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Unique views await you in Phoenix.

There’s no shortage of beautiful apartments awaiting you throughout Phoenix. With a desert landscape just outside your window, there’s so much to see. As you’re making your list of must-have amenities, like a pool or a fitness center, don’t discount the need for a killer view.

If you’re thinking about where to find the best view in Phoenix, this list will definitely get you pointed in the right direction. Find your favorite spot and fill out an application today.

Source: Rent. / The Wexler

Everything you see out your window at The Wexler is idyllic. Whether you’re looking out at the courtyard from your balcony or taking in the view from the pool, this is one beautiful place to call home. The extra touches include the perfectly manicured bushes throughout the property as well as tall palm trees standing guard around the pool.

In the heart of Phoenix, you’ll find The Wexler within the city’s Central Avenue Corridor. This stretch is one of the city’s most vital and heavily trafficked areas. It not only gets you from the north end of Phoenix to the south, but it’s full of things to see and do.

Source: Rent. / Optima Kierland Apartments

It’s not every day that a spin studio delivers views like the one you’ll find at Optima Kierland Apartments. With an entire wall of windows, from top to bottom, you get an amazing outside view while you spin the stresses of the day away. Looking out on the grass, trees and some of the outdoor amenities, this isn’t the only impressive stop on the visual tour. All private terraces have a lush hanging garden, and landscaped courtyards occupy 9.5 acres within the community itself.

Known for its golf courses and shopping plazas, living in Paradise Valley keeps you close to the city, but at a more relaxed pace. The area is full of pubs, sports bars and casual eateries. You can also easily get out and enjoy some nature along the Scottsdale Greenbelt. With a little bit of everything when it comes to what to see and do, this is undoubtedly a great spot to call home.

Source: Rent. / Vela on Camelback

Look out across Camelback East from the rooftop at Vela on Camelback. This friendly space provides views that stretch all the way to the mountains, giving a full look at what this great city has to offer. Strings of Edison lights allow you to use this space in the evening, seeing Phoenix shine from a nighttime perspective as well.

Providing you with easy access to the area’s newest restaurants, bars, farmers markets and more, living in Camelback East is quite nice. Popular hangouts and chic eateries sit right outside your door, and it’s a breeze to hop on the light rail when you want to head elsewhere in Phoenix. The star of this neighborhood though is Camelback Mountain, with its amazing hiking trails and fantastic desert views.

Source: Rent. / 56 North

Keep an eye on what’s happening at street level as you sit in the hip and cool lounge at 56 North. There’s as much to see inside here as you’ll find outdoors, so take some time to enjoy your surroundings. This lounge, for example, is the ultimate chill space, with a massive four-sided fireplace and multiple couches. All the hangout spots in this community are pretty cool, but this one takes the cake.

Living within the Desert View village gives you a unique experience. The neighborhood is almost equally divided between your everyday urban amenities and a huge chunk of the Sonoran Preserve. This is a great area for outdoor enthusiasts who like to spend their time hiking and enjoying the natural sights of the desert.

Source: Rent. / Bayside

A cozy, stucco balcony gives way to a tree-filled view when you live at Bayside. This may seem pretty standard, but when you live in the desert, healthy, large trees aren’t always this easy to come by. The thoughtful landscaping you’ll find here ensures you get some greenery in your views, even when taking some downtime in your own space.

Giving off relaxing vibes, Deer Valley is another area to live if being outside is your thing. From this neighborhood, you’re close to the Sonoran Preserve, but specifically to Deem Hills and Cave Buttes. Both areas are hot spots for hikers but also attract mountain bikers. There’s also plenty of shopping, dining and even a waterpark all within the boundaries of this lovely Phoenix locale.

Source: Rent. / Nova North Valley

The green grass definitely won’t grow all around when you call Phoenix home, but that’s not an issue for Nova North Valley. Their hardscape/vegetable garden takes on a zen-like feel thanks to its twisty shape, with plants growing in a fun swirl. This is a great place to walk through, admire the vegetation and take in a landscape view that is quintessential to desert life. It’s also a great place to grow some produce if that’s your thing.

Another village on the edge of the Sonoran Preserve, when you live in North Gateway you get a solid mix of urban amenities and outdoor recreational opportunities. While the Preserve is practically in your backyard, you’re also just a short drive from a wide variety of retail and entertainment options. There’s also no shortage of coffee shops and restaurants nearby.

Source: Rent. / The Station on Central

You’ll find the best view of the pool area at The Station on Central in one very particular place. To see this beautiful area in all its grandeur, you need to grab a seat by the circular fire pit. From there you not only look out to the immense pool but can see all the lounge chairs, turquoise umbrellas, tall palm trees and the funky colors of the apartment buildings themselves. It’s a perfect view and just the right place to settle in for some rest and relaxation.

Another fabulous community in the Central Avenue Corridor neighborhood, it’s all about urban luxury here. There are actually two resort-style swimming pools along with a clubhouse with a large TV and billiards table. A 24-hour fitness center makes it easy to stay fit, although living within the heart of Phoenix means there’s a lot of temptation to go out and indulge.

Source: Rent. / Skyline Lofts

Get a supreme urban view from the rooftop at Skyline Lofts. Phoenix may not have a congested downtown with buildings packed tightly together, but if you want a view that reminds you you’re in the city, this is where you need to be.

As a busy cultural area, within the city’s financial district downtown, living in the historic Evans-Churchill area really gives you a nice mix of the best Phoenix has to offer. You’ll find hip restaurants and cool coffee shops among the brewpubs and cocktail lounges, so you’ll never go thirsty or hungry. Expect to see quite a few college students when you call this area home too. Its proximity to a few local colleges makes it a popular spot.

Source: Rent. / Ascent at Papago Park

When you’re a golfer, what’s a better sight to see out your window than a pristine putting green? On the Ascent at Papago Park grounds, you’ll find a perfect putting green with blue and white checkered flags marking the holes. Tall trees with curved trunks provide some shade to the area, which is an added bonus.

Within this Camelback East community, you’ll find plenty of other amenities, including a cinema room, billiards and shuffleboard, a great courtyard and a sizable clubhouse. You’re also centrally located, making it easy to get to city-wide amenities like the Phoenix Zoo and Desert Botanical Garden.

Source: Rent. / Camden North End

Mountains, mountains and more mountains. If this is the view you’ve been waiting for, look no further than Camden North End. This Desert View community gives you walls of floor-to-ceiling windows that face out to the natural splendor that encircles Phoenix. The mountains look good during the day, at dusk and just about every moment in between. Views like this open up the sky as well for fantastic sunsets and plenty of stars. Settle into the community lounge or step out onto the terrace to really absorb the full majesty of this great view.

Living here keeps you close to the best sites in Phoenix as well as some great trails for hiking and biking. It’s only a short drive to Gateway Trailhead at McDowell Mountains, the largest city park in the whole United States. For those looking for a less rustic adventure, you’ll find plenty of restaurants and shopping within walking distance from your Camden North End front door.

Make sure you have the best view in Phoenix

There’s no denying Phoenix is a beautiful place to call home, so take advantage of that. On your next apartment hunt, don’t forget to check out the view while you’re looking at all the community amenities. Adding what you see out your window to the mix can really turn your apartment into your home.

Featured Image Source: Rent. / Skyline Lofts

Source: rent.com

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There are so many possibilities for living arrangements once you move out on your own. You can decide to live alone or with one or more roommates. You can share space in a house or get an apartment. Another option, that has been around longer than you may think, is buying into or renting within cooperative housing.

Unlike all these other options, people who buy into a co-op own a piece of the entire building. It’s a unique way to own property that’s often more affordable than buying a condo or home.

It’s also a big investment. As a renter, living in a co-op creates a different, more communal atmosphere that you may not find elsewhere.

Before deciding to research co-ops in your area, it’s important to understand what a co-op apartment is.

What is a co-op apartment?

