the bond market, as well as investor confidence and global events.

Today’s average mortgage interest rates

If you’re in the market for a home, check out how today’s mortgage rates compare to last week’s. We use information collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 7.74% 7.69% +0.05
15-year fixed rate 7.02% 6.96% +0.06
30-year jumbo mortgage rate 7.82% 7.71% +0.11
30-year mortgage refinance rate 7.74% 7.78% -0.04

Rates as of November 24, 2023.

Current mortgage rate trends

Though the Federal Reserve does not directly set mortgage rates, they’re affected by the government’s monetary decisions. Since early 2022, with the onset of aggressive increases to the federal funds rate to combat inflationary pressures, mortgage rates reached record-high levels.

The Fed has kept interest rates steady since late July, but mortgage rates continued climbing due to market expectations of further rate hikes. Most major mortgage rates finally saw significant dips after November’s interest-rate pause, a shift in the 10-year Treasury yield and weaker jobs data, which was then followed by a better-than-expected inflation report.

Experts anticipate we might be nearing the end of the central bank’s rate-hike cycle, which could signal the start of a slow recovery in home loan rates. “If markets believe that the Federal Reserve will adopt a permanent pause, it is reasonable to expect a decline in mortgage rates, following the trend of the 10-year yield for US Treasuries,” said Carlos Garriga, senior vice president and research director at the St. Louis Federal Reserve.

While any mortgage forecast is an estimate at best, it’s not unreasonable to predict downward pressure on rates as the economy continues to cool, according to Rob Cook, chief marketing officer at Discover Home Loans. “As we get more economic data heading into next year, there will be a focus on whether the recent economic trends hold or change,” Cook said.

But homeseekers should keep in mind that even when the Fed stops hiking interest rates, it generally takes 12 months before there are substantial drops, according to Niladri Mukherjee, chief investment officer at TIAA Wealth Management. For mortgage rates to be more affordable, the Fed would have to start cutting rates, which won’t happen until 2024 at the earliest.

Calculate your monthly mortgage payment

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

What is a good loan term?

When picking a mortgage, remember to consider the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages can either be fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. The interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the current interest rate in the market.

When choosing between a fixed-rate and adjustable-rate mortgage, consider the length of time you plan to live in your home. If you plan on living long-term in a new house, a fixed-rate mortgage may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. As a result, a growing share of homebuyers are leaning toward ARMs.

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 7.74%, which is an increase of 5 basis points from one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed mortgage, the most common loan term, is a good option if you’re looking to minimize your monthly payment. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one, but often a higher interest rate.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 7.02%, which is an increase of 6 basis points from seven days ago. Though you’ll have a bigger monthly payment compared to a 30-year fixed mortgage, a 15-year loan will usually be the better deal if you can afford the monthly payments. You’ll usually be able to get a lower interest rate, pay less interest in the long run and pay off your mortgage sooner.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 6.83%, a fall of 11 basis points from the same time last week. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But you could end up paying more after that time, depending on how the rate adjusts with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an ARM could be a good option. If not, changes in the market may significantly increase your interest rate.

How to find the best mortgage rates

You can get a personalized mortgage rate by contacting your local mortgage broker or using an online calculator. To find the best home mortgage, take into account your goals and current finances. Be sure to look at the annual percentage rate, or APR, which reflects the mortgage interest rate plus other borrowing charges. By comparing the total cost of borrowing from multiple lenders, you can make a more accurate apples-to-apples comparison.

Your specific mortgage rate will vary based on factors including your down payment, credit score, debt-to-income ratio and loan-to-value ratio. Having a higher down payment, a good credit score, a low DTI and LTV or any combination of those factors can help you get a lower interest rate.

The interest rate isn’t the only factor that affects the cost of your home. Be sure to also consider fees, closing costs, taxes and discount points. You should shop around and talk to several different lenders from local and national banks, credit unions and online lenders to find the best mortgage for you.

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

Source: cnet.com

Apache is functioning normally

In a stunning bit of news, JPMorgan Chase said today that it will acquire flagging investment bank Bear Stearns for just $2 per share, a sharp contrast to its $30 closing price on Friday and its 52-week high of $159.36.

The stock-for-stock transaction will exchange 0.05473 shares of Chase common stock per one share of Bear Stearns stock, valuing the multi-billion dollar world banking giant at just $236 million.

The move has already been approved unanimously by both companies’ Board of Directors and effective immediately, Chase will guarantee the trading obligations of Bear Stearns and provide management oversight.

“JPMorgan Chase stands behind Bear Stearns,” said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase, in a statement. “Bear Stearns’ clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns’ counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner.”

“This transaction will provide good long-term value for JPMorgan Chase shareholders. This acquisition meets our key criteria: we are taking reasonable risk, we have built in an appropriate margin for error, it strengthens our business, and we have a clear ability to execute.”

The move is nothing short of a rescue, as Bear Stearns flirted with bankruptcy after biting off much more than it could chew in the mortgage securities market over the last year and change.

And the collapse of such an influential power on Wall Street would have sent shock waves through already spooked financial markets, wreaking havoc on world economies.

On Friday, Chase and the Federal Reverse Bank of New York agreed to provide emergency funding to Bear for an initial period of 28 days to address liquidity concerns, though that clearly wasn’t enough to save the 85-year old company.

Chase also noted in its statement that the Fed will provide special financing of up to $30 billion related to the transaction.

The deal, which was quickly approved by the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and other federal agencies, is expected to close expeditiously in the second quarter.

At this time, it’s unclear what will happen to Bear Stearns’ existing mortgage platform, Bear Stearns Residential Mortgage Corporation.

In related news, the Fed lowered the federal funds rate to 3.25 percent from 3.50 percent and created another emergency lending facility for investment banks to secure short-term loans.

(photo: pfala)

Source: thetruthaboutmortgage.com

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The next best thing to binge-watching home decor shows is swooning over the pages of home decor books by your favorite designers. Shea McGee, Kelly Wearstler, Jeremiah Brent, Bobby Berk and more are inspiring us with new books about how to live beautifully, colorfully, elegantly, and even on a budget. Gift them to the interior design lovers in your life, use them as a coffee table books, and prepare to be inspired to create a home that inspires joy, creativity, and comfort. Something we can all use these days, right? Enjoy!

The Art of Home: A Designer Guide To Creating An Elevated Yet Approachable Home

We couldn’t wait to get our hands on Shea McGee’s beautiful new decor book, where she shares the details behind her design process, inspires us with swoon-worthy design photos, and takes us through every room of the house to help us transform how we live every day. We love that you can take these ideas and make them your own with vintage or more affordable pieces from her Target collection.

