Home Mortgage and Temporary Warehouse
2020 was a crazy year for many people, but it turned out to be a good year for us business-wise. I had many goals in 2020 including flipping 15 houses, buying 50k square feet of rentals, writing 2 books, possibly buying another car, and more! We did not accomplish all of the 2020 goals but … Read more
Source: investfourmore.com
In March I offered some financial advice to Michelle, a Mint user who was struggling with debt, a lack of retirement savings and a bit of family financial drama amongst her siblings.
Michelle was anticipating a cash bonus from her company and wasnât sure if she should save the money or use it to relieve her debt.
I recommended a two-prong approach where she uses the cash to play savings catch-up in her retirement account and knock down some of her debt, which, at the time, included a $3,000 credit card balance and $52,000 in student loans.
Six months later, Iâve checked in with the 38-year-old real estate developer, to see if any of my advice was helpful and if sheâs experienced any shifts in her financial life.
We spoke via email:
Farnoosh: Have your finances have improved over the last 6 months since we last spoke? If so, what has been the biggest improvement?
Michelle: Yes. I’ve aggressively been contributing to my 401(k) â about 50% of my pay – and had hoped to reach the annual maximum of $18,000 by June, but looks like it will be more like October. I also received a $40,000 distribution from a project that I closed.
F: What aspects of your financial life still challenge you?
M: Investing for sure. I never know if I’m hoarding too much cash. I am truly traumatized from the financial downturn. I just joined an online investment platform, but it was also overwhelming. Currently I have $45,000 in a regular savings account that earns 1.5%.
Another challenge is not knowing whether to just bite the bullet and pay off my student loans or to continue to pay them monthly.  I hate that I’m still paying loans 16 years after I graduated and it’s a source of frustration [and embarrassment] for me.  I owe $36,000. Often times I have an inner monologue about the pros and cons of just paying them off but then my trauma from 2008 kicks inâ¦and I decide to keep my $45,000 nest egg safely where I can check the balance daily.
F: I recommended allocating $45,000 towards retirement. Was that helpful? What are some ways you’ve managed to save?
M: Yes, I recall you saying you recommended having a total of $100,000 towards retirement for a person my age. Currently, I have $51,000 in my 401(k), $35,000 in a traditional IRA and $17,000 in my Ellevest brokerage account, so I’ve broken the $100,000 goal.
I did add a car note to my balance sheet. My old car suffered a total loss (major electrical failure due to a sunroof leak!) and the insurance gave me a check for $9,000. I used it all towards the new vehicle (a certified used 2014 Acura) and I’m financing $18,000.
F: Your dad’s home was a source of financial stress, it seemed. Were you able to talk with your siblings and arrive at a better place with that?
M: My dad actually has passed since we last spoke. He passed in February and so his will went to probate. My siblings and I have decided not to make any decisions about the house for at least one year. Yes, this is kicking the can further down the street however, they recognize that I maintain the house and pay the real estate taxes and so they are not pressuring me to move or to sell.
The new deed has been recorded and the property is under all our names and so everyone seems ok with knowing that I can’t do anything regarding a sale or refinance unilaterally.
So, for now, I live rent free other than paying utilities, miscellaneous maintenance on the house and real estate taxes quarterly. This, too, is helping me save aggressively.
Also, the new car note has replaced the hospice nurse contribution so I’m not feeling that my budget is overburdened with the new car.
I think ultimately I will buy out at least two of my siblings and stay in the house. Verbally they have expressed being okay with this.
Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at farnoosh@farnoosh.tv (please note âMint Blogâ in the subject line).
Farnoosh Torabi is Americaâs leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, sheâs become our favorite go-to money expert and friend.
The post Mint Money Audit 6-Month Check-In: How Did Michelle Allocate Her Windfall? appeared first on MintLife Blog.
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Source: lexingtonlaw.com
Credit and debit cards can both be used for shopping but operate differently. Credit cards impact your credit score but debit cards donâtâread on for more.
Source: lexingtonlaw.com
Credit cards exceptional financial instruments. They allow you to buy without any cash and earn rewards while at it. Another interesting feature is the option of adding another person as an authorized user to your card. However, credit card usage does have a huge impact on your creditworthiness. So, does removing your name from a […]
The post How Removing Your Name from a Shared Credit Card Affects Your Credit Score appeared first on Credit Absolute.
Source: creditabsolute.com
Conventional loans have a few basic property standards, but no in-depth home condition requirements. You likely want a home inspection anyway.
Source: themortgagereports.com
Conforming loan limits for 2021 rose more than 7% across the United States. Freddie Mac and Fannie Mae loans now go up to $548K in most counties.
Source: themortgagereports.com
The average U.S. mortgage rate for a 30-year fixed loan fell four basis point this week to 2.67% â the lowest rate in the Freddie Macâs Primary Mortgage Market Survey’s near 50-year history. This week’s mortgage rate broke the previous record set on Dec. 3 and is the first time the survey has witnessed it fall below 2.7%.
âThe housing market continues to surge higher and support an otherwise stagnant economy that has lost momentum in the last couple of months,â said Sam Khater, Freddie Macâs Chief Economist. âMortgage rates are at record lows and pushing many prospective homebuyers off the sidelines and into the market.
“Homebuyer sentiment is sanguine and purchase demand shows no real signs of waning at all heading into next year,â Khater continued.
The average fixed rate for a 15-year mortgage also fell last week to 2.21% from 2.26%.
A Tuesday analysis from Fannie Mae’s Economic and Strategic Research group predicted rates would hit their trough at 2.7%, and since the 10-year Treasury yield has remained at or above 90 basis points through the beginning of December, mortgage spreads are continuing to compress.
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If youâre thinking about refinancing your mortgage, here are five reasons why you might want to act now and reach out to a loan officer.
“While there may be some resistance to the 10-year yield consistently pushing above 1% in the coming months, with vaccination efforts and subsequent stronger economic growth, we expect Treasury yields to move higher over the next year,” the Fannie Mae report said.
Last week, Khater noted mortgage rates managed to retain their record low numbers despite higher Treasury yields – resisting a typical correlation.
A Wednesday statement from the Federal Open Market Committee revealed that the Federal Reserve plans to keep interest rates low until labor market conditions and inflation meet the committee’s standards. Fed Chairman Jerome Powell said to get inflation back to 2% though is going to “take some time.”
Overall, Fed purchases have helped to drive mortgage rates and other loan interest rates to the lowest level on record by boosting competition for bonds, which compresses yields.
With the release of the Fed’s latest intentions, Mortgage Bankers Association chief economist Mike Fratantoni said the MBA now expects the Fed to maintain these low rates at the zero level for years to come.
The post Mortgage rates hit another record low at 2.67% appeared first on HousingWire.
Source: housingwire.com
7 Ways to Reduce Mortgage Rates | Home Lending Chase News & Stories
Source: chase.com
For many people buying a home can become a nightmare when hackers target vulnerable systems to hack email accounts and steal their hard earned closing costs
The post Closing Costs Scam: How Hackers Steal Homebuyer Cash Via Wire Fraud appeared first on Bible Money Matters and was written by Peter Anderson. Copyright © Bible Money Matters – please visit biblemoneymatters.com for more great content.
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