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Mortgage rates have been falling steadily this month, and they’re down again this week.
Rates have dropped substantially over the past couple of months after 30-year mortgage rates spiked near 8% in October. Now they’re back below 7% at at their lowest since mid-June.
As long as inflation continues to slow, Federal Reserve is likely to start cutting the federal funds rate next year. This will remove a lot of upward pressure off of mortgage rates, and should allow mortgage rates to go down in 2024.
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Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.
30-Year Fixed Mortgage Rates
The average 30-year fixed mortgage rate is 6.67%, according to Freddie Mac. This is a 28-basis-point decrease from the week before.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-Year Fixed Mortgage Rates
Average 15-year mortgage rates are 5.95%, according to Freddie Mac data, which is a 43-basis-point decrease from the previous week and the lowest the rate has been since mid-May.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
Are Mortgage Rates Going Up?
Mortgage rates increased throughout most of 2023. But they’ve been decreasing recently, and mortgage rates are expected to trend down in the coming months and years.
In the last 12 months, the Consumer Price Index rose by 3.1%. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
How Do Fed Rate Hikes Affect Mortgages?
The Fed aggressively raised the federal funds rate in 2022 and 2023 to slow economic growth and get inflation under control. As a result, mortgage rates spiked.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen next year, mortgage rates should fall even further.
Your home’s roof can take a beating, whether roasting in the sun during the summer, getting coated with ice in winter, and withstanding wind and rain year-round. In other words, it’s one of your house’s key MVPs. But eventually, roofs wear out and need to be replaced or fixed. You may notice a small (or big) leak. It could be 15, 20, or even 50 years, but at some point, your roof will likely need to be repaired or replaced. While costs can range widely, the average roof replacement currently costs $11,500.
In this guide, you’ll learn about roof replacement costs, as well as what your options are for paying for roofing expenses.
How Much Does a New Roof Cost?
The average roof lasts 25 to 50 years, though repairs (both minor and major) can pop up more often. Sometimes, damage to one part of a roof can nudge a homeowner to go ahead and replace the whole thing.
You likely got a general idea of the condition of your home’s roof during the home inspection, when you were buying your property. If now is the time to get the job done, though, you’ll want to understand the costs involved.
When looking at new roof installation costs, there are a number of factors that will impact the overall price:
• Size of the roof being replaced
• Material to be used on the roof
• Style of the roof (those with multiple eaves, lots of detailing, or steeper pitches could take longer and cost more)
• What part of the country you live in (cost of living can vary considerably)
• What time of year you are having work done (doing so off-season could potentially save you extra money; roofers tend to be most in demand in late summer and early fall).
• The size and style of the roof may contribute to the overall cost. The height and pitch of your roof are also important factors because there are additional safety and labor costs to consider.
The average cost to replace a roof is approximately $11,500 on average, but the price could range from $6,700 to $80,000.
When creating an estimate, roofers sometimes define costs per roofing square. One roofing square is equal to a 10-by-10-foot (100 square feet) area. So a 1,700-square-foot roof would be 17 squares. Currently, squares can range in price from $450 to $750, depending on materials and other costs. 💡 Quick Tip: A low-interest personal loan can consolidate your debts, lower your monthly payments, and help you get out of debt sooner.
Getting a New Roof
Some pointers on getting a new roof:
• If you are replacing your roof as a part of general home maintenance, you may have a little more time to prepare for the costs associated with the repairs. It allows you to be more methodical about pricing the project out and selecting a roofer. And having a bit of a runway will allow you to start saving and develop a workable budget for the project.
• Get an estimate from several reputable contractors. When doing so, be sure to pay close attention to the quality of the materials specified in the estimate. It’s even better if you can get a recommendation from someone you know. Regardless, definitely check reviews and references carefully.
• Remember that, while a new roof can be a major expense, it can improve the value of your home for future sale, stave off ongoing repairs from leaks, and, of course, protect the residents.
Paying for Roof Repairs
If your roof is damaged, then you are faced with a different challenge than figuring the roof replacement cost.
• In the case of a natural disaster caused by an earthquake or hurricanes, you may even be eligible for help from the Federal Emergency Management Agency“>Federal Emergency Management Agency (FEMA). Whatever the cause, it could be helpful to take photographs sooner rather than later to document the damage.
• Your homeowners’ policy or home warranty may include coverage that could possibly help defray some of the costs, depending on the cause of the damage and the age of the roof.
• If it’s determined that the damage is from normal wear and tear, then it will likely be considered regular maintenance and may not be covered. Many roofing jobs fall into that common home repair category.
• Also, if your roof is older than 10 years, you may only be eligible for part of the cost determined to be a depreciated value of the roof. Whatever the circumstance, it could be worthwhile to call your insurance company and find out if you’re covered and to what extent.
• And, before you start work, it bears repeating that it’s wise to get multiple estimates to help you make an informed decision and ensure that you’re getting the most value for your investment. You may want to consult with a few licensed roofing contractors and compare bids.
Recommended: How to Pay for Emergency Home Repairs
Ways to Help Pay for Home Repairs
Whether you are replacing your entire roof or just replacing a damaged portion, you may want to consider financing all or part of the work. One option worth considering: a personal loan.
• A personal loan can be a good option for some homeowners. With a personal loan, you’ll usually get a lower interest rate than credit cards. Also, with an unsecured personal loan, there typically is no additional lien against your property. Often, these loans can be processed quickly and with minimal fees.
• Another financing option homeowners turn to for home improvements is a home equity loan or a home equity line of credit (HELOC). The application for a HELOC is akin to that of a mortgage. How much you’re able to borrow depends on several factors, including the value of your home. You may also have to arrange and pay for a home appraisal.
As you consider your costs associated with a roofing or other home project, you may want to use a home improvement cost calculator to help you budget appropriately.
The Takeaway
Replacing your home’s roof is typically a big-budget home repair project; it often costs in the five-figure range. However, it’s an important investment in your home’s value and integrity. You can look into financing options such as HELOCs and personal loans to help you pay for the work.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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In this episode of NerdWallet’s Smart Money Podcast, hosts Sean Pyles and Sara Rathner share the best money moves of 2023 as submitted by their fellow colleagues. Some of the highlights include saving aggressively to prepare for future expenses, getting rid of private mortgage insurance, automating finances for budgeting and planning, setting up 529 college savings plans for children, shopping around for the best mortgage rates, and understanding the difference between an emergency fund and a rainy day fund.
Check out this episode on your favorite podcast platform, including:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
If you’re a loyal fan of the show, it’s possible you stay until the very end of each episode and if you do, you always hear us say, “Until next time, turn to the Nerds.” Well, today, dear listener, we are turning the show over to the Nerds. We present the best money moves of 2023 by our fellow Nerds.
Amy Knight:
This year I learned how to explain the effect of compounding using a lovely seasonal analogy, snow. You think of your money like snow. When you spend it, it melts and runs away, but when you save it, any new snowfall sticks to the snow that’s already there.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Sara Rathner:
I’m Sara Rathner.
Sean Pyles:
This episode finishes off our Nerdy deep dive into the end of 2023. This is it, Sara, the finale of our last series of the year.
Sara Rathner:
The piece de resistance.
Sean Pyles:
Yes. We sent a notice out calling all Nerds, asking for the best things our colleagues did with their money in 2023, and I mean all Nerds, IT, HR, everybody, even the corner office, and today we’re going to share their money wins.
Sara Rathner:
I love this. Before we start, you and I are Nerds, too, right, Sean? Should we start with our money wins for 2023?
Sean Pyles:
I think we should. Sara, give us yours.
Sara Rathner:
Yeah. This sounds like a weird money win, but I have said, on the show before, one of the pieces of advice that I got when I was younger was to save as aggressively as you can for as long as you can because your life will get more complicated as you get older. Well, I have reached the point where my life is complicated and expensive, and I will say that because I had spent those years putting money away as best I could, I had money on hand to do the things that I needed to do this year.
There were some unexpected repairs to our house that we had to do. We ended up replacing our car because we had a baby, and that was probably one of the most expensive things I did in 2023 was pay all those hospital bills, and now I’m paying daycare bills, so this kid will cost me money until he’s 35 and then maybe he’ll be independent by then. We’ll know.
Sean Pyles:
They say you reap what you sow. You had been sowing savings for years and years, and now you are seeing the benefits of that, which is great.
