National mortgage rates sunk on all loan terms from a week ago, according to rate data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all fell.
While it’s expected that rates will gradually come down this year, there may be some fluctuations.
At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates, but could cut rates in the future. At their March 20th meeting, the Fed will update their outlook on rates. Rate changes affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates last updated March 11, 2024.
The rates listed above are Bankrate’s overnight average rates and are based on the assumptions shown here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, March 11th, 2024 at 7:30 a.m.
Today’s 30-year mortgage rate trends down, -0.17%
The average rate you’ll pay for a 30-year fixed mortgage today is 6.95 percent, a decrease of 17 basis points over the last week. Last month on the 11th, the average rate on a 30-year fixed mortgage was higher, at 7.14 percent.
At the current average rate, you’ll pay principal and interest of $661.95 for every $100,000 you borrow. That’s down $11.43 from what it would have been last week.
There are several benefits to choosing a fixed-rate mortgage when buying new house, including predictable mortgage payments.
Read more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate declines, -0.13%
The average rate for the benchmark 15-year fixed mortgage is 6.47 percent, down 13 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $869 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate eases, -0.05%
The average rate on a 5/1 adjustable rate mortgage is 6.43 percent, ticking down 5 basis points over the last 7 days.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.43 percent would cost about $627 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Current jumbo mortgage rate dips, -0.10%
The average jumbo mortgage rate is 7.03 percent, down 10 basis points from a week ago. This time a month ago, the average rate was higher at 7.20 percent.
At today’s average jumbo rate, you’ll pay a combined $667.32 per month in principal and interest for every $100,000 you borrow. That’s $6.74 lower, compared with last week.
Mortgage refinance rates
30-year mortgage refinance rate slides, -0.17%
The average 30-year fixed-refinance rate is 6.94 percent, down 17 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.18 percent.
At the current average rate, you’ll pay $661.28 per month in principal and interest for every $100,000 you borrow. That’s a decline of $11.43 from last week.
Where are mortgage rates going?
With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What these rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
A credit privacy number (CPN) is formatted similarly to a Social Security number and is commonly used by fraudulent companies to scam people with bad credit. Using a CPN to apply for credit constitutes fraud, and they’re often tied to criminal activity.
A credit privacy number (CPN) is sold to consumers as a product to repair bad credit. In reality, these numbers can be associated with identity theft. The Federal Trade Commission (FTC) considers identity theft to be any instance where a criminal uses someone else’s personal information to “open accounts, file taxes or make purchases.” CPNs can pave the way for such fraudulent activity.
Here, we’ll explain what credit privacy numbers are, what they’re used for and how to avoid scams. Most importantly, you’ll also learn how to fix your credit without a CPN.
A credit privacy number, or CPN, is sold to consumers as a way to repair bad credit. But did you know these numbers can be associated with identity theft? Experian® reports that approximately one in every 20 Americans becomes a victim of identity theft each year, so it’s important to learn the dangers of CPNs if a company advertises one to you.
When you have bad credit, you may be more susceptible to methods that hurt your situation more than help it. Here, you’ll learn about what credit privacy numbers are, what they’re used for and how to avoid scams. Most importantly, you’ll also learn about how to repair your credit without a CPN.
Key takeaways:
Credit privacy numbers (CPNs) are often stolen Social Security numbers (SSNs).
Creating and even using a CPN can count as fraud.
No entities have the legal authority to issue CPNs despite their claims.
Table of contents:
What is a CPN?
A credit privacy number (CPN) is a nine-digit number set up in the same format as a Social Security number: XXX-XX-XXXX. CPNs aren’t issued by the federal government and have no official legal standing. They operate in a legal gray area, but using a CPN to apply for credit constitutes fraud, and they’re often tied to criminal activity.
You may also come across some other terms for CPNs, like:
Credit profile number
Secondary credit number
Credit protection number
What is a CPN used for?
Companies market and sell CPNs to supposedly fix bad credit, but using these products can have steep legal ramifications. CPNs are stolen Social Security numbers or products of synthetic identity fraud. It’s illegal to use a CPN to apply for credit, so even if you are “issued” one by a company, you can’t use it in any way that helps your credit.
A common scenario is criminals stealing Social Security numbers that belong to minors or those who are already deceased, since credit monitoring services usually don’t track their use. These stolen SSNs are then sold as CPNs, so all parties involved are participants in identity theft.
Synthetic identity fraud is another way criminals create CPNs to sell. This method involves using a computer algorithm to randomly create nine-digit numbers that match the formatting of Social Security numbers. Criminals then use an illegal online validator to ensure the fake number will pass as a legitimate SSN before selling it. One way they do this is by using potential SSNs that haven’t been issued to anyone yet.
How are CPNs different from SSNs, EINs and ITINs?
There are several types of numbers that can be used as identifiers for legal and financial purposes. Here’s a breakdown of the most common:
Social Security number (SSN): Issued by the federal government and is a unique identifier. Most U.S. citizens are issued one at birth, which they use to apply for a driver’s license, hold jobs, file taxes and apply for credit, among other things.
Employer identification number (EIN): A unique identifier for businesses and issued by the IRS. This allows business owners to open business bank accounts, get business licenses and file taxes under the business’s name.
Individual taxpayer identification number (ITIN): Similar to Social Security numbers, but the main difference is that ITINs are used by those classified as “authorized noncitizens.” For example, an immigrant working in the United States would need an ITIN to file and pay taxes.
The big difference between these numbers and a credit privacy number is that they’re legitimate numbers issued by actual entities within the federal government, and a CPN is not.
Is a CPN legal?
No, using a CPN is not legal. CPNs started as a byproduct of the Privacy Act of 1974. This act made it so that you couldn’t be forced to provide your Social Security number to a third party unless it was required by federal law, such as applying for a passport. This was meant to give Americans more privacy and protect them from identity theft.
Credit repair scams often market CPNs to those trying to rebuild their credit. But in fact, any business that sells a CPN is engaging in fraudulent activity.
What happens to those breaking the law with a CPN?
By purchasing a credit privacy number, you may unknowingly be breaking the law. According to the Federal Reserve Bank of St. Louis, CPN schemes often involve stolen CPNs from children, the elderly and incarcerated individuals. If an individual purchases a CPN, they may be convicted of various identity theft crimes, as well as the crime of making false statements on a loan or credit application.
The Department of Justice has been cracking down on identity theft, and they carry sentences of 15 to 30 years along with various fines for those who break these laws.
How to avoid a CPN scam
The best way to avoid a credit privacy number scam is to avoid anything involving a CPN. Be wary of a business that offers you a new credit identity—such as a CPN—it’s likely an identity fraud scam.
Other red flags include a company asking or suggesting that you lie about any identifying information, including your name, address or phone number, and a business asking for payment before completing any services.
Check out the Credit Repair Organizations Act to learn more about your credit repair rights.
How to report a CPN scam
The best way to eliminate criminals using fraudulent CPN scams is to report them whenever you see them, and you can do this through the Department of Justice. On their Fraud Section page, they have a variety of links and resources to report different scams.
Scams involving credit privacy numbers can also be reported to your local police department, your state’s attorney general and the Federal Trade Commission. While the investigation will be taking place at the state and federal level, reporting to your local police department can let them know what scams may be operating in the area so they can issue warnings to the community.
