Inspection vs. Appraisal for Home Buyers

In this article:

  • What is the difference between an appraisal and an inspection?
  • What happens during an appraisal?
  • What if the appraisal comes in low?
  • What to expect from a home inspection
  • How are home inspections and appraisals similar?

Inspections and appraisals are both important parts of the home buying process, and buyers should do both to protect their financial interest in a home – and give themselves peace of mind that they’re making a smart purchase. Inspections and appraisals serve different functions, but both give you the insights you need to avoid large financial missteps.

What is the difference between an appraisal and an inspection?

The main difference between an appraisal and an inspection is that an appraisal deals with the value of a home, while an inspection deals with the condition of the home.

Appraisal: An appraisal is a walk-through and a general assessment of a home, analyzed with the help of nearby comparable sales. The goal of an appraisal is to determine the fair market value of a property. It is conducted by a licensed professional appraiser. While an appraiser will visit a home in person, the majority of the work will be done in their office, as they compare the home’s features, location, and finishes with other comparable recent sales in the area. An appraisal usually costs around $400, depending on where you live and the size of your home.

Inspection: An inspection is a deeper dive into the condition of the specific home. A licensed home inspector will spend multiple hours doing a comprehensive review of the home’s condition, both visually and by testing functionality of major systems. After completing the inspection, they will provide recommendations to the buyer on items in the home that should be repaired or replaced before closing. A home inspection costs between $250 and $700, depending on where you live and the size of your home.

Do lenders require appraisals?

Yes, most lenders do require appraisals in order to approve financing. Lenders want to protect their investment by ensuring they’re not financing a loan for more than the property is worth.

Do lenders require home inspections?

Lenders providing conventional financing do not usually require home inspections, but they are still strongly recommended. FHA or VA loans usually do require inspections.

Do I need an appraisal and inspection when buying a home with cash?

Cash buyers often opt to do an appraisal and inspection, even though they’re not required. Some cash buyers, particularly home investors, may waive the inspection or appraisal if the home is being sold “as is” or if they are competing with other offers and want to close quickly.

Regardless of how you’re paying, an appraisal can give peace of mind that you’re not overpaying for a property, and an inspection can uncover potentially costly issues and necessary repairs.

What happens during an appraisal?

During an appraisal, a licensed appraiser evaluates the home you want to buy in person and gives you an estimate on how much it’s worth. Typically, the appraiser is chosen by the lender but paid for by the buyer as part of the closing costs.

Appraisals cost around $400, but can cost a bit more or a bit less depending on your home size and location. The appointment usually takes about an hour, and then the appraiser will complete the report back at their office.

1. Assessment of property

The appraiser will walk through the home, taking note of its condition, finishes and location – consider it somewhat like a light inspection.

2. Review of comparable sales

The appraiser will use the findings of their walk-through to identify similar homes that have sold recently in the neighborhood. This will help them decide upon a fair market value.

3. Final report

The appraiser will deliver a physical report on the fair market value of the home, including photos and descriptions of comparable sales. In most cases it’s just the lender and the buyer who will receive copies of the report. The seller may request a copy of the appraisal report, but in most cases you are not required to share it.

Ideally, the appraisal will come back higher than the agreed-upon sales price. That indicates that you’re paying less than the fair market value and your lender will approve the loan.

What if the appraisal comes in low?

Appraisals that come in below the agreed-upon sale price are commonly referred to as low appraisals. When an appraisal comes in low it can jeopardize your ability to acquire the loan you were pre-approved to get, causing a headache for buyers.

Low appraisals can happen for a couple reasons:

  • Bidding wars with multiple buyers drive the price up beyond market value.
  • There’s a lack of relevant comparables to use as a basis for the home value.
  • You’re buying in a high season (like late spring) and the only available comparables are from other points in the year.
  • The appraiser is inexperienced.

Buyers who are using financing have a few options to work around a low appraisal:

  1. Contest the appraisal: You can contact your lender and point out any glaring issues or errors in the appraisal report, then request a new appraisal.
  2. Pay the difference: To make up the difference between the amount your lender is willing to finance and the offer price, you can pay cash or ask the lender if you can restructure your financing.
  3. Ask the seller for a price reduction: If the appraisal was accurate and the home is indeed worth less than what you’re offering, you may not want to overpay. To avoid having to back out completely, consider asking the seller for a price reduction, using the appraisal report as proof the home is overpriced.

What to expect from a home inspection

Scheduling a home inspection is one of the first tasks you’ll want to do after the contract is signed between you and the seller. Although, in some low-inventory markets, buyers sometimes hire an inspector prior to making an offer. It’s up to you to pick a home inspector you trust, and most people ask their agent for a recommendation, get a referral from friends or family members or search online reviews.

Since the goal of a home inspection is to get a comprehensive report of the condition of the home you’re buying, a home inspection takes between three and four hours, sometimes more. Unlike an appraiser who does a visual check of the home, your inspector will both examine and test functionality of your home’s key systems, including:

  • Plumbing
  • Roof condition
  • HVAC
  • Foundation
  • Appliances
  • Drainage
  • Water damage and mold

However, a home inspection may not find every potential issue in the home, especially if they are hidden or seasonal, so buyers should discuss any exclusions with the licensed home inspector both before and after the inspection itself.

Who attends the inspection: Usually, the buyer and their agent will both attend the inspection. This allows you to have the inspector walk you through any red flags in real time, while also giving you the chance to familiarize yourself with how the home’s systems work ahead of moving.

What happens after the inspection: After completing the on-site inspection, your inspector will provide a written report that highlights their findings, including photos.