Cooperative housing is where you buy in to become a part-owner of that entire piece of property. “When you buy into a co-op, you become a shareholder in a corporation that owns the property. As a shareholder, you are entitled to exclusive use of a housing unit in the property,” says Lisa Smith from Investopedia. Rather than owning a single unit, you become a part-owner of the whole building. This gives you the right to live on the premises, in an available apartment.

Everyone who is a part of a particular co-op shoulder some of the financial responsibility of ownership. This includes primary expenses of mortgage payments, maintenance costs and taxes. Other fees can consist of utility bills, the expense of running the building, maintaining amenities and insurance premiums. Each cost breaks up among the total number of people vested in the co-op.

The history of co-op apartments

“There is no clear-cut answer as to when the first housing cooperative appeared in the United States.” Says Lynne Goodman from The Cooperator New York. She does reference authors Richard Siegler and Herbert J. Cooper-Levy in “Brief History of Cooperative Housing,” who claim the first American residential co-op was established in 1876 in Manhattan.

As the starting point for co-ops, New York City continued throughout history to offer this housing option. Moving in waves of popularity in this ever-growing city, co-ops began as home clubs, where people organized with the intention of building an apartment building together.

Co-op popularity hit another high in the 1920s as urban populations boomed, post-WWI. The next uptick was in the 1940s as a response to rent control provisions. In the 1980s, popularity rose as a result of increasing oil prices.

Today, co-ops are more than just living arrangements. You can buy into a food co-op or shop at a store that produces goods from a co-op. The methodology of being a part of a larger group has grown beyond investing in housing.

Where can I find cooperative housing?

In varying degrees of availability, you can find cooperative housing in every part of the country. “Housing cooperatives are quite common in certain parts of the country, such as New York City, Washington, D.C. and Chicago, but can be harder to find in other areas,” according to the National Association of Housing Cooperatives. They’re popular throughout the Northeast but exist elsewhere.

How do fair housing laws impact cooperative housing?

The Fair Housing Act consists of laws that prohibit discrimination based on race, skin color, sex, nationality, religion, disability and more when it comes to buying, selling, renting or financing housing.

Co-ops must abide by these laws, but at the same time, their approval processes for tenants is very different than what you find in a regular apartment. There’s no landlord-tenant relationship. Instead, a community board reviews applications. The members of this board can set up their own qualification system within the fair housing parameters. This can include net worth minimums or a certain debt-to-income ratio for eligibility.

“The board must not reject an applicant based solely on his or her race, gender, national origin, religion, sexual preference, marital status or familial status. The board can, however, take into consideration factors that impact an applicant’s ability to meet the financial obligations of the community, as well as governing responsibilities,” according to the law firm, Pentiuk, Couvreur & Kobiljak P.C.

A community board can be more restrictive than other housing options when it comes to inviting people to become owners or renters. This can make for a longer and more tedious approval process that doesn’t always feel so fair.

Is it worthwhile to buy in and become a part-owner?

Personal preference is what makes a co-op apartment appealing. To figure out whether it’s the right place for you, weigh the pros and cons carefully.

The perks

As a part-owner within a co-op, you influence how the building runs. You attend board meetings and get to vote on all decisions. This includes shaping rules and regulations for how the building is managed and who is eligible for consideration to join the co-op. You pretty much get to pick your neighbors and prevent anyone from moving in who might not maintain their space in the same way as the rest of the shareholders.

Another perk is the cost. Cooperative housing can cost less than owning a condo. “Co-ops tend to be cheaper per square foot. They typically offer buyers more control as an individual shareholder and often have lower closing costs,” says Lester Davis from The Washington Post.

The last primary perk to co-op living is community. This special living situation gives you more than somewhere to live, you get a whole community. You more often than not know your neighbors, have a network of people watching out for you and our home and connect with people you can rely on when in need of assistance.

The drawbacks

To get into a co-op, prepare for a more rigorous approval process. Not only will the board run a background and credit check, but you’ll have an in-person interview to get through. Everyone receives the same treatment. Once you’re approved, you’re in, but the process can also make it harder to sell when you’re ready to leave the co-op.

Rules within cooperative housing can feel more confining than in other living situations. Because you don’t own the unit you live in, you’ll have to contend with restrictions on how you can use your unit, whether you can sublet and more. You’ll also need extra insurance for your personal belongings since the building’s insurance won’t cover it.

One final key drawback goes back to cost. It may cost less to buy into a co-op, but with shared expenses comes more potential financial responsibility. If someone defaults on their payments, you and your neighbors are obligated to cover a portion of their missed payment.

Can I rent within a co-op?

This is a tricky question. Since a set of shareholders own the building, no single unit belongs to any one person. Because of this, many co-ops don’t allow renters at all. Additionally, the rate of owner occupancy in cooperative housing is much higher than you’d find elsewhere.

If a building does allow it, you may face a large application fee, along with set limits on the length of your lease. You’re also technically subletting rather than renting outright since you rent the unit from the co-op shareholder who holds a lease on that particular space. It’s a little more work to rent within a co-op, but it’s not a terrible option. If you want something more flexible, with a little less upfront cost and rigidity when it comes to the approval process, you may want to consider other options.

Is a co-op right for me?

A co-op may be right for you if, after learning more about what it really is, the idea still sounds appealing. It all depends on your own personal needs, which is why it’s good to know you have options when searching for your perfect living situation.

While co-ops can get you more square footage for your dollar, they can also feel more strict when it comes to rules and regulations. Finding the perfect balance of cost and comfort will help you know whether it’s time to start looking for a co-op.

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Savings

Compare rates and save on home insurance today!

What is renters insurance and why should I consider it?

As of 2019, roughly 36% of U.S. households were living in rental properties, meaning that a large percentage of the population opts to rent instead of own. While renters don’t own the property they live in, it’s still important to have some protection in place, which renters insurance, also referred to as an HO-4 policy, can provide.

A comprehensive renters insurance policy can help cover your personal belongings, liability exposure and additional living expenses, should your home become uninhabitable due to a covered event. Purchasing renters insurance is typically easy and the premiums are usually affordable compared to many other types of insurance. If you’re in the market for renters insurance, here’s what you need to know before purchasing a policy.

What does renters insurance cover?

Renters insurance can cover numerous situations, depending on the endorsements that you add to your policy. However, the main coverages on a renters insurance policy are:

  • Personal property coverage: This coverage is designed to pay for your damaged or destroyed belongings after a covered loss. Covered personal property generally includes your furniture, clothing, household items and some electronics.
  • Liability coverage: Your liability coverage may pay for medical bills and your legal fees if you are found at fault for someone’s injuries or damage to someone’s property.
  • Additional living expenses: If you are unable to live in your rented home or apartment after a loss, this coverage could help pay for the cost of a hotel and other expenses, like laundromat services or pet boarding. Living expenses coverage only covers the necessities. You should ask your insurance agent to see what exactly is covered when you purchase your policy.

You may also have the option to add additional coverages, like identity theft coverage, pet liability coverage and scheduled personal property coverage to your policy. If you are not sure what coverages you should consider, talking to a licensed agent could help.

Most renters policies also exclude damage to your personal items caused by earthquakes and flooding. While earthquake coverage can often be purchased as an endorsement, you may need to buy a separate policy if you live in a high-risk area. Flood insurance is most commonly offered as a separate policy, although a few companies offer endorsements or include this as a coverage option.

How much does renters insurance cost?

Renters insurance costs, on average, about $179 per year, per Triple-I. However, the cost of your renters insurance policy will vary based on several factors, including how much personal property coverage you purchase, the level of liability coverage you select, what additional coverages you choose and your claim history.

What states offer renters insurance?

Renters insurance is available in all 50 states and Washington, D.C. However, states that have a high density of renters, such as California, New York and New Jersey, may have more active renters insurance markets with more companies and endorsements to choose from.

Renters insurance is not just for those who rent apartments. Renters in condos and homes also have the option to purchase renters insurance. In warmer states like Florida and Georgia, homeowners may choose to rent their homes out for part of the year if they live elsewhere. The renters who occupy those homes can also purchase renters insurance policies to cover their belongings and liability exposure.