How to repair your credit without a CPN
Purchasing a CPN is tempting because it seems like a fast and easy way to repair your credit. In reality, building a good credit score takes time, but there are steps you can start taking today.
Dispute errors on your credit report: Derogatory marks include collections, late or missed payments, bankruptcies and other negative marks. These heavily weigh down your credit, so clean your credit report often.
Use a pay-for-delete letter: You may have heard that paying off collections usually won’t improve your credit. If you negotiate a pay-for-delete agreement with the collection agency, they may remove the collection account from your report, which would likely help your credit.
Become an authorized user: If you have bad credit, try to become an authorized user on a friend or family member’s credit card account to “piggyback” off their credit.
Find a cosigner: Making payments on loans—like auto or personal loans—can improve your credit. If you can’t get approved for a loan, finding a cosigner may help.
Don’t miss a payment: One of the best things you can do is ensure you don’t miss any payments that get reported to credit bureaus. Maintaining a good credit history will help you repair and improve your credit.
Repair your credit with Lexington Law Firm
Although there are credit repair scams, legitimate credit repair companies can help you rebuild your credit. Lexington Law Firm has a team of legal professionals who have experience with credit recovery.
They can review your credit report, find errors that may be hurting your credit and challenge them on your behalf. Our services also include tools such as a credit snapshot, which can help you maintain good credit and improve your financial future.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Vince R. Mayr
Supervising Attorney of Bankruptcies
Vince has considerable expertise in the field of bankruptcy law.
He has represented clients in more than 3,000 bankruptcy matters under chapters 7, 11, 12, and 13 of the U.S. Bankruptcy Code. Vince earned his Bachelor of Science Degree in Government from the University of Maryland. His Masters of Public Administration degree was earned from Golden Gate University School of Public Administration. His Juris Doctor was earned at Golden Gate University School of Law, San Francisco, California. Vince is licensed to practice law in Arizona, Nevada, and Colorado. He is located in the Phoenix office.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
The United States Department of Veterans Affairs doesn’t have a minimum credit requirement for loans. However, private lenders are usually more favorable to applicants with a credit score of at least 500.
The United States Department of Veterans Affairs (or VA for short) doesn’t have set credit requirements for loans. Yet, “What is the minimum credit score for a VA loan?” remains a common question. This is because there are private lenders who also offer VA loans—and who typically have specific credit requirements for borrowers.
Most private lenders are willing to work with applicants who have at least a 500 credit score. The higher your score, the more likely you are to obtain a loan. Here, we’ll discuss the nuances of credit scores and the military‘s requirements for VA loans. We’ll also share how Lexington Law Firm can assist you on your credit-building journey.
Key takeaways:
The VA has a special debt relief program for veterans.
Veterans can qualify for unique loans.
The Servicemembers Civil Relief Act only applies to active-duty members.
The minimum credit score for a VA loan
The VA doesn’t require a minimum credit score for loans. Private lenders, however, will use your credit score to gauge your eligibility and set your interest rate. Applicants with higher credit scores tend to receive better rates, and private lenders tend to look favorably on applicants with good credit scores (670 – 739, according to the FICO® model).
That said, it’s still possible to get a loan with bad credit. Applicants with low credit scores can make a higher down payment if they have the capital to do so. Applying with a cosigner is also another valid alternative; lenders will look at the creditworthiness of both signees when deciding whether or not to approve you.
What are the VA loan eligibility requirements?
VA loans have unique qualifiers besides credit scores that applicants will need to keep in mind. Since the Department of Veterans Affairs primarily works with service members who’ve already retired, many active-duty service members may not be eligible for VA loans.
Below, we’ll break down the eligibility criteria for VA loans by category.
Credit and income Information
We know the VA doesn’t have strict limits on credit, but they do require proof of income. Applicants will also have much better odds if their debt-to-income ratio is below the 44 percent threshold.
Discharge status
So long as an applicant wasn’t dishonorably discharged from service, they are eligible for a loan. Unless a service member was deemed insane when they were charged, title 38 of the United States Code (38 U.S.C. § 5303) states that individuals are susceptible to a statutory bar to benefits if they were released or discharged for any of the following reasons:
Was sentenced to a general court-martial
Was a conscientious objector and refused to comply with lawful orders of competent military command
Deserted their post
Resignation by an officer for the good of the service
Being absent without official leave (AWOL) for a consistent period of 180 days or more
Requested release from service as an alien during a period of hostilities
Certificate of eligibility
You’ll need a certificate of eligibility (COE) to apply for a VA home loan. Once you gain a copy of your discharge/separation papers, you can request your COE by mail, phone, through a lender or via the VA’s online portal.
Military service status
The requirements for this category will vary depending on your relationship with the military.
Active-duty service members: Must have 90 consecutive days of service.
Veterans: Must have 90 days of service during wartime or 181 days of service during peacetime.
National Guard or Reservists: Are required to have 90 days of active duty service or six completed years of service.
Spouses: Spouses of deceased or disabled service members.
Occupancy requirements
The VA has specific occupancy requirements to deter people from misusing their loans. VA loans are intended for primary residences, not investment properties or vacation homes. To that end, applicants can only secure VA for their primary residence and will need to submit proof of homeownership in most instances.
Applicants will also have 60 days after closing on a property to move in and occupy it as their primary residence. In certain circumstances (such as if an applicant is on active duty), this 60-day window will be extended.
What are the benefits of using a VA loan?
VA loans provide a host of advantages to anyone who can secure them. Several examples include:
No down payment: If you can secure a VA loan for your home, you won’t be required to offer a down payment. Applicants who want to lower their interest rate will still have the option to place a down payment.
Low-interest rates: Because VA loans are backed by the government, they traditionally come with some of the lowest interest rates available.
PMI isn’t required: Once again, thanks to government backing, VA loans let applicants save money by forgoing private mortgage insurance (PMI).
3 simple ways to improve your credit
We’ve established that private lenders prefer applicants with good credit. FICO, one of the most respected credit reporting companies in the world, defines good credit scores as any that fall between 670 and 739.
If your score isn’t already in that range, here are a few strategies to help you along the way.
Regularly make your payments on time
FICO considers payment history to be the most important factor when determining what affects your credit score. VantageScore®, a credit reporting company founded by Equifax®, Experian® and TransUnion®, also holds payment history in high regard.
Missing a payment can drastically hurt your credit. On the other hand, consistently making payments on time, even if it’s just the minimum payment, will steadily yield positive results.
Maintain a low credit utilization rate
Credit utilization looks at your credit borrowing trends—your current balances compared with your total credit limit determines your credit utilization rate for a given period. FICO and VantageScore urge borrowers to keep their utilization rates below 10 percent, though 30 percent and below is the next best option.
Dispute errors on your credit report
Errors can appear on your credit report that can dramatically lower your credit. It’s possible to challenge these errors and potentially have them removed, though many people may need help handling credit disputes.
Lexington Law Firm works to help people address these errors on their reports. Plus, we can also contact the major credit reporting bureaus on your behalf.