Specialized inspections for buyers to consider

While inspecting the home’s major systems and features is standard practice, your inspector may recommend a second, more specialized inspection if they notice issues including:

  • Radon
  • Pests
  • Septic
  • Lead paint

Why home inspections are important

The few hundred dollars you’ll spend for a home inspection is a small price to pay for the opportunity to confirm that the home you’re about to buy is free of major – and costly – issues. It’s no wonder 83% of buyers reported having an inspection done, according to the Zillow Group Consumer Housing Trends Report 2019.

Risk of not having an inspection: While some buyers opt to waive their inspection contingency to make their offer appear stronger, this means they’re essentially buying the home “as-is,” and any issues discovered after closing will fall 100% to the buyer to repair, even if they were present before closing.

Why disclosures aren’t enough: In most states, sellers are required to disclose underlying issues in the home that they know exist (specific disclosure requirements vary by state). While disclosures are an important protection, they only cover un-repaired issues that the seller knows about – there’s no guarantee that the home is free of other underlying issues or that the repairs were made correctly. A home inspection is simply the best way to find out about any potential problems in the home.

If you buy a Zillow-owned home, you’ll have the peace of mind that comes with knowing the home went through a pre-listing home evaluation process and was renovated by local professionals to make it move-in ready. Of course, you’re always welcome to do your own inspection, too.

How are home inspections and appraisals similar?

Despite having two different processes and requiring the services of two different professionals, appraisals and inspections do share some similarities:

1. Appraisers and inspectors are licensed

Both roles require licenses and extensive training. Both appraisers and inspectors act as impartial third parties, paid to provide their professional opinion.

2. Buyers pay for both inspections and appraisals

Usually, the buyer selects the home inspector they want to work with and the lender selects the appraiser. The buyer pays for both the inspector and the appraiser, unless otherwise negotiated.

3. Appraisal and inspection both occur during escrow

The home inspection usually happens within the first week after your offer is accepted – the sooner the better, so there’s time to fix any issues flagged in the inspection report or renegotiate with the seller. The appraisal also happens during the escrow period, usually a week or two before closing.

4. Appraisal and inspection results allow for negotiations

Assuming you’ve structured your offer to include contingencies for both the appraisal and inspection, you’ll be allowed to renegotiate your offer based on the findings. If the appraisal comes back low, you’re allowed to renegotiate with the seller to figure out how to cover the difference between the appraised price and the offer price. Similarly, if the inspection report uncovers significant repairs, you’ll have a period of time where you can request repairs or credits, or back out of the deal without losing your earnest money.

The post Inspection vs. Appraisal for Home Buyers appeared first on Home Buyers Guide.

Source: zillow.com

Most popular homes and their neighborhoods of July 2019

Summer is underway, and home buyers are dreaming big. Our most-viewed properties in July include several stunning homes that are asking eight or nine figures. But even the most palatial estate needs a top-quality neighborhood to seal the deal. So we took a look at July’s most popular homes to get the rundown on the neighborhood with an assist from What Locals Say, our guide to residents’ insights on their own communities.

Enjoy browsing these big summer dreams—and the very reasonable buys mixed in here, too.

Flatiron District, New York

$98,000,000

Flatiron District penthouse for sale in New York City on Trulia
How many fireplaces can fit in one home? This place tests the limits. See more photos here.

Named for one of New York City‘s early skyscrapers, the Flatiron District in Manhattan is home to lots of publishers and ad agencies and is also part of the city’s “Silicon Alley” tech business district. Major attractions range from the popular Italian food hall Eataly to Teddy Roosevelt’s birthplace. But despite the bustle, the Flatiron District is also an in-demand residential area, as notable residents like Chelsea Clinton can testify. What Locals Say users describe the neighborhood is just an all-around nice place. “There are parks and schools in the immediate area as well as plenty of fun stores and galleries and movie theaters,” one resident says.1

Available now in the Flatiron District, this extravagant penthouse suite is 19,000 square feet. With 11 bedrooms, 14 bathrooms, and truly grand views of the city from its 4,500 square feet of terrace, NYC living doesn’t get much more luxurious than this.


Hearthstone, Yonkers

$399,000

Wood beams on the ceiling are always a plus. See more photos here.

One resident of Yonkers’ Hearthstone neighborhood describes the place as “centrally located to all”—including Yonkers itself and the Big Apple, just 45 minutes away by train.2 Neighborhood restaurants are wildly diverse, featuring Filipino, Korean, Mexican, and Italian cuisines. Residents also enjoy a variety of local groceries, including the fish market and restaurant at Highridge Fishery Seafood, described by one Yelp reviewer as “Yonkers’ best-kept secret.” If you’re seeking entertainment, the Alamo Drafthouse is an upscale movie theater, and for the outdoorsy, nearby Sprain Ridge Park has 278 acres of natural beauty to explore.

Available now in Hearthstone, this charming Cape Cod is the epitome of cozy living. It packs a lot into its small footprint, including three bedrooms, a bathroom, plenty of storage space, and a finished basement. We also love the little deck for summertime relaxation.


Bel Air, Los Angeles

$195,000,000

The hedge maze will make you feel like you’re in a Jane Austen novel. See more photos here.

Bel Air is the stuff of pop-culture legend, thanks to the TV shows set or shot there and the stars, from Jennifer Aniston to Alfred Hitchcock, who’ve called it home. But if you look beyond the big names, big houses, and big reputation, you’ll find neighbors who enjoy a quiet area with abundant natural beauty. “We are surrounded by nature: trees, flowers, birds, butterflies,” says one resident on What Locals Say.3 Right in the neighborhood, Getty View Park is an ideal place to enjoy some of that beauty (and take in a great view of L.A.). And, as you would expect, there’s chic dining and shopping in the area if you don’t feel like venturing out into the rest of L.A.