Old Brand New: Colorful Homes for Maximal Living

Dabito is a master at mixing colors and making max living seem effortless and refined (but still totally fun). Here, he gives us all the tricks of his trade on layering bold colors, incorporating vintage, and sprucing up your space for a new year. Expect to find projects you can whip up in a weekend (styling a bookcase, hanging a gallery wall, designing an outdoor space) for your home or rental, and learn about his immigrant experience in his thoughtful and inspiring way.

Right at Home: How Good Design Is Good for the Mind

Queer Eye host Bobby Berk shows you how to make the most of your home to inspire self care, wellness, and inspire happiness in every room. Bobby helps anyone, from studio dwellers to first home buyers, figure out how to define what makes you happy so you can create an authentic design to you (vs. what is popular on IG). He helps with function, comfort and so much style, all in an effort to boost your mood at home.

Kelly Wearstler: Synchronicity

Kelly Wearstler fans unite — this book is chock-full of Wearstler’s unique and mold-breaking designs. She masters pairing luxe materials with fresh colors and forms and mixes styles to perfection. Her bold approach shines through so you can take cues on how to incorporate her wildly elegant ideas at home.

The Space That Keeps You: When Home Becomes a Love Story

Moving from one beautiful home to the next with partner Nate Berkus and their two children, Jeremiah Brent wanted to explore what makes a home a space that keeps you grounded. He guides us through homes around the world — from Mexico to Montecito — that hold memories, emotions, and personal stories. His gorgeous designs are the backdrop to a powerful story of what shapes a home. This book comes out next February, but you can pre-order now!

Star Style: Interiors of Martyn Lawrence Bullard

Martyn Lawrence Bullard’s A-list clients include the Kardashians, Blake Shelton and Gwen Stefani, and Ellen Pompeo. Get a peek inside the homes of Hollywood elite, from Kylie Jenner’s Hidden Hills hideaway to Cher’s Malibu mansion, and refresh your space with a little glamour.

Create: At Home With Old & New

Ali Heath’s follow-up to her wildly popular decor book, Curate, give us refreshing decor inspo that combines modern design mixed with vintage soul and we can’t get enough!

Laura Gonzalez: Interiors

Become inspired by one of Paris’s most sought-after designers. See how designer and architect Laura Gonzalez expertly mixes patterns, texture, and whimsical details to create bold, iconic spaces, from retail to restaurants to hotels and homes. Her designs hint to the classics but are infused with her sophisticated, colorful, and diverse style. Think elegant romanticism with an edge.

Call It Home: The Details That Matter

Designer Amber Lewis, known for her California-inspired style and the author behind the best-selling Made for Living, goes into the details (the edges, grains, colors, and finishes) that make a home a beautiful one. If eclectic, laid-back and coastal is your style, this book is worthy of your limited bookshelf space.

Think Like A Decorator

Interior designer Leslie Banker and friends like designers Alexa Hampton, Tom Scheerer, and Amanda Nisbet, share their best tips for turning a space into a story. She helps you address common decor problems and offers advice for creating your own unique look in this fun, entertaining decor tome.

Calm Living

If you really want to create a sanctuary at home, this book by designer and Stanford instructor Olga Trusova teaches you how to make small changes in your space to feel more inspired, clear and joyful. Get snackable tips on how to use light, color, sound, and furniture to make an impact on your home and your mind and body.

The Home Style Handbook

UK-based artist and designer Lucy Gough shares step-by-steps and moodboard inspiration in this guide to creating a home that reflects you and your personal style.

Farrow & Ball How to Redecorate

Looking for good paint inspiration? This new edition of the best-selling interiors book teaches you how to use paint and wallpaper to transform your space.

The deVOL Kitchen

If you’ve caught the deVOL team (For the Love of Kitchens) on the Magnolia Network, you know that their work is no joke. With beautiful cabinetry and intelligent design, the UK-based design couple shows you how to make the most of the most important room in your home. This guide is full of stunning photography to inspire you to design and style your kitchen in a way that makes you feel right at home.

Colour Confidence

Need a confidence boost when it comes to picking out and pairing colors? Jessica Sowerby of @thehousethatcolourbuilt helps you choose the perfect palette, embrace darker tones, find the perfect white, and more!

Sacred Spaces

Designer and photographer Carley Summers draws from her personal struggles with addiction to show how a home is a place that can heal. Learn about 14 other stories where home is truly where the heart is and how you can design your space for solace and comfort in her signature style.

The Interior Design Book For A Happy Home

Learn how to choose mood-boosting color palettes, incorporate natural textures that soothe, and create a joyful space you always want to come home to with dopamine decor expert Sofia Meri.

Your Space, Made Simple

If you’re feeling in a design rut, Bay Area interior designer Ariel Magidson will show you how to create a beautiful space that is approachable, affordable, and sustainable in this guide to a well-designed home. Understand what you need to make your home less stress-inducing, get tips for sourcing furniture that isn’t a splurge, and pick up recipes for arranging a space that feels just right.

For even more home decor inspo, sign up for our weekly email newsletter!

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Source: brit.co

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Milestones, the all-in-one home management solution specifically designed for consumers to buy, move, own, sell, manage, and access mortgage services for their home seamlessly in one centralized portal, has announced its strategic alliance with FinLocker, a pioneer in digital, consumer-permissioned personal financial fitness tools focused on homeownership. This partnership will provide mortgage lenders with an end-to-end engagement solution to attract, nurture, and retain homebuyers and ensure their consumers have a smooth transition from initial interest, through the preparation for a mortgage, to closing and beyond.

FinLocker provides mortgage lenders and their originators with a hyper-personalized engagement platform to attract early-journey homebuyers to their business and nurtures them with personalized data-driven journeys using the financial tools and education embedded in the platform to achieve mortgage readiness and sustain homeownership.

Milestones complement this approach by guiding these educated leads throughout the decade-long journey of homeownership with online home management portals “hubs” that deliver a wide array of home services, such as home service providers, home value insights, home maintenance tasks, home document storage, and much more.

Together, this comprehensive solution will revolutionize the way consumers navigate the complex journey of homeownership by educating and empowering them from planning to closing, resulting in increased customer retention, and reduced customer acquisition costs for mortgage lenders.

“FinLocker is excited to partner with Milestones as the platform provides an extension of our financial fitness platform to prepare first-time homebuyers to qualify for a mortgage,” said Brian Vieaux, President and COO of FinLocker. “Mortgage lenders who use Milestones will now have an all-encompassing solution to attract, engage, nurture, retain and reactivate clients in their database.”

FinLocker and Milestones combined boast a myriad of features catering to both pre and post-transaction stages, ensuring a holistic and supportive homeownership experience.

