potential

Apache is functioning normally

 U.S. Bank said it would use the deal for Union Bank to to expand its presence in key California markets including Los Angeles, San Diego and San Francisco, where Union Bank had a strong foothold. 

U.S. Bancorp in late May finished installing updated signage on the West Coast branches it inherited from Union Bank, but executives say their work to take full advantage of the acquisition is still under construction.

Improved cost savings and opportunities to meaningfully boost revenue should be evident in the third quarter, the first full one since U.S. Bank’s conversion of Union Bank, management said when reporting second-quarter results Wednesday.

“We are well positioned as a national bank with greater scale,” said U.S. Bank CEO Andy Cecere.

Revenue and net interest income were lower than expected in the second quarter, but strong fee income and lower expenses helped improve the Minneapolis bank’s bottom line. The quarter also reflected one-time conversion items.

“This was a noisy quarter, which reflected mixed trends,” David Rochester, director of research at Compass Point Research, wrote in a note.

The $680 billion-asset bank completed its conversion of the Union Bank system in the second quarter, marking one of the final steps in the $8 billion acquisition that yielded hundreds of new branches and millions of new customers. U.S. Bank said it would use the deal, in part, to expand its presence in key California markets including Los Angeles, San Diego and San Francisco, where Union Bank had a strong foothold. 

U.S. Bank said it has seen more new customers than expected engage with the bank, making use of its app and other online banking services. The bank has boosted its advertising budget to get on the radar of new customers and potential new customers in target markets, executives said.

The deal should deliver as much as $900 million in cost savings delivered through, plus a breadth of opportunities for revenue growth, U.S. Bank said.

In the second quarter, U.S. Bank faced similar challenges to those of banks across the industry, whose net interest income generally shrank amid greater competition in deposit pricing. U.S. Bank said it expects lower net interest income in the third quarter. 

U.S. Bank set aside $821 million for credit losses in the second quarter, up from $427 million in the first quarter. Large and small banks alike put aside substantial amounts of reserves early on in the pandemic in case the economic fallout prevented consumers and businesses from making payments on their bank loans.

“Credit quality metrics remained strong versus pre-pandemic levels but are normalizing as expected,” Cecere said on the company’s earnings call Wednesday. “This quarter, we strengthened our balance sheet by increasing the loan-loss reserve, reflective of our prudent approach to credit risk management.”

The bank cited growing credit card balances and continued economic uncertainty as reasons for boosting reserves. Average credit card loans increased 14.5% in the second quarter from the same quarter last year, while average total loans grew 19.9% in the second quarter.

“Consumers are now starting to rely more on credit card debt as a way of paying for their lifestyles,” said U.S. Bank Chief Financial Officer Terry Dolan.

Banks have likely seen the final positive impacts of higher interest rates, Dolan said. U.S. Bank’s noninterest income growth of 7% in the second quarter, driven by higher core fee income, exceeded analysts’ expectations.

U.S. Bank reported a profit of $1.8 billion in the second quarter, in line with expectations. Revenue totaled $7.2 billion, slightly above forecasts.

The bank said its common equity Tier 1 capital ratio increased to 9.1% in the second quarter, up from 8.5% in the first quarter. Capital ratios have been under the spotlight across the industry this year, and specifically at U.S. Bank. The bank’s capital level faced scrutiny this spring, when a research report argued the bank wasn’t holding enough capital for a bank of its size.

Source: nationalmortgagenews.com

Apache is functioning normally

One of the larger and oldest credit unions in the nation, Navy Federal FCU, happens to be a big player in the home loan space.

Instead of just offering the same mortgages every other bank has readily available, they go a step further with their own unique offerings.

This includes a zero down loan option, conforming and jumbo loans, and even an interest-only option if you’ve got some home equity.

Let’s learn more about this company to see if they’re the right fit for your home loan needs.

The one caveat with Navy Federal is that not everyone is eligible for a membership.

You or a family member must have some affiliation with the Armed Forces, DoD, Coast Guard or National Guard.

The good news is that’s a lot of people because Navy Federal has over eight million members nationwide, up from just seven (7 people) when they began all the way back in 1933.

Navy Federal Home Loan Options

  • They offer conforming, government, and jumbo loans
  • Including home purchase, refinance, and home equity loans
  • In both fixed and adjustable-rate varieties
  • For primary, 2nd homes, and investment properties

The company offers a wide variety of mortgage loan programs, including typical fixed-rate offerings like the 30-year fixed and 15-year fixed, along with a number of different adjustable-rate mortgages.

They actually don’t offer common fixed-rate loan programs like the 10-year and 20-year fixed, but do allow homeowners to amortize their loan over terms between 10-30 years.

For example, you could choose a 13-year term, but you’d be subject to 15-year fixed pricing. Or you could choose a 22-year term and be subject to 30-year fixed pricing.

When it comes to ARMs, they have lots of them, including:

  • 3/1 ARM
  • 5/1 ARM
  • 2/2 ARM
  • 3/5 ARM
  • 5/5 ARM
  • 7/1 ARM
  • 10/1 ARM

You can get all these ARMs in jumbo loan amounts too other than the 2/2 ARM.

The more unusual of the bunch include the 2/2 ARM, 3/5 ARM, and the 5/5 ARM, while the others are more run-of-the-mill.

They’ve got conventional loan products along with government loans including FHA loans and VA loans. I don’t think they offer USDA loans.

Anyway, that means veterans and active duty can get zero down financing, and others can do the same via their  loan program.