Available now in Bel Air is the 10-acre Chartwell estate. All told, the property has 11 bedrooms and 18 bathrooms, as well as a 40-vehicle car gallery and a 12,000-bottle wine cellar. And the gardens and L.A. views are downright magical.


Beverly Glen, Los Angeles

$150,000,000

A barber chair comes in the bathroom, but it’s BYO barber. See more photos here.

One resident of L.A.‘s Beverly Glen neighborhood describes it as, “Beautiful, quiet and unique. Feels far away from the city but is close to everything.”4 The small community is tucked between two of the area’s most prestigious neighborhoods, Beverly Hills and Hollywood Hills, and also has easy access to Westwood and Hollywood. Despite its exclusive address, Beverly Glen has a very close-knit community feel. There’s little retail in the area, but Glen Market is a beloved local grocery. And neighbors look forward to annual community events like the Garden Walk and Glen Fair, with music, dancing, food, and kids’ activities.

Available now in Beverly Glen, this luxury home is ideal for anyone who loves soaking up the sun and 270-degree views of L.A. And its 38,000-square-foot interior is worth a peek too, with gorgeously designed spaces including—get this—a candy room, a movie theater, and three gourmet kitchens.


Soundview, The Bronx

$649,999

Peek inside to see the reading nook under a window. See more photos here.

Just north of the confluence of the Bronx and East rivers, Soundview is a working-class community with culture to spare. According to AM New York, “Bronx residents frequent Soundview for two things: Food and music.” It’s easy to see why. The local dining scene has Mexican, Caribbean, and Spanish restaurants—although a single cuisine isn’t enough for local institution Joe’s Place, which proudly “offers three distinct dining atmospheres” under the same roof. Joe’s is also a neighborhood music venue, as is Soundview Park, which hosts summer concerts on the waterfront. “Just nice and calm. No drama,” says one local. “I love living in this area.”5

Available now in Soundview, this two-family home has been well maintained and beautifully renovated. The hardwood floors and stone shower walls lend a contemporary elegance, and the small back deck is a great place to relax outdoors even in the heart of the city.


Bensonhurst, Brooklyn

$695,000

A leaded glass door and wrought iron railings? Yes, please. See more photos here.

The Bensonhurst neighborhood is known as the biggest of Brooklyn‘s multiple “Little Italies” but also as one of the borough’s Chinatowns. The area bustles with sushi bars, innumerable local groceries, nightclubs, and cafes. And with plenty of subway stations in the neighborhood, Manhattan is just 45 minutes away. One lifetime Bensonhurst resident says she’s “seen many changes, but it’s still a safe place to live with great neighbors, shopping, and transportation.”6

Available now in Bensonhurst, this three-bedroom home has both new and old touches. The detailed iron banister, stained-glass windows, and flagstone patio all seem to hail from different eras—but they all work in this warm and welcoming space.

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1 Trulia user, Sept. 2018 “There are parks and schools in the immediate area as well as plenty of fun stores and galleries and movie theaters.”

2Mike P., Sept. 2018 “Neighbors are very friendly and area area is central located to all. wonderful neighborhood! Very quite, shopping is a mile away and Scarsdale train station is only about 1 1/2 miles away.”

3Trulia User, 2013 “I love this area ! The people never want to leave. We are surrounded by nature: trees, flowers, birds, butterflies. The public elementary school is one of the top, if not the top, in the city. The neighbors are multi-generational.”

4 Jenny, Feb. 2019 “Beautiful, quiet and unique. Feels far away from the city but is close to everything. Nice parks. Please do t speed on the blvd, its very dangerous “

5 Dameen T., June 2019“Just nice and calm No drama I love living in this area Very clean and always busy always see the same faces “

6 Msgrace46, May, 2018 “I have lived here all my life have seen many changes but it’s still a safe place to live with great neighbors, shopping and transportation “

The post Most popular homes and their neighborhoods of July 2019 appeared first on Trulia's Blog.

Source: trulia.com

Buying a Home? Plan for These Hidden Costs

You’re excited because you just found the perfect home. The neighborhood is great, the house is charming and the price is right.

But the asking price is just the beginning. Be prepared for additional – and often unexpected – home-buying costs that can catch buyers unaware and quickly leave you underwater on your new home.

Expect the unexpected

For almost every person who buys a home, the spending doesn’t stop with the down payment. Homeowners insurance and closing costs, like appraisal and lender fees, are typically easy to plan for because they’re lumped into the home-buying process, but most costs beyond those vary.

The previous owners of your home are the biggest factor affecting your move-in costs. If they take the refrigerator when they move out, you’ll have to buy one to replace it. The same goes for any large appliance.

And while these may seem like a small purchase compared to buying a home, appliances quickly add up – especially if you just spent most of your cash on a down payment.

You’ll also be on the hook for any immediate improvements the home needs, unless you negotiate them as part of your home purchase agreement.

Unfortunately, these costs are the least hidden of those you may encounter.

When purchasing a home, definitely hire a home inspector (this costs money too!) to ensure the home isn’t going to collapse the next time it rains. Inspectors look for bad electrical wiring, weak foundations, wood rot and other hidden problems you may not find on your own.

Worse still, these problems are rarely covered by home insurance. If an inspector discovers a serious problem, you’ll then have to decide if you still want to purchase the home. Either way, you’ll be out the cost of hiring the inspector.

Consider the creature comforts

Another cost is your own comfort. There are a number of smaller considerations you may not think about until after you move in.

Are you used to having cable? If so, is your new home wired for cable? It’s much harder to watch a technician crawling around punching holes in your walls when you own those walls.