What companies offer renters insurance?

There are numerous renters insurance companies on the market, but your options will depend on what state you live in. Not all companies are available nationwide, and not all companies offer renters insurance in each state where they operate. If you are looking for the best renters insurance company, you may want to get quotes from these providers:

  • Geico: Renters who want to handle their policies digitally may want to consider Geico. The company has one of the most highly-rated apps in the industry.
  • Progressive: If you are looking for a highly customizable policy, Progressive could be a good choice. The company offers a long list of optional coverages, including water backup and personal injury.
  • State Farm: Renters looking for an in-person agency experience might want to get a quote from State Farm. The company has over 19,000 agencies across the country.

How do I save on renters insurance?

Although renters insurance is generally much less expensive than homeowners or condo insurance, there are still ways to reduce your premium.

  • Bundle your policies: If you also have an auto insurance policy, consider bundling your renters insurance with the same insurer — you might earn a discount on both policies.
  • Install protection devices: If your apartment has smoke alarms, a carbon monoxide detector or a home invasion alert system, you might save money on your policy.
  • Consider how you pay: If you can pay your annual premium in full, you might save money. If you do need to pay in installments, many companies offer discounts if you sign up for an automatic withdrawal.
  • Increase your deductible: Your deductible is the amount you will pay out of pocket if you file a claim. Generally, the higher your deductible, the lower your premium. Just be sure to choose a level that you can afford to pay if you file a claim.

Every insurance company is different, so discussing your policy with a licensed agent could help you find additional ways to save.

Frequently asked questions

    • Everyone’s situation is different and purchasing any kind of insurance policy is a highly individualized decision. Renters insurance is not required by law in any state, but a landlord has the right to require tenants to purchase a policy. However, even if you are not required to carry coverage, renters insurance does typically offer quite a bit of coverage for a relatively low cost. If your budget is particularly tight, you may be able to take advantage of discounts to lower the cost of a renters insurance policy while still getting valuable coverages.

    • The process of purchasing renters insurance is generally simple and there’s typically no waiting period, which means you may be eligible to get coverage on the same day you apply. For most people, the first step to getting a renters insurance policy is to obtain quotes from multiple insurance companies. Most companies offer personalized quotes online or by phone, or you could visit a local agency to speak to an insurance agent about your needs. During the quote process, you typically need to provide personal information, like your name, address and date of birth. This information can help determine the options and levels of coverage that are right for you. Once you have chosen a renters insurance policy to purchase, a representative will discuss the next steps. You may need to sign an application, and you will probably need to make at least one month’s payment for your policy to be active.

    • Because there are several insurers that offer renters on the market, you may not know where to start your search. Determining what kind of coverages you need and what features you want — like a digital app, 24/7 customer service or a live agent — may help you to find carriers that fit your needs. You can then request quotes from several companies to compare prices, coverages, discounts and features.

    • If you rent out a property, you may want to consider a landlord dwelling policy. This type of policy covers the structure of the home, detached structures and any personal property that you provide for the home (such as furniture). Your renters should consider purchasing a renters insurance policy, though, because a landlord dwelling policy does not provide any coverage for renters’ possessions.

      If you operate a short-term vacation rental, you may want to speak with your insurance agent to make sure you have adequate insurance coverage. Your short-term vacation rental tenants likely will not need a renters insurance policy. If they already have a homeowners, condo owners or renters insurance policy, their personal property coverage should transfer to a short-term rental, just as it would transfer to a hotel room.

    • That depends on the situation. Your pets are generally not considered personal property, so damage or injury to your pets is not typically covered by a renters insurance policy. For that, you need pet insurance. However, your liability coverage may cover damage or injury that your pets cause to others. However, some dog breeds and exotic animals are often excluded, and any animal that you do not disclose to your insurance company could also be excluded from coverage. Discussing your pet with your insurance company is often the best way to confirm your carrier’s guidelines.

    • Yes, renters insurance is a common policy. There are about 109 million renters in the United States, and most financial experts agree that renters insurance is a prudent purchase. Because of the prevalence of renters in the country, many different insurance companies offer renters insurance.

Source: thesimpledollar.com

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The Federal Home Loan Mortgage Corporation, or FHLMC, is known as Freddie Mac, the entity created by Congress for the purpose of buying mortgages from lenders to increase liquidity in the market. Freddie Mac was created in 1970 and expressly authorized to create mortgage-backed securities (MBS) to help manage interest-rate risk.

Because the FHLMC buys mortgages, lenders don’t have to keep loans they originate on their books. In turn, these lenders are able to originate more mortgages for new customers. The mortgage market is able to keep capital flowing and offer competitive financing terms to borrowers because of this system. In other words, the market runs more smoothly because of Freddie Mac and its sister company, Fannie Mae, the Federal National Mortgage Association (FNMA).

If you want to know more about how this government-sponsored enterprise works and how it affects your money, read on for details on:

•   What is the FHLMC and what are FHLMC loans?

•   What is the difference between Freddie Mac and Fannie Mae?

•   What are Freddie Mac mortgages?

•   How does the Federal Home Loan Mortgage Corporation work?

Freddie Mac and Fannie Mae

These organizations, with their friendly-sounding nicknames, serve a very important purpose. Freddie Mac and Fannie Mae were created for the purpose of stabilizing the mortgage market and improving housing affordability. These government-sponsored enterprises (GSEs) do this by increasing the liquidity (the free flow of money) in the market by buying mortgages from lenders. Mortgages are then pooled together into a mortgage-backed security (MBS) and sold to investors. The process created the secondary mortgage market, where lenders, homebuyers, and investors are connected in a single system.

In the past, Freddie Mac and Fannie Mae operated as private companies, though they were created by Congress. Fannie Mae came first in 1938, followed by Freddie Mac in 1970. Freddie Mac’s addition in 1970 resulted in the creation of the first mortgage-backed security.

The federal government took over operations at both companies following the financial crisis in 2008. According to the National Association of Realtors, without government support of Freddie Mac and Fannie Mae, there wouldn’t be very much money available to lend for mortgages.

The Federal Housing Finance Agency (FHFA) has oversight of Freddie Mac and Fannie Mae. On a yearly basis, they assess the financial soundness and risk management of Fannie Mae and Freddie Mac.

What Is the Purpose of the FHLMC?

As mentioned above, the FHLMC, or Freddie Mac, makes the housing market more affordable, stable, and liquid by buying mortgages on the secondary market. When they buy these loans, the retail lenders they buy them from are able to originate more mortgages to new customers and keep the mortgage market flowing smoothly.

There are many types of mortgage loans; the ones that Freddie Mac buys are known as conventional loans. The mortgage loan must meet certain standards (such as loan limits) for Freddie Mac to guarantee they will buy these loans.

In general, the process of successfully obtaining a mortgage usually looks something like this once the buyer has made an offer on a house that’s been accepted:

•   The consumer finds a lender, if they haven’t already done so, and will apply for a mortgage.

•   The lender collects documentation required by the loan type and submits it to underwriting.

•   The underwriter approves the loan.

•   The homebuyer closes on the loan, and mortgage servicing begins

•   The lender sells the loan on the secondary mortgage market to Freddie Mac (or Fannie Mae or Ginnie Mae, depending on what type of loan it is and from what type of lender it originated).

From a homebuyer standpoint, they will see the outward mortgage servicing, which is the entity to which they will send their monthly payment and who takes care of the escrow account. The mortgage servicer is the one who forwards the different parts of the mortgage payment to the appropriate parties.

Mortgage servicing can also be sold from servicer to servicer, but this is different from the sale of a mortgage to Fannie Mae or Freddie Mac.

Freddie Mac is also tasked with the responsibility of making housing affordable. There are specific mortgage programs guaranteed by Freddie Mac and offered by lenders.

•   HomeOne®. HomeOne is a mortgage program that offers low down payment options for first-time homebuyers. There are no income or geographic limits.