  1. Pre-transaction
    1. Credit monitoring and credit score-building tools
    2. Goal setting and budgeting for down payment saving and debt reduction
    3. Financial Education
    4. Homebuyer mortgage readiness assessment and guidance
    5. Home Search
    6. Streamlined mortgage application management
  2. Post-transaction
    1. Home Education Knowledge Base
    2. Home Value and Home Equity Monitoring
    3. Home Maintenance Task Reminders
    4. Suggested Home Improvements to Build Equity
    5. Home Document Storage
    6. Home Services Vendor Marketplace

About FinLocker
Headquartered in St. Louis, Missouri, FinLocker provides a secure financial fitness app that aggregates and analyzes a consumer’s financial data to offer personalized journeys to build and monitor their credit, manage their financial accounts, receive their net worth and cash flow analysis, create goals, save and budget to achieve loan eligibility for a mortgage and other financial goals.

Within the FinLocker app, consumers can take a readiness assessment before applying for a mortgage, begin their property search, and securely store personal and financial documents, which can be shared with a lender directly from the app to start their loan application. Mortgage lenders and financial service providers use their white-labeled FinLocker to generate and convert leads, gain market share, cross-sell value-added products, reduce loan processing costs, decrease risk, and create customers for life. For more information, visit FinLocker.com.

About Milestones
Milestones is a homeownership solution that delivers personalized client portals (“hubs”) specifically designed to engage consumers at every stage of the decade-long homeownership journey – from buying, selling, moving, and managing a home. Milestones hubs give consumers access to a wide array of home service providers, insights into home value, and much more, positioning real estate professionals to stay connected, educate, and add value to create forever clients. Learn more at Milestones.ai.

Media Contact:
Monika Sollee for Milestones
[email protected]

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Source: realtybiznews.com

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The Federal Housing Administration’s latest version of a proposed vehicle for helping distressed borrowers with older loans obtain affordable payments responds to some key industry requests.

Notably, it reduces what would have been a complicated claim process for mortgages the FHA insures when the strategy gets used, in line with a previous ask for simplification from trade associations, according to the Housing Policy Council.

“This is probably the most significant change: They were going to have servicers submit multiple and ongoing claim submissions, and they’ve moved to a one-time submission,” said Matt Douglas, senior vice president, mortgage policy, HPC. 

The term of the redrafted payment-supplement partial claim also no longer includes a complicated set of rules for the remuneration period, which is now set at three years as housing finance organizations had requested.

“It previously had been pretty complex,” said Pete Mills, senior vice president of residential policy and member engagement at the Mortgage Bankers Association.

The FHA did not raise incentives connected with the foreclosure prevention strategy the way some advocates hoped, but with the process for claims streamlined, they were reconsidering their position on what type of payments would be appropriate at deadline.

“This is going to require less work. We need to take a look at what’s a reasonable request for an incentive. That’s an open question. I don’t think we have developed a position on that yet,” Douglas said.

The administration has promised not to move ahead on the proposal without reviewing another round of feedback, which is due by Dec. 7.

“This one was particularly complicated. We’re very appreciative we got back to the drafting table one more time, even with a short turnaround,” Mills said. “I give the FHA a fair amount of credit for using the drafting table, not just for this, but in general. I think it results in better policy.”

The FHA would now like to implement the PSPC within nine months of finalizing it. That’s more than the six months previously floated but less than the year residential entities originally sought.

“I think it’ll probably include the option to implement sooner, in cases where you can’t, this certainly addresses some of the challenges of getting this built into the permanent FHA loss-mitigation waterfall,” Mills said.

There’s a balance that should be struck between meeting borrower needs for the PSPC that exists under current market conditions, and the need for the industry to have enough bandwidth to take all the steps required to make sure it’s operationally effective, Douglas said.

“A loss mitigation offering that works more effectively in a high interest rate environment is a tool that we think FHA needs. However, this is a novel, untested concept that we want to make sure we get it right,” said Douglas.

The vehicle for the payment-supplement partial claim is a subordinate lien. That avoids a modification of the first lien that would create a need to adjust the loan to the higher market rate.

“There’s a second lien in favor of HUD that secures the repayment of the amounts that HUD has extended to bring the loan current,” said James Wright Jr., a partner that represents banks and other financial services companies at Bradley, a national law firm.

“It’s a 0% loan but it does have to be paid off either when it’s refinanced or when the property is sold,” he added, noting that if the loan does extend out to its full term the borrower may have a balloon payment at the end.

One thing the FHA has not produced yet, but servicers would like to review, are certain documents involved.

“We do think that’s an important step so that we understand: What does the model note look like? What does the model borrower agreement look like? What does the rider to the note look like? We have asked for them to publish that and they have not yet,” Douglas said.

Source: nationalmortgagenews.com

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The Florida housing market in September and the third quarter (3Q) of 2023 showed signs of stabilization in statewide median prices and improved inventory levels compared to the previous year, according to the latest housing data from Florida Realtors®.

“Florida continues to draw new residents, and the dollar volume of single-family home sales in September was up 14.1% year-over-year to $12.2 billion dollars. Over that same timeframe, closed sales of single-family homes rose 6.1%. The Florida market remains strong in the face of higher mortgage rates, and first-time buyers are finding greater selections and less competition than they’ve seen in years.”

Florida Realtors® President G. Mike McGraw

Despite higher mortgage rates, the Florida market remains strong, offering more choices and less competition for first-time buyers.

In September 2023, closed sales of existing single-family homes statewide reached 21,335, a 6.1% increase from the previous year. Existing condo-townhouse sales, on the other hand, totalled 8,387, a slight decrease of 0.2% compared to September 2022.

During the 3Q of 2023, statewide existing single-family home sales declined by 3.2% from the previous year, totalling 66,450. Existing condo-townhouse sales also decreased by 5.8% year-over-year, totaling 26,129. It’s important to note that closed sales may occur from 30 to 90 days after sales contracts are written.

Florida Realtors Chief Economist Dr. Brad O’Connor noted some positive signs as the market entered the fall season:

“In September, closed sales of single-family homes were up for the first time compared to a year ago, rising by over 6%. Closed sales of townhouses and condos in 2023 have been converging with their 2022 levels as well. We were still down in September year over year, but by a fraction of 1%.”

Fla. Sept. Report: Single-Family Sales Up 6.1%

In September, the statewide median sales price for existing single-family homes reached $409,243, a 1.3% increase from the previous year. Condo-townhouse units had a median price of $324,990, reflecting a 5.8% increase compared to September 2022.

For the 3Q of 2023, the median sales price for single-family homes in Florida was $414,000, showing a 1.0% increase over the second quarter of 2022. The median sales price for condo-townhouses during the same period was $320,545, reflecting a 5.8% year-over-year increase.