Monitor your credit with Lexington Law Firm
Low credit scores may make it harder to secure a VA loan. However, it’s never too late to improve your credit and bolster your eligibility. Lexington Law Firm offers unique credit repair services for veterans and service members whose credit may have altered during their time in the military.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Alexis Peacock
Supervising Attorney
Alexis Peacock was born in Santa Cruz, California and raised in Scottsdale, Arizona.
In 2013, she earned her Bachelor of Science in Criminal Justice and Criminology, graduating cum laude from Arizona State University. Ms. Peacock received her Juris Doctor from Arizona Summit Law School and graduated in 2016. Prior to joining Lexington Law Firm, Ms. Peacock worked in Criminal Defense as both a paralegal and practicing attorney. Ms. Peacock represented clients in criminal matters varying from minor traffic infractions to serious felony cases. Alexis is licensed to practice law in Arizona. She is located in the Phoenix office.
Average mortgage rates sunk across the board from a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.
While it’s expected that rates will gradually come down this year, the path might be bumpy.
At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates, but could cut rates in the future. At their March 20th meeting, the Fed will update their outlook on rates. Rate fluctuations affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates accurate as of March 8, 2024.
These rates are Bankrate’s overnight average rates and are based on the assumptions here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, March 8th, 2024 at 7:30 a.m.
30-year mortgage trends down, -0.15%
Today’s average rate for the benchmark 30-year fixed mortgage is 7.03 percent, down 15 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.17 percent.
At the current average rate, you’ll pay a combined $667.32 per month in principal and interest for every $100,000 you borrow. That’s down $10.11 from what it would have been last week.
Standard lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers buying a home as it allows the borrower to spread payments out over 30 years, keeping their monthly payment lower.
15-year fixed mortgage rate retreats, -0.12%
The average rate for a 15-year fixed mortgage is 6.52 percent, down 12 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost $872 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 ARM dips, -0.04%
The average rate on a 5/1 ARM is 6.31 percent, ticking down 4 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.31 percent would cost about $620 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo loan interest rate moves lower, -0.07%
The average rate for a jumbo mortgage is 7.04 percent, a decrease of 7 basis points from a week ago. Last month on the 8th, the average rate was greater than 7.04 at 7.23 percent.
At the average rate today for a jumbo loan, you’ll pay $667.99 per month in principal and interest for every $100,000 you borrow. That’s $4.72 lower, compared with last week.
Refinance rates
30-year mortgage refinance moves down, -0.14%
The average 30-year fixed-refinance rate is 7.05 percent, down 14 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.18 percent.
At the current average rate, you’ll pay $668.66 per month in principal and interest for every $100,000 you borrow. That’s down $9.45 from what it would have been last week.
Where are mortgage rates going?
With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What these rates mean for your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Hey, I’ve just been featured on CNBC and I want to say hello to all of my new readers. You can read the CNBC article here – 34-year-old mom dropped $50,000 to cruise the world with her family: ‘It was some of the best money I ever spent’ If you are a new visitor –…
Hey,
I’ve just been featured on CNBC and I want to say hello to all of my new readers.
You can read the CNBC article here – 34-year-old mom dropped $50,000 to cruise the world with her family: ‘It was some of the best money I ever spent’
If you are a new visitor – welcome to Making Sense of Cents!
I have received many emails about how I was able to afford this trip. I have a free How To Start A Blog course that you can sign up for here. I also talk about this below and how I’ve been able to earn over $5,000,000 blogging over the years.
If you want to read more about my world cruise trip, I recommend reading Around-The-World Cruise With A Kid (25+ Countries In 4 Months!).
Here are some blog posts that you may find helpful and enjoy:
If you have any questions, please leave a comment below or send me an email.
Thanks for stopping by.
-Michelle Schroeder-Gardner
—-
In addition to reading the CNBC article linked above, I also want to talk about how I grew a blog that has earned me over $5,000,000. I know I will get a lot of questions, so I figured it’s best to lay it all out right here 🙂
What started as just a hobby turned into one of the most life-changing things I’ve ever done – that’s starting my blog, and learning how to make money with it.
Since learning how to monetize a blog over 10 years ago, I have now earned over $5,000,000 from my site. This is still hard for me to believe, and I’m the one who’s lived it!
In the beginning, all I was doing was tracking my own personal finance progress as I finished school and started paying off my student loans. Blogging was a very new concept to me at the time – I heard about it from a magazine – and people were just learning how to monetize blogs back in 2011.
Most bloggers started back then with display ads and sponsored posts, but the options have only increased.
Because of all of the new ways to make money blogging, like affiliate income and selling your own products, you can make somewhat passive income as a blogger.
Passive income is my favorite way to make money because it makes blogging even more flexible and something I can do as I work from home, travel, and work whenever I want.
Blogging has changed my life for the better, and I’m now earning thousands of dollars a month doing something I love.
Learning how to monetize a blog takes work and time, but it’s 100% possible to do. I started earning money after just six months of blogging, and I didn’t even set out to make money when I created Making Sense of Cents. Just think of the potential if you start out knowing that making money blogging is possible!
Starting my blog is one of the best things I’ve ever done for my work, personal, and financial life. And, I urge anyone who is interested to start a blog and learn how to monetize it.
How I earned my first income from blogging
Many of my readers have heard this story, but I love sharing it because I started out like many of you, except I had no idea that blogs could make money. When I started Making Sense in August of 2011, I simply wanted a way to keep track of my financial progress and meet others who had similar goals.
As I started getting to know other bloggers in the community, a blogger friend of mine connected me with an advertiser who was willing to pay me $100 for an advertisement.
I couldn’t believe someone would pay me $100 to advertise on my site!
While it wasn’t a lot of money, especially considering the amount of time and work I put towards my blog in those 6 months, it was very motivating to see that something I loved doing could actually make money.
After that first $100, I started doing a lot of research on how to monetize a blog, and my blogging income quickly grew from there.
One year after I started my blog, I was earning around $1,000 a month, and I was making around $10,000 monthly two years after I started Making Sense of Cents.
My income only continued to grow, and I am still earning a healthy income from this website today.
How To Start A Blog FREE Course
If you want to learn how to monetize a blog and you haven’t started your blog, then I recommend starting with my free blogging course How To Start A Blog FREE Course.
Here’s a quick outline of what you will learn in this free course:
Day 1: Reasons you should start a blog
Day 2: How to determine what to blog about
Day 3: How to create your blog – in this lesson, you will learn how to start a blog on WordPress, and my tutorial makes it very easy to start a blog
Day 4: How to monetize a blog – this is where you learn about the many different ways to make money blogging!
Day 5: My tips for earning passive income from your blog
Day 6: How to grow your traffic and followers
Day 7: Miscellaneous blogging tips that will help you be successful
This is delivered directly to your email inbox, and you will learn how to grow a blog from scratch.
Start with a plan for your blog
Sure, you can start on a whim, and that’s kind of what I did, haha.
But, I do think that creating a plan is a good idea if you want to learn how to monetize a blog. This can help you get an organized start, identify your blog’s niche, decide on your blogging goals, find opportunities for blogging income, and more.
It wasn’t until 2015 that I finally created a blogging plan (that’s 4 years after I started!), and my blog income grew significantly after that.
I credit that growth to creating a plan!
Having a plan would have been a huge help in the beginning, and I wish I would have started with one. I probably missed some income opportunities because I had no real plan or direction in the first couple of years.
