If you’ve been comparing mortgage rates lately in an effort to save some money on your home loan, you may have noticed that refinance rates are higher than purchase loan rates.
This seems to be the case for a lot of big banks out there, including Chase, Citi, and Wells Fargo, which while enormous institutions aren’t necessarily the leaders in the mortgage biz anymore.
In fact, today Quicken Loans is #1, followed by United Wholesale Mortgage in the #2 spot, then a mix of these big banks and nonbanks, including loanDepot, Caliber Home Loans, and others.
So why is that some of the big guys list “purchase rates” and “refinance rates” separately, with different pricing, points, and APRs?
Well, for starters a home purchase is not the same as a mortgage refinance, though both processes are very similar, and the underlying loans themselves aren’t much different.
Ultimately, a home purchase loan is for someone who has yet to buy a property, whereas a mortgage refinance is for an existing homeowner who wants to redo their home loan.
We know they are different objectives, but if the underlying loans are both 30-year fixed mortgages with the same loan amounts, the same borrower credit scores, and the same property types, why should rates be any different?
Home Purchase Mortgages Default the Least
There are three main types of mortgages, including home purchase loans, rate and term refinances, and cash out refinances.
The first is self-explanatory and was already explained above, the second is simply redoing your current mortgage by obtaining a new interest rate and loan term, without changing the loan amount.
The third type results in a larger loan amount at closing because you’re pulling equity from your home, which a layman should assume would be the riskiest transaction.
After all, if a borrower now owes more debt, and maybe even has a higher monthly mortgage payment as a result, their default risk should rise.
Simply put, when you pull cash out of your home, you increase your outstanding loan balance, increase your loan-to-value ratio (LTV), and reduce your available home equity, that’s riskier.
This in theory should result in a higher mortgage rate to compensate for increased risk. And guess what – that is indeed the case. Cash out refinance rates are the highest, all else being equal, for basically all banks and lenders.
At least something makes sense around here…
A Rate and Term Refinance Sounds the Least Risky, Doesn’t It?
Now, a rate and term refinance should result in the least amount of default risk because the borrower is likely reducing their monthly payment in the process.
This happens via a lower interest rate and possibly a lower outstanding balance (paid down since origination) spread out over a brand-new loan term.
That leaves us with home purchase loans, which you’d think would be less risky than a cash out refinance, but not as risky as a rate and term refinance, since it’s ostensibly a first-time home buyer or someone in a new property.
If you were the bank, you’d probably want to give a new, cheaper loan to the seasoned homeowner who has been paying their mortgage for years as opposed to the first-time buyer or even a move-up buyer taking on more debt.
But for one reason or another, some banks and mortgage lenders offer the lowest mortgage rates on home purchase transactions.
The Lowest Mortgage Rates Are Offered on Home Purchase Loans
The reason boils down to DATA. Despite the fact that the actual loan characteristics (such as FICO score, LTV, and DTI) would indicate the lowest default rates on rate and term refinances, it is purchase loans that perform the best.
One possible reason why is because of faulty appraisals on refinances, which perhaps overvalue properties.
Regardless, purchase mortgages default the least, followed by rate and term refinances, and finally cash out refinances, the last of which actually makes sense.
Interestingly, the loan characteristics also indicate that cash out refis and purchase mortgages should default at about the same rate, yet they are priced the furthest apart.
And again, that’s because in real life, not expected default rates, purchase loans default the least and cash out refis default the most.
Lowest: Home purchase rates Slightly Higher: Rate and term refinance rates Highest: Cash out refinance rates
So when you compare mortgage lenders, you might often find that purchase rates are the cheapest, followed by rate and term refi rates, and finally cash out mortgage rates.
There’s no question cash out refinances cost the most – this is the norm amongst all banks and lenders to my knowledge.
But not all banks/lenders offer different rates for purchases and rate and term refis.
How Much More Expensive Are Refinance Rates?
Big banks tend to advertise higher refinance rates vs. purchase rates
Some lenders don’t differentiate between purchase rates and rate and term refi rates
Or simply charge slightly higher closing costs on refinance transactions
Rates may be .25% to .375% higher on refis but pay attention to points charged and loan assumptions
I looked around and found that Chase, Citi, and Wells Fargo offer lower home purchase rates, while Quicken Loans offers the same exact rates for purchases and rate and term refis.
Quicken even says this in their fine print: “Based on the purchase/refinance of a primary residence with no cash out at closing.”
In other words, a purchase or rate and term refi are priced the same.
Clearly this matters when shopping around for a mortgage, so take notice of who is charging more/less for certain transaction types and choose accordingly.
One last thing – pay attention to the assumptions lenders make when they list their rates. It could also be that you’re not comparing apples to apples, if there are different loan amounts, LTVs, credit scores, mortgage points, and so on.
But know refinance rates are higher because they default more than purchase loans, and that requires a higher price to compensate for heightened risk, plain and simple.
Appearing as a guest on Good Morning America this week, Barbara Corcoran answered several questions from viewers, ranging from when the right time to buy a home is to how to win a bidding war. As for the former, Corcoran said now is the time to buy.
“It’s a good time to buy because the minute interest rates go down, everybody’s waiting for them to go down even by a point, and when they do, they’re going to come rushing back in the market,” Corcoran said. “Prices are going to explode, and you’re going to be paying more for the same house. And you can always refinance, remember, when and if interest rates come down.”
It’s not Corcoran’s first time advising against even attempting to time the market. Previously, on the Chicks in the Office podcast, Corcoran said to forget about the timing, again stressing that now is always the time to buy.
The self-proclaimed “NYC Real Estate Queen” founded the Corcoran Group with a $1,000 loan in 1973, which she famously turned into $66 million after selling her business in 2001. She’ll always be a powerhouse within the real estate industry, but now most people know her as the spunky, blunt, and well-dressed shark on ABC’s Shark Tank.
Another viewer asked Corcoran how to win bidding wars, saying that he and his fiancee have been looking for a house but have been out bid every time they’ve found one they like. Corcoran said the key is to look like the “best deal in town,” while playing on the seller’s emotions.
“You have to be prequalified for your mortgage so you can go in there as an all cash deal. I’m an all cash deal, it’s not contingent, I already got my mortgage—you want that power behind you,” Corcoran said. “You also want to go in and realize it’s never just a financial deal. Get a nice piece of stationery and handwrite a note to that owner, and tell them how much you love the house. It makes a difference because people like to sell homes to people who love their house.”
As for the different types of mortgage loans that buyers can choose from, Corcoran said it depends on how long you’re going to live in that home. If you’re going to live there a long time, or at least except you are, Corcoran said a conventional rate mortgage at the shortest term you can afford, is the best option. On the other hand, if you’re only going to be living there for a short period of time, likely under five years, she said you’ll want to get an adjustable rate mortgage because it’s cheaper.
When Corcoran was then asked if there’s any way to get relief as someone who’s “house poor,” a term used to describe someone that’s spending more than 30% of their income on housing, she answered: “you don’t get relief from that.” In coastal cities, Corcoran said, people are spending more than 40% of their income on housing. But there’s a light at the end of the tunnel, in her view—people are forced to save by paying off their mortgage.
“When it comes time to retire, for most of us, it’s the only money we have to retire on,” Corcoran said.
Now if you want to make the most out of your home purchase, she said you’ll always get the best return in a high-traffic area. And if you want to make a killing, buy a home in an up and coming area. Corcoran’s formula for doing so? Follow the creative community and see where they’re living, and check out the nightlife.
And of course, a Corcoran Q&A couldn’t be complete without touching on rentals and renting. As for rent prices, Corcoran said they’re going to continue to go up, and there won’t be any relief. When interest rates go up and chase people into the rental market, rents generally go up. But when interest rates go down, that doesn’t mean rent follows. Corcoran said she’s never met a landlord that brings down their rent, ever. And, most of us know how she feels about renting—that it’s a “no-win game.”