•   Home Possible®. Home Possible is a program for first-time homebuyers and low- to moderate-income homebuyers. It offers discounted fees and low down payment options.

•   Construction Conversion and Renovation Mortgage. This type of loan combines the costs of purchasing, building, and remodeling into one loan.

•   Manufactured Home Mortgage. For qualified buyers, Freddie Mac can guarantee mortgages when buying manufactured homes that meet their criteria.

•   Relief Refinance/Home Affordable Refinance Program (HARP). For borrowers with a good repayment history but little equity, loans are available to refinance into a more affordable rate.

Recommended: What Is the Average Down Payment on a House?

Understanding Mortgage-Backed Securities

After a mortgage is acquired from a lender, Freddie Mac can do one of two things: either keep the mortgage on its books or pool it with other, similar loans and create a mortgage-backed security (MBS). These MBS are then sold to investors on the secondary mortgage market.

What’s attractive about a mortgage-backed security to an investor is how secure it is. Fannie Mae and Freddie Mac guarantee payment of principal and interest. Both Fannie Mae and Freddie Mac issue mortgage backed securities now.

Does the FHLMC offer Mortgage Loans?

Freddie Mac does not sell mortgages directly to consumers. You won’t see a Freddie Mac mortgage or an FHLMC loan advertised to consumers. Instead, the FHLMC buys mortgages from approved lenders that meet their standards.

Recommended: What Are the Conforming Loan Limits?

The Takeaway

The housing market in the United States arguably benefits from the role of the Federal Home Loan Mortgage Corporation. Lenders can essentially originate mortgages to as many borrowers as can qualify. The free flow of capital created by the FHLMC also means mortgages are less expensive for homebuyers all around. In short, the smooth operation of the housing market owes much of its success to Freddie Mac and Fannie Mae.

If you’re shopping for a home and looking for a lending partner, consider what SoFi has to offer. With dedicated loan officers, competitive interest rates, flexible terms, and low down payment options, SoFi Mortgage Loans can offer something for nearly every borrower.

SoFi Mortgage Loans: Simple, smart, flexible.

FAQs

What does FHLMC stand for?

FHLMC is an abbreviation of Federal Home Loan Mortgage Corporation. It is commonly referred to as Freddie Mac.

What type of loan is FHLMC?

Freddie Mac guarantees conventional loans that adhere to funding criteria, but it does not offer Freddie Mac mortgages directly to consumers.

What is the difference between FNMA and FHLMC?

Fannie Mae and Freddie Mac originated in different decades and initially had different purposes, but for the most part, they serve the same purpose today of helping to improve mortgage liquidity and availability.

Photo credit: iStock/Andrii Yalanskyi

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In today’s world, it’s important to find a job that not only pays well but also lets you enjoy your life outside of work. To achieve this, it’s essential to have valuable skills that people need so much that they are willing to give you the conditions you need to live freely. In this article, we will share some high-income skills that you can learn to upgrade your career and improve your quality of life.

What Are High Income Skills?

High-income skills are specialized abilities that are in high demand in the job market and can potentially generate a significant income for individuals who possess them. These skills often require a high level of expertise and are usually transferable between industries.

High-income skills can include a range of abilities, such as those related to sales, marketing, software development, data analysis, project management, financial management, public speaking, and others. The specific skills that are considered high-income can vary depending on the industry and the job market at any given time.

Importance of High-Income Skills in Today’s Job Market

In today’s job market, traditional education and job skills are no longer enough to secure high-paying jobs. Many industries are undergoing rapid technological advancements, which means that jobs that were once secure and high-paying are now being automated. In contrast, high-income skills are in high demand and can help individuals stay relevant and competitive in their respective fields.

Furthermore, high-income skills offer individuals the potential to earn a high income, even if they do not have a traditional college education.

By mastering a high-income skill, individuals can become independent contractors, start their own businesses, or work remotely, all of which offer greater flexibility and earning potential than traditional 9-5 jobs

Differences between High-Income Skills and Traditional Job Skills

Traditional job skills refer to skills that are required for specific jobs or industries. For example, a doctor must have knowledge of medical procedures and healthcare, and a teacher must have knowledge of education and classroom management.

In contrast, high-income skills are often transferable between industries and can be used in multiple professions. For example, a person with strong project management skills could work in a variety of fields, such as construction, healthcare, or finance.

Additionally, traditional job skills often require a formal education, such as a degree or certification, while high-income skills can be learned through experience, mentorship, and practice. This means that individuals can acquire high-income skills without going into debt to pay for college or vocational training.

High-income skills are in high demand in today’s job market and offer individuals the potential to earn a high income and achieve greater flexibility and independence in their careers. Unlike traditional job skills, high-income skills are often transferable between industries and can be acquired without a formal education.

1. Copywriting

Copywriting is the art of selling by writing. It involves convincing people to take action through your writing. While it may be easy to persuade people verbally, writing to convince them to take action is a lot more complex. Copywriters are highly sought after because they are the ones who write promotional emails, home pages, and online product features.

To be a good copywriter, you need to be good with people, understand how they think, what they need, and how to best help them. You should also be skilled at structuring your paragraphs and words to make sense and sound compelling. The average salary for copywriters is around $55K, but depending on your niche, you can earn over $200K per year.

2. Sales

Sales is all about communication and convincing someone to do something. It’s not just about convincing people to buy a product they don’t need; it’s also about presenting an idea, interviewing for a job, or presenting a project to your boss. If you believe in the company you work for or the product you sell, then excellent sales skills are essential.

Average salespeople make around $50K per year, but those who work for businesses can earn six figures. If you’re good with people and passionate about helping them, sales could be the perfect fit for you.

3. Web Design

Web design involves designing beautiful websites that follow brand strategy and guidelines to develop a unique look. If you have a sense of design and creativity, web design might be the skill for you. The average salary for web designers is around $55K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, which is more than $135K per year.

4. Digital Marketing

Digital marketing is the practice of promoting products or services through digital channels, such as search engines, social media, email, and other online platforms. As technology has continued to advance, digital marketing has become increasingly important for businesses of all sizes.

Digital marketing involves a variety of different disciplines and specializations, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, email marketing, content marketing, and more. Each of these areas requires a unique skill set and approach, but they all share a common goal: to connect with potential customers online and drive business results.

One of the biggest advantages of digital marketing is its ability to target specific audiences with precision. Through advanced targeting options, businesses can reach the people most likely to be interested in their products or services. This can help to maximize the effectiveness of marketing campaigns and generate a higher return on investment.

Another benefit of digital marketing is the wealth of data and insights that it provides. By tracking website traffic, social media engagement, email open rates, and other metrics, businesses can gain valuable insights into how customers are interacting with their brand online. This data can be used to optimize marketing strategies and improve overall performance.

As for the salary range in digital marketing, it varies greatly depending on the specialization and level of expertise. According to Glassdoor, the average base pay for a digital marketing manager is around $77,000 per year in the United States, but this can range from $47,000 to over $117,000 depending on the location, company size, and years of experience. In specialized areas like SEO or PPC, the salary can be even higher. Freelance digital marketers can also earn significantly more by working with multiple clients and charging an hourly or project-based rate.

5. Computer Science

If you’re passionate about apps, algorithms, and online processes, then computer science might be the skill for you. This broad term can encompass many areas like data analysis, software engineering, or machine learning. The average salary for computer scientists is around $75K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, with some earning up to $150K per year.

Job Title Salary Range
Software Developer $70,000 – $150,000
Web Developer $50,000 – $107,000
Database Administrator $74,000 – $122,000
Information Security Analyst $77,000 – $130,000
Data Scientist $85,000 – $165,000
Cloud Architect $120,000 – $200,000
Machine Learning Engineer $110,000 – $190,000

Please note that these salary ranges are approximate and may vary depending on factors such as years of experience, location, company, and industry.