And if you’re moving from the world of renting to the world of homeownership, you’ll probably be faced with much higher utility bills. Further, you could find yourself paying for utilities once covered by a landlord, like water and garbage pickup.

Plan ahead

The best way to prepare for the unknown and unexpected is through research and planning. This starts with budgeting before house hunting and throughout your search.

Look at homes in your budget that need improvements, and then research how much those improvements could cost. Nothing is worse than buying a home thinking you can fix the yard for a few hundred dollars and then realizing it will cost thousands.

There’s really no limit to how prepared you can be. Say you find a nice home that’s priced lower than others in the area because of its age. You may save money on the list price, but with an older house, you could be slapped with a much higher home insurance payment, making the house more expensive in the long run.

This is where preparation comes in. Research home insurance and property prices in the areas you’re considering to make more educated decisions before you ever make that first offer.

Clearly define how much you intend to put toward your down payment, and then look at how much cash that leaves for improvements and minor costs, like changing the locks. That way, when you find a house at the high end of your range, you’ll know to walk away if it requires a new washer and dryer or HVAC system upgrade.

Establish a rough estimate for as many costs as you can think of, and be extremely critical of homes at the top of your budget – otherwise, you could easily end up being house-poor.

Know your budget and plan ahead. Buying a home is a lot less scary when you know what you’re getting into.

Top featured photo from Offset.

Related:

Originally published August 2016.

Source: zillow.com

Home Buyer’s Guide: How to Purchase a Property, From Start to Finish [Free Download]

Purchasing a home is both exciting and a major milestone in your life, so you’ll want to be prepared for what to expect to avoid a stressful process. Having an in-depth look at the buyer’s journey can help you make informed and confident decisions.

From finding a real estate agent, negotiating offers to getting your keys on closing day, we’ve outlined all the steps of a home buyer’s journey in our free Buyer’s Guide, which you can download here.

The Buyer’s Guide will cover the buyer’s timeline from meeting an agent to preparing for closing day. We’ve outlined the 8 steps in a home buyer’s journey below.

1. Working With An Agent

Every city is filled with thousands of agents, but not all are equal. We believe it is important to choose an agent that you feel confident with. Before you commit to working with an agent, make sure you have a good understanding of the knowledge and experience they offer. It’s important that you ask your questions before making the decision to work with them.

2. Financing Your Purchase

Before you set a budget and start looking for a home, you’ll have to understand what costs to expect when purchasing a home. Here are some of the major costs involved:

  • Deposits
  • Down payments
  • Mortgage insurance
  • Closing costs

You’ll also want to calculate a rough estimate of the down payment that you will be expected to pay. Depending on the price of your home, your minimum down payment can range from 5% to 20%. If you’re interested in learning more about how to finance your home, you can get our free Financing Your Purchase guide here.

3. Searching For A Home

An important part of searching for a home is understanding how the home will fit with your needs and your lifestyle. You’ll want to consider home ownership as well as different types of properties and features. 

Types of Home Ownership

  • Freehold Ownership
    • You purchase the home and directly own the lot of land it sits on
  • Condominium Ownership
    • For condos, you own specific parts of one building: titled ownership of your unit, along with shared ownership in the condo corporation that owns the common spaces and amenities
  • Co-Op Ownership
    • You own an exact portion of the building as a whole and also have exclusive use of your unit

Types of Properties

  • Detached houses
  • Semi-detached houses
  • Attached houses
  • Condos and apartments
  • Multi-unit

Tip: Depending on your budget and desired location, you may need to be flexible to find a home that meets your needs. By being willing to trade some features for others, you’ll have more options to choose from.

4. Negotiating An Offer

When you are making an offer to purchase a home, the purchase agreement should include the essential components listed below. Your agent can help put together an offer that is compelling, while safeguarding your interests and puts you in a competitive position to secure your new home.

You’ll also have the opportunity to choose the conditions that you’ll want in your offer. Some of these may include a home inspection or a status certificate review.

5. Financial Due Diligence

Whenever you make an offer on a house, you need to provide a deposit to secure the offer. The deposit is in the form of a certified cheque, bank draft, or wire transfer; it’s held in trust by the selling brokerage and is applied towards your down payment if your offer is successful.

There are two types of deposits:

  • Upon acceptance
    • The deposit is provided within 24 hours of the seller choosing your offer
  • Herewith
    • The deposit is provided when the offer is made

6. Property Due Diligence

To firm up a deal or educate yourself more on the state of the property, you’ll likely want to have a home inspection if you’re purchasing a house. If you’re purchasing a condo, then your lawyer will review the building’s status certificate.

Home Inspection

A home inspector will assess elements of the home such as the walls, windows, plumbing, heating and roof to judge the condition of the home. This process is non-invasive and is essential to help provide buyers with a good idea of the home’s current condition and the confidence of putting in an offer. 

Tip: The home inspector will provide a summary of suggested work along with a minimum budget estimate for the repairs needed. 

Status Certificates

If you’re purchasing a condominium, you’ll need to obtain a status certificate from the condo board or management for your lawyer’s review. This document will include valuable information about the condo’s budget, legal issues, reserve fund, maintenance fees and future fees increases – and the lawyer can help identify potential red flags

7. Preparing For Closing

Before the big day, you’ll want to keep a checklist of what to do ahead of time. Some of these include:

  • Review your contract
  • Complete a final walkthrough of the home
  • Purchase home insurance
  • Meet with your lawyer
  • Know how much cash you’ll need
  • Secure cash required for closing

8. Closing Day

Closing Day is when you’ll finally get the keys to your new home! In addition to bringing the cash required for closing, you’ll have to sign a few more documents which will include:

  • Mortgage loan
  • Title transfer
  • Statement of adjustments
  • Tax certificates

For the full details on the home buyer’s journey including examples, advice, pictures and sample calculations, download a copy of our free Buyer’s Guide here.