Sara Rathner:
Yeah. What it has allowed us to do, and by us, I mean I say my husband and I, is say yes to the things we need and know that we have the money on hand. That’s really nice when something in your house breaks or there’s something that you want to do like travel or a night out with friends that’s going to cost a lot of money. We can say yes to the things that mean something to us because we spent so long just pocketing and putting money away, living as well below our means as we could. Now, I think we’re living at our means, which is nice.
Sean, what about you? What is your money win for 2023?
Sean Pyles:
Well, it’s a little Nerdy and a little in the weeds maybe, but I got rid of my private mortgage insurance on my house after going into war with the bank that owns my mortgage. It was not a fun process, but I came out the victor, and I’m so proud of myself for that because the bank that owns my mortgage is not very nice. That’s my money win for 2023.
Sara Rathner:
I’m surprised you had to go to war. Isn’t it just like, once you hit 20% equity, you have to refinance, or how does that work?
Sean Pyles:
Oh, yes, they barraged me with a mountain of paperwork and time delays and bureaucratic processes that I actually detailed in a Money Hot Takes episode of Smart Money. I think that you were out on maternity leave, Sara.
Sara Rathner:
Sean Pyles:
Will do. Okay. Great. Well, before we get into the Nerd’s best money moves of 2023, a reminder, dear listener, that we always love hearing from you. Leave us a voicemail or text the Nerd hotline at 901-730-6373, that’s 901-730 N-E-R-D, or email a voice memo to [email protected].
All right. Sara, are you ready to hear from our Nerdy colleagues about their best money moves of 2023?
Sara Rathner:
I am. Let’s see what they all learned this year and maybe we could take some of that advice and apply to our own finances.
Sean Pyles:
Yeah. I mean, that’s the idea, so let’s start with the boss. Tim Chen is the founder and CEO of NerdWallet, and he did an energy efficient move this year.
I switched from a Mercedes SUV to a Toyota Sienna. I’m getting twice the gas mileage. I’m using the cheap gas, and I’m paying about a 10th as much every time I service the car.
Sara Rathner:
Well, Sean, it is so true that you really save money on servicing when you don’t have a luxury car. Just getting a new battery or oil filter can be less expensive.
Sean Pyles:
Sara Rathner:
Yeah, new to me, and it’s a hybrid, so the mileage is pretty sweet.
Sean Pyles:
Nice. All right. Well, let’s hear from another Nerd. Skylar Damiano is an IT administrator here at NerdWallet.
Skylar Damiano:
My partner and I are accelerating our marriage to the end of this year because it’ll save us a ton of money in the long run via tax benefits. These are things that we just never thought about when we were single or, even in our case as queer people who never really thought about marriage beyond our domestic partnership, but I’ve also learned that I will never stop learning about the financial world around me. I can’t possibly know everything related to financial wellbeing, but the more I research and the more I practice good habits, the more likely I am to carry those good habits into the future.
One that stuck with me from last year is not spending beyond my means. I now wait until I have funds available before I make a purchase like a new smartphone or a new toy or a hobby that I want to get into. In this case, I want to become a DJ in the next year. I’m not spending any money on that equipment though until I for sure have enough to save on it, because if I have the option to not rely on credit, but instead use my credit card to my advantage via cashback, it’s far more rewarding for me down the line.
Sean Pyles:
Sara, waiting until you have enough money to actually purchase something you want is a timeless piece of financial advice, one of the most basic and most important.
Also, Skylar, I would love to hear a DJ set when you are up and running with your equipment.
Sara Rathner:
This is near and dear to my heart, but utilizing a credit card for points or cashback instead of carrying a balance, that is chef’s kiss. And Skylar wasn’t the only Nerd highlighting this idea. Here’s Tom Lehmann, an account executive for NerdWallet.
Tom Lehmann:
The best piece of financial advice I would have to say is live well below your means. What a lot of people do is, over the course of their career, they tend to make more money, and when that happens, they tend to buy more stuff. They buy a cooler car, bigger house, more clothes, everything. I call that the lifestyle tax. If you really want to take control of your finances, what you have to do is you have to increase the gap between how much you make and what your expenses are.
I think making more money will naturally happen to a lot of people as they progress in their career, so I think the real key is figuring out where you could cut costs and be minimalistic about everything in your life. Just getting rid of stuff and getting out of the habit of buying stupid stuff every time. Every time you buy one thing, you’ve got to get rid of two in your house. That’s a great way to start.
Sara Rathner:
Sean, I think a lot of us often take the opportunity at the end of the year or the start of a new one to get rid of stupid stuff. The harder part is Tom’s advice to get out of the habit of buying stupid stuff in the first place.
Sean Pyles:
Yeah, preaching to the choir, Sara, because I’m sure that I have some stupid stuff on the way to my front door as we speak. All right. Well, let’s hear now from Sally French. She’s a travel writer here, and she’s been on the show before. Here is her takeaway from 2023.
Sally French:
My biggest money lesson is to always ask if your travels go wrong. I was caught up in the United meltdown as well as I had a canceled Southwest flight, and even though I was able to get another flight, I was still delayed. While I wasn’t entitled to any compensation officially, I still asked the airline customer service and I asked nicely, and in both instances, I got either a flight credit or miles from the airline. Even if your travels are disrupted, even if you’re not entitled to compensation, it doesn’t hurt to ask, because like I did, I was able to get some money back.
Sara Rathner:
Love it. Always ask. What do you have to lose? All they can say is no and you’re on your way, or not and you’re stuck at the airport indefinitely, but you could still ask.
Sean Pyles:
Yeah. You’re hopefully on your way unless your flight is canceled twice, but yes, it’s always worth asking. Next up, we have Kevin Berry. He leads multimedia content here at NerdWallet and happens to be my direct boss. You’ve heard his name in the credits of this show as a fact-checker and editor.
Kevin Berry:
I think my big money takeaway from 2023 is that automation of your money can be really, really valuable and super helpful when it comes to budgeting and planning. I spend, whatever, an hour every January looking at everything and the money coming into my checking account, and I had set up all these automated like, “Send this money here. Send this money to an investment account. Send this money to a savings account,” and just set it and forgot about it and let it do its thing this year, and then that has really come back to help me.
For example, the property tax bill showed up, and I was like, “Whoa, it went up, it’s thousands and thousands of dollars,” but then I went to my account that I’d set up for automated savings for property taxes because I knew this bill was coming, right? Kevin in January knew Kevin in November had to pay this bill, and lo and behold, the math held up and there was the right amount of money there, and that just took a lot of stress out of it. Yeah, I think my money lesson is invest in automation for things that you know you’re going to need to pay for or want to pay for, even like a vacation. That’s just been a real stress reliever and time saver on my end in 2023.
Sara Rathner:
Oh, man, Sean, automation can absolutely save your sanity. I have quite a few automated contributions in my own finances. A big one, two big ones, is I automate contributions for my largest expenses, which are my mortgage and daycare, and that comes out of my checking account into a joint savings account. My husband also contributes, and then the money is whisked away by an automatic clearing house once a month or once every other week, depending on the bill.
Sean Pyles:
Lovely. You just need to make sure that the money is actually automatically going into that checking account so it can then be paid elsewhere.
Sara Rathner:
Then there’s automation, obviously, into my retirement account, my 401(k) that I set up at work. If you work for a place where you have to opt into the 401(k) when you first start your job, do it. Because the longer you wait to get that started, the less money you’re able to save up, and you might even be missing out on employer match. If you’re starting a new job or if you have been in your job for a while, but you just haven’t bothered to set up your retirement accounts yet through your employer, maybe make this the year you do that.
Sean Pyles:
Absolutely. Well, I think I’m going to take a page out of Kevin’s book and set up automated deposits into an account for my car’s annual registration, because every year, June Sean curses every-other-month-of-the-year Sean for not saving up for that in advance. Okay. Our next piece of advice is from Hannah Cho. She’s our Nerdy vice president of content.
Hanah Cho:
This year, I’m really proud of finally sending up 529 college saving plans for my two kids. I have three kids, and I have one set up for my oldest, and I finally got around to setting up two for my youngest. I’m really trying to lean into taking advantage of time. They’re still very young where I still have probably 10 to 12 years before they head off to college.