6. Consulting

Consulting involves using soft skills like communication, negotiation, and presentation to help clients find better solutions. It’s all about asking key questions, handling emotions, and understanding your clients to serve them better. While the average salary for consultants is around $75K, it’s not accurate due to the great resignation.

Independent consultants can earn between $90 to $150 per hour, but it’s not something you can learn online. You need to learn skills like negotiation, presentation, and sales to become a good consultant.

7. Content Creation

Content creation involves creating great content that will attract people to your business. You can do it for yourself or for others, like writing, content creation, and content management. If you do it for others, you can earn between $75-$150/hour.

Content creation is the process of developing engaging content that captures the attention of an audience. It can include creating written content, such as articles, blog posts, or e-books, as well as visual content, such as images, infographics, or videos. If you have a passion for creating compelling content and are skilled at storytelling, content creation may be a high-income skill worth pursuing.

Here are some points to consider when developing your content creation skills:

  • Writing: The ability to craft well-written and engaging content is a valuable skill in today’s digital age. If you’re interested in writing, consider taking courses on writing techniques, storytelling, and copywriting. Practice writing regularly to hone your skills and build your portfolio.
  • Video Production: Video content is becoming increasingly popular, and businesses are looking for skilled video producers who can create high-quality content. If you have an interest in video production, consider learning how to shoot and edit videos, as well as how to use video editing software.
  • Social Media: Social media is a powerful tool for businesses to connect with their customers and promote their products or services. As a content creator, you may be tasked with developing social media content that is engaging and shareable. Consider taking courses on social media marketing and developing your social media skills.
  • SEO: Search engine optimization (SEO) is the practice of optimizing content to rank higher in search engine results. As a content creator, you may be responsible for ensuring that the content you create is optimized for search engines. Consider taking courses on SEO and staying up-to-date on the latest SEO best practices.

  • Graphic Design: Graphic design skills are valuable for creating visual content, such as infographics or social media graphics. If you have an interest in graphic design, consider taking courses on design software, such as Adobe Photoshop or Illustrator, and developing your design skills.

Overall, content creation is a versatile skill that can lead to high-paying opportunities in a variety of industries. By developing your content creation skills and building a strong portfolio, you can position yourself as a valuable asset to businesses looking to connect with their customers and build their brand.

8. Writing

Writing is a versatile skill that can open doors in various industries. Whether it’s creating content for a blog, writing copy for a website, or drafting an important business proposal, writing is a skill that can help you communicate your ideas effectively.

Strong writing skills are especially important for those working in fields like journalism, public relations, marketing, and advertising. Good writers can earn an average salary of around $60K per year, but top earners can make well into the six figures.

9. Project Management

Project management involves overseeing a project’s planning, execution, and closing phases. It requires strong organizational skills, leadership abilities, and the ability to manage resources effectively. Project managers are in demand in various industries, including construction, engineering, technology, and healthcare. The average salary for a project manager is around $80K per year, but top earners can make over $150K.

10. Public Speaking

Public speaking is the art of delivering a message to an audience. It’s a skill that’s useful in various industries, including education, sales, and politics. Good public speakers can engage their audience, convey their message clearly, and leave a lasting impression.

Public speaking can be a lucrative skill, with top motivational speakers earning millions of dollars per year. However, even an average public speaker can make a comfortable living, with an average salary of around $60K per year.

“Public speaking is a skill that can be learned and mastered with practice. It’s not about being perfect, but about connecting with your audience and delivering a message that resonates with them.”

– Grant Baldwin, author and professional speaker

11. Graphic Design

Graphic design involves creating visual content, such as logos, illustrations, and layouts. It requires creativity, technical skills, and the ability to communicate a message visually. Graphic designers are in demand in various industries, including advertising, marketing, and publishing. The average salary for a graphic designer is around $50K per year, but top earners can make over $100K.

13. Accounting

Accounting is the process of recording, classifying, and summarizing financial transactions. It requires attention to detail, strong analytical skills, and the ability to work with numbers. Accountants are in demand in various industries, including finance, healthcare, and government.

The average salary for an accountant is around $70K per year, but top earners can make over $100K. Accounting is a great career choice for those who are organized and detail-oriented. With the right qualifications, you can open your own practice or work in a large organization.

Accountants must be prepared to stay up-to-date on changing regulations and industry trends. They also must be comfortable working with computer software and technology, such as accounting programs and spreadsheets.

The Bottom Line – Increase Your Income with High Income Skills

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In conclusion, acquiring high-income skills can lead to a more fulfilling career and a better quality of life. These skills can take time and effort to develop, but the financial rewards can be significant. Whether you choose to learn a new programming language, improve your writing skills, or become a better public speaker, there’s always room for growth and development in today’s job market.

By investing in yourself and developing valuable skills, you can position yourself for success and achieve your career goals.

Source: goodfinancialcents.com

Apache is functioning normally

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When it comes to the active vs. passive investing debate, to me, it’s a no-brainer: I’m a passive guy.

My entire portfolio consists of a couple of broad-market stock index funds and a bond fund. I don’t own any individual stocks and zero funds that try to beat the market. I stay invested in good times and bad and I ignore my portfolio as much as possible, except for annual rebalancing. (In practice, this means I look at it once a week. Thanks a lot, Mint.)

I invest this way not (just) because I’m lazy, but because I believe the evidence is overwhelming that a passive approach will outperform the vast majority of active investing strategies over time. Yes, over any given period, some active funds will outperform by a little and a select few will outperform by a lot — they’ll sail through a bear market smelling like honey.

Unfortunately, it’s impossible to know ahead of time which will be the winning funds and you might end up selecting one of the big losers. Oh, and index funds cost less. That means more money for me and less for a money manager.

As Rick Ferri puts it in his book The Power of Passive Investing, “There’s only a low probability that any fund will achieve superior returns. While it’s possible, it’s not probable.”

Or take it from author Bill Bernstein: “The debate between active and passive management is like the debate between astrology and astronomy,” he said in a recent interview.

As you can tell, I’m convinced of the superiority of index funds and passive investing to the point of smugness, so I thought it would be good for me to talk with someone who fundamentally disagrees. Jerry Webman is the chief economist at OppenheimerFunds and author of the new investing guide MoneyShift: How to Prosper from What You Can’t Control. He dedicates an entire chapter of his new book to building an intelligent argument against my style of investing, and the book is witty and engaging.

Webman and I didn’t have time to hash out the entire classic active/passive investing debate, so I wanted to focus on one of his favorite topics: emerging markets. These markets now account for about one-quarter of the stock market wealth outside the U.S., and we both agree that it’s important for a portfolio to own stocks from emerging economies like Brazil, India, and China. We disagree about the best way to do it, though.

An emerging discussion

MoneyShift argues that most investors, including index fund investors, are missing out on buying opportunities in emerging markets. “Emerging markets is one of the places where it’s easiest to make the case for bottom-up active management,” Webman told me. “You really do have many companies that are not carefully followed, maybe not well-understood, and a careful manager takes the time to figure out what the real market for the company is, and how they fit with the regulatory environment in which they have to work, which might not be fully evolved.”

“It would be foolish to surrender the emerging markets portion of your portfolio to a dumb index fund,” Webman argued. “I want somebody who’s taking a really careful look at it,” he said. “There’s a lot more value to be added by someone who’ll go and do the research in less-understood and less-invested markets.”

To put it another way, it’s hard to learn anything new about an S&P 500 company. Those are the 500 biggest U.S. companies — everyone has heard of them and thousands of analysts scrutinize them all day long.

But who’s keeping an eye on, say, the Peruvian stock market? One manager who takes the time to understand Peru and how to read annual reports from its companies might be able to make a ton of money from insights that would be totally lost on a U.S. stock analyst.

This argument seems intuitively correct. However, I remembered the same argument being made about investing in small companies (aka: “small-caps”) in the United States: the market was less efficient, there was less public information about the companies and the stocks traded less heavily, which meant more opportunities for active managers to make money.