The post Home Buyer’s Guide: How to Purchase a Property, From Start to Finish [Free Download] appeared first on Zoocasa Blog.

Source: zoocasa.com

What Are Treasury Inflation-Protected Securities (TIPS)?

What Are Treasury Inflation Protected Securities (TIPS)?

Inflation, or a sustained period of rising consumer prices, can take a bite out of investor portfolios and reduce purchasing power as the prices of goods and services increase.

Treasury Inflation-Protected Securities, or TIPS, are one way to hedge against inflation in a portfolio. These government-issued securities are inflation-protected bonds that adjust in tandem with shifts in consumer prices to maintain value.

Investing in TIPS bonds could make sense for investors who are seeking protection against inflation or who want to increase their conservative asset allocation. But what are TIPS and how exactly do they help to minimize inflationary impacts? This primer answers those questions and more.

Recommended: Smart Ways to Hedge Against Inflation

What Are TIPS?

Understanding Treasury Inflation-Protected Securities starts with understanding a little about how bonds work. When you invest in a bond, whether it’s issued by a government, corporation or municipality, you’re essentially lending the issuer your money. In return, the bond issuer agrees to pay that money back to you at a specified date, along with interest. For that reason, bonds are often a popular option for those seeking fixed income investments.

TIPS are inflation-protected bonds that pay interest out to investors twice annually, at a fixed rate applied to the adjusted principal of the bond. This principal can increase with inflation or decrease with deflation, which is a sustained period of falling prices. When the bond matures, you’re paid out the original principal or the adjusted principal—whichever is greater.

Here are some key TIPS basics to know:

•  TIPS bonds are issued in terms of 5, 10 and 30 years

•  Interest rates are determined at auction

•  Minimum investment is $100

•  TIPS are issued electronically

•  You can hold TIPS bonds until maturity or sell them ahead of the maturity date on the secondary market

Treasury Inflation-Protected Securities are different from other types of government-issued bonds. With I Bonds, for example, interest accrues over the life of the bond and is paid out when the bond is redeemed. Interest earned is not based on any adjustments to the bond principal—hence, no inflationary protection.

How Treasury Inflation Protected Securities (TIPS) Work

Understanding how TIPS work is really about understanding the relationship they have with inflation and deflation.

Inflation refers to an increase in the price of goods and services over time. The federal government measures inflation using price indexes, including the Consumer Price Index. The federal government measures inflation using the Consumer Price Index, which measures the average change in prices over time for a basket of consumer goods and services. That includes things like food, gas, and energy or utility services.

Deflation is essentially the opposite of inflation, in which consumer prices for goods and services drop over time. This can happen in a recession, but deflation can also be triggered when there’s a significant imbalance between supply and demand for goods and services. Both inflation and deflation can be detrimental to investors if they have trickle-down effects that impact the way consumers spend and borrow money.

When inflation or deflation occurs, inflation-protected bonds can provide a measure of stability with regard to investment returns. Here’s how it works:

•  You purchase one or more Treasury Inflation-Protected Securities

•  You then earn a fixed interest rate on the TIPS bond you own

•  When inflation increases, the bond principal increases

•  When deflation occurs, the bond principal decreases

•  Once the bond matures, you receive the greater of the adjusted principal or the original principal

This last part is what protects you from negative impacts associated with either inflation or deflation. You’ll never receive less than the face value of the bond, since the principal adjusts to counteract changes in consumer prices.

Are TIPS a Good Investment?

Investing in inflation-protected bonds could make sense if you’re interested in creating some insulation against the impacts of inflation in your portfolio. For example, say you invest $1,000 into a 10-year TIPS bond that offers a 2% coupon rate. The coupon rate represents the yield or income you can expect to receive from the bond while you hold it.

Now, assume that inflation rises to 3% over the next year. This would put the bond’s face value at $1,030, with an annual interest payment of $20.60. If you were looking at a period of deflation instead, then the bond’s face value and interest payments would decline. But the principal would adjust to reflect that to minimize the risk of a negative return.

Recommended: Understanding Deflation and How it Impacts Investors

Pros of Investing in TIPS

What TIPS offer that more traditional bonds don’t is a real rate of return versus a nominal rate of return. In other words, the interest you earn with Treasury Inflation Protected Securities reflects the bond’s actual return once inflation is factored in. As mentioned, I Bonds don’t offer that; you’re just getting whatever interest is earned on the bond over time.

Since these are government bonds, there’s virtually zero credit risk to worry about. (Credit risk means the possibility that a bond issuer might default and not pay anything back to investors.) With TIPS bonds, you’re going to at least get the face value of the bond back if nothing else. And compared to stocks, bonds are generally a far less risky investment.

If the adjusted principal is higher than the original principal, then you benefit from an increase in inflation. Since it’s typically more common for an economy to experience periods of inflation rather than deflation, TIPS can be an attractive diversification option if you’re looking for a more conservative investment.

Recommended: The Importance of Portfolio Diversification

Cons of Investing in TIPS

There are some potential downsides to keep in mind when investing with TIPS. For example, they’re more sensitive to interest rate fluctuations than other types of bonds. If you were to sell a Treasury Inflation-Protected Security before it matures, you could risk losing money, depending on the interest rate environment.

You may also find less value from holding TIPS in your portfolio if inflation doesn’t materialize. When you redeem your bonds at maturity you will get back the original principal and you’ll still benefit from interest earned. But the subsequent increases in principal that TIPS can offer during periods of inflation is a large part of their appeal.