Sean Pyles:
Yes. All of those years of investing and compounding will work wonders. Sara, I know you just had your baby like five minutes ago, but have you set up a 529?
Sara Rathner:
I have, so by the time my kid is 18, he’ll either be well on his way to college or he’ll be fighting in the climate war of 2041.
Sean Pyles:
That’s grim, but probably not inaccurate.
Sara Rathner:
It’s grim, but I want to set him up for a realistic life.
Sean Pyles:
Right. He’ll be able to buy plenty of munitions on the battlefield.
Sara Rathner:
Sean Pyles:
Well, Sara, you weren’t the only Nerd to procreate this year. Adam Smith did as well, and he’s all over the 529 planning.
Adam Smith:
In 2023, my wife and I actually had twin boys, and the first thing that came up once I heard that was knowing that I’ve got to pay for potentially two college educations at the same time, so another thing that crossed my mind was what if one of them goes to college and the other one doesn’t, or what if neither of them go to college? What’s the best way to approach this? We actually found that there’s a change to the 529 plan, which is how a lot of people save for their child’s college education, and so should your child or if one of our twins or both of them decide not to go to college in the future, you can actually roll the 529 plan into a Roth IRA, and the beneficiary of the 529 plan now becomes the owner of that Roth IRA. Traditional Roth IRA rules apply when transferring ownership, but, that being said, it’s a great savings vehicle for college planning or setting up a nice little nest egg for my twins in the future.
Sean Pyles:
You know what, Sara? I love that Adam knows that there are options for his kids, college or no college.
Sara Rathner:
Yes, and this is a huge way to get your kids started on their financial lives regardless of what they do after high school.
Sean Pyles:
All right. Up next is Alison McCoy, VP of brand marketing at NerdWallet.
Alison McCoy:
My husband and I, we’ve officially begun our home-buying process, and one of the best things we did this year was shop around for the best mortgage. I was pretty surprised at the options out there even in this high interest rate environment and feel really confident that we found the right option for us, that makes sure we’re not leaving any money on the table.
Sara Rathner:
Yes, always shop around for just about anything, but especially mortgage rates especially now.
Sean Pyles:
As Alison knows, we have a lot of mortgage and home buying information all over NerdWallet. We have a whole team devoted to that subject matter, and Abby Badach Doyle is a member of that team. Here’s her best money move of 2023.
Abby Badach Doyle:
This year, I learned the difference between an emergency fund and a rainy day fund. People use those terms interchangeably. I know I sure did, so I never really thought about it, but they’re actually two pretty different things. An emergency fund is for big major surprise expenses like major unexpected car repairs, new carburetor, and a rainy day fund is to help you pay for those things that aren’t necessarily emergencies, but are still outside of the scope of your typical monthly budget, like “Wow, the car is dirty after this camping trip. Can we please pay someone to do a deep clean and a full detail?”
Anyway, in our savings account, we’ve always used named sub-accounts for goals like holiday shopping and travel, but then we had this amorphous blob of money that I always felt so weird and guilty tapping into. Even though we’re disciplined savers and there was always enough there, it always just felt weird. This year, I split the blob into separate rainy day and emergency fund accounts, and that took away all of the stress and weirdness. Mentally, it was so helpful to not feel bad about spending money that I knew that we needed to spend on stuff that we knew was coming and to know that we’re still on track with our emergency savings for the bigger, unexpected stuff.
If you haven’t tried naming sub-accounts yet, I highly recommend it, and review the names often to make sure that they’re still working for you. If you need to set a savings goal for your emergency fund, try using an online calculator. NerdWallet, of course, has a great one. And then name that and separate it from your rainy day fund and from the rest of your other savings goals. That might be a small thing, but it was super helpful to me this year, and I hope that it helps you, too.
Sean Pyles:
Sara Rathner:
Sean Pyles:
Sara Rathner:
Sean Pyles:
I feel like we should do a chest bump or a high five after that. Anyway, Sara, do you have an amorphous blob of money that you feel weird and guilty tapping into?
Sara Rathner:
Always with the guilt, but the blob of money is divided into several smaller sub-blobs in the form of a few accounts with different purposes, and that helps me stay organized when it comes to deciding which accounts to use when I need to fund something.
Sean Pyles:
Love it. I mean, it’s no secret to devoted Smart Money listeners that I have many sub-blob accounts that I use on a daily basis. Also, nice call out to our NerdWallet calculators. Okay. On to our final Nerdy piece of advice.
Sara Rathner:
Already? That was fast.
Sean Pyles:
I know. Well, the good news is, Sara, that we’re always here, all of us, all of us Nerds, and we are here for you and our listeners. Our final guest is Amy Knight. She is a spokesperson for NerdWallet UK, and she has a money lesson to share about compound interest and the beauty of snowfall.
Amy Knight:
I have a money lesson to share about compound interest. This year, I learned how to explain the effect of compounding using a lovely seasonal analogy, snow. I think this is a great way to think about saving, and it can be helpful when you’re trying to start taking a longer-term view of your finances.
The lesson is this. You think of your money like snow. When you spend it, it melts and runs away, but when you save it, any new snowfall sticks to the snow that’s already there. New snowfall is your wages, maybe a bonus or holiday gift, an inheritance, maybe you sold an asset. Importantly, snow falls as interest. If you’re not actively saving, new snowfall is not going to stick. It’s going to melt and run straight out of your account.
We see in real life that fresh snow sticks a lot more when there’s already snow on the ground. I’m going to give a shoutout here to my friend Kim in Wisconsin who will soon be shoveling her driveway every day. You start with a thin layer, and as more snow falls, it builds up, and this is very like compounding. Gradually, your snow pile of savings compounds, and the bigger it gets, the more interest sticks to your money. As you watch it grow, you may be less tempted to melt the whole lot on an impulse purchase.
I’d love to know what you think of this analogy, Sean? This winter, if you are able to leave just a little savings in your account after the holidays, think of it like leaving a thin layer of snow on the ground ready for 2024’s snowfall to stick to. Don’t forget the Nerds can help you understand more about saving and investing. To discover how different financial products could work for you, just head to the personal finance section on NerdWallet.com.
Sara Rathner:
Well, that was lovely and spoken like a true spokesperson.
Sean Pyles:
Gotta love the plug. She does that for a living. I also really like this idea of snow as a metaphor for saving and compounding. Not only is it accurate, it’s also very soothing.
Sara Rathner:
Well, I’m closing my eyes here in Virginia, waiting for maybe a snowfall this year that, within minutes, will turn all black and sooty, if we even get snow at all because last year we didn’t.
Sean Pyles:
I’m hoping we get at least a little bit here in the Pacific Northwest. And also, shoutout to Kim in Wisconsin.
All right, and that’s a wrap on our year-end special series for 2023, but never fear, we’ll be back next year. In the meantime, if you have a money question of your own, turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730 N-E-R-D. You can also email us at [email protected]. Visit nerdwallet.com/podcast for more info on this episode, and remember to follow, rate and review us wherever you’re getting this podcast.
Sara Rathner:
This episode was produced by Tess Vigeland. Sean helps with editing. Kaely Monahan mixed our audio, and a big thank you to NerdWallet editors for all of their help.
Sean Pyles:
Here’s our brief disclaimer. We are not financial or investment advisors. This Nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sara Rathner:
With that said, until next time, turn to the Nerds, and Happy New Year.
Moving to Mexico, moving house or ready for makeover time? The holidays are upon us, and the shopping season is about to go mad! Buying furnishings within Mexico is the smart way to go, as the price of shipping to Mexico can be astronomical, and the delay in shipping goods might mean a Mexican wait (i.e. a looong time).
The Sales are NOW!
November and December sales in Mexico roll over into January, when stores want to move out stock before their new arrivals. The ‘Back to School’ sales in August later in the year are something to watch out for also, but the time for bargains is from now until February!
MND surveyed the scene of best places to buy cool home decor in Mexico – from basic necessities to up-scale, stylish furnishings with wow factor.
So, where do I begin shopping for home decor in Mexico?
It’s true, there are many sites out there, so we found some of our – and our features editor’s – favorites. The cost of furniture in Mexico is about the same as what you would pay in Canada or the U.S. Sprucing up your space with splashes of Mexican handicrafts, art and design elements is going to be a more affordable, and fun, part of your home interior design project.
Inspirational tip: We liked AD Magazine, Mexico’s Architectural Digest, for awesome design ideas.