Non-QM lender First Guaranty Mortgage Corp. (FGMC) filed for Chapter 11 bankruptcy protection at the end of June — leaving four warehouse lenders on the hook for more than $415 million.
Sprout Mortgage imploded in early July, leaving its employees out in the cold. The lender so suddenly shuttered its doors it failed to file advanced notice of the layoffs, as required under federal law. It has since been sued by its former employees.
Just weeks later, a leaked text message from Flagstar Bank provided an inside look at how dire the current climate is for many non-QM lenders. The bank calls out 16 non-QM lenders in the text message, indicating it is ramping up scrutiny of its loan reviews, prior to advancing warehouse funding.
The examples, all within about a month, illustrate a non-QM lending world in disarray, turned upside down in recent months as originators battle an unassailable force over which they have no control: fast-rising interest rates. It’s an ongoing battle, which already has been lost by at least two lenders, FGMC and Sprout.
And others in the sector, warehouse lenders included, must now navigate the fallout, heed the warning signs and take action to avoid a similar fate. One executive said “it would be naïve” to think Sprout and FGMC will be the only casualties, given the current environment. In time, he said, they may well end up being “more of a trend than outliers.”
The Flagstar text message leaked to the media in mid-July confirmed, going forward, funding advances for non-QM mortgages will require advance approval by the lender’s warehouse lending arm. The bank also indicates it may adjust “haircuts” — the percentage of the loan the originator must fund itself to ensure it has skin in the game.
Thomas Yoon, president and CEO of Excelerate Capital, a full-service non-QM lender, said the move essentially means Flagstar now will “monitor every loan because they don’t want [to fund loans] that will be hard to sell in the open market, and then they’re stuck with that loan.”
“So, they are going to babysit now,” Yoon said, adding that from a business standpoint, it will slow down the loan originators’ processes. “Someone at Flagstar has to physically look at the deal and make sure it aligns with what they want before they’re able to fund, and that’s going to cause delays.”
Flagstar spokesperson Susan Cherry-Bergesen verified the authenticity of the text message when contacted by HousingWire and confirmed its content: The bank is adjusting its loan-review process. The leaked message included a list of 16 non-QM lenders that would be affected by the changes, according to published reports.
“We were at a meeting with one of our warehouse providers [recently] and … they asked a smart question: “Is Acra Lending on that list?” recalled Keith Lind, CEO of Acra Lending, a leading non-QM lender. “Of course we’re not.
“…If lenders didn’t take rates up fast enough, or they didn’t liquidate their positions fast enough, there’s going to be warehouse facilities where the loans [made to lenders] are worth less than the equity [skin in the game] that the originator posted. That’s probably a little more common than people think.”
Lind said many lenders are now trying to digest a plethora of lower-rate loans, essentially “orphaned by the market.” During the height of the refi boom and earlier this year, scores of loans were originated at interest rates much lower than current market rates, which have risen dramatically in recent months.
As a result, there exists a mismatch between those legacy lower-rate mortgages and the new higher-rate loans. That’s the case even though the lower-rate loans are widely considered to be well-underwritten, quality loans. As of mid-July, according to Freddie Mac’s purchase mortgage-market survey, the 30-year fixed mortgage stood at 5.54%, compared with 3.22% as of the first week of January 2022 and 2.88% in July 2021.
The market’s interest rate woes contributed to non-QM lender FGMC’s downfall. FGMC and its affiliate, Maverick II Holdings LLC, filed for Chapter 11 bankruptcy protection June 30, leaving four of the country’s major warehouse lenders with claims totaling $418 million, according to court filings.
Those warehouse lenders are Customers Bank, Flagstar Bank, JVB Financial Group and Texas Capital Bank.
Another non-QM lender also was swept up in the “orphaned” loan market. Sprout Mortgage on July 6 closed its doors suddenly, leaving hundreds of employees without jobs and paychecks. Real estate agents and their clients also received no advance warning and multiple deals fell through as a result, sources told HousingWire. The lender also did not file a WARN Act notice — required of any employer of more than 100 that has a mass layoff at one location involving more than 50 employees.
“The New York State Department of Labor has not received a WARN notice from Sprout Mortgage,” states an email from the department sent in response to a HousingWire inquiry. “We do not comment (confirm nor deny) on potential or pending investigations.”
The failure to provide proper notice of the layoffs prompted a class-action lawsuit by former Sprout employees. The litigation — lodged in early July in U.S. District Court for the Eastern District of New York — seeks to recover wages due the workers.
The current interest-rate spread pressure-cooker tends to be even more acute in the non-QM sector, compared with the prime-mortgage market, according to John Toohig, managing director of whole loan trading at Raymond James in Memphis.
“[There’s] a lot of underwater coupons due to rapidly rising rates,” Toohig said. “The problem with non-QM is that most banks won’t be the liquidity source for those loans in whole-loan form [purchasing] vs. the aggregators putting them into RMBS [private label securitization deals] — which doesn’t work right now [either].
“So, I wouldn’t be surprised that there is some pain coming at the warehouse-line level [revolving lines of credit used to fund mortgage originations] as loans start to age. The good news for prime jumbo [is] banks want to own those loans and balance-sheet them. The same cannot necessarily be said for non-QM.”
Non-QM mortgages include loans that cannot command a government, or “agency,” stamp through Fannie Mae or Freddie Mac. The pool of non-QM borrowers includes real estate investors, property flippers, foreign nationals, business owners, gig workers and the self-employed, as well as a smaller group of homebuyers facing credit challenges, such as past bankruptcies.
Because non-QM, or non-prime, mortgages are deemed riskier than prime loans, in a normal market they generally command an interest rate about 150 basis points above conforming rates, according to Excelerate’s Yoon.
Excelerate and Acra each raised rates rapidly starting early in the first quarter of this year to stay ahead of the fast-rising interest rate curve, according to Yoon and Lind. The rapid surge in rates in the market is being fueled, in part, by the Federal Reserve’s ongoing benchmark rate bumps, intended to battle inflation. The consequence of failing to anticipate the velocity of rate increases could result in a lender getting stuck with millions of dollars in underwater loans — mortgages that are well-underwritten but valued under par, the lending executives said.
In other words, these lower-rate — now “scratch and dent” — loans are at a competitive disadvantage in terms of pricing in securitization and loan-trading liquidity channels because they are worth less than the newer crop of higher-rate mortgages. Lind put it this way: “These aren’t bad loans, just bad prices.”
“I don’t think [Sprout and FGMC] are the only two lenders that are in a bind,” Lind said. “I’m sure there’s other originators that are in difficult situations, given this movement in rates and probably their inability to get liquidity or to sell loans fast enough.”
Yoon said the Sprout and FGMC failures are likely going “to be more of a trend than outliers.”
“A lot of lenders took on, or funded, these really low-coupon loans,” Yoon continued. “And they probably had them sitting in their gestation pipelines thinking that the things will get better, and they could sell them off. That day never came.
“What I’ve been told through warehouse lenders and Wall Street aggregators is that there’s several billion dollars’ worth of these [low-coupon] loans out there, still sitting on balance sheets. At some point, they [lenders] will have to pay the piper, right? It’s naive to assume we’re not going to see more casualties.”
***
Q&A
HousingWire contacted half a dozen non-QM lenders seeking interviews for this story, including Angel Oak Cos., Deephaven Mortgage, CarVal Investors, Verus Mortgage Capital, Acra Lending and Excelerate Capital. All the lenders, as well as the now-failed Sprout Mortgage, participated in a prior story on the same subject — the state of the non-QM market, which was published in April.
This time around, only Acra and Excelerate agreed to participate. Representatives of the other lenders declined to comment or make executives available for an interview, with most saying the executives didn’t have time. The top executives at Acra and Excelerate, Lind and Yoon, respectively, each declined to comment on specific competitors in the non-QM market, but they did share their views on current market conditions and the challenges faced today by non-QM lenders in general.
Lind and Yoon stressed they are not predicting with certainty other non-QM lenders will fail, nor do they hope that will be the case. Both, however, predict due to the runup in rates, there will likely be painful losses incurred by some non-QM lenders, which will have to be dealt with somehow.