It’s also important to consider where taxes fit in. Both interest payments and increases in principal from inflation are subject to federal tax, though they are exempt from state and local tax. The better your TIPS bonds perform, the more you might owe in taxes at the end of the year.

How to Invest in Treasury Inflation Protected Securities

If you’re interested in adding TIPS to your portfolio, there are three ways you can do it.

1.   Purchase TIPS bonds directly from the U.S. Treasury. You can do this online through the TreasuryDirect website. You’d need to open an account first but once you do so, you can submit a noncompetitive bid for inflation protected bonds. The TreasuryDirect system will prompt you on how to do this.

2.   Purchase TIPS through a banker, broker or dealer. With this type of arrangement, the banker, broker or dealer submits a bid for you. You can either specify what type of yield you’re looking for, which is a competitive bid, or accept whatever is available, which is a noncompetitive bid.

3.   Invest in securities that hold TIPS, i.e. exchange-traded funds or mutual funds. There’s no such thing as a TIP stock but you could purchase a TIPS ETF if you’d like to own a basket of Treasury Inflation-Protected Securities. You might choose this option if you don’t want to purchase individual bonds and hold them until maturity.

When comparing different types of investments that are available with ETFs or mutual funds, pay attention to:

•  Underlying holdings

•  Fund turnover ratio

•  Expense ratios

Also consider the fund’s overall performance, particularly during periods of inflation or deflation. Past history is not an exact predictor of future performance but it may shed some light on how a TIPS ETF has reacted to rising or falling prices previously.

The Takeaway

Treasury Inflation-Protected Securities may help shield your portfolio against some of the negative impacts of inflation. Investors who are worried about their purchasing power shrinking over time may find TIPS appealing.
But don’t discount the value of investing in stocks and other securities as well. Building a diversified portfolio that takes into consideration an investor’s personal risk tolerance, as well as financial goals and time horizons, is a popular strategy.

With a SoFi Invest® online investing account, members can choose from stocks, ETFs, and cryptocurrency options in one place. You can start investing with as little as $1, and manage your account from the convenient mobile app.

Find out how to get started with SoFi Invest.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
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For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.
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The post What Are Treasury Inflation-Protected Securities (TIPS)? appeared first on SoFi.

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How To Get The Most Out Of Your Auto Insurance Coverage

Recent data suggests that the average driver will spend close to $100,000 on car insurance over their lifetime. That’s a staggering sum of money, especially when you consider estimates that suggest Americans will pay over $500,000 in that time just to own, operate, and maintain a car.

$100,000 is a lot of money to spend on something that you may never benefit from, something that you’re only buying because your state authorities told you too. But while car insurance policies are essential, the amount that the average consumer spends on them is not.

In this guide, we’ll look at the ways you can save money on auto insurance premiums and get the most value out of this necessary expense.

Build Your Credit Report

Never underestimate the value of a high credit score and a clean credit report. Not only can it help when applying for a car loan, increasing the value of the car you can purchase and decreasing the interest rates you’re charged, but it will also reduce your car insurance rates.

There is no easy and quick way to turn a bad credit report into a good credit report, but there are a few simple changes you can make that could increase your score enough to make a difference. These include:

  • Stop applying for new lines of credit.
  • Become an authorized user on a respectable user’s credit card.
  • Increase credit limits on your active credit cards.
  • Pay off as much debt as you can, focusing on credit cards and personal loans first.
  • Don’t close your credit card accounts after clearing them.

If you don’t have any credit at all, which is true for many teen drivers getting behind the wheel for the first time, try the following options:

  • Credit builder loans
  • Secured credit cards
  • Lending circles

Choose Your Car Carefully

A new car is a great way to get a high-tech, customized vehicle, but it’s not ideal if you’re looking to save on insurance costs.

New vehicles cost more to insure because they are a greater liability, with more expensive parts and greater overall value. If you want to save on your auto insurance coverage, look for a car that is at least a few years old, has a number of safety features and a high safety rating.

The cheaper, the better, but only to a point. You want something that won’t leave you in complete financial ruin if it’s wrecked in a car accident and you don’t have the insurance to cover it, but something that won’t breakdown every few miles and leave you stranded and broke every other week.

Drive Safely and Prove Your Worth

Your driving record is just as important as your credit report, if not more so. The more at-fault accidents, traffic tickets, and insurance claims you have, the higher your car insurance rates will be.

A single conviction won’t last forever and the impact will eventually dissipate, so even if you have a few blemishes on your record now, just keep driving safely and you’ll be able to reap the benefits before long.

It takes time to prove your worth to insurance companies, but there are a few things you can do to expedite this process. The first is to take a defensive driving course. In some states and for some demographics (mostly seniors and young drivers), you’ll be offered a discount for completing one of these courses.

The next step is to consider a usage-based program. These are offered by most major insurance companies and can track your driving habits to determine what kind of driver you are. If you’re driving safe and doing very low mileage, you could start seeing some noticeable changes in just a few months. The majority of providers will even give you a discount just for signing up.

Pay Everything Upfront

Most policyholders pay their premiums monthly and it may seem like that’s the best thing to do. $100 a month seems infinitely more manageable than $1,200 a year. 

It is an attitude that many people have, and it’s one that often leads to debt and poor decisions.

Millions of Americans have credit card debt because a $200 monthly payment seems more achievable than a $5,000 payoff, even though the former carries a phenomenal interest rate. It’s also why countless first-time buyers rush into getting mortgages with small down payments and high-interest rates, even though doing so could mean they are paying twice as much money over the term.

Whenever you can benefit from making an upfront payment, do it. This is true for your loan debt and credit card debt, and it’s also true for your car insurance premiums.