Handy tips before you begin shopping in Mexico for home decor
Mexico, like the US, has modern and antique furniture ranging from Contemporary to Victorian, and there’s no reason to pay full price when you can get up to 60% and, in some cases, 80% for last-minute bargains.
Bargains
Beyond the regular sales times, the big department stores like Liverpool and Palacio de Hierro have specials all the time, plus brand ambassadors will often be there to offer even more discounts and big blowout sales. Placencia also has sales currently, offering 40% off (and sometimes more) on living room, bedroom, and dining room sets.
Payment Plans
Remember layaway? Some stores like Moblum and Gaia offer payment plan options with PayPal, scheduled bank transfers or recurring credit card payments. So you can splurge on a bulk buy, especially if you’ve got an empty house, or new rooms to fill, and catch up with payments in a leisurely way.
Delivery
Tiffany and Tom Pence moved to Querétaro from Florida in 2018 and report that “deliveries were the most interesting and entertaining part of buying furniture for us. Sometimes the delivery was scheduled 3 days away; other times the deliveries were 2-3 weeks later. Sometimes it was on an official store brand truck, other times on a pickup truck.” So just double-check check you’re clear on the delivery date and get a contact person’s name and number! You’re in Mexico now, and we came for a more relaxed lifestyle after all! It’s just part of it; no sweat.
Identification (yes, take it!) At each store, you’ll need to provide proof of address, and a passport as a form of identification before delivery approval. “My passport has been copied more times in the first 6 weeks here than all my previous years of having a passport. I’m sure my picture is up on the internet or a public bathroom somewhere,” Tiffany Pence says. So – just a reminder!
Give me the best shopping sites, beyond Amazon and Ikea!
Sodimac
It seems to be the most popular furniture and homewares emporium for the Mexican population, according to Similarweb’s traffic analytics. It’s a bit of a quagmire on the website, but bargain hunters and those on a budget can score.
Why shop here? Cheap and cheerful, all the simple basics. Good for kids.
DICO
Basics and bargains! Like Sodimac, the least expensive.
Why shop here? Deals! And cheap beds. Simple furnishings for a rental investment?
Solutions Mexico
We liked this one in Puerto Vallarta and Nayarit, with its invite to, “easily furnish your home in Mexico, whether one piece or your entire home.” They have professional interior decorators who will customize a furniture package and a wide range of gorgeous goods, from mid-range to higher-end.
Why shop here? They offer furnishing tips, over 200 suppliers and shopping tours to Guadalajara, Tonala and Tiaquepaque to hunt for wall art, rugs, decor items and lighting. They offer rental packages for rental owners who don’t want to invest in all their furniture at once, but want to rent their property right away. And their site is in English also, if that helps you!
Gaia Design
Stylish, modern, functional furniture, with a touch of the Scandi design vibe, and an easy-to-navigate website.
Why shop here? 60% off most items right now, free delivery over 12,000 pesos, and an average of 4.6 stars from all the testimonials. They also offer design services and discovery and design advice calls.
Moblum
Mid-range price, modern and stylish furniture from the basic to the more interesting.
Why shop here? Offers immediate delivery, flash sales, promotions, one year warranties. They also have a blog and a roster of interior designers – so you can brainstorm and seek advice.
Moda in Casa
More upscale contemporary furniture, with prices to match. Very stylish – which is immediately apparent on their home page, where the design editor has put some thought into presentation. They have stores in CDMX, Valle de Bravo and Mérida.
Why shop here? “Each piece is made using the best technology and materials in combination with the expert hands of our artisans who craft each piece to be a unique object.” Say no more.
Mobica
Great standard, mid-range modern furniture with a wide selection. Free design services and ‘lookbooks’ to browse through.
Why shop here? They donate to underprivileged children (always a plus point).
Bakan
They specialize in stylish outdoor furniture – from dining sets to banks and benches, umbrellas, and accessories – which combines functionality with good quality and design.
Why shop here? Their exclusive brands have anywhere from 40% to 60% price reductions right now.
Decada
I couldn’t resist these two hip young businesswomen who run this vintage furniture store in Cuauhtémoc, Mexico City, where “each piece tells a story.”
Why shop here? Every piece of their eclectic collection is thoughtfully curated and hand picked, from a vast range of styles. Adding just one or two pieces might jazz up your basic items.
Lagunilla Market
If you’re looking for a quirky shopping experience, and a vast range of antique furnishings, head to La Lagunilla Market, a weekly morning traditional public market in Mexico City, located about ten blocks north of the city’s main plaza, in a neighborhood called La Lagunilla. There are three big, distinct zones dedicated to food, clothing, and furniture.
Why shop here? The authentic Mexican experience is full of oddities and genuine Mexican antiques to die for. Take a break between shopping and having tacos and a michelada at the lunch counter!
Mercado Libre
Mexico’s “Facebook marketplace” is just as spectacular in its range of offerings as its U.S or abroad equivalents. Anyone can sign up, and it’s user-friendly. You just need the stomach for hunting, a bit like thrift shopping. Pick your region, and dive in. There are many current bargains, coupon offers and payment plans connected to all the major Mexican banks. Interest free installment plans are also tempting for shoppers on a budget!
So, take a deep breath and enjoy the ride of mixing and matching this huge and eclectic range of home decor on offer in Mexico, that suits your style and your wallet. Sign up for their mailing lists to get final sale alerts and flash sales – happening now – and take advantage of their payment plans and free design or delivery services. And don’t forget Google translate – or your ID!
Henrietta Weekes is a writer, editor, actor and narrator. She divides her time between San Miguel de Allende, New York and Oxford, UK.
Mortgage rates fell for the eighth week in a row, staying well below 7%, providing a much-needed boost to the U.S. housing market.
The drop in the 30-year fixed-rate mortgage was the biggest in over a year. The 30-year averaged 6.67% as of December 21, according to data released by Freddie Mac
FMCC,
+8.33%
on Thursday.
It’s down 28 basis points from the previous week — one basis point is equal to one hundredth of a percentage point.
A year ago, the 30-year was averaging at 6.27%.
The average rate on the 15-year mortgage was 5.95%, down from 6.38% last week. The 15-year was at 5.69% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.64% as of Thursday afternoon.
What Freddie Mac said: “Lower rates are bringing potential homebuyers who were previously waiting on the sidelines back into the market and builders already are starting to feel the positive effects,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“A rise in homebuilder confidence, followed by new home construction reaching its highest level since May, signals a response to meet heightened demand as current inventory remains low,” he added.
What are they saying? “While declining rates is a positive for homebuyers, the lack of inventory—both because of a deficit of new construction and because existing homeowners are remaining in the homes longer—will continue to be a challenge in 2024,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement.
John Toohig, head of whole-loan trading on the Raymond James whole-loan desk and president of Raymond James Mortgage Co., said many of the same headwinds the market faced in 2023 remain as we roll into 2024. He said among them are higher rates (down a bit at yearend, but still in the high 6% range); “… the lack of liquidity in the banking sector; increasingly challenged affordability; and [consumer] credit starting to show some early cracks on the lower end of credit and with younger borrowers.”
Still, an interest-rate drop and soft landing for the economy, if the latter is truly achieved, will break some of the ice in a chilled housing market.
“For 2024, should the Federal Reserve determine they have overcorrected and start to lower rates [as indicated at the Fed’s December Federal Open Market Committee meeting], you will see a surge in trading volumes,” he added. “Discounts will be less impactful, loans will trade closer to par or gains again, and much of the frozen underwater coupons will transact again.
“Should credit break and the consumer buckle, [however,] you could see home prices fall, delinquencies and charge-offs on the rise and that will negatively impact pricing in a market with limited liquidity.”
It remains a guestimate game as far as when the Federal Reserve — which paused rates at its final meeting in 2023 — will decide to begin rolling back its benchmark rate in the year ahead from the current range of 5.25%-5.5%.
As 2023 moved toward a close, 30-year fixed rates had dropped into the mid-to-high 6% range. Few, if any, industry groups or market experts, however, have been accurate in predicting rates very far out in the current topsy-turvy market.
“If you look at futures, you’re looking at lower [Fed] rates by May of next year,” said Tom Piercy, chief growth officer at Incenter Capital Advisors (previously Incenter Mortgage Advisors). “I wouldn’t make a bet on it is because there’s just so much complexity in this.”