Since creating a blogging plan, I became more focused on goals and motivated toward improving and building Making Sense of Cents.
Here are some questions that you may want to ask yourself when creating a plan for your blog:
What will you write about on your blog?
How do you want to make money with your blog?
What will you do to reach readers on your blog?
What are your goals for your blog?
Thinking about, researching, and answering these questions will help guide you on your journey and help you decide what to do next.
Write high-quality and engaging blog posts
Your blog’s content is extremely important. This will be what attracts your readers, has them coming back for more, earns you blogging income, and more.
Now, you don’t need to be an expert or need a degree to start talking about a subject, but you do need to be knowledgeable or interested in what you are talking about. And, always be truthful! This will show in your writing and actually help your readers.
To write high-quality content on your blog, here are some tips:
Figure out exactly what it is that you’d like to write about and why you think the content is important. Being passionate about a subject will give you the motivation to write content that people want to read. Just think about it: If you don’t enjoy writing your content, then why should you expect someone else to want to read it?
Ask your audience what they want you to write about. Many of my best ideas come from expanding on reader questions.
Research your blog topics by reading news articles, going to a library, searching for statistics and interesting facts, and more.
If your blog posts are more personal in nature, then dig deep and share your thoughts, and be personable in your writing – your readers want to hear your story!
Write long, helpful content. Sure, some great content may only be a few hundred words, but to be as helpful as possible, long content is usually the best. My content is usually over 2,000 words, and this article is around 5,000. Now, you don’t want to just write a lot of fluff content in order to get more words in – you want to actually be helpful!
Reread your content. I used to read my content 10 times or more before I would publish it. Now, I have an editor who makes sure I’m always publishing high-quality content.
Network, network, network
If you want to learn how to monetize a blog, then networking can be extremely helpful.
Networking can mean:
Making friends with other bloggers
Attending blogging conferences
Sharing content that other bloggers have written
Following other bloggers in your niche on social media
Signing up for other bloggers’ newsletters
Joining blogging groups on Facebook
Some bloggers don’t do any of these things and purely see other bloggers as competition. I don’t believe this is the correct way to approach blogging because you will hold yourself back immensely!
Networking is important because it can help you enjoy blogging (friends are nice to have, right?!), teach you new ideas (such as how to make money blogging or how to grow a blog), make valuable connections, and more.
Keep in mind that networking is even how I earned my very first $100 blogging. My blogging friend connected me with an advertiser, which helped changed my blogging journey.
I have learned a lot about blogging from the blogging community, and the people I’ve connected with have been a tremendous support as I’ve grown my blog.
Be prepared to put in a lot of hard work
Starting a blog is relatively easy. But, growing and learning how to monetize a blog takes a lot of work.
You’ll have to:
Start a blog, design it, create social media accounts, and more
Write high-quality blog posts
Attract an audience of readers
Monetize your blog
Continue learning about blogging
And more
Even when I was just a new blogger and had no plans of making money blogging, I was still spending well over 10 hours a week on Making Sense of Cents.
When I was working my full-time day job and earning an income from my blog, I was working around 40-50 hours a week on my blog on top of my day job!
Now that I blog full-time, my hours vary. Some months I hardly work, and there are other months that I may work 100 hours a week.
It’s not easy, and there’s always something that needs to be done.
But, I absolutely love blogging, which makes the hard work a little less tough.
How to monetize a blog: 4 different ways
There are many different ways you can monetize your blog, including:
Affiliate marketing
Advertisements and sponsorships
Display advertising
Create your own product, such as an ebook, course, physical or online products, and more
You could choose to monetize your blog using all of these methods, or even just one. It’s just a personal decision.
For me, I like to be diversified and monetize in many ways, so I do them all.
Below, I am going to dive a little deeper into each way to make money blogging.
1. Affiliate marketing
Affiliate marketing can be a great way to make money blogging because if there is a product or company that you enjoy, all you have to do is review the product and share a unique affiliate link where your readers can sign up or make a purchase.
In fact, this is my favorite way to monetize a blog. I enjoy it because it can be quite passive – I can create just one blog post and potentially earn an income from it years later. This is because even though a blog post may be older, I am still constantly driving traffic to it and readers are still purchasing through my affiliate links.
Affiliate marketing is a blog monetization method where you share a link to a product or company with your readers in an attempt to make an income from followers purchasing the product through your link.
Here are some quick tips so that you can make affiliate income on your blog:
Use the Pretty Link plugin tocleanupmessy-lookingaffiliatelinks. I use this for nearly all of my affiliate links because something like “makingsenseofcents.com/bluehost” looks much better than the long, crazy-looking links that affiliate programs usually give you.
Provide real reviews. You should always be honest with your reviews. If there is something you don’t like about a product, either don’t review the product at all or mention the negatives in your review.
Ask for a commission increase. If you are doing well with a particular affiliate program, ask to increase your commissions.
Build a relationship with your affiliate manager. Your affiliate manager can supply your readers with valuable coupons, commission increases, bonuses, and more.
Write tutorials. Readers want to know how they can use a product. Showing them how to use it, how it can benefit them, and more are all very helpful.
Don’t go overboard. There is no need to include an affiliate link 1,000 times in a blog post. Include them at the beginning, middle, and end, and readers will notice it. Perhaps bold it or find another way for it to stand out as well.
You can learn more about affiliate marketing strategies in my course Making Sense of Affiliate Marketing.
2. Advertisements and sponsorships
Advertising on a blog is one of the first ways that bloggers learn how to monetize a blog. In fact, it’s exactly how I started!
This form of blogging income is when you directly partner with a company and advertise for them on your website or social media accounts.
You may be writing a review for them, a tutorial, talking about their product or company, taking pictures, and so on.
If you want to learn how to increase your advertising-income, I recommend taking my Making Sense of Sponsored Posts course.
3. Display advertising
Display advertising is one of the easiest ways to make money blogging, but it most likely won’t earn you the most, especially in the beginning.
I’m sure you’ve seen display ads before. They may be on the sidebar, at the top of a post, within a blog post, and so on.
The ads are automatically added when you join an advertising network, and you do not need to manually add these ads to your blog.
Your display advertising income increases or decreases almost entirely based on your page views, and once you place the advertisement, there’s no direct work to be done.
If you want to learn how to monetize a blog through display advertising, then some popular networks include Adsense, MediaVine, and AdThrive.
Personally, I use AdThrive for my display advertising network. I don’t have many display advertisements on my blog, but it is easy income.
4. Sell your own products
Another popular way to monetize a blog is to create a sell your own products.
This could be an online product, something that you ship, and so on, such as:
An online course
A coaching program
An eBook
Printables
Memberships
Clothing, candles, artwork, hard copy books, and anything else you can think of
And the list goes on and on. I have seen bloggers be very successful in selling all kinds of things on their blogs.
What’s great about selling your own product is that you are in complete control of what you are selling, and your income is virtually unlimited in many cases.
I launched my first product about 5 years after I created Making Sense of Cents, which was a blogging course called Making Sense of Affiliate Marketing. I regret not creating something sooner because this has been an excellent source of income and has helped many people along the way.
Have an email list
If you really want to learn how to monetize a blog, I recommend that you start an email list from the very beginning.