Many insurance providers offer you an upfront payment discount of up to 5%. It doesn’t sound like much, but every little helps. If you have a $3,000 car insurance policy, that 5% adds up to $150. Add a few more discounts and you can save even more money and make an even bigger dent in your insurance rates.

Combine Policies and Vehicles

Insurance companies that offer multiple types of insurance tend to offer discounts when you purchase several products from them.

Known as multi-policy discounts or “bundling”, these offers are common with homeowners insurance and auto insurance, but they are also offered with renters insurance and life insurance.

You can combine several vehicles onto the same auto insurance policy, as well, saving much more than if you were to purchase separate policies.

These discounts are essential for multi-car households, but they are not limited to cars. Many insurers will also let you add boats, ATVs, motorcycles, and other vehicles onto the same policy.

Shop Around

Before you settle on a single policy, shop around, compare as many car insurance quotes as you can, try multiple different insurance options (uninsured/underinsured motorist coverage, comprehensive coverage, collision coverage) and make sure you’re getting the lowest rates for the best cover.

Too many drivers make the mistake of going with the same provider their friends or parents have; the same provider they have used for a number of years. In doing so, they could be missing out on huge savings. 

You could be forgiven for thinking that all providers offer similar rates and that the difference between them is minor. But regardless of your age, gender, and state, the difference between one provider and the next could be up to 200%!

Check if You’re Covered Elsewhere

Car insurance companies offer a number of add-ons and optional coverage options. These are enticing, as they cover you for numerous eventualities and some of them cost just a few dollars extra a month. But all of those dollars add up and could result in you paying much more than you need for cover you already have.

Roadside assistance is a great example of this. It will help you if you are stranded by the side of the road, assisting with services such as tire changes, fuel delivery, towing, and more. But if you have a premium credit card or are a member of an automobile club, you may already have that cover.

The same goes for rental car coverage, which is often purchased at the rental car counter. Although it has its uses, if you have an auto insurance policy, travel insurance, and a premium credit card, you’re probably already covered. In fact, many Visa credit cards offer this service completely free of charge when you use your Visa to pay the bill, but only if you reject the waivers sold by the rental car company.

Bottom Line: Best Auto Insurance Companies

​Car insurance coverage varies from state to state and provider to provider. There is no “best” company, as even the ones with consistently affordable rates will not be the best option in all states or for all demographics.

In our research, we found that GEICO was consistently one of the cheapest providers for good drivers, bad credit drivers, and even high risk drivers. GEICO also offers personal injury protection, collision insurance, medical payments, uninsured motorist coverage, and more, making them the most complete provider for the majority of drivers.

However, in some states, local farm bureaus come out on top, offering very cheap bodily injury liability coverage and property damage liability coverage, and giving policyholders a level of care and attention that they might not find with the bigger, national providers. USAA, which offers cheap car insurance to members of the military, also leads the way in the majority of states, but only for those who meet the criteria.

Simply put, there is no right insurance provider for you, just like there is no right coverage. That’s why it’s important to shop around, chop and change your coverage options, and don’t assume that any type of coverage or provider is right for you until you’ve looked at the numbers.

 

 

How To Get The Most Out Of Your Auto Insurance Coverage is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

Rental Cover Letter: Sample Letter to Rent a House

In 2020, there were 43 million renters. With a high demand for apartments and houses and limited supply, it is difficult to secure the exact place you want to rent. In a highly competitive rental market, how do you stand out from other renters and snag the perfect place? Write a rental cover letter.

Yes, you read that right! We suggest including a rental cover letter with your rental application to help your application shine compared to other potential tenants. We’ll explain why you should write a rental cover letter and we’ll even include a sample letter to rent a house that you can use.

Why write a rental cover letter

Typically, you’d include a cover letter with a job application to summarize your past experiences, highlight your best qualities and advocate for why you deserve the job. Well, the same is true for the housing market. Including a rental cover letter can help you stand out from other applicants and leave a lasting impression with the landlord, especially in cities or neighborhoods where there are fewer rental vacancies.

While it’s not required to include a rental cover letter with your rental application, it’s an extra step you can take to show the landlord that you’re serious about wanting to rent from them and provide additional context about who you are and why you’d be a stellar tenant.

Criteria landlords look for

When landlords are sifting through rental applications, there are a few things they look for to help them decide who they should pick. Landlords look at:

  • Credit history
  • Employment history
  • Rental history
  • Income
  • References
  • Background check

Remember — landlords want to rent houses to someone who will pay the rent on time, keep the property in tip-top condition and be a polite neighbor. All of these things usually go into the rental application itself, but a rental cover letter is an extra opportunity for you to showcase that you’ll be an ideal tenant.

It’s especially important when renting a house because you’ll likely have your own yard to maintain and be living next to other renters or homeowners that you’ll want to impress.

Things to include in your rental cover letter

So, what exactly should you include in your rental cover letter? Here are a few things to consider including and how they may help you out in your hunt for the perfect house to rent.

Highlight your employment history

Because landlords want to rent to people who have a steady income and will pay the rent on time each month, providing more information about your employment history can help you out. For example, you could share how many years you’ve worked at the same place which will show that you’re a reliable, steadily-employed person.

Woman reading a book and drinking coffee.

Share your hobbies

To show a bit of your personality and humanize your application, you could include your hobbies and share what you like to do on the weekends and in your free time in your rental cover letter. This is appealing to landlords who rent houses because they’ll care about how you’ll interact with the other people in the neighborhood.

Discuss your philosophy on what makes a good neighbor

Everyone wants to live next to good neighbors. In your sample letter to rent a house, you could include a story about how you’ve connected with neighbors in the past to showcase that you’re the ideal neighbor.

Neighbors.

Explain why you want to live in this house and neighborhood

If this is the perfect home for you, share that in the rental cover letter. Share specific examples of why you chose this house and neighborhood. Those details will show that you truly care.