O’Connor mentioned that new listings have been at their lowest level in several years in 2023, but in recent months, they’ve been closer to pre-pandemic levels. In fact, September’s new single-family listings exceeded the number from the same month in 2019, marking an 8% increase compared to the previous year.

While there is more active inventory at the end of September compared to the beginning, Florida still has a lower inventory of single-family homes than in 2019 before the pandemic. The state had a 3.2-month supply of single-family existing homes in September, a 28% increase year-over-year. Condo-townhouse units had a 4.1-month supply, reflecting a significant 78.3% increase compared to the previous year.

For the full statewide housing activity reports, interested parties can visit the Florida Realtors Newsroom or access the September 2023 and 3Q 2023 data report PDFs under Market Data.

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Mihaela Lica Butler is senior partner at Pamil Visions PR. She is a widely cited authority on public relations issues, with an experience of over 25 years in online PR, marketing, and SEO.She covers startups, online marketing, social media, SEO, and other topics of interest for Realty Biz News.

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Source: realtybiznews.com

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Americans at risk of eviction are already stretched thin. This can make applying for eviction resources seem overwhelming.

“They’re also struggling to put food on the table, struggling to secure employment, going to appointment after appointment to secure benefits to keep their families safe,” says Emily Benfer of The Eviction Lab. “That’s a lot of toxic stress that that household is already undergoing, so the idea of adding 20 more calls to social services is daunting.”

Service providers understand this and are making the application process easier.

“It’s on us service providers to make it as low-barrier as possible,” says Emma Schmit, housing director of Lakes and Prairies Community Action Partnership (CAPLP), in Moorhead, MN. “They can call us, they can text us, we can do it over the phone, they can also walk in. You just need to do one assessment.”

Eviction resources specialists across the county can connect renters with the services they need. Schmit says people should reach out at the first sign of trouble.

“If they get a late notice or a disconnection notice, we want them to contact us as soon as they can,” she says. “It does take time.”

There are many eviction resources that renters can use to stay in their homes. Some renters will qualify for federal housing programs. Others can use emergency rental assistance, get help paying for utility bills, food, moving expenses and more.

1. HUD

If you’re part of a low-income household, start by applying for federal housing programs. The U.S. Department of Housing and Urban Development (HUD) runs several affordable housing and grant programs in the U.S.

To see if you qualify, contact a Public Housing Agency (PHA) at (800) 569-4287. You can also search for a qualified agency online. Just enter your state to find a HUD-approved adviser in your region. Housing counselors can help you sign up for programs if you’re eligible.

Demand for these programs is high and the waitlist is very long. Some qualified applicants wait for months or years before they can get help. So, apply for short-term eviction resources, food aid and other programs in order to offset rental costs while you wait for a long-term solution.

2. Emergency Rental Assistance (ERA)

The U.S. Government stepped in to help Americans pay their rent and utility bills in 2021. The Federal Emergency Rental Assistance program distributed 46 billion dollars to states, U.S. territories, local governments and Native American tribes.

This program is pandemic-related and funds will run out. So, renters at risk of eviction should apply soon as possible. Search the federal database by city, ZIP code, state or tribe.

3. The NLIHC

The National Low Income Housing Coalition (NLIHC) also maintains a list of emergency eviction resources across the country. Many of the programs in this database will show up in other databases as well.

Sarah Gallagher, senior project director for the NILHC’s ERASE project (Ending Rental Arrears to Stop Eviction), says that the NLIHC database is updated weekly. This helps applicants feel confident that funding is still available when they sign up.

The database includes state, county and city aid organizations. They distribute the funds to renters in many ways. Some help pay back rent or utility bills. Others provide legal help or cover moving expenses.

To see what’s available near you, just enter your state, U.S. territory, tribe or locality into the online tool. The results will include a link to the program and a description of the communities that it serves. It also describes what the program funds, so you can target your applications effectively.

You will need to apply for each program individually. Be prepared for a wait.

“Many of the programs are pretty overwhelmed,” explains Gallagher. “You want to make sure that they’re applying for everything that they’re eligible for. But they can only receive assistance from one. If they have two applications in, they can always withdraw one.”

4. The CFPB

The Consumer Financial Protection Bureau (CFPB) offers eviction resources for a variety of circumstances. You can search for advice about what to do if the eviction process has just started or if you’ve already been evicted. Resources are available in many languages, including Spanish, Vietnamese and Tagalog.

The CFPB also maintains an emergency rental assistance database. It includes organizations that will help renters pay overdue utility bills as well. Just enter your state, territory, tribe or tribal land into the dropdown menu to find available city, state, county and tribal programs near you.

You can also find housing counselors and agencies that offer free or discounted credit and renting advice. Enter your ZIP code to find resources in your neighborhood. All agencies are approved by the U.S. Department of Housing and Urban Development (HUD), so they can also determine if you’re eligible for HUD programs.

5. 211

“One good place to start is 211,” explains Emma Schmit of CAPLP. “They can do that quick screening and then connect a family who needs diapers or food.”

In addition to nutrition programs and services to help families meet their basic needs, 211 also provides mental health resources and help with medical bills and prescription medication. Some local programs also provide information about housing expenses and programs to pay utility bills.

You can call 211 from any telephone. When you share your location, you’ll get updated information about programs that are available in your area. All calls are confidential.

You can also explore your options online at 211. Enter your address or ZIP code into the search tool to get connected with health and human service agencies close to home.

6. Direct-To-Tenant Resources

ERASE’s Sarah Gallagher explains that some landlords are slow to accept Federal Emergency Rental Assistance, even though it can keep renters in their homes. Others refuse to accept it at all. A recent ERASE survey of participating programs across the country shows that this is a widespread problem.

“Overall, we found that the lack of participation was much more prevalent among landlords,” she says. “Of the programs that responded, 27 percent said that landlords often or sometimes refused to participate.”

Their reasons vary. Some landlords were unresponsive, unavailable or behind on paperwork. Others didn’t want to produce a W-9 tax form or report their income. Still, others wanted to retain the ability to evict tenants, even though the tenants had been approved for ERA funds.

The NLIHC says that direct-to-tenant programs can help renters bypass uncooperative landlords. These programs pay tenants directly. The tenants use the funds to pay the landlords, and the landlord never knows where the money came from.

Renters can search a list of direct-to-tenant programs within the NLIHC database. If you have an unresponsive landlord, tell your housing counselor early in the application process. Focusing the search on direct-to-tenant resources — and using aid to pay for utilities or food — will save everyone time and energy and increase your odds of success.

7. Disability Services

There are a variety of federal programs to assist Americans with disabilities. These include public housing, subsidized housing and rental assistance programs.

The Disability Services homepage includes information about these programs, as well as links to state and local opportunities. Use it to see if you’re eligible for a Non-Elderly Disability (NED) voucher to get help with your medical bills or to file a complaint. There’s a special section for disabled veterans, as well.