Navy Federal’s zero down home loan program, which appears to be a VA loan, is known as “100% Financing HomeBuyers Choice.”

So the typical VA guidelines likely apply, including a funding fee and max loan amounts by county and entitlement.

The good news is they will allow up to $1 million loan amounts in certain areas, and seller contributions of up to 6%.

It only comes in a 15-year or 30-year fixed – no ARMs are available.

Like most other mortgage lenders, they offer home purchase loans, rate and term refinances, and cash out refinances.

Navy Federal also has four different types of home equity loans/lines available if you want to tap into your available home equity without disrupting your first mortgage.

They also offer interest-only financing with a minimum down payment of 20%, but do not advertise those mortgage rates on their website.

Aside from providing mortgages on primary residences, they also have options for those financing a second home or an investment property.

For second homes, you have the option of a 30-year or 15-year fixed, with investment properties limited to 15-year fixed mortgages.

Finally, Navy Federal gives you the option to avoid private mortgage insurance or pay upfront mortgage insurance, assuming it’s required on your loan (generally when putting down less than 20%).

Navy Federal Mortgage Rates

  • They advertise most of their mortgage rates on their website
  • Including discount points needed to obtain the associated rate
  • Rates appear to be very competitive/lower than the competition
  • Especially their ARM rates

I always appreciate a lender that openly advertises its mortgage interest rates, and Navy Federal checks that box.

You can always find their daily mortgage rates on their website for most of their home loan products, including any discount points that must be paid to acquire said rate.

They seem to have competitive fixed rates and really low ARM rates, so if you’re looking at an ARM, consider Navy Federal.

Just note that they tend to charge a 1% loan origination fee on all their products.

Of course, you can and should always negotiate regardless of what they’ve got posted on their website.

They appear to offer a free biweekly mortgage payment option, but they also note in the fine print if you choose to do that, it remains the payment arrangement for life.

In other words, you better make sure you want to make larger-than-necessary monthly payments until you sell your home or refinance your mortgage.

The company also recently launched its No-Refi Rate Drop, which allows you to lower your rate in the future for just $250 after signing a single document, assuming mortgage rates come down.

Navy Federal Mortgage Rate Match

  • Navy Federal appears to be confident that they offer some of the lowest rates around
  • That’s why they offer a $1,000 rate match guarantee
  • If you find a lower mortgage rate and Navy Federal is unable to match it they may compensate you
  • But you have to prove it with documentation and jump through some  hoops to qualify

One neat perk the company offers is its so-called “Mortgage Rate Match,” which as the name implies will match the interest rate of a competitor.

So if you’re able to find a lower mortgage rate while comparison shopping, Navy Federal will match that rate or give you $1,000.

Of course, the typical restrictions apply and you’ll need to lock your rate with Navy Federal before submitting the rate match request.

Additionally, you’ll need to provide a Loan Estimate from a competing lender within three calendar days of locking your rate, and the terms have to be identical.

In other words, there are probably a lot of outs for Navy Federal, but if you’re able to muster all that and they can’t/won’t go any lower, you might be able to snag $1,000.

Speaking of locks, Navy Federal also offers a “Freedom Lock Option” for home purchase loans that lets you lower your rate up to 0.25% if rates improve up to 14 days prior to closing.

It’s basically a free one-time re-lock option offered on all loan types.

Navy Federal HomeSquad

In mid-2019, they launched “HomeSquad,” which is essentially their take on the digital mortgage that has been becoming more and more mainstream with mortgage lenders these days.

It allows borrowers to generate a quick pre-approval and to check loan status 24/7 via their mobile phone once they are approved.

During the loan process, borrowers can upload key loan documents like pay stubs, tax returns, letters of explanation, and so on.

You can also connect bank accounts for automated asset verification, and notices are sent straight to your preferred device as milestones are met.

This technology better aligns them with the likes of Quicken Loan’s Rocket Mortgage, and makes them really hard to beat given their low rates and quality customer service.

Why Choose Navy Federal for Your Mortgage?

  • Competitive mortgage rates
  • Free re-lock option if rates fall after you lock
  • Biweekly mortgage payment option
  • They service your home loan for life

Aside from the many perks and options mentioned, their home loan products are available nationwide.

So as long as you’re eligible for a Navy Federal membership, they’re probably worth at least checking out no matter where you are in the country.

Assuming their interest rate and lender fees are competitive, they offer a few more advantages to borrowers.

They claim to offer personal guidance from start to finish, so ideally their loan officers are top-notch relative to other big bank officers.

Additionally, once your loan funds, they’ll actually hang onto it for the life of your loan. That means Navy Federal is not only your lender, but also your loan servicer.

This can be convenient and less confusing as many lenders simply originate home loans and quickly sell them off to a differ ent entity, creating more paperwork and potential headaches.

Knowing your loan will stay with the company may also lead to a more transparent and friendly experience.

With Navy Federal, you can rest assured that you’ll be a borrower for life with them, so they’ll probably want to take good care of you along the way.

(photo: Dave Lawler)

Source: thetruthaboutmortgage.com

Apache is functioning normally


Washington, DC
CNN
 — 

Mortgage rates ticked lower for the third week in a row as investors absorbed strong signals from the housing industry and last week’s pause on rate hikes by the Federal Reserve after 10 consecutive hikes.

The 30-year fixed-rate mortgage averaged 6.67% in the week ending June 22, down from 6.69% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.81%.

Mortgage rates have remained over 5% for all but one week during the past year and even went as high as 7.08%, last reached in November, but have been coming down since the end of May.