MSR sector
Piercy, whose shops advises both banks and nonbanks on mortgage servicing rights (MSRs) transactions, said the year ahead for MSRs will be impacted negatively if rates decline, but he adds rates would have to adjust downward significantly to accelerate loan-prepayment speeds, which would draw down the value of MSR packages. He said marginally lower rates would affect the returns holders of MSRs get from parked escrow accounts, however, which does impact MSR pricing.
Piercy expects that the combined MSR trading volume in the coming two years (2024 and 2025) will be on par with or slightly better than the combined trading volume of 2022 and 2023, when rates spiked and more than $1 trillion in MSR deals transacted each year.
“Over the next three years, including 2023, [we estimate] sub-$4 trillion [in MSR trades], maybe in the high $3 trillion [range], and again that’s for 2023 through 2025,” Piercy said. For 2023, slightly greater than 1.1 trillion in MSRs are expected to have traded, he added.
Part of that trading volume in 2024, Piercy said, is expected to be driven by MSR sales resulting from the continuing merger and acquisition (M&A) activity in the nonbank sector of the market.
“Unless there’s some type of pickup in the forecast for originations, I think you’re going to see still an active M&A market through 2024,” he explained. “Many shops will probably look to become part of a larger, more financially stable platform.
“We’re forecasting right now a fairly strong Q1 for MSR sales. I think it’s going to be a robust market.”
MBS sector
Robust is not the adjective to describe what’s ahead in 2024 for the agency (Fannie Mae, Freddie Mac and Ginnie Mae) mortgage-backed securities (MBS) market, however. Market observers say outsized spreads between the 30-year fixed mortgage rate and 10-year Treasuries and subpar MBS clearing rates are likely to continue, given the imbalance in supply and demand in the market as the Federal Reserve continues to unwind its $2.5 trillion portfolio of MBS.
According to projections by real estate investment firm the Amherst Group, agency MBS net issuance for 2024 is estimated at $300 billion, up slightly from $250 billion in 2023 — but still down significantly from the barnburner year in 2021, when net issuance totaled $870 billion. Net issuance in MBS represents new securities issued less the decline in outstanding securities due to principal paydowns or prepayments.
The Federal Reserve’s ongoing quantitative easing is expected to contribute an excess MBS supply to the market in 2024 of some $225 billion, which will need to be absorbed in addition to the projected $300 billion in net new issuance.
“Generally, our view has been that mortgages are really undervalued,” said Amherst Chairman and CEO Sean Dobson. “I’ve been doing this for 30 years, and they’re about as good in value as they’ve ever been.
“But we don’t see a lot of snapback, with mortgages getting back in line [in terms of interest rates] anytime soon. … Mortgage rates are high and one big reason … is the [agency MBS] investor base is impaired, and it’s not likely to be fixed soon.”
Dobson added that, in his view, monetary policymakers didn’t fully grasp that when the Fed stopped buying mortgages, “they had displaced the actual buyers for so long that the actual buyers are now gone.
“… Now you can buy billions of dollars in bonds [MBS] that are really undervalued relative to their intrinsic risk because there’s just no sponsor [a major new buyer since the Fed’s pullback].”
Richard Koss, chief research officer at mortgage-data analytics firm Recursion, also offers a bleak assessment of the agency MBS market ahead — primarily because mortgage originations are likely to remain depressed, which means agency MBS issuance will be depressed as well.
Koss points to the huge volume of low-rate mortgages outstanding as the vexing problem the market faces, adding that low-rate legacy (2020 and 2021) mortgage-backed pools “are mostly discount bonds in the current [high] rate environment.”
“All the 4.0% and lower mortgages that dominate the market are less than four years old,” he said. “If you have a 3% mortgage, you need a 2.5% rate to justify refinancing, which is a 1% Treasury yield.
“That could happen, but we don’t want it to, since it means some kind of disaster. I think a mortgage winter has frozen things hard and conditions are such that we can only expect a measurable improvement out past 2030.”
The Mortgage Bankers Association (MBA) estimates that total mortgage originations in 2023 will come in at about $1.6 trillion, down considerably from the $4.4 trillion in originations chalked up in the banner year of 2021. Next year, the MBA forecasts total originations at slightly more than $2 trillion — and its most current origination forecast shows only modest improvement in 2025, with originations (purchase and refinance) reaching $2.43 trillion.
RMBS sector
The origination downturn and rate volatility in 2023 negatively impacted the private-label residential mortgage-backed securitization (RMBS) market. Many market experts, however, expect a tailwind of declining rates for the year ahead as a result of recent signals from the Federal Reserve that rate cuts are on the table, starting as soon as the end of the first quarter of 2024.
“Additional rate hikes no longer appear to be part of the conversation, MBA senior vice president and chief economist Mike Fratantoni said in a statement reacting to the most recent Fed rate decision. “It is all about the pace of cuts from here.
“…We expect that this path for monetary policy should support further declines in mortgage rates, just in time for the spring housing market. We are forecasting modest growth in new and existing home sales in 2024, supporting growth in purchase originations, following an extraordinarily slow 2023.”
A report published in late November by Kroll Bond Rating Agency (KBRA) — which tracks RMBS offerings across the prime, nonprime, credit-risk transfer and second-lien sectors (RMBS 2.0). — assumed that the Fed was “closer to peak interest rates.” That assumption bodes well for the private-label market in 2024 — relative to its performance in 2023.
“We expect 2024 conditions to be more favorable and RMBS 2.0 issuance levels to be slightly higher than in 2023 at $56.5 billion (a 9% increase),” the KBRA report states.
Andrew Rhodes, senior director and head of trading at Mortgage Capital Trading, said the winter months ahead are going to be rough going for the housing market, including RMBS issuance.
“I think 2024 [overall] is going to be better from a [loan] origination standpoint, but I don’t think it’s going to be large increase,” he added. “…I really do think that 2025 will be a lot better, but that’s pretty far forward.”
Tailwinds
On a brighter note, Ben Hunsaker, portfolio manager focused on securitized credit for Beach Point Capital Management, points to the expansion of second-lien products in the primary market as a loan-origination and RMBS volume-driver in 2024, given the record-levels of home equity available to homeowners, many of whom are now locked into low-rate mortgages and have little incentive to sell or buy a new house.
“There’s this big pool of second liens and HELOCs [home equity lines of credit] that some of the originators have started to use as a key part of their toolkit, and you’re hearing them talk about it on earnings calls,” he said. “And so, I think that probably puts a kick in the pants to what 2024 [RMBS] volumes could look like.”
Charley Clark, a senior vice president and mortgage warehouse finance executive at EverBank (formerly known as TIAA Bank), also strikes a note of optimism for 2024 when it comes to the prospects for housing industry, specifically the large independent mortgage banks (IMBs) that feed the origination and securitization pipelines. Clark notes that EverBank serves about 40 of the largest mortgage banking companies in the nation.
“I think there’s definitely still some of the mom-and-pop shops [IMBs] — or let’s say a company with $20 million or $25 million or below in adjusted tangible net worth — that will be looking to sell,” he said. “But most of the big companies have solid balance sheets and have started to actually stop the bleeding.
“I’m encouraged because these companies [large IMBs] are much better positioned now. They’ve made the cuts, at least most of the cuts they need to make to right-size for where the industry is heading. And the best companies have really done a good job of that, so they’re positioned to do well next year, but it’s still going to be tough.”
Austin has a reputation as a global live music capital, a hipster haven and an outdoor enthusiast’s dream come true. Best of all? The cost of living in Austin is still more affordable than most bustling metropolises.
Even though locals complain about skyrocketing prices, the overall cost of living in the Lone Star State capital is just a fraction higher — only 1.2 percent — compared to other cities.
The most expensive part of living in Austin is housing, but even that’s offset by savings on gas prices, transportation, utilities and food. It would be negligent not to mention the quality of life — which is impossible to put a price tag on — that Austinites will proudly tell you is one of the highest around.
Year-over-year cost of living changes in Austin
We’ll deep dive into the data and highlight the cost of living and rent in Austin, but first, here’s a snapshot of year-over-year changes in the cost of living in Austin.
Groceries: -0.22%
Housing: +1.82%
Utilities: no change
Transportation expenses: -3.57%
Healthcare: -3.41%
Miscellaneous expenses: -2.23%
As you can see, in most categories, the cost of living has actually decreased. However, the average housing costs increased by almost 2 percent.