All non-QM lenders now face the same economic challenge — coping with the fallout from interest rates rising at a faster clip than the market has seen in decades. Following are comments from Acra’s Lind and Excelerate’s Yoon on a range of issues affecting the non-QM lending space.
Interest Rates
We saw the market [earlier in the year] and knew it would only get worse, at least in the short-run, and we put our rates above market at that time sharply. …We’re positioned really well to navigate the current market. That doesn’t mean it’ll be easy, but you know, we’re positioned better than most, so we feel fortunate about that. … When we raised our rates that significantly in the first quarter, it essentially blew up our pipeline in the short-run, but we felt like we needed to do that. …Going into October, November, December [of last year] and into January [2022], everyone was thinking, including us, that we’re going to have a banner 2022. Then the market changed on us overnight. There was only a handful of us that that made the move [to raise rates sharply], and they are positioned well going forward. — Thomas Yoon of Excelerate Capital
We’ve moved rates 18 times in 2022 [to date] — mostly up, with maybe one or two down. Listen, everyone’s got a different execution or [liquidity] outlet. I can just tell you that we’re breaking even or making a little bit of money in the first few quarters [of this year], and our rates are higher than others. I don’t know how some of these other people [lenders] have been able to do it. But if they have, then kudos to them. …You’ve probably heard this before: Don’t fight the Fed [the Federal Reserve]. The Fed is bigger than everyone. Well, guess what? So is the housing market, and you don’t fight the housing market. Everyone’s like, “Oh, I’m going to keep rates low because I need market share.” I think it’s always better to be prudent and pay attention to rates. It’s not a race [or sprint]. This is a marathon to be successful in this business. That’s the way we look at it. — Keith Lind of Acra Lending
Warehouse Lenders
The biggest problem in non-QM right now is the fear of liquidity, right? It’s whether they’re able to sell off their closed loans. If they don’t, then it becomes a burden and a debt. The biggest, I think, challenge that these non-QM platforms face — outside of what’s happening in the market — is will they maintain a stable relationship with their warehouse lines. …I expect lower limits in warehouse funding capabilities and more haircuts, so that they [warehouse lenders] feel that they’re protected. Oftentimes, warehouse divisions are a real profit-maker for banks, but we’re going through a cycle change, and originations have dropped 40-plus percent nationally. It means that everyone’s taken a hit. …Most warehouse lenders are banks and, of course, they’re feeling it too. —Yoon of Excelerate Capital
Regional banks [who are warehouse lenders] have a lot more exposure now and could be holding loans that are underwater. I’ve heard some of them are comfortable with the risk, and they’ll just wind down these positions over time. It’s still a good return for the bank. Others are looking for exit strategies. … Some of these regional warehouse lenders may ultimately do a full turbo feature where they collect all interest and principal, and the originator gets nothing. It’s going to be harder for the little guy [smaller originators] to come back because warehouse providers, as well as people that are lending money [generally], are going to demand more capital. — Lind of Acra Lending
Raising Capital
If you’re a [non-QM] executive and have a $300 million negative on the balance sheet [due to underwater loans], any company that’s going to provide capital is going to question whether [the leadership of the lender] knows how to run a mortgage-banking platform in this marketplace. …It’s not like they will be using that capital to build technology or to hire more great talent or [launch] a new system. To be clear, it’s to make themselves whole, right? That’s a tough, tough sell in today’s market. — Yoon of Excelerate Capital
You don’t throw good money after bad, right? — Lind of Acra Lending
Market Share
We took flack for raising our rates and recalibrating ourselves. A lot of our competition, for example, kept their rates really low and kept them low for all of the first quarter. They took on a massive risk, and their logic was that the market will turn for the better … and they’ll be able to sell these [loans] off at a profit, instead of just breakeven. They looked at it as an opportunity to gain market share. Everyone that did that, you know, they were wrong. — Yoon of Excelerate Capital
The originators that have made it through the first two quarters in [good] financial shape absolutely I would expect all of us to gain market share. There are going to be [originators] that go out of business, as we’ve seen, and they’re probably not the last, and then others are probably going to struggle. — Lind of Acra Lending
Survival Strategies
Our liquidity channels are still really viable. We have strong relationships with our aggregators and outlets. We’re very fortunate, but we also recognize how volatile [this market] is. We have to be nimble. So, we have a plan A, but we also have plan B and C ready, just in case. …The market is moving so quickly, so we’re shooting higher [on rates] than we normally would to make sure that the collateral bought is worth something when they securitize it — [a process that can take months]. The dramatic move [in rates] that we saw in the first quarter and second quarter, I don’t think it’s going to be that exaggerated [going forward], but we’re constantly chasing the bogey here, so to speak. — Yoon of Excelerate Capital
There are three aspects that we focus on. First of all, we focus on rates. And I told you, we’ve moved rates 18 times since January 3. We were at a 4.5% coupon, and now we’re low 8% [range] in terms of where our portfolio is. …Two is liquidity. If you don’t have strong liquidity, and you’re not getting off loan sales fast enough and at the [right] prices, that’s going to be difficult. So, rates, liquidity and then lastly operational expenses. Are you managing your expenses? We took our headcount from 450 down to 350. We did that two months ago. And we’re still looking at that, to make sure that that we are managing expenses and salaries. We’ve not only reduced headcount, but we’ve made adjustments to salaries. — Lind of Acra Lending
Downturn Duration
We’re going to go into a recession — if we’re not already in it right now. I hope that it’s a mild recession. We’re prepping as if this is going to be a 12- to 24-month downcycle for us as an industry. If it [ends] earlier, we look at that as very fortunate. But we anticipate that this year and the bulk of next year is going to be trying times for us. We’re taking a very conservative approach. — Yoon of Excelerate Capital
I’m going to take the view that until we have a better understanding of where we are with inflation and taming it, that this market is going to be choppy. And when the overall market has a more comfortable understanding of where inflation is, and that it’s under control, I would think that things will fall back into order. …There’s still a lot of tailwinds in the housing market, however. We’re short [some] 5 million homes [in the housing market], and I think from an investor perspective, depending on the price and the homes picked, there’s good cash flow every month. I think that’s why you’re seeing more and more people, as far as mom-and-pops [small landlords, who are non-QM borrowers] getting into the housing market as opposed to the equity market moving forward. I like the tailwinds in housing, for sure. — Lind of Acra Lending
Save more, spend smarter, and make your money go further
Whether you’re religious or not, Easter can be an incredibly fun time of year — delicious candy, beautiful eggs, fluffy bunnies, and pastel everything.
But if you’re not careful, it can also be an expensive time of year.
A lot of things that people love to do to celebrate Easter will come back to bite them in the financial behind sooner or later (most likely “sooner”).
Here’s a quick rundown of things to avoid doing, if you want to keep your Easter under budget:
Hire an Easter Bunny
The world is chock-full of entertainers that will gladly dress up as the Easter Bunny for your child’s party — for a price, naturally.
Usually, this price is a rather hefty one. There is absolutely no need to hire any of these people, even if they’re really, really good at hopping.
Either create your own Easter Bunny costume, find a mall or shop where the kids can get free pictures with the Bunny, or just sit back and fire up some old Bugs Bunny cartoons for an afternoon.
That wascawwy wabbit is the gift that keeps on giving.
Buy Too Much Chocolate
As blasphemous as it may sound, there is such a thing as too much chocolate, especially when that chocolate can run you a pretty penny.
If you buy a dozen chocolate bunnies at five bucks each, that’s $60 on chocolate rabbits alone.
That’s way too much candy for any family (kids should probably just have a few small pieces each, holiday or no,) and that money could easily have gone to other, more important matters, like bills or ingredients for a delicious, homemade Easter dinner.
Hey, speaking of …
Eat Easter Dinner at an Expensive Restaurant
Any restaurant higher up on the food chain than McDonald’s will have an Easter dinner ready for you to enjoy. Of course, it’ll cost you some dough.