“Mortgage rates slid down again this week but remain elevated compared to this time last year,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Potential home buyers have been watching rates closely and are waiting to come off the sidelines. However, inventory challenges persist as the number of existing homes for sale remains very low. Though, a recent rebound in single-family housing starts is an encouraging development that will hopefully extend through the summer.”

On Thursday, a separate report from the National Association of Realtors showed that housing inventory is at about half of pre-pandemic levels. Earlier this week, the Census Bureau reported that home building surged in May, rising 21.7% from April.

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.

Stubborn inflation is cooling somewhat

The rate for a 30-year fixed-rate mortgage has been volatile amid lagging economic indicators and the Fed’s recent decisions on rates. But good news for new construction and inflation are helping to bring interest rates down.

“While the headline Consumer Price Index dropped significantly in May to 4%, the core CPI — which includes goods and services excluding volatile food and energy — has not retreated as much as the overall inflation in recent months, creating a troubling situation for policymakers,” said Jiayi Xu, economist at Realtor.com.

“In the coming months, we may see a faster slowdown in inflation because the growth in the shelter index, the largest contributor to inflation growth, has passed its peak and started to trend down in April,” she said.

Meanwhile, last week the Fed opted not to raise its key lending rate, choosing to wait for additional data and see how recent rate increases are influencing price growth and the real economy in an effort to cool inflation to a 2% level.

The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

“As the inflation is well above the 2% target and the labor market is still strong, [the Fed] signaled that the federal funds rate will be half a point higher than previously expected at the end of 2023, which is also half a point higher than the current rate,” Xu said. “In other words, borrowing, including home purchases, will likely remain expensive through the remainder of the year.”

Mortgage rates will stay higher this year

With the potential for additional rate hikes ahead, mortgage rates will remain elevated throughout the remainder of the year, said Xu.

“As a result, affordability will continue to be an important factor in buyers’ home purchasing decisions,” she said.

Home buyers continue to flock to relatively inexpensive markets where homes are listed below the national median price, leading to notable price growth in these otherwise affordable areas, according to a recent report from Realtor.com

“The heightened competition in these markets may worsen the conditions faced by buyers with financial constraints, particularly due to the already limited supply of affordable homes,” said Xu.

New home construction surged in April, a sign of confidence by builders that buyers will be there to snap them up.

“While the rise in new construction is encouraging, there is a pressing need to build homes catering to all income levels,” said Xu.

There is a shortage of nearly 300,000 homes that are affordable to middle-income earners, who are hurt most by the shortage of inventory and low levels of affordability, according to recent research by the National Association of Realtors and Realtor.com.

— CNN’s Alicia Wallace contributed to this report.

Source: cnn.com

Apache is functioning normally

Update: Purplebricks has shuttered their U.S. business after less than two years. They expect the exit to be completed by the end of 2019.

If you’ve seen commercials lately for Purplebricks promising you a better home buying or selling experience, you might first be wondering who the heck they are.

Like myself, I hadn’t heard of them until they began a major media push in 2017. Their TV commercials feature homeowners who ostensibly made the mistake of using a full-commission real estate agent alongside a neighbor who used Purplebricks and saved a ton.

The result is a very angry and jealous home seller who in hindsight wished they had heard of and used Purplebricks to sell their home.

For the record, many people refer to the company as “Purple Bricks” but it’s actually all one word.

Who Is Purplebricks?

  • Founded in 2014 by Michael and Kenny Bruce
  • Became number one real estate brokerage in the UK
  • Also the fastest growing brand in Australia
  • Now has locations in Irvine, CA and NYC as it takes aim at the U.S. real estate market

They started out in the United Kingdom back in 2014 and quickly became “the number one Real Estate Brokerage in the UK” in just three short years.

It’s unclear what they mean by number one, but they’re apparently a $1.5 billion company that is growing rapidly worldwide.

Purplebricks has a “proprietary software system” that allow real estate agents and home buyers/sellers to communicate in real-time, thereby avoiding the typical delays seen in real estate transactions.

This supposedly eliminates the need for physical branches, a cost-saving measure that allows consumers to save when they buy and sell homes with the company.

The lack of offices and rent for those offices, along with the supplies, utilities, and so on, mean they can charge less than typical real estate agents.

Their real estate agents, known as “Local Real Estate Experts” or LREEs, are also provided with listing opportunities via marketing and advertising campaigns that alleviate the need for them to chase new leads.

As a result, they have more time to focus on their clients, which ideally leads to quicker transactions with better customer service.

In terms of motivation, their agents are propelled higher via good customer reviews, so their motivation to sell at the highest price is there regardless of the lower fee.

They are currently doing business in California (Fresno, Los Angeles, Orange County, Palm Springs, Sacramento, and San Diego) and in New York City, with more markets likely coming.

It’s actually the New York Designated Market Area (DMA), which includes counties in New Jersey, New York, and Connecticut.

Selling a Home with Purplebricks

  • They charge a flat seller fee of $3,600 to list a home
  • As opposed to the 2-3% traditional agents charge
  • Which could save you a ton of money
  • But the fee doesn’t seem to refundable

If you decide to sell your home with Purplebricks, it will be considered an Exclusive Right to Sell agreement, meaning if you or another broker find a buyer, you are still required to pay Purplebricks the agreed upon seller fee.

Before you make that commitment, you can schedule a “free valuation” to see what they think your home is worth (via a comparative market analysis) and to get some local real estate insight.