But it didn’t actually work out that way. As Standard & Poor’s put it, “over the last decade, SPIVA has consistently shown that indexing works as well for U.S. small-caps as it does for U.S. large-caps.” SPIVA is Standard & Poor’s Indices vs Active Funds scorecard, which twice a year compares the performance of passive index funds with actively managed funds.

More on that in a moment…

Webman said there are important differences between U.S. small-caps and emerging market companies: In the US, “you do have financial reporting that’s well-established. You have good protection for minority shareholders and you have all of the things that you might not have in an emerging market company.”

I wondered whether SPIVA could help answer this question: in emerging markets, is it better to own a dumb passive index fund that buys all the companies it can, good and bad, or to turn your money over to an expert manager who carefully researches and selects the best companies from each country?

The answer

Well, it’s not even close. Over the five-year period ending in December 2011, only 17% of actively managed emerging markets funds outperformed their benchmark index. Since an index fund hugs the benchmark index as closely as possible, buying the index fund would have put you near the top of the heap. This is typical: it’s difficult to find any five-year period in any investment category where the index fund didn’t trounce most of the competition.

Webman is skeptical of this kind of raw statistical analysis. “I worry about looking at averages,” he said. “It turns out a lot of so-called active managers aren’t so active. And it does look like results are better for active managers who really actively manage their portfolios.” He added that just looking at the number of funds that outperformed doesn’t tell you how much money outperformed. Maybe those few winning funds are actually the biggest funds, which means the average active investor is doing just fine.

Again, this argument sounds reasonable: who cares if most funds don’t beat the index? As long as I can identify a fund that will, I’m golden.

Unfortunately, there’s no evidence that there’s any way to identify the best performers ahead of time, aside from sheer luck. SPIVA also measures performance persistence and the results are appalling. “Very few funds manage to repeat top-half or top-quartile performance consistently,” says the report, which some consider an understatement. For example, in U.S. small-cap funds, less than 4% of funds stayed in the top category five years in a row. They didn’t look at emerging markets funds, but there’s no reason to expect a different result.

High bias

Let’s stipulate that everyone involved in this conversation is biased. Jerry Webman is an executive at a Wall Street firm that sells actively managed mutual funds, S&P is in the business of selling indexes, and I have my life savings in passively managed index funds and am unlikely to go out dragging the river for convincing evidence that I’m investing like an idiot.

If you think Webman is right and I’m wrong, however, I’d like to hear about it.

And let me give Webman the last word: “I think what makes markets is, we’re all going to look at several different kinds of conflicting evidence and come to different conclusions.” I couldn’t agree more.

Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.

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Apache is functioning normally

Life insurance is a major component of most any overall financial plan – regardless of one’s age or employment status. That is because loved ones could be faced with massive debts to pay – including the cost of a funeral and other financial expenses – if the unexpected should occur.

The proceeds that are received from life insurance policies are income tax-free, so loved ones can use the entire amount of the funds for their needs. This can help them to avoid a financial hardship, at an already difficult time in their lives.

When you are in the process of seeking life insurance coverage, several key factors are essential to keep in mind before making a long-term commitment to a policy. These should include obtaining the proper type and amount of insurance coverage, as well as making sure that the insurance company that you are purchasing the policy through is secure and stable financially and that it has a good, solid reputation for paying out its claims to policy holders and beneficiaries. One company that meets these criteria is Geico Insurance Company.

The History of Geico Insurance Company

Geico has been in business since 1938. Over the past 80 years, the company has grown and expanded exponentially, and today the company is ranked as the second largest private passenger auto insurance company in the United States.

The name Geico is an acronym for Government Employees Insurance Company, which goes back to the company’s beginnings. The founder of Geico, Leo Goodwin, initially targeted a customer base that consisted primarily of United States government employees and military personnel.

The company now insures military and government personnel, as well as private consumers. In 1996, Geico became a wholly owned subsidiary of Berkshire Hathaway, which is headed by the world’s most famous investor, Warren Buffett. For the past several years, Fortune magazine has named Berkshire Hathaway’s property casualty insurance operation as the most admired in the U.S.

Presently, Geico is made up of its primary unit, the Government Employees Insurance Company, along with several affiliates, including:

  • Geico General Insurance Company
  • Geico Indemnity Company
  • Geico Casualty Company
  • Geico Advantage Insurance Company
  • Geico Choice Insurance Company
  • Geico Secure Insurance Company

Geico is headquartered in Chevy Chase, Maryland (near Washington, DC). The company also has some regional offices that are dotted throughout the U.S., including locations in:

  • Buffalo, New York
  • Dallas, Texas
  • Frederickson, Virginia
  • Lakeland, Florida
  • Macon, Georgia
  • San Diego, California
  • Tucson, Arizona
  • Virginia Beach, Virginia
  • Woodbury, New York

There are also several services centers, which are in Iowa, Indiana, and Hawaii, as well as some claims centers, which can be found in Houston, Texas, as well as in Seattle, Washington, and in Marlton, New Jersey.

Geico Life Insurance Review

Today, Geico insures more than 15 million auto insurance policies – and growing – and the company has more than 24 million vehicles insured. It is one of the fastest growing major auto insurers in the country, employing more than 36,000 associates, and providing customer service 24 hours per day, seven days per week, and 365 days per year. As of year-end 2016, Geico had assets under management of more than $32 billion.

The company has also earned a long list of various awards and accolades over the years. For example, Geico was named to Ward’s 50 top group of financially high-performing insurers for the 21st consecutive year in 2011. This award recognizes that Geico achieved outstanding financial results in the areas of safety, consistency, and performance.

Also, Geico was rated as being superior by consumers in 2007, for its customer advocacy. Forrester defines this as being “the perception by customers that a firm (Geico) does what’s best for them, and not just what is best for its bottom line.”

Geico was also rated as #1 by the Kanbay Research Institute for being the most desired insurer amount consumers based on the following factors:

  • High regard for customer service
  • Focus on staff training and development

Likewise, the owner of Geico, Berkshire Hathaway, was named as being a leading company in world insurance markets. These rankings include:

  • #1 global insurance company by revenues in 2013, based on an analysis of companies in the Global Fortune 500.
  • #2 writer of private passenger auto insurance by direct premiums were written in 2013. (Before reinsurance transactions, includes state funds. Based on U.S. total, includes territories).

Geico has also been named a leader in ethical practices in the property/casualty industry, and Berkshire Hathaway was appointed as a leader in ethical practices in the financial services sector by Ethisphere Magazine.

Also, Geico achieved the highest overall score in Forrester Research’s 2014 U.S. Mobile Auto Insurance Functionality Benchmark. With perfect scores in policy information and management categories, Forrester proclaimed Geico as “The pocket auto insurer.”

Geico’s Mobile App and insurance site received a #1 ranking on Keynote’s 2015 Mobile Insurance Scorecard, competing against top insurers. Geico is also ranked first for technical quality, according to Keynote KCR (Keynote Competitive Research).

While the company has traditionally been known for its vehicle coverage options, Geico doesn’t just offer auto insurance. The insurer offers a broad range of coverage products and services, including life insurance, home owner’s insurance, and even identity theft protection.

Insurer Ratings and Better Business Bureau Grade

Due to its stable financial footing, as well as its timely payment of customers’ insurance claims, Geico has been given high ratings from the insurer rating agencies. These include the following:

  • AA+ from Standard and Poor’s
  • Aa1 from Moody’s
  • A++ from A.M. Best Company

Also, although Geico is not an accredited company through the Better Business Bureau (BBB), the company has been given a grade of B by the BBB. This is on an overall grade scale of A+ to F.

Throughout the past three years, Geico has closed out a total of 2,514 customer complaints – of which 158 have been closed out within the previous 12 months. Of these total 2,514 complaints, 1,655 regarded as the company’s product and/or services, while 658 were regarding billing and/or collection issues. Another 125 considered advertising and/or sales issues, 55 were concerning guarantee and/or warranty issues, and the remaining 21 complaints focused on delivery issues.