Depending on the size of your family, you could easily drop $50-100 on one night’s meal.
What’s the point, when you can just as easily create your own meal at home?
Buy the meat you want, cook it the way you like it, garnish it with whatever sides suit your fancy, and top it off with a dessert that’s bound to be way better (and cheaper) than whatever the local eateries would whip up.
Rent Top-of-the-Line Church Clothing You’ll Never Wear Again
Pastel dresses and formal tuxedos aren’t usually found in your typical closet, and so many people rent them for their Sunday church activities, return them the next day, and not think about it until next year.
Or, until the next credit card bill comes along, either or.
It doesn’t matter how cute or precious your little girl looks in a $90 outfit. It’s still a $90 outfit that ultimately doesn’t matter much.
Most people (well, the good ones anyway) will welcome and embrace you and your family regardless of what you wear to church. Just wear what you normally do and everyone will be happy.
Well, the rented formal wear company probably won’t be happy, but too bad.
Buy a Pet Bunny (if You’re Not Ready)
This could be the single dumbest purchase of your Easter, in addition to being the most expensive.
Unless you were planning to get a bunny for a while, knew what you were getting into, had all the right supplies, and budgeted accordingly for it, bringing home a pet rabbit for Easter is a horrid idea indeed.
The actual rabbit might not cost a lot, but caring for it, feeding it, bringing it to the vet when need be, and just being a good pet owner in general can cost a ton of money.
If you are truly ready to bring a bunny into your world, and have budgeted accordingly, then Easter is a tremendously symbolic time to begin.
But otherwise, just stick with chocolate bunnies. Just don’t get too many, since they’re not exactly cheap either.
Mary Hiers is a personal finance writer who helps people earn more and spend less.
Save more, spend smarter, and make your money go further
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Mortgage Q&A: “How many mortgage quotes should I get?”
When it comes to getting the best deal on your mortgage, you can never shop too much.
Just like any other product you may comparison shop for, the more time you put in, the better deal you’ll probably receive.
Sure, it’s a pain in the you know what, but you’re not shopping for a plasma TV.
This is your mortgage, most likely one of the largest financial decisions you’ll make in your life.
And one that can affect your pocketbook for years and years to come depending on how long you keep it.
So not spending a considerable amount of time shopping for one would be very ill advised. Don’t be one of the many individuals who obtains just one mortgage quote!
Look At Mortgage Rates Online and Track Weekly Averages
There’s no specific number of quotes needed to score the best deal
But the more mortgage quotes you receive the better your odds of finding that low rate
A study from Freddie Mac found that even two quotes as opposed to one can save you thousands over the loan term
And 5+ quotes from different lenders has the ability to save you even more
These days, we’ve got the luxury of using the Internet to comparison shop.
Back when, you had to scour the phonebook and make phone call after phone call to check on prices and availability.
I remember doing this to buy a pair of high-tops when I was around 10-years old.
I spent a considerable amount of time trying to track down a pair at the lowest price, phoning up dozens of different shoe stores.
To be honest, I can’t even remember if I got the shoes, but I certainly put in the necessary legwork to ensure I wouldn’t overpay. And those were just shoes…
Nowadays, a simple click of the mouse will allow you do most of that tedious work, though you’ll still have to vet the broker or lender after the fact to make sure the quote is legit and they’re a reliable source.
I recommend checking as many channels as possible to see where mortgage rates are currently pricing.
You can check out today’s mortgage rates from a variety of online lenders, as well as look up weekly averages from the Mortgage Bankers Association (MBA), Freddie Mac, Bankrate, and also Zillow.
Watch them for a few weeks to get a good idea as to how they move and why. But note that they are just averages in most cases, not necessarily a perfect science or ultimately what you’ll receive.
And because mortgage rates can change daily, they may be a little outdated. But they’re still worthwhile to track market averages over time.
Once you have a better idea of what most banks and mortgage lenders are charging for everyday loan scenarios, you’ll need to decide on a loan program as well.
Do you want the standard 30-year fixed, or are you a little more daring and thinking an adjustable-rate mortgage could suit you better?
[30-year fixed vs. ARM]
Knowing which product you’re after will make your search a lot easier, though you can still narrow it down to a couple products and rate shop accordingly.
Calls Banks, Mortgage Brokers, Credit Unions, Online Lenders, You Name It
There are plenty of options to gather mortgage quotes
Including your own bank, credit union, or competing banks
Along with independent mortgage brokers and mortgage bankers
And a slew of online mortgage lenders that make the process quick and easy
Assuming you followed step one above, you should know what most banks and lenders are charging for a typical loan scenario for a variety of home loan programs.
Great! Now it’s time to get your hands on real mortgage rate quotes.
You may be in for a surprise, as those rates you see or hear on TV are often either best case scenario or simply advertising rates aimed at drawing you in.
For example, the rates you see on TV or online may be for a borrower with an 800 credit score and a 40% down payment on an owner-occupied single-family residence. Oh, and a couple mortgage points must be paid at closing too.
Of course, your loan scenario may not be so “vanilla,” so the mortgage rate your quoted could shock you somewhat.
Fret not though; this is why you’re mortgage rate shopping to begin with.
If you’d like, you could start with your local bank or credit union just to get your feet wet. You know, the company where you have your checking and/or savings account.
They probably know the most about you, so they’ll be able to give you a Loan Estimate or pre-approval letter pretty easily to determine how much you can afford and at what rate.
Typically, they offer discounts to existing customers who agree to things like automatic billpay, knowing you’re good for that mortgage payment every month because of the money you’ve got in their bank.
Of course, a lot of times they probably won’t offer the best deal, even with some of those perks thrown in because they’re a big name.
So don’t stop there. Find a mortgage broker or two (I recommend three) and get rate quotes from them as well. See how they stack up against your bank/credit union and go from there.
A broker can shop rates on your behalf, which cuts out some of the legwork, but you still need to compare mortgage brokers too!
Then check out the countless online mortgage lenders out there, many of which won’t be household names.
While you may not have heard of them, there’s a decent chance they can offer lower mortgage rates due to that lack of advertising and the reduced overhead.
If you’re comfortable working with a mortgage lender remotely, they could offer a much better deal than the brick-and-mortar, big name shops.
[Why are mortgage rates different?]
Negotiate, Negotiate, Negotiate Once You Collect Your Quotes
The beauty of multiple mortgage quotes is you create competition
It gives you the real ability to negotiate your rate and fees
Without another quote to compare it to you won’t have much of an argument
Other than begging or ignoring them until they agree to lower their price
The beauty of receiving multiple rate quotes is that you can negotiate. With just one, there’s not much you can do aside from asking/pleading for a lower rate. Well, you can lie too.
But if you’ve got multiple companies vying for your precious business, you can pit them against each other until one comes out on top by offering the lowest rate with the best terms.
Additionally, there are mortgage lender that offer low-rate guarantees, so having other quotes in hand could help you land those deals.
You’ll also grow more confident as you discuss rates and fees with multiple lenders, learning the mortgage lingo as you go.
This should aid in negotiating more effectively if you actually know what you’re talking about and aren’t fooled by the nonsense they’re spouting.
Just be sure to look at all the details when comparing offers, including all costs (lender and third-party fees), the interest rate, and the APR.
[Mortgage rate vs. APR]
It’s not always easy to get an apples-to-apples comparison, so you may actually have to do some math to choose the best deal.
And remember, while price is definitely important, you need a competent bank or broker with the ability to close your home loan!
I know, the whole process is annoying, but as mentioned earlier, this is a huge financial decision, so a little homework can go a long way.
Those who put in the time and effort might get their money’s worth, potentially tenfold.
Read more: 10 Ways to Save Money on Your Next Mortgage
It’s been some time since I’ve done mortgage Q&A, so without further delay, let’s explore the following question: “Do you need 20% down to buy a house?”
If you chat with anyone older than 50 (maybe 60), they’ll probably tell you that you need to (or should) put 20% down if you want to buy a house.