Once you do commit, you must agree to a $3,600 flat seller fee, up from $3,200 when the company first launched. This counters the typical 2-3% of the purchase price a real estate may charge.

On a $500,000 home sale with a 2.5% fee, we’re talking $12,500 commission. So you’d save nearly $9,000 via the flat fee, assuming the selling price was the same.

What Purplebricks Provides to Sellers

  • An MLS listing including Trulia, Zillow, and Realtor websites
  • Professional photos, 3D tour, yard sign, lockbox
  • 24/7 support
  • Performance report with real-time status of your listing detailing any activity

They will list your property on the MLS, along with major websites like Zillow, Trulia, and Realtor. It will also be listed on the Purplebricks website.

In terms of property showings, you can share available time slots with your agent who can then select a free slot if they have a prospective buyer.

Any buyers that do show up to your property will be requested to be pre-approved for a mortgage to ensure only qualified applicants visit your home.

Like traditional real estate agents, you’ll be given a yard sign and lockbox, and professional photographs of your property will be taken, along with an immersive 3D virtual tour.

They also offer 24/7 support via phone or through the Purplebricks customer service center.

You can sign up online to list your home or schedule a meeting with a Local Real Estate Expert first.

Once the property is listed, you’ll be able to access your “Purplebricks performance report” on your desktop computer, mobile device, or via their app.

It will provide a real-time snapshot of your listing, including showings, offers, and any other feedback.

While the relatively low $3,600 fee to sell a home is a big positive, one potential negative is if the property doesn’t sell.

With a traditional real estate agent, you can go your separate ways if your property doesn’t sell during the contract period.

With Purplebricks, the fee is due either when the property sells or after six months from the date it was listed. After that time, they’ll continue to show the property until sold at no extra charge.

You can also take it off the market and relist it at no extra charge as well, but you’ll still be under contract with Purplebricks.

The hitch is that you’re basically on the hook for that fee no matter what, which is probably great if your property sells quickly at a price you’re okay with.

But not so good if it doesn’t sell and you need to fork over the fee while your property languishes on the property. It’s unclear what happens if you don’t happen to have the $3,600 handy…

Buying a Home with Purplebricks

  • You get an experienced real estate agent
  • Can book showings and make offers online
  • Ask questions in real-time via their communications portal
  • And receive a $1,000 credit toward closing costs

If you happen to use a Purplebricks real estate agent to buy a property, there is no fee per usual. And you get a $1,000 credit for closing costs.

To find an agent, simply visit their website and perform a zip code search. You’ll then be presented with an agent name, picture, and bio.

If you want to be an agent with Purplebricks, you can apply online as well. The advantage is you get your own zip code or even multi-zip code territory and they do all the marketing for you via TV and radio campaigns.

There seem to be fewer advantages to using Purplebricks on the buy side, other than the technology platform they tout and their “experienced agents.”

It’s not to say you won’t be matched up with a good agent, it’s just that the highlight seems to be the flat fee on the sell side.

Of course, you can do some cool stuff like a book a showing online, and communicate securely with the home seller via a messaging platform 24/7.

You can also submit an offer online and see the status of that bid in real-time. You’ll also receive an instant notification if/when a response from the seller is made.

This they hope will speed up the home buying process and make your offer stand out above others.

Lastly, they have a comprehensive listing website similar to Zillow and Redfin that allows you to draw search zones, see local information like schools, and nearby transportation.

All in all, it’s an interesting take on buying and selling real estate, and if you can sell your home for just $3,600, it could save you thousands of dollars.

To provide perspective, a $1 million sale with Purplebricks would equate to a 0.36% fee, which is certainly very cheap.

Source: thetruthaboutmortgage.com

Apache is functioning normally

In a remarkable feat of financial prowess, a 28-year-old individual has shattered traditional notions of wealth accumulation. By strategically harnessing the power of multiple income streams, this trailblazer has managed to generate an astounding $189,000 a year while working fewer than 4 days a week.

As the rest of us marvel at their achievements, it’s time to unravel the secrets behind their incredible success and explore the seven streams of income that have become the cornerstone of their financial empire.

In today’s dynamic world, traditional employment is no longer the sole means to financial prosperity. Creating multiple streams of income allows you to diversify your earnings, reduce risk, and unlock the potential for wealth accumulation.

By understanding and leveraging these seven streams of income, you can take significant steps towards achieving financial freedom.

Understanding Multiple Streams of Income

Multiple streams of income refer to having multiple sources from which money flows into your life. These streams can vary in terms of their origin, nature, and the effort required to maintain them.

By creating multiple streams of income, you can enjoy a more stable financial situation and gain the freedom to pursue your passions without worrying about money.

Diversifying your income through multiple streams is not only about mitigating risk, but it also allows you to tap into different income opportunities and maximize your earning potential.

Stream 1: Earned Income

Earned income is the most common and widely known stream of income. It refers to the money you earn by providing your skills, knowledge, or expertise in exchange for a salary or wages. This can come from your primary job, freelancing, or running a business. While earned income is essential, relying solely on it limits your earning potential and leaves little room for growth.

Financial expert Sarah Johnson advises, “While earned income provides a stable foundation, it’s important to consider expanding your earning potential by exploring other income streams. This can help you achieve your financial goals faster.”

Stream 2: Profit Income

Profit income involves making money by buying and selling goods or services at a higher price than the cost of production. It includes businesses, entrepreneurship, and investments where you can generate profits through successful ventures. Profit income allows you to leverage your skills, creativity, and market knowledge to create additional wealth.