Now that we’ve highlighted annual changes from the past year, let’s look into each category so you can put together a living calculator and determine if this is one of the best places for you to call home.
Average rent is cheaper than San Francisco
How you feel about the housing market in Austin depends on where you’re coming from. New York City and San Francisco transplants will find property value refreshingly affordable, while those moving to Austin from smaller cities may find average rent surprisingly expensive.
Average rents for Austin apartments have increased compared to last year. A one-bedroom apartment in Downtown Austin is up 45 percent and costs an average of $1,523 per month. Of course, the cost of housing varies pretty dramatically depending on what part of Austin you’re in.
Average apartment rent in Austin
When you compare the cost of rent for a one-bedroom in Austin to a one-bedroom in San Francisco, you’ll realize the price difference. A one-bedroom in San Fran averages $3,368 a month.
Minutes from Downtown and a short walk to all things boutique and hip, Bouldin Creek rents average around $3,037 per month. Triangle Slate, Central Austin and Barton Hills have all seen price hikes for one-bedroom apartments and range from $2,146 to $2,588. These are some of the most popular neighborhoods and you’ll pay a higher price to live here.
More typical, however, are the family-friendly neighborhoods of Clarksville and Brentwood, with average rents ranging from $1,825 to $1,839, respectively.
For bargain hunters, it’s possible to find even better deals on rent, like $950 in Crestview or $1,000 a month for a one-bedroom in North Loop.
Average cost of homeownership in Austin
Homebuyers will probably not be surprised to find that the real estate market is hot and housing prices are competitive. Housing costs in Austin are 11.8 percent higher than the national average. Data shows the average cost of a home in the best neighborhoods of Austin is $565,000.
Of course, home prices vary, but one thing is certain — most are going well above the asking price. In fact, according to Redfin, homes in Austin are selling at the biggest premium in the country, seven percent above asking prices and are on the market for an average of 38 days.
Cost of food in Austin
Food costs vary from Houston to Dallas to Austin, but one thing is for sure — foodies have much to celebrate in Austin. From celebrity chefs to taco trucks, good eats await around every corner, at every price point.
Budget diners can enjoy Taco Tuesdays at Quality Seafood with $2 beers and $2 seafood tacos. On the higher end, Sunday brunchers can savor authentic Mexican fare at Fonda San Miguel for around $39 per person.
Groceries in Austin cost about 8 percent below the national average. A dozen eggs will set you back $1.56, a half-gallon of milk is $1.98 and everyone’s favorite morning beverage, coffee, will cost $4.04.
Overall, Austinites will pay less for groceries compared to other cities. In fact, the cost of food decreased by 0.22 percent since last year in the same location, according to coli.org data.
Utility costs in Austin
Austinites are an outdoorsy bunch, whether it’s kicking back at a music festival or taking care of business from a coffee shop patio. But don’t be fooled by the sometimes mild climate — this is a city that loves its air conditioning and is willing to pay for it.
Luckily, utilities are about 5 percent below the national average, totaling around $155.01 a month for your total energy bill.
When you calculate the average rent and cost of living in Austin, don’t forget to include the cost of utilities. Your average rent budget should account for the cost of electricity, water, sewage, gas and internet.
Transportation costs in Austin
First, the good news: Transportation costs in Austin are about 14 percent lower than the national average. Now, the bad news: There’s a reason Austinites love to complain about the traffic.
With only two east-west interstates and no ring road around the metro, traffic in town is nothing to scoff at. Austin is often ranked in the top 10 worst commutes in the country, with average commute times around 40 minutes. One of the keys to happiness for life in this city is minimizing the time you spend on freeways.
Public transportation in Austin
The city has a fair transit score of 44 — primarily because of urban sprawl. Settling down in an area with access to public transportation can relieve some of the headaches of your daily commute. CapMetro is the local transit system, and it includes bus routes, light rail and university and airport shuttle buses.
Overall, CapMetro is an affordable option for getting around — if you’re not in a hurry. Kids under 18 ride free on all services, and the standard single-ride bus fare is $1.25. You can expect to pay $41.25 for a 31-day pass.
Even with the sweltering heat and sprawl, Austin’s overall walk score is 62. And with a bike score of 70, cyclists find Austin generally bike-friendly. However, the central parts of town are the most bikeable parts of the city and the most walkable: Downtown, Cedar Park, Central East Austin, all University of Texas areas, Hyde Park and Old West Austin. CapMetro buses and trains have bicycle racks that make it easy for folks to do a hybrid bike commute, even if they live in the suburbs.
Whether you’re using public transit to and from schools or your university or your job, renters can rely on public transit to get them around. Just don’t forget to account for this with your annual salary.
Driving costs in Austin
There are a handful of toll roads around Austin, which can significantly reduce driving times from the suburbs. The rates are confusing and vary dramatically, ranging from $0.62 to $2.79. For savings and convenience, a TxTag reduces tolls by about 25 percent and deducts from a prepaid account.
Driving is most people’s primary mode of getting around town, but it comes at a premium. Parking costs an average of $219 per month, and gasoline — while lower than the national average — still costs around $3.85 a gallon. Tire balancing costs about 10 percent less than the national average of about $43.10.
Healthcare costs in Austin
Always a hot-button issue, healthcare costs are one of those areas where your mileage may vary. Taking that into consideration, there are some general benchmarks that can give you an idea of overall healthcare costs in Austin.
A visit to an Austin dentist for a routine examination typically costs around $119, and a regular checkup with a family doctor will run you about $111.
If you’re paying out of pocket, expect to shell out around $473 for a prescription, which is right in line with the national average. But if an Ibuprofen is all you need, then you’re in luck — at $8.79 for a bottle, it’s a bargain.
Goods and services costs in Austin
Having covered the bare necessities, that leaves a world of non-essential — but not unimportant — spending to consider. Austin ranks well in this area, with goods and services just barely more than the national average.
Austin is a film buff’s dream — full of movie theaters showing everything from obscure classics to mega-blockbusters. An average movie ticket costs just $10.53, and if you’re at a BYOB backyard event, a six-pack of beer will set you back $10.12.
Staying fit and looking sharp is easy in Austin. Yoga studios dot the city, and the typical class fee is around $20, although monthly memberships will cut that fee in half or less.
Haircuts cost on average $28, and a visit to a beauty salon is usually around $50.
Even if you’re on a tight budget, you’ll find a ton of free entertainment and opportunities for physical activity in the many parks around town.
Taxes in Austin
For anyone new to the great state of Texas, the big bonus is that there’s no state income tax, which everyone loves come tax time. Effectively, tax rates are non-existent.
State sales tax is 6.25 percent which makes up most of the 8.25 percent sales tax in Austin. So, if you drop $1,000 on a flat-screen TV, you’ll spend an extra $82.50 in tax.
However, there are four sales tax holidays each year in Austin, each offering breaks in different categories. April is for emergency preparation supplies, Memorial Day weekend is for EnergyStar appliances and water-efficient products and August is for back-to-school items. These are perfect opportunities to buy big-ticket items at considerable savings.
How much do you need to earn to live in Austin?
For overall financial stability and well-being, finance experts recommend that your rent should not exceed 30 percent of your budget. For an average $1,599 apartment, that means that your average salary is $63,960.
According to the U.S. Census Bureau data, the average Austin income is $71,576. Use our rent calculator to see for yourself how you might need to tweak your budget to afford the average rent for an apartment in Austin.
Living in Austin
Most locals will tell you that life in the ATX lives up to the hype. “Come for the mild weather, stay for the Tex-Mex,” they say. OK, maybe nobody says that, but they definitely should.
Austin offers all the amenities of a big city — a booming economy, excellent food and world-class entertainment — while maintaining a famously small-town feel. From professional opportunities at tech companies to natural beauty, there’s always something more to explore in Texas’ capital city.
Regardless of your budget or tastes, there’s a home in Austin waiting for you. Check out the apartments for rent in Austin and find your landing spot today.
Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of March 2022. Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Every couple of weeks, someone asks me, “When is the GEM conference?”
Never say never. But, well, never.
I hope being an investor in Blueprint helps dispel any notions that I have ambitions to put on a scaled production. I don’t. Instead, I’d rather let the best-in-class event folks do their thing. No sense in re-creating the wheel.