For them, it’s the normal, or should I say traditional, down payment needed to secure a mortgage.
And while it might be conventional wisdom when it comes to home buying, it’s not necessarily the reality anymore.
In fact, the median down payment is just 12%, per the National Association of Realtors (NAR) 2021 Home Buyer and Seller Generational Trends report. Despite this, a lot of people still seem to think you need 20% down to purchase a home.
You Don’t Need a 20% Down Payment…
A few years back, the NAR 2017 Aspiring Home Buyers Profile report found that 39% of non-owners believed they needed more than 20% for a mortgage down payment on a home purchase.
And 26% assumed they needed to put down 15-20%, while 22% said they needed a down payment of 10-14% in order to buy. None of those answers are true.
A 2020 study from NAR also had a whopping 35% of respondents going with the 16% to 20% down payment tier, easily the number one answer.
In reality, you may not even need a down payment if you take out a certain type of home loan, or receive gift funds for the down payment.
Even if a down payment is required, it’ll be a lot less than 20% in most cases, most likely less than 5%.
Last year, the typical down payment for first-time home buyers was just 7%, while it was 17% for repeat buyers, per NAR.
It’s common for repeat buyers to use the proceeds from their original home to buy a replacement, making it easier to come up with a larger down payment.
Conversely, first-timers often have a tough time coming up with funds because they can’t tap into home equity.
You’ll notice both figures have moved lower over the years, though average down payments have ticked higher recently, perhaps due to home buyer competition in this hot housing market.
20% Down Payments Used to Be the Norm
Your parents probably put down 20% or more when they bought a house
But back then home prices were a lot lower than they are today (and interest rates a lot higher)
You might only need to put down 3% or 3.5% when you purchase a property these days
But there are still key advantages to putting down at least 20% like no mortgage insurance and a lower interest rate
Back in the day, it was customary to come in with 20% down (or more) when purchasing a property.
But property values were significantly lower those days, and mortgage rates a lot higher.
Times have changed as home prices skyrocketed and mortgage lenders got more competitive (and less risk-averse).
Leading up to the housing crisis seen in the mid-2000s, a zero down mortgage was a common theme. In fact, there were lenders that named themselves after that lack of a down payment…
Of course, we all know what happened next – home prices tanked and low down payment options began to evaporate.
That led to increased FHA loan lending, which requires only 3.5% down if you have at least a 580 FICO score.
And over time, Fannie Mae and Freddie Mac introduced a competing product that allows for loan-to-value ratios (LTVs) as high as 97% (just 3% down).
So we’ve kind of come full circle, though we’re not quite at the zero-down stage just yet.
Though lenders have offered mortgages with just 1% down, such as Quicken, Guaranteed Rate, and United Wholesale Mortgage thanks to the use of grants.
Should You Put Less Than 20% Down on a Home?
You may not need to put 20% down on a home purchase in many cases
But it will cost you more money monthly if you don’t via a higher rate, PMI, and a larger loan amount
It may also make your offer less desirable to home sellers if they have competing bids with larger down payments
So it can beneficial to put down more, especially in a seller’s market
We’ve already answered the original question. You don’t need a 20% down payment to purchase a home.
In fact, you don’t need any down payment in some cases if you consider a home loan from the VA or USDA, both of which offer 100% financing.
You also don’t need to put down 10% or even 5% thanks to widely available programs from the FHA and Fannie and Freddie.
The median down payment is quite a bit lower, around 12% at last glance, and even lower (6%) for the 22 to 30 age cohort.
This age group also said saving for the down payment was one of the most difficult steps of the home buying process.
Now assuming you can muster a 20% down payment, should you come in with less?
This answer is a bit more elusive because it depends on a variety of factors, which include your household balance sheet and your financial goals.
Perhaps it’s better to frame the question the other way around.
Why You Should Put 20% Down on a House
In short, the less you put down on a home, the more you pay each month via your mortgage payment. This happens for three main reasons:
– Larger loan amount (less down means more financed) – Higher mortgage rate (rates tend to rise as down payments fall) – Mortgage insurance (added cost to account for risk)
If you put down less than 20%, you wind up with a bigger loan amount (obviously), a higher mortgage rate (usually) because of pricing adjustments, and you have to pay mortgage insurance to protect the lender.
This means your monthly housing costs go up, but you keep more cash in-hand, or at least not in your house.
Let’s assume the home you want to purchase is selling for $350,000 and you plan to take out a 30-year fixed mortgage. This comparison chart shows us how things might look.
3% Down vs. 20% Down: The Math
$350,000 Home Purchase
3% Down Payment
20% Down Payment
Down payment
$10,500
$70,000
Loan amount
$339,500
$280,000
Mortgage rate
4.125%
3.875%
Monthly P&I payment
$1,645.39
$1,316.66
PMI
$125
n/a
Total monthly cost
$1,770.39
$1,316.66
Difference
+453.73
As you can see from the chart above, the 3% down mortgage payment is roughly $454 more expensive each month thanks to those three things I mentioned.
That higher payment equates to an additional $27,223.80 spent over the course of five years.
Additionally, because the loan balance and mortgage rate are higher, more of your payment goes toward interest every month.
After 60 months, the 3% down mortgage would have a balance of $307,684.69, whereas the 20% down mortgage would be whittled down to $252,738.50.
The tradeoff is basically more money in your pocket versus the home, and the ability to buy more house now in exchange for a higher monthly payment.
This assumes you lack the down payment funds, but can afford the higher payments, which can be a common scenario for young high-earning individuals without significant savings (HENRYs).
At the same time, I’ve argued that it’s possible to buy more house if you put more money down because less income is required.
This assumes income is the problem and not assets, which can result in debt-to-income issues, which are prevalent and often grounds for denial.
Of course, it’s entirely possible for a low-down payment to be voluntary, for a homeowner who wants to park their money elsewhere.
That decision really comes down to how you value your housing investment, and if you think you can do better putting the money in the stock market or some other place.
For those who don’t have that choice, take comfort in the fact that you don’t need a 20% down payment to buy a home, or anywhere close to it.
But you will pay extra for that convenience, and you might have more hurdles to clear, such as convincing a seller to take your offer when another prospective buyer offers to put down 20%.
Alternatively, you could get a gift for a portion of the down payment and get the best of both worlds.
Can You Put More Than 20% Down on a House?
You can put as much down as you’d like (or even buy all-cash to avoid the mortgage entirely)
There are advantages to putting down more than 20% on a home purchase
Such as a lower mortgage rate thanks to fewer pricing adjustments
And an even stronger offer if buying a home in a hot market
Also a lower monthly payment and much less interest paid
You sure can. It’s generally possible to put down as much as you’d like on your home purchase, though if you put down too much you could run into issues with minimum loan amounts from lenders.
Of course, this probably isn’t going to be an issue in most cases with property values so high these days.
I’ve heard of home buyers putting down 50% just because they are debt-averse, but again, most folks don’t have that type of cash lying around.
The obvious benefit of putting a large down payment on a house is that you’ll have a smaller mortgage balance and pay less interest as a result.
You’ll also enjoy lower monthly payments, which will free up cash for other expenses or investments.
Conversely, you’ll have that much more money locked up in your property, which you’ll only be able to access if you sell or take out another home loan.
When it comes to mortgage rate pricing, it’s possible to obtain a slightly lower interest rate when you put down more than 20%, though it likely won’t be much.
We’re talking .125% to .25% lower depending on the scenario in question, so there are diminishing returns, especially when interest rates are already low.
But if you have bad credit the pricing impact can be greater with a larger down payment, so in those cases it could make sense to put down more than 20%, assuming you’ve got the cash available.
However, once you’re at 65% LTV (35% down payment) the pricing incentives tend to stop, so there wouldn’t be a benefit mortgage rate-wise after that threshold.
In summary, consider how much money you want locked up in your home, what your money could be doing (earning) otherwise, and how much it’ll cost you to put less down.