Profit Income Examples:

  1. E-commerce business: Starting an online store and selling products or services can be a profitable venture. You can source products at a wholesale price, set your own retail prices, and reach a wide customer base through online platforms. Profit is generated by selling products at a higher price than the cost of acquisition and fulfillment.
  2. Investing in stocks: Buying stocks of promising companies at a lower price and selling them when their value appreciates can generate profit income. Successful stock investments rely on careful research, analysis, and timing to capitalize on market opportunities.
  3. Flipping real estate properties: Buying properties below market value, renovating or improving them, and selling them at a higher price can be a profitable venture. Real estate investors aim to create value through property upgrades or by capitalizing on favorable market conditions.
  4. Dropshipping business: Running a dropshipping business involves selling products online without holding inventory. You partner with suppliers who fulfill orders directly to customers. The difference between the price at which you sell the product and the cost of the product from the supplier generates profit income.

Profit income offers the potential for financial independence and wealth creation. However, it requires careful planning, market knowledge, and risk management to succeed in various profit-generating ventures. By evaluating market trends, identifying profitable niches, and delivering value to customers, you can maximize your profit potential in this income stream.

Certified Financial Planner Mark Davis suggests, “For those with an entrepreneurial spirit, starting a business or investing in profitable ventures can be a great way to generate substantial income. It’s important to conduct thorough market research and develop a solid business plan to maximize your chances of success.”

Stream 3: Rental Income

Rental income involves owning and leasing out assets such as real estate properties, apartments, or vehicles. By collecting rent from tenants, you can generate a steady cash flow that can supplement your primary income. Rental income offers the advantage of passive earning, as the properties can appreciate in value while providing you with regular income.

According to Susan Thompson, a real estate expert, “Investing in rental properties can provide a reliable source of income over time. However, it’s important to carefully consider location, property management, and tenant screening to ensure a positive rental experience and maximize your returns.”

To learn more about the tax implications of rental income, you can refer to the IRS publication IRS Publication 925: Passive Activity and At-Risk Rules.

Stream 4: Dividend Income

Dividend income is earned by investing in stocks or mutual funds that pay regular dividends to their shareholders. Companies distribute a portion of their profits to shareholders as dividends, providing you with a passive income stream.

Dividend income can be a valuable source of long-term wealth accumulation, especially when reinvested over time.

Certified Financial Planner Emily Carter highlights the benefits of dividend income, stating, “Dividend-paying stocks can provide a steady income stream and potential capital appreciation. It’s important to diversify your portfolio and carefully evaluate the dividend history and financial health of the companies you invest in.”

Stream 5: Interest Income

Interest income is derived from lending money to individuals, businesses, or financial institutions, who repay the borrowed amount with interest. This can be in the form of savings accounts, certificates of deposit, bonds, or other fixed-income investments. Interest income allows you to earn a passive return on your capital while preserving the principal amount.

Interest Income Examples:

  1. Savings accounts: Banks and credit unions offer savings accounts where you can deposit your money and earn interest on the balance. These accounts provide liquidity and are suitable for short-term financial goals or emergency funds. The interest rates offered can vary depending on the institution and prevailing market conditions.
  2. Certificates of deposit (CDs): CDs are time deposits that offer a fixed interest rate for a specific period. They often provide higher interest rates compared to regular savings accounts. CDs are suitable for individuals who have a specific savings goal and are willing to lock their money for a predetermined time.
  3. Government bonds: Governments issue bonds as a way to borrow money from investors. These bonds pay periodic interest to bondholders until the bond matures. Government bonds are considered low-risk investments, and their interest rates are influenced by market factors and the creditworthiness of the issuing government.
  4. Corporate bonds: Companies issue bonds to raise capital. Investors who purchase these bonds receive periodic interest payments and the return of principal upon maturity. Corporate bonds carry varying levels of risk depending on the financial health of the issuing company and prevailing market conditions.

Interest income plays a vital role in a diversified investment portfolio by providing stability and preserving the principal amount. While it may not offer high growth potential, it serves as a reliable income source, particularly for conservative investors seeking steady earnings and capital preservation. It’s important to consider your financial goals, risk tolerance, and market conditions when incorporating interest-based investments into your overall financial strategy.

Stream 6: Royalty Income

Royalty income is earned by granting the rights to use intellectual property, such as patents, copyrights, trademarks, or creative works. Authors, musicians, inventors, and artists can earn royalties from their creations. Once established, royalty income can provide a steady stream of passive income for years to come.

John Stevens, a successful author, emphasizes the significance of royalty income, stating, “For creators, leveraging intellectual property can be a powerful income stream. By protecting your work and exploring licensing and royalty agreements, you can generate ongoing income from your creations.”

Stream 7: Capital Gains

Capital gains occur when you sell an asset, such as stocks, real estate, or collectibles, at a higher price than its purchase price. The difference between the buying and selling price represents the capital gain. By investing in appreciating assets and selling them at the right time, you can earn substantial profits and increase your overall wealth.

Certified Financial Planner Jennifer Adams advises, “Capital gains can significantly boost your wealth if you invest strategically and take advantage of market opportunities. It’s important to develop an investment strategy aligned with your risk tolerance and long-term financial goals.”

For a comprehensive understanding of capital gains taxation, you can refer to the IRS publication Over the Top for the Bournes and the Merkels.

The Bottom Line – 7 Income Streams

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Diversifying your income through multiple streams of income is a powerful strategy for achieving financial prosperity. By incorporating various income sources, such as earned income, profit income, rental income, dividend income, interest income, royalty income, and capital gains, you can create a robust and resilient financial foundation.