Life Insurance Products Offered Through Geico

Customers of Geico can obtain life insurance coverage via Life Quotes, Inc. The company offers term life insurance policy, which provides pure death benefit protection, without any cash value or savings build up. Because of this, the premiums for term life insurance can typically be quite affordable – especially for those who are young and in good health at the tie of policy application.

As its name implies, term life insurance is purchased for a set period – or term – such as five years, ten years, 15 years, 20 years, or even for 30 years. In most cases, the amount of the death benefit coverage, as well as the sum of the premium, will remain level throughout the term of the policy.

And, provided that the premiums are paid on time, the company that issues the term life insurance policy will not be able to cancel the coverage. Once the term of a policy reaches its end, the insured may opt just to purchase a new policy (if he or she qualifies based on their then-current health).

As with its other forms of insurance coverage, getting life insurance via Geico can be a natural process. For example, by teaming up with Life Quotes, Inc., customers can expect the following benefits:

  • Easy paperwork/application process
  • Natural customer service process
  • Convenient payment plans for paying the premium, which include monthly, quarterly, or annual payment options
  • A full range of coverage limits to meet each customer/policy holders’ needs

When applying for life insurance through Geico / Life Quotes, Inc., an applicant’s health is considered. Once approved, the life insurance policy will typically cover death due to any cause, other than that of suicide within the first two years of policy ownership.

Once an individual has been approved for life insurance coverage through Geico / Life Quotes, policy holders can access their policy directly through the Geico website. This can make it easy to check coverage, as well as to make changes to one’s account, such as address and other contact information, and the name of the policy’s beneficiary.

The Geico website also helps to prompt a policy holder with various information that may assist them in reviewing their life insurance coverage, and in deciding whether to alter their coverage limits in the future. For example, some of the reasons why someone may want to change the amount of their coverage include:

  • A change in household income/employment status
  • Marriage, divorce, or becoming widowed
  • The birth or adoption of a child
  • Retirement
  • New grandchild(ren)
  • Serious illness and disability
  • Caring for an aging parent
  • Starting a new business
  • Selling off one’s home and purchasing another
  • New Drivers under 25

Now, Geico does not offer permanent life insurance coverage – which includes whole life, universal life, indexed universal life, variable life, or variable universal life – all of which include both death benefit protection and a cash value component.

Purchasers of many of the insurance plans that are offered through Geico may qualify for a premium discount.

Other Products and Services Available

While Geico is a primary insurer of automobiles, it also provides a wide selection of other products such as life insurance and other types of coverage, such as:

  • Motorcycle insurance
  • ATV insurance
  • Umbrella insurance
  • Home owner’s insurance
  • Renters insurance
  • Condo insurance
  • Co-op insurance
  • RV (Recreational Vehicle) insurance
  • Boat insurance
  • Personal watercraft insurance
  • Flood insurance
  • Mobile Home insurance
  • Overseas insurance
  • Travel insurance
  • Commercial Auto insurance
  • Ridesharing insurance
  • Business insurance

  • Identity Protection insurance
  • Snowmobile insurance
  • Collector Car insurance
  • Mexico Car insurance
  • Pet insurance
  • Jewelry insurance

How to Get the Best Rates on Life Insurance From Geico Insurance Company

If you have been seeking the best rates on term life insurance from Geico – or from any insurer – it can be beneficial to work with an independent life insurance agent or broker. In doing so, you will be better able to compare side-by-side the policies and the premium prices from numerous different insurance carriers. From there, you will then be able to choose which one will be the best for you.

When you are ready to move forward with the life insurance purchase process, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the market place today. We can assist you with obtaining all the pertinent details that you require for making a well-informed buying decision, and we can do so for you quickly, easily, and conveniently – all without you having to meet in person with an insurance agent. If you are ready to get started, then all you should do is just simply fill out our quote form.

We understand that the purchase of life insurance coverage can be somewhat overwhelming.  There are many different variables to consider – and you want to be sure that you are making the best decision regarding type and amount of coverage for your specific needs. The good news is that the life insurance purchasing process can be done so much easier when you are working with an expert on your side. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

Apache is functioning normally

Last Updated on March 29, 2023 by Mark Ferguson

I have been an agent and investor for almost 20 years and I have seen many market cycles. A lot of people think we are due for another housing market crash because housing prices have skyrocketed, people cannot afford homes, and there could be economic problems. Besides these factors, there are many things that drive the housing market. What really drives market prices is supply and demand, which is impacted by these factors and many more. The last crash that occurred in the United States from 2006 to 2012 was the worst in the history of the country, it was worse for housing than the great depression. It took extraordinary circumstances to create that crash and it will not easily happen again. Could it happen? yes Will it happen? Maybe. When will it happen? No one really knows. Even with Covid-19 causing chaos, there is no guarantee a crash will happen.

What caused the last housing crash?

I started my real estate career in 2002 before the last housing crash. I could see something was off in the real estate market but I was young and did not know what all the signs were indicating. It was not uncommon to see:

  • Loans that were 120 percent of a house’s value
  • Investors buying multiple properties with nothing down
  • People with no income buying houses with a no money down loan
  • People simply stated what their income was to get a loan with no proof
  • 6-month ARMs with the payments doubling soon after buying the house

Something seemed off to me but everyone seemed to be happy! Then the bottom dropped out of the market. The banks realized that many people could not pay back their loans and there were too many houses being built for the people who could actually buy a house.

Crazy lending guidelines caused overbuilding and when the party stopped, there was a crash. Prices dropped and more foreclosures occurred because many people had no equity. Banks panicked and tried to sell all their distressed properties at once.

It was the perfect storm and the worst crash in the history of the United States housing market. The big question is can that happen again? I personally do not think so and I will tell you why below.

Are there really too few houses?

Supply is affected by foreclosures, homeowners’ willingness to move, new construction, and many other factors. Demand is driven by the economy, lending guidelines, potential homeowners’ confidence, wages, and much more. I believe the supply and demand affecting today’s housing market is much different than what drove the last housing boom. While prices could level out or decrease in some areas, I do not think we are in for a nationwide crash.

In order to have a crash, we need an oversupply of homes or the demand for homes to disappear. I do not see either scenario happening, even if the economy loses steam or crashes. Some of the stats I show in this article will show you how different the supply side is right now than it was prior to the crash.

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How many housing crashes have there been?

Many people believe that because of the huge increases in prices, a crash is imminent.

“Just look at what happened in the mid to late 2000s. Prices are so crazy now that a crash has to come soon!”

The first thing you have to realize is that the last crash was the worst crash we have ever had. It was worse than the great depression. Those crashes do not happen over and over again. An increase in prices does not mean a crash is coming. Prices can increase or decrease, but that is what happens in a healthy market. A crash is much different from a down market. Other countries have seen increasing prices for decades without a crash. Just because prices go up does not mean they go down. In fact, due to inflation prices will continuously increase over time and they have increased over time.

There are also a lot of people trying to sell books, products, and coaching based on the impending doom that is coming. Be careful buying into what people say based on their motives. Look at the data!

The chart below shows the median sales price in the United States since 1959. As you can see, prices can fluctuate but in the long run, they have always gone up.

Won’t a recession cause a housing crash?

The last crash was the biggest in recent memory and if you look at the data further back it is the same with small adjustments. A lot of people will also tell you we have a housing crash or recession every 10 years. If you average them out we have recessions every 18 years, but not always true for the housing market. The dot com recession did not affect housing much at all. Sometimes we have a recession 5 years after the last one and sometimes we have it 25 years after the last one. Even if we did have a recession every 18 years we have a long time to wait since the last recession was ten years ago.

The chart below shows unemployment in the US, which is a great indicator of recessions. https://fred.stlouisfed.org/series/UNRATE

You can see from the chart that recessions are not every 18 years, but all over the place.