Lastly, don’t forget home sellers favor those who come in with larger down payments!
Read more: 2021 home buying tips to get the deal done.
Pros of Putting Down 20% on a Home Purchase
– Smaller loan amount – No mortgage insurance required – Lower mortgage rate – Pay less interest over the life of the loan – Ability to tap equity or take out a HELOC – Lower closing costs – Better chance of getting your offer accepted in a hot market – More lender choice and loan options available
Cons of Putting Down 20% on a Home Purchase
– Requires a lot more money up front – May make you house poor (little leftover for repairs/maintenance) – Money tied up in the home that could lose value (and thus access to it) – Could invest that money elsewhere for a better return – Inflation makes dollars worth less over time – Difference in monthly payment may not be all that substantial
by Adrian Suljanovic•06:30 AM, 2 Jun 2023•4 minute read
Fresh-faced broker brothers Blake and Reece Thorn have found their way into the family business and have made their father’s brokerage Auspak Home Loans their own.
In this Q&A, we find out how and why the dynamic duo entered the broking industry, how these two siblings work together, what their first deal was, and how they de-stress and unwind after a long day.
Here’s what they had to say:
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Inside: Trade and Travel is a legitimate investing course to learn how to make money in the stock market. See my personal view as a student.
I have been in the personal finance industry for a long time and have watched gurus with CFP and many more designations struggle to make money consistently in the stock market.
There are many concepts on how to trade the stock market.
Teri’s IWT system works.
It’s legit.
I’m a part of her investing course. I have seen the results. $1000 a day club in my LIVE account. Yes.
So, you get to read my Invest with Teri review first.
Teri is able to break down investing into the stock market like no one else I have seen.
You can read a book or blog and find many different concepts that work for them. Then, walk away with your head spinning and quit on the idea of trading and lose a bunch of money along the way. This is why most people leave it to professionals (which is a mistake with that pesky 1% asset management fee).
The Invest with Teri Method is a 7 Step Process that simplifies how to invest in the stock market.
She goes into detail on each of the seven steps to make sure you pick the right companies, limit your risk, know when to buy, and when to take profit.
Plus you have access to a private Facebook group and countless hours of coaching calls to really understand the IWT method.
This is how I am choosing to finance the life I want.
Okay, now that we got that out of the way… let’s dig into the details of the Invest with Teri review and learn how to travel and travel.
This is what you want? Right?
Make more money and have more time freedom.
Enough sitting on the sidelines… read this IWT review and then sign up today.
Honestly, if you have any money in the stock market, you need to take this course to understand the fundamentals.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What Are Online Stock Trading Classes?
If you’re interested in taking stock trading classes, there are a few things to consider before jumping into the world of investing. Stock trading is an investment that can be profitable if done correctly and is a way to grow your money.
Stock trading courses are a great way for newcomers to learn about the stock market. Also, courses are fantastic for those who want to refine their investing skills or maybe stop the bleed of money from trying on their own.
The Invest with Teri Ijeoma course provides a more structured learning path and can help you avoid some of the common mistakes made by novice traders.
In order to get the most out of a stock trading course, it is important to find one that matches your individual needs and goals. Plus one that can offer support and guidance because learning to trade is a learning curve.
Who Should Take Stock Trading Classes?
It is possible to learn the ins and outs of stock trading on your own without taking any classes.
However, for those who want a more structured learning experience, or for those who want to have access to a community of traders, stock trading classes can be a great option.
Taking stock trading classes can be a great idea for people who are interested in getting into the industry. The stock market is one of the most popular industries to get involved with, so it is likely that you’ll want to pursue a side hustle that may lead to a career in this field.
There are many different types of stock trading classes available, so it is important to do your research and find the one that best suits your needs.
Even if you are an index fund investor doing it on your own, this investing class is great knowledge to understand how the market works beyond “I hope it keeps going up.”
Must Read: How To Invest In Stocks For Beginners: Investing Made Easy
Trade and Travel 2.0
Right now, Teri and the rest of her coaches are doing a MAJOR overhaul on the signature course.
Her design team is currently working really hard to create an updated look and feel so you can experience Trade and Travel even better than before.
However, there will be changes – some we know about and some we don’t.
What we Know Today:
A significant Price increase happened (like double to $10k)
Shorting and gaps will be included in the main Trade and Travel course.
Limited time support on coaching calls. (However, a subscription model for additional coaching will be available.)
What You’ll Learn in the Trade and Travel 1.0 Course
The Trade and Travel course is an online course that will teach you everything you need to know about the world of trading, and more!
First of all, Invest with Teri along with Trade and Travel are used interchangeably. They are both the same AMAZING course that will teach you to make money in the stock market.
You will learn the Teri Ijeoma trading strategy.
The Invest with Teri 1.0 course is divided into two sections:
Travel & Travel – This is the basic course to understand fundamentals and to learn how to make money as the stock market goes up.
VIP Program – This is an advanced course that covers shorting, gaps, and options.
The great news… you can start with the basic Trade & Travel program and upgrade to VIP at a later date.
If any of this sounds foreign to you, Teri is one of the best teachers I have ever met. She breaks break down investing in the stock market like no one else I have seen. She is able to take difficult concepts and make them easy.
Simply put, Teri offers a course that teaches you everything you need to know about investing.
Later, in this Invest with Teri review, I will detail the difference between the two courses and what you will learn.
Teri’s Purpose of Trade and Travel – Financial Independence
The purpose of the course is to help students learn how to generate wealth.
Students can use the extra income earned from the course to supplement their income, pay off debt, or save so they can solidify their financial independence.
There is no doubt that in order to achieve financial independence, you need to invest in yourself. This means learning new skills, working on your mindset, and making smart choices with your money.
With a positive attitude and a determined spirit, anything is possible!
Want to Learn More about Investing?
How do you trade with Teri?
The privilege to have one-on-one coaching with Teri herself is very rare. However, she is known to offer group mastermind sessions for her VIP students.
So, in order to trade with Teri, you must enroll in the full $5000 course and wait for the next opportunity to trade with her.
Trade And Travel Program
The Trade and Travel program is the fundamental part of the investing course. This section will teach you the basics of the stock market and how to make money on the way up.
Teri’s trading strategies focus on risk management and she has seen many of her students achieve success with trading.
To be upfront in this Trade and Travel review, you will learn:
Learn how to pick stocks
Understand how the stock market works and how you can make money off it
Recognize why risk management is the most important aspect of trading
Understanding how to read charts
Learn the best places to buy and sell a stock could be
Be able to tell the story of the candles
Understand if your stock trade has a strong likelihood of being profitable
Determine how many stocks to buy based on your risk tolerance
How to place a trade at your brokerage
Manage your trade and exit based on your trading plan
That is a highlight of what you will learn in the basic Trade and Travel program.
Trade And Travel VIP Investor Program
The VIP program is the advanced piece of the course once you learn the fundamentals of the Trade and Travel program.
For those looking to upgrade to the VIP program, you will learn:
Make money when the market goes down.
How does shorting the stock work
When to look for gaps and what they mean
What is globex?
Options! This is everyone’s favorite part of the course!
Understand how to make money with option contracts
Risk management with options
Plus so much more!
Plus you can rewatch all of the curriculum and coaching calls over and over until you get it. That aha moment!
Both Travel & Travel and VIP offer live zoom training each week. Plus there is a vault of recording coaching calls to review.
Supportive Trading Community
Teri has built a supportive trading community of fellow students who have gone through the course.
Each trade cuzzin offers encouragement, advice, moral support, and feedback to each other.
This supportive community can help people overcome their anxiety and doubts when trading and investing.
You can find this supportive community on Facebook groups, Telegram groups, Clubhouse clubs, local meetups in your city, and people have connected to create a mastermind group. Honestly, there are plenty of people available to make sure you are successful on your journey.
Don’t forget… There are weekly live calls and chart parties.
This is how many people have turned 10k into 100k.
My Personal Trade and Travel Reviews
This is one of the best educations I have received.