Remember, building multiple streams of income requires time, effort, and a strategic approach. Stay committed, invest wisely, and continually explore new opportunities to secure your financial future.

Source: goodfinancialcents.com

Apache is functioning normally

Many years ago, buying life insurance meant simply purchasing coverage that paid out a death benefit when an insured passed away. Today, however, things have changed a great deal. Life insurance policies are still certainly used as a tool for replacing income or for paying off debt upon the death of an insured. But now, these plans can also be used for so much more.

No longer are life insurance policies just “plain vanilla” anymore. In fact, oftentimes, life insurance policies are used as financial planning tools that can help individuals and families solve all types of additional needs, such as saving for college, paying off a mortgage, and supplementing retirement income.

They can also be used for growing funds based on rising market conditions. One type of policy that can be particularly useful in offering a death benefit while also providing for additional financial needs is variable coverage.

How Variable Life Insurance Works

Variable life is a type of permanent coverage. This means that it offers both death benefit protection, as well as a cash value or investment component where the policyholder can invest in a variety of “separate” accounts.

These policies are referred to as such because when a policyholder pays their premium into the plan, the portion of his or her premium that goes into the cash – or investment – component of the policy will be subject to the ups and downs of the underlying market fluctuations. Therefore, the plan will be “variable” in its nature.

Typically, the policy holder has the option of choosing from a very wide variety of different investment options within this separate account. These can include mutual funds, stocks, money market funds, bonds, and a number of other financial vehicles. Because some of the investment options that are included in variable policies are securities, these types of life insurance policies are regulated by the federal securities laws.

Just as with the cash value component of other types of life insurance policies, the funds that are in the investment component of a variable insurance plan are allowed to grow on a tax-deferred basis, meaning that the money will not be taxed until the time of withdrawal. This can provide the opportunity for funds to increase at an even greater pace – especially over time and in positive market conditions.

The Advantages of Owning a Variable Life Policy

There are a number of advantages to owning a variable policy. First, as with any other type of coverage, the death benefit proceeds will provide financial protection to the insured’s survivors in the event of death. Such funds may be used to pay final expenses, to pay off large debts such as a mortgage, or used as income replacement in paying everyday living expenses going forward.

Another benefit of variable life coverage is that the premiums are typically fixed throughout the life of the policy. This means that, unlike term life insurance, the insured will never need to re-qualify for coverage, provided that the premiums are paid within the grace period and that the coverage stays in-force.

Likewise, the initial amount of the death benefit on a variable policy is also usually a fixed amount – regardless of what occurs in the underlying market. Because of this, the named beneficiary (or beneficiaries) on this type of policy can, therefore, be assured that they will be receiving a certain amount of proceeds upon the death of the insured.

This can be helpful in that if the funds were being counted on for payment of certain debts or the replacement of the insured’s income, there would be a set amount coming to the insured’s survivors from the variable life plan.

In addition, due to the variety of investment options, variable life can provide insurance policyholders with the opportunity to grow the funds that are in the cash portion of their policy. These funds may be used in the future for other financial needs and they could be accessed via withdrawals or through policy loans.

So, if funds are needed by a variable life policyholder during his or her lifetime, these plans will typically allow the individual to either withdraw or borrow cash from the investment component of the policy. In addition, funds from the cash value component can often be used for paying the policy premiums – alleviating the policyholder from having to do so out of pocket.

Some Things to Consider Before Purchasing Life Insurance

While there are many advantages of owning a variable life insurance policy, it is also important to consider some key factors prior to moving forward in order to be sure that this type of policy is the best option for you and your specific insurance and investment needs.

First, when considering a variable plan, the policy holder should be able to take on a more active role in the investment of the policy’s separate account. Given this, it may be wise to have a good understanding of how mutual funds and other investments work – and how each may, or may not, fit with your particular financial needs and goals.

Being aware that variable coverage comes with a higher level of risk than some other types of permanent life insurance, such as whole life or universal life, can also help to ease any surprises should the market take a sudden downturn.

In any case, an important consideration that any potential owner of a variable policy should have is that he or she will have much more control over how their funds are invested in this type of life insurance plan. This will differ substantially from ownership of a whole life or a universal life insurance policy, where the underlying funds are typically chosen for the policyholder by the insurance carrier.

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Is a Variable Policy Right for Everyone?

Unlike whole life insurance, where cash is only guaranteed to grow at a fixed conservative rate of interest, the funds that are inside of a variable life policy are tied to a variety of different market related investment options. This allows the opportunity for a substantial amount of growth. It also, however, can subject the funds to market risk. Therefore, variable policyholders need to be aware that their funds can rise in value. However, they can also fall.

The policyholder of a variable life policy also has a great deal of choices in the underlying investments that are chosen for his or her cash value component. This differs significantly from whole life insurance where the insurance company makes these selections. Therefore, those who are not active investors or who do not have a good understanding of stocks or mutual funds may want to obtain some initial knowledge of these investments prior to moving forward. It is also a good idea to have at least a basic understanding of how different types of market risk can occur, and how such risk may be offset.

How to Get the Best Variable Life Insurance Quotes

When shopping for variable life insurance quotes, it is best to work with a company or an agency that has access to more than just one insurance carrier. This way, you will be able to compare different insurers’ policies and benefits objectively in order to determine which fits best with your specific needs. You will also be able to compare different premium quotes in order to see which works best with your life insurance budget.