I waited several years to start my email list, and that was a huge mistake!
Here’s why you need an email list right away:
Your newsletter is YOURS. Unlike social media sites, your newsletter and email subscribers are all yours, and you have their undivided attention. You don’t have to worry about algorithms not displaying your content to readers, and this is because they are your email subscribers. You aren’t fighting with anyone else to have them see your content.
The money is in your email list. I believe that email newsletters are the best way to promote an affiliate product. Your email subscribers signed up to hear what YOU have to write about, so you clearly have their full attention. Your email list, over any other promotional strategy, will almost always lead to more income and sales.
Your email subscribers are loyal to you. If someone is allowing you to show up in their inbox whenever you want, then they probably trust what you have to say and enjoy listening to you. This is a great way to grow an audience and a loyal one at that.
Email is a great way to deliver other forms of content. With Convertkit, I am able to easily create free email courses that are automatically sent to my subscribers. Once a reader signs up, Convertkit sends out all the information they need in whatever time frame I choose to deliver the content.
Attract readers
As a new blogger, you’ll want to find ways to attract a readership to your blog and your article.
No, you don’t need millions and millions of page views to earn a good living from blogging. In fact, I know some bloggers who receive 1,000,000 page views yet make less money than those with 100,000 monthly page views.
Every website is different, but once you learn what your audience wants, you can start to really make money blogging, regardless of how many page views you receive.
Having a successful blog is all about having a loyal audience and helping them with your content.
Even with all of that being said, if you want to learn how to monetize a blog, learning how to improve your traffic is valuable. The more loyal and engaged followers you have, the more money you may be able to make through your blog.
There are many ways to grow your readership, such as:
Write high-quality articles. Your blog posts should always be high-quality and helpful, and it means readers will want to come back for more.
Find social media sites to be active on. There are many social media platforms you can be active on, such as Pinterest, Facebook, Twitter, Instagram, TikTok, Youtube, and others.
Regularly share new posts. For most blogs, you should publish content at least once a week. Readers may forget about you if you go for weeks or months at a time without a blog post.
Guest post. Guest posting is a great way to reach a new audience, as it can bring new readers to your blog who will potentially subscribe to it.
Make sure it’s easy to share your content. I love sharing posts on social media. However, it gets frustrating when some blogs make it more difficult than it needs to be. You should always make sure it’s easy for readers to share your content, which means your social media icons should be easy to find, all of the info input and ready for sharing (title, link, and your username tagged), and so on. Also, you should make sure that when someone clicks on one of your sharing icons the title isn’t in CAPS (I’ve seen this too many times!).
Write better titles. The title of your post can either bring readers to you or deter them from clicking over. A great free tool to write better headlines is CoSchedule’s Headline tool.
Apply SEO strategies. SEO (search engine optimization) is not something I can teach in this small section, but I go over it below in another section.
Have a clean and user-friendly blog design. If you want more page views, you should make it as easy as possible for readers to navigate your blog. It should be easy for readers to find your blog homepage, search bar, blog posts, and so on.
Now, I also want to talk about helpful resources, courses, and more that can help you to learn how to grow your page views on your blog.
Below are some of my favorite blogging resources to help you improve your traffic:
Grow through SEO
SEO (search engine optimization) is how you get organic search traffic to your blog.
When you search a phrase on Google, you’ll see a bunch of different websites as the results. This is the result of these websites applying SEO strategies to their blog.
This is a great way for readers to find your blog, and SEO is important to pay attention to as you learn how to monetize a blog!
Below are some of my favorite SEO resources:
Stupid Simple SEO: This is my favorite overall SEO course, and one of the most popular for bloggers. I highly recommend taking it. I have gone through the whole course, and I constantly refer back to it.
Easy On-Page SEO: This is an easy-to-follow approach to learning on-page SEO so your articles can rank on Google. I have read this ebook twice, and it is super helpful.
Easy Backlinks for SEO: This ebook will show you 31 different ways to build backlinks, which are needed for SEO.
How To Get 50,000 Pageviews per Month With Keyword Research: This ebook shares the steps for keyword research so that you can get SEO traffic to your website.
Common questions about how to monetize a blog
Below, I’m going to answer some questions I’ve received about how to start a blog such as:
How many views do you need to monetize a blog?
How do beginner bloggers make money?
Why do bloggers fail?
How many posts should I have before I launch my blog?
How many times a week should I post on my blog?
How many views do you need to monetize a blog?
The amount of page views needed to make money blogging varies, and there is no magic number that you should be aiming for.
This is because it depends on so many factors, such as how you will monetize your blog, your niche, the number of email subscribers you have, the quality of your website, and more.
You may see success with 10,000 page views a month, or you may see success with over 100,000 page views a month. It simply depends on the factors above.
How do beginner bloggers make money?
Beginner bloggers can make money in many different ways, such as display advertising, affiliate marketing, creating their own products, and sponsorships.
You can start any of these right from the very beginning.
Display advertising is usually the easiest way to begin monetizing a blog, but the payoff is not very high, especially in the beginning when your page views are not high.
How many posts should I have before I launch my blog?
I recommend just launching your blog as soon as you have one blog post and a design. Building a huge backlog of blog posts isn’t usually needed, and it can prevent you from ever getting started!
How many times a week should I post on my blog?
The more blog posts you have, then the more traffic you may get. That’s because it’s more opportunities to show up in Google searches or share your posts on social media.
I recommend publishing a new blog post at least once a week. Anything less isn’t advised.
Publishing blog posts consistently is smart because readers know to expect regular content from you.
Why do bloggers fail?
Bloggers fail for many different reasons. These reasons may include:
Giving up too soon. It takes time to make money blogging, and sadly, many people give up just a few months into starting a blog.
Not publishing consistently. I recommend publishing content at least once a week, as described in the previous section. Some new bloggers may go months without publishing, and this will take them much longer to make money blogging as they are simply not dedicating enough time to their blog.
Not spending enough time learning about blogging. Blogging is not as easy as you may think. There is a lot to learn in order to make it work. You may need to learn about how to grow your blog’s traffic, how to monetize a blog, how to write high-quality content, and more.
Not having your own domain and self-hosting. If you want to make money blogging, I highly recommend owning your domain name and being self-hosted. The longer you put this easy step off, the longer it will most likely take for you to make money blogging. You can learn more at How To Start a WordPress Blog.
And much more. Blogging is like any business – there are things to learn, things to improve on, and more.
How do I start a blog?
If you have any other questions related to starting a blog, I recommend checking out What Is A Blog, How Do Blogs Make Money, & More. In this article, I answer more questions related to blogging such as:
How do I come up with a blog name?
What blogs make the most money?
How do you design a blog?
How many views do you need to make money blogging?
How many blog posts should I have before launching?
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
You incur a balance transfer fee when you move an outstanding debt from one card to another. There’s usually a 3 to 5 percent charge for this procedure.
A balance transfer fee is a charge that occurs when you transfer an outstanding balance from one account to another. Balance transfer fees are based on the amount of money you’re attempting to migrate. Normally, fees are around 3 to 5 percent of your outstanding balance.