My biggest regret is that I did not enroll in the course sooner (same as the time before I upgraded to VIP).
In all honesty, this course is a better education than spending hundreds of thousands on a college degree.
Personally, I meet Teri during FINCON, a huge conference for personal finance content creators and brands.
I loved how Teri spoke during her presentation and quickly reached out to learn more about her Invest with Teri course. Also, I was intrigued by the $1000 in a day club.
As always, I investigate every single company or platform that I recommend.
Obviously, this course has an eye-shocking price tag when you first see it. However, once you start earning your money back, you quickly realize how undervalued her course is.
As I always tell my readers… if I wouldn’t put my time, energy, or money on the line, then I am not going to tell you about it. I will only recommend products, services, and courses only that I truly know that work.
My View as a Trade and Travel Student
After a few months of debate if I could afford to spend the money on this investment course…
I became a Trade and Travel student in February 2021.
As outlined above, the course is jam-packed with information. I thought with my background in personal finance I would have a leg up over the others. However, I quickly learned that I need to view the stock market from Teri’s point of view and put blinders on to others’ opinions or styles of trading.
There are a ton of ways to make money in the stock market. This is one of them.
You can google and probably find many more investment courses and rabbit holes to follow. Investing is one of the most popular Reddit Personal finance topics. People want to learn to trade and most are looking to be fed information.
You have heard that saying, “teach a man to fish and he will never go hungry.”
The same holds true for completing this course, “Teach a trader to make money and you will be more profitable than your dreams.”
The best thing about life is you get to decide what you want to do, spend your time, and budget your money. Investing in this course is a big pill to swallow and I get it. However, I would not be so adamant about telling others about this course since I see a path for people to stop the stress with money.
I am successful with trading. Now, it is your turn to become successful.
This is by far the best investing course I have ever seen. 1000% recommended by me personally.
$1,000 In A Day Club
Here is proof. I made the $1k club in my live account and $10K in SIM.
I am a part of the trading community.
What exactly is the $1000 in a day club?
This exclusive club is for those traders who have made over $1k in a day.
Many IWT traders have received this plaque and part of this $1000 in a day club.
If you want to invest money and make $1000 a day this is how to start.
This is how I am choosing to finance the life I want.
Get one step closer to reaching your dreams and financing your life!
How Long Does It Take to Learn to Trade Stocks?
The time it takes to learn how to trade stocks depends on your personal learning style.
It typically takes 2 to 3 years to learn how to trade stocks.
By taking an in-depth course, you can shorten your learning curve.
Teri’s Approach to Learning to Trade Stocks
More importantly, the results you see trading stocks will depend on the effort put in to learn the curriculum, manage the trade, minimize your risk, and prepare your mindset.
Teri’s goal for her student is to earn 1% of our capital consistently.
This is not a get-rich-quick scheme. You have to put in the hard work to reap the benefits (aka profit).
For example, some people learn better by reading and others prefer watching videos. Some people may find that they learn best by following an instructor in a live trading room.
Who is Teri Ijeoma?
How many years of trading experience does Teri have?
Teri Ijeoma has over 10 years of trading experience.
Once she left her job as an elementary school assistant principal, she took off to travel the world. Those around her started asking questions and she taught her first group of students in Thailand.
Teri enjoys enlightening people on investing strategies and is passionate about building wealth.
Combining her trading experience with her teacher background, Teri is a talented educator in the investing world.
Teri has been featured on Forbes, NBC, CBS, ABC, Black Enterprise, Yahoo Finance, Business Insider, Fox News, Comcast – just to name a few!
She thrives by teaching others how to invest, so they can afford the life of their dreams.
Teri has made significant amounts of money through trading and is motivated by helping others achieve success.
Check out Teri discussing her $1,000,000 in a day profit. Yes, one million dollars in a day!
I’m scared to lose my real money trading. Can I still take the course?
Don’t want to risk your money, but are curious?
You can practice in a simulated account before you move to real money. Then, you can make mistakes. Learn from those mistakes. Understand how the stock market moves. Make wins.
The bottom line you can make real money in the stock market. You just have to be armed with knowledge and a trading system that works.
That is why most people lose money in the stock market! They don’t understand how the stock market works. They have poor risk management strategies and tend to select the wrong companies to trade with.
In the Trade and Travel course, you will walk away with so much investment knowledge and support from other people in the course to be successful.
Afraid to trade individual stocks? Teri’s process works with ETFs too!
Is Invest with Teri Reviews Reddit? Is this a scam?
As with any popular r/personalfinance thread, this is one that comes up often…is Invest with Teri legit?
There is a lot of mixed information on the web when it comes to Invest with Teri.
Some people have had great experiences and made a lot of money, while others have had negative experiences and lost money.
Since I have been forthcoming that I am a student of her course, I would recommend active trading as a way to supplement your income.
However, you must be willing to put in the time and effort to see the results.
And honestly, that is where most people give up because you must put in the effort.
At Invest With Teri, they believe anyone can learn how to invest and generate income through investment. They offer a variety of courses on how to invest, as well as a community of support to help you get started.
Their program has helped people from all backgrounds achieve their financial goals.
Did this Trade and Travel Review Convince You?
Teri Ijeoma is a millionaire trader and coach who shares her tips and tricks for success.
Trading is a skill that can be learned, and with the right education, anyone can do it successfully.
Trading is not a get-rich-quick scheme – it takes time and effort to learn.
Don’t waste your time or money on being a self-taught trader. Take a course from an expert.
I am part of this trading community and so excited to be a trade cuz!
Start building another income stream for yourself.
Invest with Teri Ijeoma teaches you how to make a lot more money than you currently are. Very possibly, trading can help you replace your current income or even exceed it
To be successful, you need to invest in this investing course, develop a solid trading plan and stick to it.
Get one step closer to reaching your dreams and financing your life!
Be the first to know when Teri releases a coupon code for her Invest with Teri course.
Do you have an Invest with Teri Coupon?
It is VERY rare that Teri puts out a coupon code.
However, if she does, I always notify my email list who have been on the fence about enrolling.
Typically, these coupon codes are valid for a limited time only.
Trade and Travel FAQs
Obviously, you are doing your due diligence before enrolling in this course, which I completely understand. I did too! I spent a lot of time researching prior to enrolling in this course.
Here are answers to the most asked questions about Invest with Teri, Trade and Travel, VIP program, as well as Teri Ijeoma.
Is the Trade and Travel course for new investors?
Yes, the Trade and Travel course is for both new investors and experienced investors.
Honestly, you are more likely to lose money in the stock market by trading on your own rather than spending money on the best investing course available.
The course is designed for everyone, regardless of experience level.
There are different courses available within the program for more advanced students (like shorting and options).
How long does the program take to complete?
You can complete the course within a weekend if you binged watch everything.
However, it takes 8 weeks to thoroughly go through the curriculum.
The main Trade and Travel course is broken down into sections, and modules include videos, tutorials, pdf worksheets, quizzes, and more.
The course instructor, Teri Ijeoma, estimates that it will take 8 weeks to complete the online course material before you begin trading.
In addition, there are plenty of coaching calls, which are filled with gems of information that you can watch.
This investing course is much like obtaining a college degree. The more you study, the better results you will have.
What will I learn in Invest with Teri course?
You will learn how to trade stocks and options based on her Invest with Teri method.
This is a solid, effective investing strategy.
Learning how to effectively trade stocks and make 1% consistently is the goal. This is higher than the market returns on any given day.
How much does Teri ijeoma course cost?
The cost of the Trade and Travel 2.0 course is $10000.
In addition, there is a payment plan available that allows you to pay in installments which is a great option without interest or hidden fees.
Honestly, this investing course is undervalued given the amount of knowledge you will gain.
Is there a payment plan?
Yes, there is a payment plan.
This is a great way to invest in the program with an affordable payment plan based on what you can pay today.
Right now, you can start the course with Payment Plans as LOW as $208/Month.
Can I purchase the Trade and Travel course and upgrade to the VIP program later?