There are also a lot of people who have been predicting a crash for many years. There are people on YouTube promoting their gold and silver businesses by talking about how real estate will crash. One of the big marketing messages they use is that they predicted the last crash! Well, if you look at their predictions they have been predicting a real estate crash every year for the last three decades. They were bound to get it right one of those years! I was an REO (foreclosure) broker during and after the last crash and there were many people talking about how there was going to be a double-dip recession in 2012. We were going to have a tsunami of foreclosures and it would be much worse than the crash we just went through. Well, it never happened, in fact, the opposite happened.

No one knows for sure what will happen to the housing market. It could go up, it could go down, it could crash. But just because it crashed before when prices were high, does not mean it will crash again.

The video below goes over the possibility of a housing crash as well:

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Will Covid-19 cause a housing market crash?

Many people are now saying that coronavirus and its impacts will cause a housing market crash. The interesting thing is that since the coronavirus started, housing prices have increased in many areas! The supply of homes has decreased because many sellers took their homes off the market. This caused prices to increase because the demand for homes has stayed relatively stable. There are the same amount of buyers fighting for fewer homes.

It is true that many people let their mortgages go into forbearance or are behind on rent. The CDC halted most foreclosures for the rest of the year. There has to be a crash right! There will be so many foreclosures being dumped on the market and that will cause prices to drop.

Foreclosures do not cause a housing market crash. Every healthy market has foreclosures. The last crash was caused by millions of foreclosures coupled with too many houses being built. Foreclosures by themselves can cause a downturn but not a crash.

It is also important to remember that Covid-19 will not automatically cause a flood of foreclosures. The government will do everything they can to stop foreclosures and in some states, it takes years to foreclose. Many people also have equity in their homes which means they can sell them instead of letting them default back to the bank.

Home mortgages are harder to get than ever

One of the main reasons people say there will be another crash is that loans are easier to get again!

In 2005, subprime loans were rampant and as a result, the country over-leveraged itself. Subprime loans, the riskiest loan type given to borrowers with low credit scores, totaled more than $620 billion. Now, subprime originations are only 5 percent of the mortgage market and add up to $56 billion. Compare that to 2005 when subprime origination made up 20 percent of the market. This represents a 91 percent decline from the height of bad loans that set up the economic crash.

Source: Inside Mortgage Finance; Equifax

Not only has subprime lending seen a major decline, but mortgages have also become much harder to attain due to stringent lending standards. Loans are still very hard to get compared to before the last crash. This is greatly due to the type of borrowers able to qualify for loans. The current average credit score for borrowers being granted mortgages is 739. In October 2009, the average FICO score was 686, according to Fair Isaac. The lowest one percent of mortgages issued have credit scores averaging 622-624. Compared to the average range in 2001 of 490-510, the standard to get financing has risen substantially, and as a result, the likelihood of default has dropped. Lenders have done this to ensure the economy doesn’t again become propped on bad loans like it was leading up to the Great Recession.

The chart below shows that loans are even harder to get than right after the housing crash. https://www.urban.org/policy-centers/housing-finance-policy-center/projects/housing-credit-availability-index

As you can see, it is not easier to get a loan, in fact, it is harder!

Investors have even stricter lending guidelines and must put 20% down. There are stricter debt-to-income levels for investors and some banks even limit the number of loans investors can have. It is much tougher to get a loan now than almost any other period in the last century.

Is the United States housing market unaffordable?

Another reason people say the market will crash is that housing is not affordable for most people and it has to crash.

It is true that the affordability index continues to be stacked against potential home buyers. As housing and rental prices steadily increase, wages continue to stay relatively stagnant. Historically, the average income-to-housing cost ratio in the U.S. has hovered near 30 percent, but in some metro areas, that number is currently closer to 40 and even 50 percent! This strips away the opportunity to save money as a significant portion of a person’s monthly income is going to keep a roof over their head.

Source: U.S. Census Bureau

However, the United States is still much more affordable than in many other countries. Many of those countries have not seen a huge crash. People tend to find ways to buy homes, even when they are very expensive. Affordability in itself will not cause a crash. Although, it could cause a slowdown.

https://www.domain.com.au/money-markets/as-australias-house-prices-fall-watch-the-bottom-pickers-start-to-emerge-20180426-h0z7g2/

Some of these charts are a few years older, but it’s tough to find updated information. As you can see there are many other markets that have higher prices than the US (even after our last rise) and did not have a housing crash, or they recovered very quickly after a smaller crash. Simply having high prices does not mean a crash is coming.

Why is supply so low?

The biggest factor causing the housing market to increase today is low inventory. The last crash was caused by horrible lending guidelines and overbuilding. We will continue to have low inventory until building picks up, and it simply has not happened. I cannot see another crash occurring until we see more new starts.

The graph below shows new building starts in the United States and as you can see there was a record low building for many years after the crash. We just got back up to the average number of new builds when Covid-19 hit and it dropped again.

There simply are not enough houses for people.

This is why prices continue to increase in the United States. The population is growing and there are not enough houses to meet the demand for everyone who wants to buy a house.

We could absorb a lot of foreclosures and still have a healthy market, a more healthy market than we have now. Having an increase in foreclosures will not crash the market. We would also need an increase in new builds which is not happening at the pace of market demand.

Will migration and population cause a crash?

Another popular theory is that baby boomers will die off and there will be too many houses for those still alive. This idea was pushed back in the early 2000’s by Robert Kiyosaki. While there were a lot of baby boomers born, there are currently more millennials than baby boomers. The millennial generation is actually increasing thanks to immigration. There are fewer people being born now, but those people will not be of house buying age for decades. It is predicted the US population will keep increasing for decades. Other countries have had decreasing populations and have not seen decreasing prices.

This article goes into more detail on baby boomers and a housing crash.

Will interest rates cause a housing crash?

Another prediction is that interest rates could rise and cause a crash. This theory is based on nothing but a guess as rising rates have never caused a crash in the past. Interest rates were 18% in the early 1980s and there was not a crash. While it seems logical that prices decrease when rates increase because houses get less affordable it does not happen. The mortgage rates on a house are typically locked in for many years. If interest rates go up it will cause fewer people to move which will decrease inventory even more! The video below has more details on this.

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Why are others predicting a crash?

A lot of people are predicting a crash, but why? If the data shows that a crash is most likely not going to happen why would they predict one?

Here are some of the people who are predicting a crash:

  • Gold and silver sellers who want people to invest with them and not in real estate
  • Stockbrokers who want people to buy stocks and not real estate
  • Real estate investors who are selling coaching programs about how to survive a crash
  • Anyone who is trying to get their name in the news or create a catchy headline to sell something
  • People who want cheap housing prices so it is easier to invest.

Not everyone who is predicting a crash has an ulterior motive but many do. Some very smart people are predicting a crash who may not know exactly how real estate works either. You have to be very careful who you listen to when it comes to real estate and predictions.

What can we predict?

I buy a lot of house flips and rental properties. One of the most important rules of thumb I work by is to never base my purchases on what housing prices might do. If I am flipping houses or buying rentals, I never assume prices will go up. I base my investment strategies on today’s prices. I also have a plan in place if the market decreases. Yes, we have seen huge price increases, but that does not mean prices will keep going up or that they could not go down. One of the easiest ways to get yourself in trouble is to invest in real estate because you think prices will increase.

I do not try to predict the market and most economists will not predict it either. There are too many variables to know what will happen and predicting when it will happen is even harder. If someone says they know exactly when a crash or downturn will happen, they are probably trying to get attention or sell something!

The market could go up or it could go down. The great thing about real estate is you can make money in every market if you know what you are doing.

Conclusion

The factors that caused the last crash do not exist in today’s market.

  • There is not overbuilding, in fact, there is too little building.
  • There are not loser lending guidelines, in fact, there are more strict lending guidelines.
  • While foreclosures may increase, there are much fewer than before.

Rising prices and unaffordable housing do not cause a crash. They could cause a downturn or cause prices to level out, but a crash is much different than a downturn. If you are waiting for a crash to invest or buy, you may be waiting a very long time!

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Source: investfourmore.com