Boosting your comprehension of credit card terms and conditions, balance transfers and interest rates can help you avoid overpaying with balance transfer fees. This guide will explore these fees in detail and offer strategies to make the most of your credit cards without breaking the bank.
Key takeaways:
Balance transfer fees only apply if you have an outstanding card balance.
There’s usually a $5 or $10 minimum fee for balance transfers.
Fees can apply even if you transfer your balance to a card with zero percent interest.
Table of contents:
What is a balance transfer fee?
To help you better understand what a balance transfer fee is, we’ll break this term down:
Your balance refers to the amount of money that you’re currently borrowing from a lender.
A transfer results from asking a lender to move your balance from one account to another.
The fee kicks in as a charge for initiating that transfer—the cost of which is based on a percentage of the balance you’re transferring.
Balance transfer fees range from 3 to five percent of the amount you wish to transfer. The exact price will vary from one instance to the next, but you can find more specific information in your lender’s terms and conditions for balance transfers.
How do you avoid balance transfer fees?
Finding and using a card that doesn’t charge a fee is the most straightforward way to avoid balance transfer fees altogether. These cards may also have a 0 percent APR offer for a set amount of time, which can save you lots of money in the long run.
Another alternative to initiating a balance transfer is utilizing a debt consolidation loan. Rather than keep track of multiple accounts with varying interest rates, this option can help you consolidate credit card debt in one place. However, keep in mind that consolidation loans can have high requirements for applicants, and your accounts might be frozen while the process takes place.
Does a balance transfer hurt your credit score?
Initiating a balance transfer won’t affect your credit alone, though the result may cause your scores to fluctuate. One factor it may affect is your credit utilization, which compares your current balance against your total credit limit and makes up 30 percent of your FICO® credit score. Transferring funds to even out the balances on your credit cards can improve your credit utilization and positively affect your credit health. It’s best to aim for a credit utilization rate of less than 30 percent, if you can.
Conversely, applying for a new credit card typically triggers a hard inquiry on your credit profile, which can temporarily hurt your credit. Inquiries can stay on your credit report for up to two years, but they shouldn’t hurt your credit very much or for very long.
Lastly, the fee generated from initiating a balance transfer can take away from funds that you would’ve used to pay down a balance. Missing or being late on a payment can negatively impact your credit, as payment history makes up 35 percent of your FICO score.
Is a balance transfer fee worth paying?
Balance transfer fees are often worth it if you’re transferring money onto a card with low or no interest at all. Let’s say you currently have a card with a 30 percent APR and a balance of $1,000. If you have a 30-day billing cycle, that balance would generate $24.95 each cycle.
If you transferred that balance to a card with 0 percent APR, that balance would generate $0 each cycle for a one-time balance transfer fee of $30 to $50. In essence, balance transfer fees might be worth it if you have a balance that you’ll need to pay off over a long period.
How to find the right balance transfer credit card
The best balance transfer cards offer much more than a promotional 0 percent APR incentive. How these cards function long-term can also help you determine if they’re right for you. Below, we outline several important factors to keep in mind when shopping around for a balance transfer card.
Double-check your terms and conditions
The terms and conditions of a new credit card will outline a wealth of helpful information for you to keep in mind. You can typically find these documents digitally, or have them mailed to you. Here, you can see your card’s specific parameters for balance transfers along with your credit limit and APR.
Check if there are minimum balance transfer fees
As previously mentioned, balance transfers normally float between 3 and 5 percent of the transfer amount. However, minimum fees can kick in if you transfer a small amount of money. Normally, these minimum fees range from $10 to $15.
Look out for annual fees
Annual fees can vary for different types of credit cards. Some don’t charge anything, while others can cost hundreds of dollars. When transferring funds onto a new card, be sure that you can manage the annual fee that might come with it.
Increase your financial knowledge with Lexington Law Firm
Balance transfer fees are often inconvenient and occasionally confusing. Speaking with a financial expert can take much of the guesswork out of handling account balances, so you may want to look into this.
Additionally, Lexington Law’s services can help you review your credit report and keep an eye out for any inaccurate negative items that may be affecting your credit. You can also refer to our library of articles about credit and other financial topics for more information.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Moriah Beaver
Associate Attorney
Moriah is an attorney practicing in consumer advocacy at Lexington Law.
Before joining Lexington, she represented plaintiffs in personal injury litigation, dealing with claims arising from car accidents, slip and falls, and dog bites. Moriah studied English at Brigham Young University for her undergraduate degree and went on to graduate from Brigham Young University’s J. Reuben Clark Law School. She is from Hau’ula, Hawaii, but has been a resident of Utah for over 10 years now.
The originators who are weathering the industry headwinds told HousingWire that a significant decline in mortgage rates is no longer expected.
“Generally speaking, originators did not expect mortgage rates to be as high as they are right now. But look, I think a lot of it is wishful thinking. The refinance boom lasted three years. Why would the higher rate environment not last as long?” said Craig Strent, former CEO of Apex Home Loans and head of the faculty of mentors at The Loan Atlas, a mortgage coaching platform.
“A lot of people are going after not a lot of deals, and it’s easy to fall into a race to the bottom and get commoditized. It’s a survival of the people that are doing the right things,” Strent added.
The high-performing LOs are not putting a lot of focus on a potential decline in mortgage rates. Rather, their priorities are buyer education and the nurturing and building of more referral relationships to expand their market share, loan originators who spoke to HousingWire said.
Two types of homebuyers
“For every five phone calls I have, only one out of five of those will actually supply paperwork. They want to know what the rates are and they say it’s too high,” said Justin Wood, production manager at CMG Financial.
Many of his buyers are still waiting for rates to come down before seeking preapproval for a mortgage. On the other hand, some buyers see the value of getting a higher-rate mortgage in the current environment.
Having a fully preapproved mortgage, buyers will be able to jump on the opportunity more quickly when they find the home they’ve been looking for, Wood explained.
These are the borrowers who know it’s unrealistic to get mortgage rates as low as 3% and realize a drop in mortgage rates will entail a rise in list prices due to lower levels of housing inventory.
What’s changed about first-time homebuyers is that they no longer expect to get mortgages at 4% levels like they did during the COVID-19 pandemic, said Khash Saghafi, a loan officer at Liberty Home Mortgage Corp.
Saghafi has clients who recently decided to pull the trigger and move to a bigger house by selling their home that had a 2.375% mortgage rate.
The couple was quoted 7% for a $500,000, three-bedroom home in early March, and they decided to go ahead with the purchase as they expect to refinance the mortgage when rates eventually decline.
“What I tell all loan officers, no matter who I talk to, is that there’s no foreclosure crisis coming on the horizon,” Saghafi said. “For that reason, real estate prices are only going in one direction — and that’s up. So, whatever you’re looking at today, it’s going to be more expensive 12 months from now.”
Priorities for successful originators
Educating borrowers on the reasons why they should be in the market now is crucial in adding value, Saghafi and other mortgage professionals emphasized.
“Even though the rates are higher now, I think it’s a great market for a first-time homebuyer,” Saghafi said. “Interest rates going up definitely cooled the market, but overall, that is not the problem.”
The rationale behind this thinking is that if a borrower can afford their current monthly mortgage payment, they can always refinance when rates drop, rather than waiting until rates decline only to see home prices soar.