Ever since meeting Brian Mommsen at CREtech in October of 2019 and then partnering with Resident on GEM’s first VIP Dinner right before Covid shut down the world, the dinner table has been the core relationship building block for GEM Diamond members. Deep conversations, vulnerability, and new connections across sectors. All overlaid with incredible cuisine.
That doesn’t mean dinners will be all we ever do—there is insatiable demand for deeper interactions. That’s the gap the conference circuit doesn’t, and can’t, deliver on.
Stagnation is the enemy of community. I am always thinking, “What’s the next iteration? How can GEM create more meaningful conversations and relationships?”
When Greg Fischer told me earlier this year, “I have an inside connection at a gorgeous resort space in Bend that would work for a GEM retreat,” I was immediately in. Having visited family in the area since I was a kid, I love Central Oregon. I’ve been wanting to do a multi-day GEM experience for a couple of years, to thread the needle between dinner and “conference.” And I’m always beyond excited to collaborate with Greg. A lava cave experience was icing on the cake.
Win-win-win.
Enter the inaugural GEM Proptech Getaway, an exclusive retreat bringing together visionaries, industry leaders, venture capitalists, and seasoned practitioners in the world of proptech. Taking place April 4-6 in a beautiful venue away from the distractions of a bustling urban core, this will be a deep foray into relationship building in a casual environment. We’ll blend cuisine and conversation with collaborative working opportunities, an exploration of a new startup idea using generative AI, and curated networking for personal and professional growth.
As I’ve said before, small is the new big. The Proptech Getaway will be centered around a Bend version of our flagship GEM Community Dinner—capped at 24. We already have more than a third of that committed.
If you’re in for a memorable escape that delivers growth, connection, and innovation—all in one go—grab your spot now. At $300 for the first 11 confirmed seats, and then $400 for the second 11, it’s a no brainer. This price point covers costs—GEM remains a community built to facilitate connection for members, not a profit-first events company.
And, don’t you want to say you attended the first ever GEM Proptech Getaway? Those in attendance will help mold it, and I’m confident it will become a signature GEM experience for years to come.
As college tuition costs continue to skyrocket, more and more people are questioning whether a higher education is still worth it. Many argue that there are plenty of lucrative job opportunities available without a college degree, while others point out that earning one can open up doors to even better positions and significantly widen your wealth base. As this debate rages on, the question remains: is getting a college degree still worth all the money in today’s economy? Below are some stories we’ve rounded up to help you make your decision with a broader perspective.
1. They Open Up Higher Paying Jobs
One user posted, “They open you up to higher paying jobs, though the jobs may not be in the field you were expecting.”
One user replied, “I certainly wouldn’t have my six-figure job without my degrees, but I recognize I might be the exception.”
Another user added, “Lol, no, you’re not. Very few jobs will net anywhere near $100k (area dependent, of course) without a college degree. Some electricians and plumbers I know with 20+ years of experience have gotten close by busting their a- and putting in 50-60 hour work weeks, but even then, not everyone with the same experience is taking in that much. I wouldn’t have a six-figure-paying job without a degree either.”
One user stated, “Connections >>>>> Experience >>> Degrees >>> Certifications.”
Another commenter added, “I think experience trumps connections. Connections can get you in the door for an entry-level job maybe.”
One Redditor replied, “1000%. There’s a guy I’ve heard of that barely graduated high school but hustled his [a-] off and now makes almost 200 Grand a year in IT with zero college. Also, he has the most beautiful eyes and the voice of an Angel. And he has a badass malamute. That guy’s name is Bruce. Long live Bruce.”
3. Shortage of Accountants
Even if you’re not aiming for a six figure income, there are plenty of jobs that simply require specialized schooling; and those jobs need to be done. Like accounting, for instance.
“We are having accountant shortage…so.”, exclaimed one user.
The OP replied, “Well, that’s what I’m majoring in.”
One user responded, “Keep going! It’s the best degree! Always jobs, never accept a job paying below $25/hr again.”
4. Economy Fluctuates; Education Lasts a Lifetime.
One user stated, “Before I had a college degree the most I could ever make was $47k in 2015. After graduating college in 2017, I made 51k for nine months and then 65k by 2018, less than a year after graduating college. I worked at the company for over three years and made $70k before I decided to get an MBA. I earned an MBA in 2023 and am now making 90k a year working pretty much entirely remotely.
“I have no solid connections in the USA, so education has been the only way I’ve been able to boost my salary steadily, and it gives me the confidence to demand more pay. And I feel like my work environment has improved as I improved my education. The economy might be bad at times, and good at times; it fluctuates. But the impact of an education lasts a lifetime.”
Another user replied, “How much debt? I’m not hating. I wasn’t in a position to get an education, so I took a different path.”
Another user commented, “There’s a lot of scholarships out there. I only have $20k of debt from undergrad that I chose not to pay off since interest for student loans is low.”
5. Affordable Education Is Worth It
One user raised a good point, saying that free education is always worthwhile. And while college may not ever be totally free, there are many ways of making it more affordable. Living with your parents and doing school online can save on costs, almost all colleges offer scholarships but so do organizations both related to your interests and hobbies, and probably in your locale, so look around. And for bonus points, if you’re able to be self-motivated, you can find lots of classes that you can study for independently and pass via exams such as CLEP and DSST. While they’re oriented towards active-duty soldiers trying to get an education during deployments, both programs are open to the public.
6. The Better Educated, the More You Earn
One user stated from a source, “Yes, by the following data. … Across degree types, it’s clear that, on average, the more education you get, the more you will earn. The biggest increase in salary happens if you complete a bachelor’s degree rather than an associate degree. In this case, you can expect to earn $15,500 more per year on average as a 25- to 34-year-old. If you look at the talk, a bachelor’s degree is worth, at the median, more than $20k a year than a high school diploma.”
7. Surviving Versus Thriving
One Redditor shared, “Yes and no. Do you want enough money to survive? You can do it without a degree. But in the long run, everyone says having a degree is very beneficial.
“Ironically, I dropped out of my university to work for said university, so I never got my degree. I have had no problems landing jobs and dropping out means I’m in a better financial situation now than my university graduate peers. But ten years later, when everyone wants to be a manager, I may be at a disadvantage of not having my degree (I might get lucky and use purely my experience). I do plan to get a university degree once I figure out what I really want to do.”
8. It Depends on Your Field and Your Goals
“The most annoying answer ever: it depends. I ended up with a humanities degree and worked a job that doesn’t typically require a degree, and if it does, it certainly isn’t mine. So I always feel like it’s kind of pointless (I don’t regret my degree one bit, though!) But I definitely have friends who graduated with me and have full-fledged careers now and have really started their adult lives because of their degrees.
“It depends not only on the degree but the person. My degree probably wouldn’t have gotten me far without more school/degrees, but I also didn’t choose to seek out any paths that involved using it. And people still comment on the fact that I have a degree, which implies I have specific skills and am somewhat trustworthy (I saw my degree through in less than four years, nonetheless). I don’t think a degree is ever pointless. But I also don’t think you need one to have a good life.”
9. College Is Good for Your Development
One user posted, “Money aside completely, college is good for your development and will open your eyes to the vast fruits of life, and even GEs and stuff will force you to learn silly little bits of information that may end up changing your life. If you can make the finances work (go to an in-state public university), I think it’s generally worth it for most people.”
10. Many Jobs Require a Degree; But They Don’t Care Which One
Another Redditor added, “There are tons of simple office jobs out there that just require you to have a bachelor’s degree that is roughly applicable. I have known people who got degrees that were just ‘for fun’ and then landed in jobs like this making 5-10 dollars more than minimum wage. Not bad.”
11. A Business Degree Is Widely Applicable
Another user shared, “I’d be very specific about the degree. For example, a business degree is pretty vague and, as a hiring manager, I’d want to see whether they are proficient with Excel and which specific classes they had. But if they had majored in accounting, they’d find a job fast. As for STEM—a major in biology is much harder to market than in engineering.
“If I were an incoming student, I’d start at the end and work back. What job do I want? What degree requirements are there? Which specific classes do I need? If at all possible, reach out to someone working in that field (maybe a friend’s parent, a neighbor, or your doctor or dentist – introduce yourself and ask if they could meet with you to discuss these things. I would be intimidated as a young person to do this, but it could save you tens of thousands of dollars and years of your life to do it.”