If you are ready to compare policies and quotes, we can help. We work with the best life insurance companies in the marketplace today, and we can get you all of the important information that you need quickly and easily – right from your home computer, and without the need to meet in person with a life insurance agent. When you’re ready to see how a variable life policy may benefit you and your loved ones, fill out the form on this page to start your quotes.

Should you have any questions along the way regarding how variable policies work – about life insurance in general, or about something more specific such as life insurance without medical exams – please feel free to contact us directly. Our experts can walk you through step-by-step the ins and outs of variable policies, and the many ways that these types of plans can be structured.

We understand that the process of buying life insurance can sometimes be confusing – especially when there are many options to choose from. We will ensure that you have all of the information that you need in order to make a well-informed buying decision about the coverage and the plan that’s right for you and those you love.

Source: goodfinancialcents.com

Apache is functioning normally

Households including at least one person with a high school diploma or GED can afford the typical mortgage payment in most large metro areas across the U.S., according to a new analysis by Zillow.

But soaring home values that have outpaced incomes have made down payments a barrier for many, particularly first-time home buyers.

Mortgage rates have dipped to multi-year lows in recent months, meaning monthly payments are relatively affordable for buyers who can secure a down payment. However, down payments are a challenge to afford for many as prices have grown faster than incomes over the past several years. An earlier Zillow study found that buyers need 1.5 years longer to save for a 20% down payment on the typical home than 30 years prior, and the difference is much more extreme in the most expensive metros – 13.3 years longer in San Jose, for example.

This effect is especially pronounced for first-time buyers who do not have the equity of an existing home to put towards a down payment on a new one. Zillow data shows that 46% of a typical down payment comes from savings for first-time buyers, compared with 35% for repeat buyersii.

“The influx of highly educated workers into already-expensive metros with stagnant or slow-growing inventory has made it difficult for those with less education and earning potential to enter those markets,” said Skylar Olsen, director of economic research at Zillow. “There can also be considerable variation within metros. While a bachelor’s degree may be enough to afford a mortgage on the typical home in the San Diego metro at large, it’s likely to be insufficient in pricey areas like La Jolla. And that’s only after scraping together a sizable down payment, which is a huge hurdle for most buyers.”

For households that secure a down payment, the median mortgage payments are affordable for those with a high school education in 36 of the 50 largest U.S. metros. The remaining 14 metros require earnings associated with at least a two-year associate’s degree.

The median income of a university degree holder is necessary to afford the median mortgage payment in the five most expensive West Coast metros. A bachelor’s degree is typically needed in San Diego and Seattle, while the typical income of someone with an advanced degree is required in San Jose, San Francisco and Los Angeles. The typical mortgage payment is affordable for those with associate’s degrees in Boston, New York, Sacramento, Washington, D.C., Denver, Portland, Riverside, Salt Lake City and Miami.

In only one metro, Oklahoma City, can those with less than a high school degree usually afford the typical mortgage payment. Households in Oklahoma City benefit from a combination of low housing costs – only three of the 50 largest metros have a lower median mortgage payment – and relatively high median incomes for households in which nobody has a high school diploma.

Median rent was 27.8% of the typical U.S. household income in Q1 2019. This is up slightly from the previous quarter and just below levels from a year earlier. Rent was most affordable for those in Pittsburgh, where the median rent is 21.4% of the typical household income. Los Angeles is the least affordable large metro for renters – 46.1% of the typical income is required to pay the median rent there.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
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Source: realtybiznews.com

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Courted, which specializes in data science and artificial intelligence for real estate brokerages, has joined Leading Real Estate Companies of the World‘s Solutions Group program. The program offers preferred business resources to LeadingRE‘s network of 550 top real estate firms globally.

Courted’s platform equips brokerage leaders with advanced tools to target agents and improve recruitment based on their potential for future production. The company also provides office-level analytics and attrition indicators to enhance retention outcomes.

Courted’s AI-powered agent recruiting and retention platform aims to revolutionize the way brokerages find and retain high-performing talent. By partnering with LeadingRE, Courted expects to further elevate the growth strategies of brokerages.

LeadingRE has independent residential brokerages in more than 70 countries, with 565 firms and 136,000 agents producing more than 1.2 million global transactions a year. In July, Las Vegas-based brokerage huntington & ellis was the latest brokerage to join LeadingRE, adding 16 teams with more than 120 agents who serve the greater Los Vegas area.

This content was generated using AI and was edited by HousingWire’s editors.

Source: housingwire.com

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With exclusivity an eternal quest in wealthy, celebrity-rich Los Angeles, the owners of Crypto.com Arena have come up with a way to combine front-row seating with luxury suites for a select few who can swing the staggering price of entry. The golden perk: Holders will enter the arena through the same private tunnel used by players and performers.

Owner AEG just publicly revealed its “tunnel suites,” which are under construction as part of a three-year renovation of the downtown venue where pro basketball and hockey teams play, top musical acts perform and the annual Grammy Awards are held.

Tunnel suite holders will be able to attend all of those events while making their entrance down the ramp used by the Lakers, Kings, Clippers, Sparks and artists such as Drake, Eric Clapton and Anita Baker, all of whom are set to perform this year.

“Ramp access is so golden,” said Michele Kajiwara, head of premium sales at the arena.

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And the few who arrive via tunnel will be the first in the arena’s 24-year history to gain entry to private special events such as the Grammys, All-Star games and 2028 Olympic competitions that are not routinely open to owners of other suites or premiere seats.