Yes, you can always upgrade to VIP and pay the $2,500 difference. This is something you can do at any time.
I purchased the course to learn the basics and when I made money to pay for the VIP course I upgraded. Many students have done the same.
My gem of advice… eventually, you need to upgrade to VIP to fully understand the chart analysis as well as make money on the way down.
How much money do I need to start trading?
Many students start with $500.
This question is very difficult to answer because it depends on your personal finance situation and the type of trading you want to do.
The best advice is to start small and grow your account.
Trading stocks and options come with risk as such you must recognize that it is possible to lose all of your trading money.
Personally, I recommend starting with the amount you are comfortable losing. For me, I started with $3000.
Again, you do not need a lot of money to start trading. Check out this interview with Chris Calvin (aka Trade with Coach). He started with $500 and quickly grew it to 5 figures!
What trading platform does Teri Ijeoma use?
In her Trade and Travel course, she reveals which brokerages she has used in the past.
Right now, she is known to use Tradestation.
Recently, in her 5 Day Take the Trade Live Challenge, she set up a brokerage account with TD Ameritrade.
Do I have to attend coaching calls live?
You don’t have to attend coaching calls live. Also, all of the live trainings are recorded except the weekly Trade and Travel Q&A.
By attending a live coaching call, you have the opportunity to ask questions and get help from the instructor.
You can access the class recordings at your convenience once the coaching call is uploaded.
Personally, I attend the VIP coaching calls live to get the best out of the experience.
Remember, if you miss a class, you can always watch the recording later. You will have lifetime access to the coaching call recordings.
How long do you have access to the curriculum?
LIFETIME ACCESS!
You will have lifetime access to the curriculum.
That is pretty amazing to have these resources available forever.
You can review the curriculum as many times as you like.
Personally, I have gone back and reviewed many modules and coaching calls again (and again).
Is there a Facebook group? How long do you have access?
In fact, there are two Facebook groups for students that are run by the IWT coaching staff.
One Facebook group focuses on the general IWT method and the other is specific to VIP strategies.
In addition, there is a Trade and Travel sponsored Telegram group.
These Facebook groups are a great way to connect with other students and to learn from each other.
You have access to the group for as long as you are enrolled in the course.
What’s Teri’s Instagram handle?
First of all, there are so many fake accounts for Teri Ijeoma, Invest with Teri and the Trade and Travel Course.
Teri’s real account is @teriijeoma
Beware of imposters accounts and scams.
Can I share my course log-in information with others?
No, this is not allowed.
Each person should purchase the course separately.
The only exception is you can share with your spouse.
What is the refund policy?
According to their policy, refunds are not available for any of their courses. (You can read that here).
However, they do not want unhappy students or I don’t want unhappy trading cuz.
So, if you need additional assistance, reach out to their support team at [email protected] and one of the fabulous coaches will assist you.
Honestly, this makes 100% sense as a student. There is so much knowledge and information in the course that it is not surprising.
If you truly put in the time and effort, you will see success. You have to put in the work though.
Just a reminder… trading is a risky investment if you don’t know what you are doing. You can lose money in the stock market.
Know someone else that needs this, too? Then, please share!!
One would think a married couple would be on the same page about the decor present in their home. However, this woman’s husband definitely is not.
One would think a married couple would be on the same page about the decor present in their home. Decisions about artwork, color palette, furniture, and more are often joint when moving in together.
However, TikTok creator @olivebranchcottage, aka Morgan, proves that some spouses are not always on the same page as their partners.
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In fact, Morgan’s husband seemingly has no idea what many of their interior decorations even look like, making her viral home decor quiz all the more hilarious. Let’s get into her (relatively easy) questions, his oblivious responses, and the comment section’s reaction.
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A woman gave her husband a home decor quiz — and his answers were interesting, to say the least.
The TikTok creator’s viral home decor quiz video started incredibly straightforward, with Morgan asking her husband to simply state the color of the circle painted on the wall of the plant room in their house.
After several seconds of deep introspection, her perplexed partner arrived at his first answer: “Like, a clay color. Like, orangish-brown.”
What followed proved he couldn’t have been more wrong. Morgan then showed a photo of said circle, which was dark green rather than “orangish-brown.”
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The creator upped the ante by asking her spouse what colors were on the rug in their bedroom, and, you guessed it, he answered incorrectly once again.
After he claimed their shared carpet was red and gold, the creator posted a picture of a white rug with blue flowers. However, to her husband’s credit, there were also small accents of pink and yellow, which could be what he was referring to with the red and gold comment.
And the last Q&A was the icing on the cake. When Morgan asked her partner to name what was in the picture hanging on their backdoor, he promptly asked, “Is that the one of the Italian town with like a little cow out in front?”
Nope! The image in the frame was of a little girl holding a puppy.
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The comment section had a few thoughts about the creator’s husband’s lack of awareness.
While Morgan’s husband’s responses were undoubtedly amusing, TikTok creators in the comments noted that he could potentially have vision problems. “Hear me out … he might be colorblind,” one user wrote, followed by a crying laughing emoji.
Other people shared similar sentiments, but colorblindness didn’t explain his final answer.
“OK, do you have a painting of an Italian town with a cow?” someone asked. “Because that is SO specific.” Morgan then clarified that they do have artwork featuring cows in their kitchen. However, it contains an English cathedral, not an Italian town.
You know those flashy “real estate seminar” types, the ones who wear $10,000 wristwatches and flash cheesy Powerpoint slides of their Lamborghini at you? 🙄
Don’t trust them. (I reaaaalllly hope I’m stating the obvious.)
I call them Lamborgurus, driving their Scamborghinis. They can be found lurking in the spotlight, dispensing a blend of platitudes and high-leverage, high-risk speculative strategies from the stages of big hotel chains.
They can be forgiven for being tacky. But not for destroying peoples’ retirements with their shoddy ‘investment’ advice.
Here’s the thing:
Be careful about choosing who you take advice from. This is true in any arena — health, fitness, personal finance, business, real estate, travel. Some teachers are better than others. The slick, sentient-infomercial Scamborghini types offer the most dramatic cautionary example.
But there’s another reason.
Most people who teach or offer advice (on any topic) are good people — great integrity, great heart — but they’re not a good fit.
There’s nothing ‘bad’ or ‘incorrect’ about them; they’re a great fit for someone else. But they hold a philosophy, approach, strategy and framework that’s not right for you.
If you want to learn about index funds, you don’t seek out a day trader.
If you want to learn about asset allocation, you don’t ask the neighbor who’s obsessed with penny stocks.
If you want to learn about financial independence through rental property investing, you don’t seek out the mega-deal, high-leverage, speculative-style instructor.
I made a video about this. You can watch it here.
In the video, I chat about real estate investing, but the big-picture idea applies across topics — including music, art, fitness, cooking, creative writing, nutrition, stock and bond investing, and personal finance 101.
Choose your mentors wisely.
— Paula
Our class, Your First Rental Property, is an 11-week online training that walks you, A-thru-Z, through everything you need to know as a beginner rental property investor. Learn more here, where you can also check out stories from our students and alumni.
If you want to prepare for investing in real estate this year, join our VIP waitlist, where you’ll get a 7-day sneak peek of the material inside the course.
We open enrollment twice a year – once in the spring, and once in the fall. Our students have lifetime access to the course, which includes quizzes, worksheets, spreadsheets, templates, forums, and peer support from small accountability groups.
Our students benefit from learning from our Teachers Assistants (TA’s), all of whom are alumni from our course and successful real estate investors. Students can also bring their questions to me directly during our live Q&A Office Hours calls on Zoom. We will hold Office Hours twice weekly during the 11 weeks, and students and alumni are welcome for life.
P.S. Got questions?
“I’m an out-of-state investor.” “I’m interested in Airbnb.” “I’m househacking.”
Cool. This video explains whether or not the course is right for you.
“Wait … what’s inside the course, exactly?”
This video walks you through everything.
If you’re interested, get more information and join our VIP waitlist here!