12. A Degree Doesn’t Guarantee a Job
“A college degree doesn’t guarantee a job. You still have to self-innovate and market yourself. This means things like your skills, networking, how aggressive you are with job hunting, etc., all contribute to a higher probability of getting hired. Also, if you do a job search for current office jobs, many employers still ask for a bachelor’s degree in terms of baseline qualifications. So you’re already at a disadvantage if you’re planning to work your way up the cubicle career ladder …,” one user posted.
13. It’s Not Necessary
While most people still consider college a no-brainer, it’s good to ask questions about whether it’s worth it, especially if you’re thinking of a post-graduate degree. Masters and doctorates are expensive, and you should be sure it’s worthwhile before you take on the financial responsibility for more education.
One user posted, “It’s not [worth it]. I have an MBA, and it only puts me in debt. No one cares about it.”
One user replied, “Should have done engineering.”
14. Pick a Proper Degree
One commenter said, “Pick a proper degree that leads to a paying career. If you are going to do art history, gender studies, then no.”
15. A Degree and Then Some: It’s Harder Than Is Used to Be
Another Redditor posted, “I think much of the issue lies in so many relying only on their degree and classes they took. The sad truth is college students now have to go above and beyond what previous generations had to for equivalent results. In the past, companies understood they’d take you under their wing and train you as you go if you’re a recent grad. Now, with degree saturation, mass layoffs, and job hopping being shared, there’s way more risk from the employer’s POV. Hence, entry-level roles require years of experience.
“So, is a college degree worth anything nowadays? It can be IF you pursue it more HOLISTICALLY to meet current market conditions. Of course, this can be easier said than done, and the below is assuming one studies STEM and Business:
“Develop Soft Skills: Often overlooked by STEM students. Many employers would instead hire candidates with potential cultural fit over a genius who can’t present their ideas well.
“Seeking out mock interviews helps a lot!
“Understand you’re learning HOW TO LEARN abstract/technical concepts. Being a good student has carried over into my professional life by being able to pick up things fast.
“Internships/Capstone/Major Projects: Good stand-ins for work experience on resume
“Networking: Take full advantage of career fairs, as well as with Professors. In my IT program, companies would reach out to some of my professors seeking top performers.
“If you’re at a ‘top school,’ bonus points on now having access to Alumni. This can be used as an in for internships and roles. Join Professional Clubs/Organizations Consider relevant on-campus jobs: can also be flexible around classes. Obtain Certifications as you go, and see if your college offers any access to resources like Coursera or LinkedIn Learning as part of tuition. Build a project portfolio of ones you’ve completed in courses and done on the side.
“Alternatively, if you are short on time AND Money, you could instead consider technical certifications that are in demand to get your foot in the door at least. For example, CompTIA certifications … for networking.
“TLDR: It all depends on your approach and efforts to meet the expectations of a more demanding job market. Gone are the days when you could literally knock door to door with just a Bachelor for an entry-level role.”
16. It Depends on the Degree
One user shared, “As always, it depends on what said degree is in. Gender studies won’t get you much, but bioengineering will.”
Another user added, “I’ve worked in oil and gas for over a decade, and I had no idea that geologists and paleontologists can easily make six figures working in the field. Even learning to weld can make you 45 to $60 an hour. Of course, schools don’t encourage this kind of study.”
17. A Degree Can Open up Connections
“I won’t say this applies to all degrees/jobs because I certainly agree a degree can open up connections to higher paying jobs, but my dad was in college for eight years for a business management degree … since he’s graduated like 12 years ago he’s had countless jobs he’s quit because he has gotten this mindset he should be getting paid more then what he does because he has a degree. On the other hand, I was in college for less than a year before I dropped out and started working because I hated school; since I started working, I’ve kept the same job for 10 years, and I have made more money than my entire family combined.
“Now again, I say I got lucky, and I know a lot of people aren’t as lucky, but if you already have a connection or already have something you know you’ll probably have a future with, then the degree is not necessary if you’ve already reached the top,” one commenter contributed.
18. A Degree Improves Your Odds, but It’s Not a Guarantee
One user posted, “Every I see people complaining about not finding a job, 95% of the time they do not have a degree. A college degree is not guaranteed, but it improves your chances of employment.”
19. Can You Make Money Going to College?
Another user shared, “In philosophy? No. In nursing, engineering, and s- where you can def go get a job.
“Research different states and the cost of education. I moved to California, and it was … near free. Actually, I made $$ going to college.”
What do you think of the opinions listed above? Share your thoughts down in the comments!
Source: Reddit.
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star ratings rank Medicare plans from best (5 stars) to worst (1 star). The agency’s ratings are based on data measuring plans’ quality of care and customer satisfaction.
Based on the most recent year of data and weighted by enrollment, Baylor Scott & White Health Plan’s 2024 Medicare Advantage plans get an average overall rating of 3.96 stars
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For comparison, the average star rating for plans from all providers for 2024 is 4.04
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What does Baylor Scott & White Medicare Advantage cost?
Costs for Medicare Advantage plans will depend on your plan, geographic location and health needs.
Premiums
One of the costs to consider is the plan’s premium. In 2024, about 39% of Baylor Scott & White’s Medicare Advantage plans have $0 premiums
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Even as a Medicare Advantage user, you’ll still be responsible for paying your Medicare Part B premium, which is $164.90 per month in 2023 ($174.70 in 2024), although some plans cover part or all of this cost
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Copays, coinsurance and deductibles
Requirements for copays, coinsurance and deductibles vary depending on your plan, location and the services you use. Other out-of-pocket costs to consider include:
Whether the plan covers any part of your monthly Medicare Part B premium.
The plan’s yearly deductibles and any other deductibles, such as a drug deductible.
Copayments and/or coinsurance for each visit or service. For instance, there may be a $10 copay for seeing your primary doctor and a $45 copay for seeing a specialist.
The plan’s in-network and out-of-network out-of-pocket maximums.
Whether your medical providers are in-network or out-of-network, or how often you may go out-of-network for care.
Whether you require extra benefits, and whether the plan charges for them.
To get a sense of costs, use Medicare’s plan finding tool to compare information among available plans in your area. You can select by insurance carrier to see only Baylor Scott & White plans or compare across carriers. You can also shop directly from Baylor Scott & White Health Plan’s website by entering your ZIP code.
Baylor Scott & White Medicare Advantage plan types
There are several kinds of Baylor Scott & White Medicare Advantage plans, and they vary in structure, costs and benefits. About 65% of Baylor Scott & White Medicare Advantage plans include prescription drug coverage.
Plan offerings include the following types:
A health maintenance organization (HMO) generally requires that you use a specific network of doctors and hospitals. You may need a referral from your primary doctor in order to see a specialist, and out-of-network benefits are usually very limited.
HMO-POS plans
HMO point of service (POS) plans are HMO plans that allow members to get some out-of-network services, but they’ll pay more for those services.
Preferred provider organization (PPO) plans provide the most freedom, allowing you to see any provider that accepts the insurance. You may not need to choose a primary doctor, and you don’t need referrals to see specialists. You can seek out-of-network care, although it may cost more than seeing an in-network doctor.
Baylor Scott & White Medicare Advantage service area
Baylor Scott & White Health Plan offers Medicare Advantage plans in 47 counties in Texas. The company covers about 29,000 Medicare Advantage beneficiaries
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Compare Medicare Advantage providers
Get more information below about some of the major Medicare Advantage providers. These insurers offer plans in most states. The plans you can choose from will depend on your ZIP code and county.
Find the right Medicare Advantage plan
What are the plan’s costs? Do you understand what the plan’s premium, deductibles, copays and/or coinsurance will be? Can you afford them?
Is your doctor in-network? If you have a preferred medical provider or providers, make sure they participate in the plan’s network.
Are your prescriptions covered? If you’re on medication, it’s crucial to understand how the plan covers it. What tier are your prescription drugs on, and are there any coverage rules that apply to them?
Is there dental coverage? Does the plan offer routine coverage for vision, dental and hearing needs?
Are there extras? Does the plan offer any extra benefits, such as fitness memberships, transportation benefits or meal delivery?
If you have additional questions about Medicare, visit Medicare.gov or call 800-MEDICARE (800-633-4227, TTY 877-486-2048).