AEG declined to reveal exactly how much the new suites cost or even how much the company is spending to upgrade the sports and entertainment venue, but estimates reveal the sums are vast as AEG strives to keep Crypto.com one of the top-grossing arenas in the country.

When the Lakers agreed to stay for another 20 years in 2021, it was with the understanding that AEG would perform at least $100 million in capital improvements to the arena, which cost $375 million to build in 1999.

The makeover was designed by the Gensler architectural firm and sports facility architect Dan Meis, and has been approved by the Lakers and Kings, AEG said.

Among the most notable improvements will be the four private tunnel suites and four “terrace suites” slightly higher on the main concourse that are being carved out of existing premium seating. All eight new suites sit lower than the original 170 luxury suites that ring the arena, and are already being snatched up; AEG has sold five of them before going public, relying on personal approaches to people with the means to buy them.

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That translates to a long-term commitment to spend tens of millions of dollars. AEG said it has sold two of the tunnel suites and three of the terrace suites, producing a combined total of more than $300 million in commitments, or roughly $60 million per suite over the life of 10-year or 20-year contracts.

“There’s a certain cachet that comes with whoever is going to be buying these,” Kajiwara said, “because they want the best of the best.”

Four “terrace suites” are being carved out of existing premium seating on the main concourse at Crypto.com Arena.

(Crypto.com Arena / AEG)

The pool of potential buyers is small, she acknowledged. “We are talking to private equity [investors], billionaires — anyone who can look at seven figures over double-digit years and not feel stretched to have to justify it.”

But having the money is not quite enough in the case of tunnel suites, which are close together and occupants are likely to encounter one another on occasion. AEG is screening buyers.

“You’ve got to have a certain decorum,” she said. “You know how to entertain, hold company and network in that kind of space.”

Bay Area real estate consultant David Greensfelder, who is not involved in the project, says the new suites are intended to arouse the sensibilities of people who are rarely gobsmacked by their surroundings.

“When you’ve got a lot of money that gives you access to just about anything, it takes a lot to have a where-the-hell-am-I experience,” he said. “That’s what they’re trying to do.”

Such reactions could be good for suite owners’ business dealings, he said, making guests “feel good and important” and encouraging “whatever celebrity to agree to play whatever role in whatever movie, or whatever Netflix series, or whatever investor to invest in the C round of whatever tech company.”

The tunnel suites will have a capacity of 12, with most of the space in their roomy private lounge below the seats and out of sight of the arena. If occupants want to watch the game live, they can take a few steps up to their seats to pop out in sight of an audience of thousands and perhaps television cameras.

“You will have total privacy and also high visibility in the most exclusive place that you can show up,” Kajiwara said.

Owners can stock their suites with their private wine and liquor collections, but food and alcoholic beverages will be provided at no extra charge.

Crypto.com Arena’s “tunnel suites” will have a capacity of 12, with most of the space in a roomy private lounge below the seats and out of sight of the arena.

(Crypto.com Arena / AEG)

The terrace suites are by contrast easily visible to the rest of the arena, luxurious dens for 14 on the main concourse. They come with tickets to all games, including playoffs, as well as concerts and shows.

Even though the arena has the advantage of being home to four pro sports teams, upgrading the aging venue is a necessity in the competitive Los Angeles entertainment market, said Lee Zeidman, president of Crypto.com Arena, the Peacock Theater and L.A. Live.

“You want to make sure your house stays the shiniest and prettiest on the block,” said Zeidman, who is overseeing the makeover, now in its second year.

A big competitor on the horizon is the Intuit Dome, a $1.2-billion showplace being built in Inglewood that will be the new home of the Clippers after they play one more season at Crypto.com Arena. The Intuit Dome will have lower-level suites known as “courtside cabanas” and “backstage bungalows.”

Other competitive venues include Kroenke Sports & Entertainment’s YouTube Theater in Inglewood that opened in 2021 near Kroenke’s SoFi Stadium, where the Rams and Chargers play football, the Kia Forum in Inglewood and the Los Angeles Memorial Coliseum, Zeidman said.

He added: “We compete against the Greek Theatre, the Shrine Auditorium, the Honda Center and BMO Stadium,” where the Los Angeles Football Club and Angel City Football Club play soccer and concerts are held.

AEG is racing to stay on schedule with the second phase of the renovation, with 90-person crews working two shifts a day, as many as seven days a week, he said. Cleaning crews follow behind to mop up the dust before Sparks games and other events.

“It’s a race to the finish,” Zeidman said. “We’ve got to be ready first week of October to operate everything” when the Lakers, Clippers and Kings return.

Improvements are taking place at every level over the course of three summers of renovation.

Crypto.Com Arena’s “terrace suites,” luxurious dens for 14, come with tickets to all games, including playoffs, as well as concerts and shows.

(Crypto.com Arena / AEG)

Along with customary changes — new jumbo screens, updated concession stands, a better sound system — the project will follow industry trends that emphasize “fan experience” over simply walking in and finding a seat.

At Crypto.com, that means eliminating the street between the arena and L.A. Live to create a tree-lined public plaza with music and big-tent attractions. It means adding a glass-walled Tunnel Club where patrons can watch players file out of their locker rooms.

More significantly, crews will blast out the upper seats at one end, creating an indoor/outdoor space called City Terrace where fans can mingle on a terrace overlooking downtown, then stroll inside the bowl to peer down on the court.

“We have so much entertainment, so much night life and natural activities in Los Angeles, how do you compete?” Kajiwara said. “You create something that’s special, that’s in the moment.”

Times staff writer David Wharton contributed to this report.

Source: latimes.com