“I have spoken to multiple people that feel trapped in their home,” Strent said. “They say, ‘Why would I sell my $600,000 home at 3.5% to buy a $1 million house at 7%?’ That 7% rate is high now, but you’re going to refinance. If you wait for rates to drop to 5%, that $1 million house is going to be $1.4 million because everybody else is going to want it.”
Mike Simonsen, founder and president of real estate analytics company Altos Research, expects home prices to climb for the rest of the spring and peak in June.
“There are buyers on the sidelines and if rates were to finally fall again, you’ll see inventory fall with new bidders, you’ll see fewer price reductions and you’ll see the leading indicators of home sales prices … climb over last year,” Simonsen wrote in recent commentary.
According to Michael Clark, vice president at Primary Residential Mortgage, there’s no secret to grabbing market share — it’s about doing outbound sales activities, addressing agents’ fears and adding value for them.
“Our philosophy is, ‘Go help agents that are sending you buyers.’ Market their listings; go to their listings. By doing so, you are adding value to their marketing efforts and getting them a contract even if you don’t write a loan on that home,” Clark said.
When an agent sees this effort, they will be more likely to send buyers, refer the loan officer to other agents through word of mouth, and even pick up some clients at an open house.
Clark’s team of 73 loan originators who cover the East Coast funded $81 million in loans in January 2024, up 35% from January 2023. More than 20 of his LOs produced at least $1 million in volume during the opening month of this year and 10 of them topped $2 million.
“All those guys weren’t doing that much volume in 2019,” Clark noted.
U.S. mortgage origination volume is expected to be $2 trillion in 2024 and $2.3 trillion in 2025, according to forecasts from the Mortgage Bankers Association (MBA). For comparison, lenders funded $2.4 trillion in first-lien mortgages in 2019, prior to the pandemic.
“Buyers are shopping left and right, but we don’t get shopped. Why? Because there’s an actual relationship — we are their mortgage adviser,” Clark said. “We’re not just some transaction coordinator that is trying to push paper to a closing table.”
“I always tell our loan officers and our team, activity breeds activity,” Wood said. “There’s a tough market out there for sure, but I think it’s creating a lot of good opportunities for people that are ready to go and serious about buying.”
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Credit card companies report payments at the end of their monthly billing cycle, also known as the statement closing date.
Credit cards are great for making large purchases and racking up points or miles and useful for building and improving your credit. If you’re a credit card holder constantly tracking your credit score to see improvement, it can be helpful to know when companies report to credit bureaus.
Unfortunately, issuers don’t report to credit reporting agencies on a specific day of the month. However, we can investigate a few factors to provide a prediction of when they will report as well as when you will see your payments reflected on your credit report.
Table of contents:
When do credit card companies report to credit bureaus?
How does credit card utilization affect your credit score?
How to decrease your credit utilization risk
How often do credit reports and scores update?
When do credit card companies report to credit bureaus?
Unfortunately, there isn’t a set date for when credit card companies report to the three credit bureaus: TransUnion®, Experian® and Equifax®. However, you can estimate the time frame by considering a few factors. Credit card companies typically report payments at the end of the monthly billing cycle. This is also known as your statement closing date. You can find these dates on your monthly statement.
However, don’t expect your credit report to update on the same day. It usually takes a bit for credit reporting agencies to update the information on your credit report. Updates on your credit report will also depend on:
The number of lines of credit
Due dates for every line of credit
If the credit issuer reports to all three credit bureaus or just one or two
The frequency and speed with which the credit bureau updates reports
If you’ve just paid your statement balance or previously unpaid balances, you likely want to see that reflected on your credit report as soon as possible. Since we don’t have a set-in-stone date for when you’ll see updates on your credit report, we recommend waiting at least a month or so to see any changes. If several months pass and you don’t see any updates to your report, we recommend contacting your credit card company to confirm your payments were correctly processed.
How does credit card utilization affect your credit score?
Credit utilization is the ratio of your current outstanding credit debt to how much total available credit you have. Available credit is the maximum amount of money you can charge to your credit card. A low credit utilization is a good sign that you, the borrower, are using a small amount of your credit limit.
A large outstanding credit balance—or higher credit utilization—can negatively affect your credit. This is especially true if the credit utilization percentage is higher than 30 percent. The lower your credit utilization, the better your credit may be.
How to decrease your credit utilization
Your credit score is affected by five factors: credit utilization, credit mix, new credit, payment history and length of credit history. However, credit utilization makes up 30 percent of your score. If you’re worried about how your credit utilization impacts your credit score, there are ways to decrease your risk and potentially improve your credit.
1. Complete multiple payments
Completing smaller payments every month can help lower your credit balance. You can also set up automatic payments so your credit balance is as low as possible when your credit card company reports to the credit bureaus.
2. Ask for a higher credit limit
Increasing your credit limit can lower your credit utilization ratio, as you’ll have more credit available. This can improve your credit score as it reduces the percentage of credit used every month. However, a higher credit limit may encourage you to spend more, which could go against your goal to improve your credit. Only ask for a higher credit limit if you think you’ll stay within your current average spending amount.
3. Complete payments on time
Paying your bills by their due date is the easiest way to improve your credit. This can become harder if you have multiple credit accounts, as they won’t always have the same due dates. Keeping track of your due dates (found on the monthly statements) via credit card management apps or similar tools can help you stay on top of your bills.
If you can do so, making multiple payments on your card(s) throughout the month is the smartest move. This is because it can increase the likelihood that your credit utilization ratio is low when your credit card provider reports your data to the credit bureaus.
How often do credit reports and scores update?
While there isn’t an exact date when your credit score and report will update, it usually occurs within a 30- to 45-day timeframe. This also depends on when the credit bureaus refresh the information in your report. Remember that if you have multiple lines of credit, you’ll see your credit score constantly fluctuating based on when your creditors report to the credit reporting agencies.
How long until a new card appears on your credit report?
Just received and activated a new credit card? You’ll need to wait a bit to see your new credit card appear on your credit report. You can expect it to show up 30 to 60 days after your application was approved and your creditor opened the account. The number of days will depend on your credit card’s billing cycle.
Assess your credit with Lexington Law
Now that you have a better understanding of when companies report to credit bureaus, it’s also a good time to assess your credit score. If you receive your credit report and notice your credit score isn’t as good as it should be, don’t worry. With help from professional credit repair consultants at Lexington Law Firm, you may be able to improve your credit through our credit repair process. Get started with a free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
Lately, mortgage rates have surged higher, climbing from as low as 2% to over 8% in some cases.
Despite this, home builders have been enjoying healthy sales of newly-built homes.
And somewhat incredibly, they haven’t had to lower their prices in many markets either.
The question is how can they continue to charge full price if financing a home has gotten so much more expensive?
Well, there are probably several reasons why, which I will outline below.
Home Builders Don’t Have Competition Right Now
The first thing working in the home builders’ favor is a lack of competition. Typically, they have to contend with existing home sellers.
A healthy housing market is dominated by existing home sales, not new home sales.
If things weren’t so out of whack, we’d be seeing a lot of existing homeowners listing their properties.
Instead, sales of newly-built homes have taken off thanks to a dearth of existing supply.
In short, many of those who already own homes aren’t selling, either because they can’t afford to move. Or because they don’t want to lose their low mortgage rate in the process.