8. The U.S. Department Of Veterans Affairs

The U.S. Department of Veterans Affairs (or the VA) operates a number of services for veterans in crisis or at risk of homelessness. If you’re at risk of eviction, contact your nearest VA medical center and ask to speak with a VA social worker. Female veterans can request the Women Veterans Program Manager. You can also chat online with a housing assistance specialist.

If you’ve already been evicted, call the National Call Center for Homeless Veterans at (877) 424-3838. You can speak with a trained VA counselor for free. This service is available 24 hours a day.

9. The Apartment Guide Eviction Resource Guide

The Apartment Guide Eviction Resources Guide provides a short summary of each state’s eviction laws. It also lists rental assistance programs and other eviction resources.

Search for services in your state using the interactive map. Or, browse federal rent aid options and nationwide nutrition programs.

10. LIHEAP

The Low Income Home Energy Assistance Program (LIHEAP) offers help with home energy bills and minor energy-related repairs. Enter your household size and household income to see if you’re eligible.

This program doesn’t provide grants to individuals. Instead, it works with partner organizations across the country.

Search for partner organizations by your tribe or your state. You can also call the National Energy Assistance Referral (NEAR) hotline at (866) 674-6327 or email [email protected] for more information.

11. The Community Action Partnership

Renters in need can also reach out directly to a Community Action Agency. Many help with moving expenses, paying back rent and providing other eviction resources to renters at risk. This might be a good option if you’re overwhelmed by the number of choices or if you’re not sure which programs you qualify for.

“If someone is in that kind of situation, I’d encourage them to call their local Community Action Agency,” says Emma Schmit. She explains that her organization, CAPLP, works like many Community Action Agencies across the country. “Since we have so many different programs, we can screen people for what kind of program they might be eligible for based on their income and the number of people in their household.”

The Community Action Partnership maintains a database of all nonprofit and public groups funded by the Community Services Block Grant (CSBG). Type your state, county or ZIP code into the search tool to find a Community Action Agency near you. You can also browse the interactive map or search by agency name.

12. Salvation Army

Community Action Agencies and other state and local programs often partner with national organizations to help people meet their basic needs. The Salvation Army is one of those programs. It offers grants, emergency rental aid, nutrition programs and utility payment programs to renters across the country.

The services provided vary, depending on your location. Enter your city, state or ZIP code for information about the programs in your community.

13. Catholic Charities

This national network of faith-based charities provides food, affordable housing and other services to more than 15 million people across the country. The services provided vary by location.

Search for a church or service center in your area to see which services are available. Some partners pay for rent. Others offer help with security deposits and overdue utility bills. There may also be emergency grants available for renters at immediate risk of eviction.

14. United Way

This organization connects renters with federal eviction resources and nonprofit organizations close to home. Many rent aid options are already covered in other national and federal databases. But the organization’s local connections can uncover additional funding sources.

Use the immediate needs tool to determine the kind of help you need most. You can also explore short-term and long-term financial resources and educational materials.

15. Just Shelter

Just Shelter connects renters with a range of eviction resources. Look for information about rental and tenant’s rights. The site also includes legal aid organizations and pro bono attorneys who will represent low-income tenants in eviction cases for free.

Look for services by state using the interactive map or review the national resources.

16. Legal Services Corporation

The Legal Services Corporation gives you a list of Legal Aid attorneys who can take your case for free or for a reduced cost. Search by city or address to find one near you. Or use the interactive map to browse partners and legal aid firms across the country.

It includes links to free legal forms. You can also search recent datasets, research and studies by geography or legal problem area.

17. LawHelp.Org

Go to Law Help for legal advice and free legal aid programs by state. It also includes a list of legal resources.

Renters can search by state on the interactive map or browse the list of partners across the country. Spanish speakers can get legal help on the Spanish language site.

18. FindLegalHelp.Org

The American Bar Association’s Find Legal Help provides a list of legal aid services across the country. It also connects low-income renters with pro bono attorneys.

These attorneys are available to answer simple legal questions online. The site also includes links to state-specific legal resources.

19. U.S. Armed Forces Legal Assistance

Active-duty service members in the continental U.S. can contact U.S. Armed Forces Legal Assistance. Search for legal help by state or ZIP code.

Enter your branch of service into the online search tool. Air Force, Army, Coast Guard, Navy and Marine Corps service members are eligible.

Eviction resources are available

Eviction remains a threat for many U.S. renters. But there are many eviction resources that can keep you in your home.

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or finance advice as they may deem it necessary.

Source: rent.com

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TPO and Correspondent, Non-Agency Best Ex, Verification; Equity Figures for Refis; STRATMOR on Customer Experience

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TPO and Correspondent, Non-Agency Best Ex, Verification; Equity Figures for Refis; STRATMOR on Customer Experience

By:
Rob Chrisman

Fri, Nov 17 2023, 11:13 AM

Talk can be humorous. “That lowdown scoundrel deserves to be kicked to death by a jackass, and I’m just the one to do it.” (Attributed to a congressional candidate in Texas.) Here in Dallas, mortgage talk is certainly wide-ranging and varied as there’s a lot going on out there as we head toward Thanksgiving week, including cost cutting, M&A, and Fair Lending. Today’s Rundown features Feliks Viner, VP of Capital Markets with First World Mortgage discussing rate volatility at 3PM ET. We have the Wall Street Journal story about the union between hoops and loans: “Mortgage King Wants the NBA Crown, Too.” Some housing industry observers may only think it was “only a flesh wound,” but the Realtors™ antitrust case decision in Missouri, coupled with other recent settlements and an onslaught of new cases, likely portend real changes for how homes are bought and sold in the US with the assistance of real estate brokers. Attorney Brian Levy, breaks it down and offers his view of the crumbling dam for buyer broker commissions and the Realtors’ control over local listings in his most recent Levy’s Mortgage Musings. (Today’s podcast can be found here, sponsored by LoanCare, the mortgage subservicer known for delivering superior customer experience through personalization and convenience. Its award-winning portfolio management tool, LoanCare Analytics, supports MSR investors with a focus on customer engagement, liquidity, and credit risk. Interview with Calque’s Chandra Srivastava on the inner workings of a mortgage marketing department and how companies justify ROI on marketing spend.)

Lender and Broker Software, Products, and Services

“Truv is saving Lenders 60-80 percent over competitors. That’s the savings of multiple full-time employees. For example, Compass Mortgage saved roughly 60 percent in verification costs and maintained their same conversion rate. “Truv has given us the ability to lower costs, all while speeding up the verification process and providing better employment data” said Justin Venhousen, COO, Compass Mortgage. Stop wasting money. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications.”