This is known as the mortgage rate lock-in effect, which some dispute, but logically makes a lot of sense.
At the same time, home building slowed after the early 2000s housing crisis, leading to a supply shortfall many years later.
Simply put, there aren’t enough homes on the market, so prices haven’t fallen, despite much higher mortgage rates.
They Don’t Need to Lower Prices If Demand Is Strong
There’s also this notion that home prices and mortgage rates have an inverse relationship.
In that if one goes up, the other must surely come down. Problem is this isn’t necessarily true.
When mortgage rates rose from record lows to over 8% in less than two years, many expected home prices to plummet.
But instead, both increased. This is due to that lack of supply, and also a sign of strength in the economy.
Sure, home buying became more expensive for those who need a mortgage. But prices didn’t just drop because rates increased.
History shows that mortgage rates and home prices don’t have a strong relationship one way or the other.
Things like supply, the wider economy, and inflation are a lot more telling.
For the record, home prices and mortgage rates can fall together too!
Lowering Prices Could Make It Harder for Appraisals to Come in at Value
So we know demand is keeping prices mostly afloat. But even still, affordability has really taken a hit thanks to those high rates.
You’d think the home builders would offer price cuts to offset the increased cost of financing a home purchase.
Well, they could. But one issue with that is it could make it harder for homes to appraise at value.
One big piece of the mortgage approval process is the collateral (the property) coming in at value, often designated as the sales price.
If the appraisal comes in low, it could require the borrower to come in with a larger down payment to make the mortgage math work.
Lower prices would also ostensibly lead to price cuts on subsequent homes in the community.
After all, if you lower the price of one home, it would then be used as a comparable sale for the next sale.
This could have the unintended consequence of pushing down home prices throughout the builder’s development.
For example, if a home is listed for $350,000, but a price cut puts it at $300,000, the other homes in the neighborhood might be dragged down with it.
That brings us to an alternative.
Home Builders Would Rather Offer Incentives Like Temporary Buydowns
Instead of lowering prices, home builders seem more interested in offering incentives like temporary rate buydowns.
Not only does this allow them to avoid a price cut, it also creates a more affordable payment for the home buyer.
Let’s look at an example to illustrate.
Home price: $350,000 (no price cut) Down payment: 20% Loan amount: $280,000 Buydown offer: 3/2/1 starting at 3.99% Year one payment: $1,335.15 Year two payment: $1,501.39 Year three payment: $1,676.94 Year 4-30 payment: $1,860.97
Now it’s possible that home builders could lower the price of a property to entice the buyer, but it might not provide much payment relief.
Conversely, they could hold firm on price and offer a rate buydown instead and actually reduce payments significantly.
With a 3/2/1 buydown in place, a builder could offer a buyer an interest rate of 3.99% in year one, 4.99% in year two, 5.99% in year three, and 6.99% for the remainder of the loan term.
This would result in a monthly principal and interest payment of $1,335.15 in year one, $1,501.39 in year two, $1,676.94 in year three, and finally $1,860.97 for the remaining years.
This assumes a 20% down payment, which allows the home buyer to avoid private mortgage insurance and snag a lower mortgage rate.
If they just gave the borrower a price cut of say $25,000 and no mortgage rate relief, the payment would be a lot higher.
At 20% down, the loan amount would be $260,000 and the monthly payment $1,728.04 at 6.99%.
After three years, the buyer with the higher sales price would have a slightly steeper monthly payment. But only by about $130.
And at some point during those preceding 36 months, the buyer with the buydown might have the opportunity to refinance the mortgage to a lower rate.
It’s not a guarantee, but it’s a possibility. In the meantime, they’d have lower monthly payments, which could make the home purchase more palatable.
Home Price Cuts Don’t Result in Big Monthly Payment Savings
Price Cut Payment
Post-Buydown Payment
Purchase Price
$325,000
$350,000
Loan Amount
$260,000
$280,000
Interest Rate
6.99%
6.99%
Monthly Payment
$1,728.04
$1,860.97
Difference
$132.93
At the end of the day, the easiest way to lower monthly payments is via a reduced interest rate.
A slightly lower sales price simply doesn’t result in the savings most home buyers are looking for.
Using our example from above, the $25,000 price cut only lowers the buyer’s payment by about $130.
Sure, it’s something, but it might not be enough to move the needle on a big purchase.
You could take the lower price and bank on mortgage rates moving lower. But you’d still be stuck with a high payment in the meantime.
And apparently home buyers focus more on monthly payment than they do the sales price.
This explains why home builders aren’t lowering prices, but instead are offering mortgage rate incentives instead.
Aside from temporary buydowns, they’re also offering permanent mortgage rate buydowns and alternative products like adjustable-rate mortgages.
But again, these are all squarely aimed at the monthly payment, not the sales price.
So if you’re shopping for a new home today, don’t be surprised if the builder is hesitant to offer a price cut.
If they do offer an open-ended incentive that can be used toward the sales price or interest rate (or closing costs), take the time to consider the best use of the funds.
Those who think rates will be lower in the near future could go with the lower sales price and hope to refinance. Just be sure you can absorb the higher payment in the meantime.
Read more: Should I use the home builder’s lender?
National mortgage rates were mostly lower compared to a week ago, according to rate data collected by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo mortgages each moved lower, while rates for adjustable rate mortgages rose.
While it’s expected that rates will gradually come down this year, it may not be a straight downward path.
At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates, but could cut rates in the future. The Fed meets again on March 20, where they’ll announce an updated outlook. Rate fluctuations affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates last updated March 5, 2024.
These rates are marketplace averages based on the assumptions here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, March 5th, 2024 at 7:30 a.m.
30-year mortgage retreats, -0.09%
Today’s average rate for the benchmark 30-year fixed mortgage is 7.25 percent, a decrease of 9 basis points over the last week. Last month on the 5th, the average rate on a 30-year fixed mortgage was lower, at 7.10 percent.
At the current average rate, you’ll pay principal and interest of $682.18 for every $100,000 you borrow. That’s $6.11 lower, compared with last week.
The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate eases, -0.06%
The average rate you’ll pay for a 15-year fixed mortgage is 6.70 percent, down 6 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $882 per $100,000 borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARM rate moves higher, +0.12%
The average rate on a 5/1 adjustable rate mortgage is 6.31 percent, up 12 basis points over the last week.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.31 percent would cost about $620 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Current jumbo mortgage rate retreats, -0.10%
The average jumbo mortgage rate today is 7.28 percent, down 10 basis points over the last seven days. This time a month ago, the average rate on a jumbo mortgage was lesser at 7.16 percent.
At the average rate today for a jumbo loan, you’ll pay $684.21 per month in principal and interest for every $100,000 you borrow. That’s lower by $6.81 than it would have been last week.
Refinance rates
Current 30 year mortgage refinance rate climbs, +0.01%
The average 30-year fixed-refinance rate is 7.25 percent, up 1 basis point from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 7.19 percent.
At the current average rate, you’ll pay $682.18 per month in principal and interest for every $100,000 you borrow. That’s $0.68 higher compared with last week.
Where are mortgage rates heading?
With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What these rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
To help you uncover the best deal, get at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.