The Work Number® can help streamline processes and provide greater value to employment and income verification processes. Wider data coverage can help streamline lending processes. The Work Number is the largest commercial repository for consolidated income and employment data with access to 641 million instantly returned records, updated each pay cycle, provided directly by employers and payroll providers, so there’s no need to collect an applicant’s private banking or payroll credentials, potentially exposing them and yourself to risk. Lenders and brokers have a choice: access The Work Number directly from Equifax OR through our pre-built integrations with over 60 Point of Sale (POS) and Loan Origination Systems (LOS). Not all methods for verification of income and employment are created equal. Discover why The Work Number is the leading choice for seamless, swift, and automated verifications.

In this market, hustle is everything. You can’t afford to waste a single deal, or a single minute. That’s why ReadyPrice has launched Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today.

Join MAXEX at 2 p.m. ET on Thursday, December 7, for a special webinar on how the company is expanding its role as the cash window for the non-agency market. MAXEX’s multi-buyer-to-multi-seller exchange now provides more than 300 originators with access to more than 25 leading jumbo, non-QM, DSCR, Agency-eligible (NOO and 2nd Homes), and scratch & dent investors through a single clearinghouse. Join this event to learn about how MAXEX can help your business stay nimble and prepare for profitable, efficient growth in 2024.

Homebot is making a move towards an even more connected consumer experience through its launch of the Homebot Mobile App, allowing clients to connect with their trusted home advisors in a single tap right from their mobile device. With this announcement, every Homebot customer has the opportunity to engage their clients more deeply while generating more relationships with first-time homebuyers. See full story here.

Broker and Correspondent Products

Spring EQ Wholesale is now offering investment property HELOCs for 1st and 2nd lien positions! There is high demand for this product, and now is a great time to reach out to your clients who own investment properties and offer a way to access the equity in those homes. Need help with pricing? Click here to submit a scenario to Spring EQ’s team of Account Executives. Don’t forget, with Spring EQ you can earn up to 2.5 percent in traditional broker compensation on HELOCs and HELOANs. Looking for new opportunities in the mortgage space? We’d love to speak with you! Explore our job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Become a partner now or contact your Account Executive to learn more.

“Now is the perfect time to align yourself with a top-tier correspondent partner like Newrez Correspondent. How are you going to meet and exceed your 2024 goals in this challenging market? By choosing a partner with the strength, size, and quality of Newrez. We provide competitive pricing, an expansive product line and an unwavering commitment to service. Don’t take it from us. Visit our website to read what our valued clients have to say. More reasons? We offer multiple affordable lending options, a comprehensive monthly client training calendar and access to marketing materials you can customize on The Marketplace by Newrez. Non delegated/Non-QM product availability with access to LoanNEX (pricing and product eligibility platform). Contact your RSM to learn more by clicking here. At Newrez, there is much to be thankful for: our team, our clients, and our families. Wishing you and yours a safe and Happy Thanksgiving.”

What if you had a powerful tool that could help you close your purchase pipeline at four times the rate? Rocket Pro TPO’s Verified Approval (VAL) goes beyond typical pre-approvals by providing a fully underwritten solution that includes a review of your client’s credit, income, and assets. As a result, you will realize the benefit of more committed clients with a clear picture of affordability and the confidence to start shopping. And partners can rely on fast Verified Approval reviews to jump start the purchase process: VALs are available to partners from their portal in as little as 24 hours after the request. Plus, clients using a VAL have the option to lock their rate before finding their new home! Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

STRATMOR on Customer Relationships

What if our response to the prolonged market downturn was less about waiting it out, and more about learning and improving? What if we became learners and doers, not just survivors? In his November Customer Experience Tip, STRATMOR CX Director Mike Seminari talks about the need for being active in the downtime, building relationships, gaining product knowledge, reading books and listening to podcasts, always in pursuit of self-betterment and excellence in customer care. He shares three lessons that 2023 has taught us and how we can parlay them into success in 2024. Check out, “Top Three CX Lessons That Will Drive 2024 Success.”

M&A is not Lender-Exlusive

Lenders are not the only ones in our biz with shrinking balance sheets, competitive pressures, and owners looking at strategic alternatives to battling it out every day.

Stavvy, a fintech firm specializing in digital and remote collaboration for lending and real estate companies, acquired SigniaDocuments, a technology suite from Texas-based lender Evolve Mortgage Services. “Stavvy will acquire assets, including eClosing tools, eNote and eVault services, eRegistry capabilities for agency and non-agency loans and SigniaDocuments’ SMART Doc technology – a data-driven electronic document engine.” Stavvy will offer eNote, SMART Doc disclosures and loan documents for all 50 states across all loan programs and Evolve’s Charlie Epperson and Tim Anderson will join Stavvy as chief product officer and EVP of digital mortgage strategy, respectively. Recall that in August, Stavvy acquired digital mortgage servicing tech firm Brace to provide a streamlined platform for mortgage servicers and homeowners.

Equity and the Future of Refinance

A report from ATTOM shows that in Q3 2023, fewer homes were equity-rich, meaning their loan balances were less than half of their market values. The share of equity rich mortgaged homes was 47.4 percent. This is a drop from 49.2 percent in Q2 2023, making it the largest quarterly decline since 2019. The decline in equity-rich properties happened despite recent home value rebounds. That said, the percentage of seriously underwater mortgaged homes continued to improve. Only 2.5 percent were considered seriously underwater in Q3 2023. That’s the lowest point in the past four years. It’s down from 1 in 36 homes in Q2 2023 and 1 in 35 homes in Q3 2022.

Elliot F. Eisenberg, Ph.D. writes, “As of 9/23, the percentage of home mortgage holders with negative equity is just 383,000 or 0.7 percent, less than half the percentage prior to Covid and prior to the Housing Bust. The percentage peaked in 2009 at 30 percent. Currently, the city with the highest percentage of underwater mortgage holders is Austin at 2.1 percent, because prices are 14 percent off 2022 peaks, followed by Las Vegas at 1.7% and Phoenix at 1.6 percent.”

Capital Markets

Have you stopped your spending? Inflationary price tags, high interest rates and the return of student loan payments were thought to prompt many Americans to hold back on opening their wallets, but that doesn’t appear to be the case. A strong labor market has helped keep spending afloat across the economy, with new revisions even showing that the blowout retail reports from the summer were even better than initially estimated. Those trends are expected to continue with Black Friday only a week away, followed by the traditional holiday spending spree.

But as the fabled “soft landing” for the U.S. economy comes more and more into focus, we have seen mortgage rates and other bond yields drop as of late. Yesterday morning’s batch of data showed a larger than expected increase in weekly jobless claims coupled with a two-year high in continuing claims, fitting the Fed’s preferred script of seeing some softening in the labor market. Initial claims are at their highest levels since August and continuing jobless claims are at their highest level since November 2021. Export prices were down 1.1 percent month-over-month in October and down 4.9 percent year-over-year. Import prices were down 0.8 percent month-over-month and down 2.0 percent year-over-year. And total industrial production declined 0.6 percent month-over-month in October while the capacity utilization rate fell to 78.9 percent, though all figures were adversely affected by the UAW strike. Today’s calendar kicked off with housing starts and building permits for October (+1.9 percent and +1.1 percent, respectively). As has been the case all week, there are plenty of Fed speakers, and today features Boston President Collins, Vice Chair for Supervision Barr, San Francisco President Daly, and Chicago President Goolsbee. Today is also 48-hour notification for Class D MBS. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 4.40 after closing yesterday at 4.45 percent.

Employment

“If you are looking for a lifeline to save your people and your business in this challenging rate environment, you have an opportunity to partner with a well-capitalized independent mortgage company with over 40 years of experience. We offer a portfolio product line that gives our origination team the opportunity to quote unique scenarios for DPA, 2nd liens, ARMs, non-owner, Jumbo, Doctor/Professional, and more. Our proprietary coaching program is free to all Loan Officers. Even in this market, we’ve doubled-down on the support we provide, from a dollar-for-dollar marketing match to in-house creative & design services, video marketing, social media, training, and credit services. With unmatched operations support at the branch and corporate levels, your clients and referral partners will be more than impressed. Our company is Fannie and Freddie seller/servicer, FHA, VA, and USDA approved. For a confidential conversation, please contact Anjelica Nixt and mention this opportunity.”

“It’s all part of the Plan! Operating as MWF Home Loans in Tennessee, Mountain West Financial is continuing our expansion plans in Tennessee. Throughout this year, we have continued our growth with recent launches in North Carolina, South Carolina, Florida, and several other states east of Texas. The expansion is part of our overall growth strategy to expand our footprint. EVP and Board member, Ben Holloway has relocated to Tennessee in an effort to help drive our expansion. For more information about our growth plans and career opportunities, contact Ed Adams or Ben Holloway. Or visit us here for more information.”

“At Evergreen Home Loans™, we’ve always believed in supporting our associates and team members in their commitment to local causes. With the establishment of the Evergreen Cares Foundation, we’ve provided a powerful tool to help them do just that. The Evergreen Cares Foundation is our way of enabling our team to make a difference in the community. Whether it’s addressing hunger, promoting education, or providing assistance during crises, this foundation reflects our dedication to community well-being. Our associates are passionate about giving back, and this foundation allows them to channel their energy and resources toward causes they care deeply about. By doing so, we strengthen our community and embody our core values of empathy and support. Learn more about the Evergreen Cares Foundation and the remarkable impact it’s making. Together, we can build a brighter future for everyone.”

“Explore Spring EQ’s job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Kansas City, MO is the sixth-largest city in the Midwest with over 481,000 people calling it home. Like all big cities, Kansas City has some great amenities like shops, entertainment venues and incredible restaurants.

Kansas City has some perks that not every large city in the U.S. can boast, though. Like the infrastructure — it’s designed to make driving less of a hassle. Raise your hand if you can’t wait to stop spending hours in bumper-to-bumper traffic!

Another perk of living in this city is the low prices. The cost of living in Kansas City, MO is 6.3 percent lower than that U.S. average. That number has dropped in the last year, too, by 2.3 percent.

To find out whether this city is for you, you’ll need to see if it meshes with your budget. Can you really afford the average rent in Kansas City, MO when you add the following factors into the total cost of living?

Housing costs in Kansas City, MO

The biggest expense in your monthly budget is housing costs. Where you live and what you pay for rent will have a direct and sometimes radical impact on the cost of living in Kansas City, MO.

Housing costs in the city are only 1.6 percent lower than the national average. Interestingly, this is a 13.8 percent increase over the cost of housing in 2020. One reason for the increase is that the demand for housing is up but the supply is not meeting that need.

The average rent in Kansas City, MO is $1,540 per month. However, there are neighborhoods throughout the city where you’ll find apartments for much higher (almost $1,000 more) and those for much less. If you look for apartments in the River Market area, you’ll be happy to learn that the average rent in that neighborhood is $2,338. On the other hand, if you look in the River View neighborhood, you’ll find an average rental rate of $720 per month.

Average rent prices in cities near Kansas City, MO

If you’re not sure you want to live directly in this city or aren’t happy with the average rent in Kansas City, MO, another option is to find an apartment for rent in nearby cities. The following cities range from 15 minutes to more than an hour away from Kansas City, so far enough from the hustle and bustle but close enough to still enjoy time spent in the city regularly.

Home prices in Kansas City, MO

You aren’t limited to renting in Kansas City. You might find that purchasing a home is, overall, more affordable for you and your family.

According to Redfin, the average cost of a house in Kansas City is $250,000, an increase of over 11 percent since 2020. As with rentals, the housing market is very competitive with most homes getting multiple offers and selling for 2 to 6 percent higher than the asking price.

Monthly mortgage rates are a little cheaper than the average rent in Kansas City, MO. You’d pay $1,079 per month with a 5 percent down payment or $909 with 20 percent down.

Food costs in Kansas City, MO

Kansas City is one of those awesome cities where you can get big city amenities but you don’t always have to worry about big city prices. Take food costs as an example. On average, they’re 11.4 percent lower than the U.S. average, which is a somewhat significant decrease over last year’s costs (5.7 percent higher).

In fact, if you love to dine out, you’ll be happy to know that there are a lot of amazing restaurants that cater to people on a budget. Like Happy Gillis Café + Hangout, where you can get a delectable dish of biscuits and gravy for $5 or a salad for $4.50. Or, try their Roasted Heirloom Tomato Grilled Cheese, made with farm toast, cheddar, roasted heirloom tomatoes, parsley, garlic, scallions and greens — all for $9.

If you’re in the mood for some fine dining, international cuisine or other specialty eateries, you won’t be disappointed. Kansas City offers Italian, gourmet barbecue, classic fare (think 1950s cocktail party) and much more.

Buying food in Kansas City, MO

If you’re like most people, you’re re-thinking how to maximize your budget since so much is up in the air during the pandemic. Cooking most of your meals at home is one way you can cut food costs significantly.

Let’s take a steak dinner for example. In the U.S., a good steak dinner can cost between $28 and $119, depending on the cut of meat and the restaurant.

If you make a steak dinner for two at home, you can expect to pay:

  • Steak: $22.06 (for two steaks)
  • Potatoes: $2.43
  • Lettuce (for a salad): $1.46
  • Sweet peas: $0.98

Your total comes to $26.93. The U.S. average for the same meal (cooked at home) comes to $30.66. Not only will cooking at home save you a few bucks (compared to the national average), but you’ll still be able to enjoy an incredible meal without having to leave the comfort of your own home — or paying $119 for the same meal.

Utility costs in Kansas City, MO

Besides food, utility costs take up another large portion of your monthly budget and can increase the cost of living in Kansas City, MO. Depending on whether your landlord covers these costs or not, utility fees can even increase the average rent in Kansas City, MO.

Overall, utility costs here are 3.2 percent lower than the national average. The monthly median energy prices are around $157.44 in this city, whereas the U.S. average is $161.20. One reason for the lower costs is power usage, which might be lower in this city than others because the weather here isn’t quite as extreme in other parts of the country.

Other utility fees to add to your budget include cell phone service (between $10 and $90), water and sewage (average = $109.67 per month), internet (average = $60 per month) and cable ($25 to $65).

If you’re looking to save on utilities (and who isn’t), you might want to look for apartments in Kansas City, MO that offer eco-friendly amenities. The savings can add up over time.

Transportation costs in Kansas City, MO

The best way to get around Kansas City is in a car. The walkability and bike scores (48 and 43, respectively) are relatively low, mainly due to the lack of bike lanes. There are some walkable neighborhoods within the city — Old Westport, South Plaza and Downtown Loop — where you can get some exercise and do a few errands.

The public transit score is lacking as well (37), though there are some options like the Kansas City Regional Transit company (RideKC). The company has a Park and Ride option and multiple buses. Their Transit app helps with planning your ride as it provides real-time information. You can also pay for fares and passes via Freedom On-Demand.

Most residents own their own vehicle since doing so gives them the freedom to come and go according to their schedule, not that of a bus company.

Transportation costs in Kansas City, MO are 11.8 percent lower than the national average. Fuel prices are currently at $2.50 per gallon, compared to $2.76 nationally. The national average for maintenance like tire balancing is around $52.40. The cost in Kansas City is $44.60.

Other transportation costs that can increase the cost of living in Kansas City, MO include parking ($6 to $20 for 2 hours), vehicle registration fees and insurance.

Healthcare costs in Kansas City, MO

Kansas City healthcare costs are an average of 9 percent lower than the U.S. average. For example, a trip to your doctor for your annual check-up will cost around $86.34. Elsewhere in the U.S., the same appointment costs an average of $112.81, though some people pay upwards of $234.

Over-the-counter medications are around 7.08 percent less than the national average, while prescription costs are about the same as the U.S. average (only 0.035 percent difference).

It’s important to note that determining healthcare cost averages is often difficult. What you pay compared to your neighbors is going to vary, sometimes drastically so. The reason for this is not just the insurance company you choose or the plans they offer. Some people will have higher costs because they don’t have insurance. Others because they have chronic health conditions. Finding out how healthcare costs impact the cost of living in Kansas City, MO will take some sleuthing, but it will be worth it to see if living in this city is within budget.

Goods and services costs in Kansas City, MO

Miscellaneous goods and services are, on average, 7 percent cheaper than other cities in the U.S.

It can be hard to figure in all the costs that go into living your life in a big city, but you can get a somewhat accurate estimate by looking at the things you purchase with relative frequency. Things like:

  • Petcare (vet services, grooming, etc.)
  • Gym fees and exercise classes (or Peloton membership fees)
  • Plants, potting soil and anything else you need to create and develop an apartment patio garden
  • Monthly business expenses
  • Self-care sundries (toilet paper, shampoo, deodorant, facial masks)
  • Self-care services (mani, pedi, facial, massage)
  • Date night with your significant other

Let’s say you want to take your partner out to a movie. The tickets will cost around $21.42. The national average for a Saturday trip to the movies runs about $22.24 for a couple.

If you’re a fitness buff, the average gym membership in Kansas City is $45 per month. A yoga class will cost you around $15.60, which is $0.60 higher than the national average.

Though it’s not easy to try and calculate everything you spend your money on each month (or quarter or year), it’s important to get a general idea of how much you spend on miscellaneous goods and services. These fees can significantly increase the cost of living in Kansas City, MO, and might even make the average rent in Kansas City, MO out of reach.

Taxes in Kansas City, MO

Another factor to consider in determining the cost of living in Kansas City, MO is the tax rate in that city, as well as county and state taxes.

Kansas City has a 1 percent earnings tax rate. Everyone in the city who earns an income (even if they work outside the city) must pay this tax, which covers the city’s cost for:

  • Snow removal
  • Road repair
  • Trash collection
  • Police, firefighter, ambulance and paramedic services
  • Historic preservation
  • Code inspections

As a resident here, you’ll also pay 8.86 percent sales tax. The state sales tax in Missouri is 4.23 percent. City and county taxes make up the additional 4.63 percent. How does this translate to cash? Let’s say you find a must-buy item with a $1,000 price tag. In addition to paying $1,000, you’ll also pay $88.60 in sales tax.

Finally, if you decide to purchase a home in Kansas City, MO, you’ll have the added responsibility and expense of paying residential property taxes. The Jackson County tax rate is 1.35 percent. If you buy a $250,000 home, you’ll pay a little under $3,400 per year in property taxes.

How much do I need to earn to live in Kansas City, MO?

Whether you can afford the cost of living in Kansas City, MO depends on what you earn. On average, residents of Kansas City earn $54,194 annually. This is slightly higher than the national average of $51,916.

If you earn the average annual income, can you afford the average rent in Kansas City, MO? Rent in this city is approximately $1,540 per month or $18,480 per year. This is nearly $3,000 more than the oft-recommended 30 percent rental budget.

Though the price is higher, it doesn’t mean you can’t afford to live in Kansas City, MO. If you’re comfortable cutting costs in other areas (walking and biking as much as possible to save on fuel or eating out less frequently), you can afford the cost of rent in this city. Also, remember that there are several neighborhoods in Kansas City and suburbs around it that offer great rentals for lower prices.

If you’re curious whether you can afford to live in this city, be sure to check out our free rent calculator.

Understanding the cost of living in Kansas City, MO

There’s no flat rate when it comes to the cost of living in Kansas City, MO. As nice as that would be (talk about easy calculations!), we all have varying needs. And those needs result in different housing, food, tax and healthcare costs.

That said, for many people, the cost of living and the average rent in Kansas City, MO is quite affordable. Much more so than many large cities across the country.

If you’re one of those people who want to take the plunge and move to this fair city, make sure to check out our rental listings to find apartments for rent in Kansas City, MO that fit your budget.

Cost of living information comes from The Council for Community and Economic Research.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.‘s multifamily rental property inventory of two-bedroom apartments as of August 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com