All of this is optional, but sharing these details will highlight who you are and help personalize your application. It’s also important to remember that under the Fair Housing Act, landlords cannot discriminate based on race, color, national origin, religion, sex, familial status or disability. You do not need to include any of this information in your rental cover letter.

Typing a letter on a laptop.

Sample letter to rent a house

This sample letter to rent a house is an easy-to-use template that you can use when drafting your own rental cover letter. Simply fill in the blanks and customize as needed.

Download a PDF of the cover letter template
Download a Word Doc of the cover letter template


(Your name)
(Address)
(City, State ZIP Code)

(Date)

(Landlord or property manager name)
(Address)
(City, State ZIP Code)

Re: (Your name) Renter Cover Letter for (Address or property name)

Dear (Landlord name),

My name is (Your name) and I’m writing to you because I’m very interested in renting the home that’s available at (Address or property name). I was particularly interested in this place because (Reasons you want to rent there).

I currently am a renter at (Current address) but am eager to move because (Reason for wanting to move).

I’m sure you receive several rental applications each day, so I wanted to take some time to help you get to know me a little better and show you why I’m the best applicant for this vacancy.

  • (Highlight of employment history)
  • (Rental history highlight)
  • (Something about your hobbies, passions or interests)
  • (Note about how you’re a good neighbor and tenant)
  • (Quote from a reference about your character)

Based on these facts listed above, I think you’ll find that I’m a reliable, good neighbor and tenant who will pay my rent on time, keep the apartment in mint condition and communicate easily with you about any and all needs.

Please feel free to reach out to my references or to me personally with any questions or concerns you may have. I’m eager to rent from you and look forward to your decision.

Thanks for your consideration,

(Signature)
(Printed name)
(Email address)
(Phone number)


Stand out from the competition

Finding and securing a place to rent is difficult, so you want all the tips and tricks you can get. By writing a rental cover letter, you’ll be one step ahead of other potential renters and will be one step closer to moving into your new home.

The post Rental Cover Letter: Sample Letter to Rent a House appeared first on The Rent.com Blog : A Renter’s Guide for Tips & Advice.

Source: rent.com

10 Cities Near Boston To Live in 2021

The enchanting city of Boston is a beacon of history and culture. From the Freedom Trail to the thriving Financial District, the many charms of this city attract hopeful renters from across the globe. But one look at the average rent prices in Boston may leave you searching for less expensive relocation options.

Whether you are cost-conscious or prefer to live away from the big city vibe, rest assured that there are plenty of cities near Boston where you can still enjoy the best of this world-renowned region.

Here are 10 wonderful cities near Boston with access to the metropolis and unique charms of their own.

  • Newton
  • Concord
  • Natick
  • Salem
  • Framingham
  • Boxborough
  • Foxboro
  • Bridgewater
  • Gloucester
  • Plymouth

Newton

Newton, MA.

  • Distance from downtown Boston: 9.9 miles
  • One-bedroom average rent: $2,641 (down 9.6 percent since last year)
  • Two-bedroom average rent: $3,453 (down 11.8 percent since last year)

Newton is a quintessential New England town with 13 unique neighborhoods, charmingly called Newton’s “13 villages.” The communities offer something for every taste — from Chestnut Hill with its farmlands and chestnut trees to the prosperous business district of West Newton.

West Newton claims a convenient stop on the Massachusetts Bay Transportation Authority Commuter Rail, allowing Newton residents to bypass some truly awful Boston traffic and arrive in Back Bay in under 20 minutes.

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Concord

Concord, MA, one of the cities near boston

  • Distance from downtown Boston: 20 miles
  • One-bedroom average rent: $1,856 (up 5.8 percent since last year)
  • Two-bedroom average rent: $2,725 (down 0.3 percent since last year)

The city of Concord is a fascinating mix of early-American history and modern natural wonders. The Concord Museum captures the uniqueness of the town since its incorporation in 1635, including Concord’s essential role in the American Revolutionary War. Historic houses in Concord display a charming style of architecture unique to New England.

The Walden Pond State Reservation offers locals and tourists a great place to hit the trails and go for a swim at lake beaches.

Outdoor adventures in Concord pair well with an inspiring visit to Thoreau House, the site of the transcendentalist poet’s home, and the legendary Sleepy Hollow Cemetery.

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Natick

Natick, MA.

  • Distance from downtown Boston: 21 miles
  • One-bedroom average rent: $2,118 (down 5.8 percent since last year)
  • Two-bedroom average rent: $2,606 (down 5.7 percent since last year)

Natick is known for its Natick Town Center, a charming downtown with historic brick buildings and a cozy atmosphere. Residents enjoy many benefits, including access to a Community Center, the Sassamon Trace Golf Course and Memorial Beach.

On the opposite side of the town exists an entirely different scene with the massive Natick Mall. This shopping center draws in both business and excitement as the largest mall in Massachusetts.

Residents have the best of both worlds, with lovely farmlands in the eastern parts of Natick and the liveliness of the commercial area to the northwest.

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Salem

Salem, MA, one of the cities near boston

  • Distance from downtown Boston: 22.2 miles
  • One-bedroom average rent: $2,444 (up 0.5 percent since last year)
  • Two-bedroom average rent: $3,049 (up 9.5 percent since last year)

Best known for being the home of the Salem Witch Trials, Salem is rich in history.

The downtown and harbor areas comprise a wide web of streets offering countless shops, restaurants and museums. For a change of theme, visitors can explore worldwide art and culture on display at the Peabody Essex Museum and the historic House of the Seven Gables.

While the height of Salem’s excitement peaks in the month-long celebrations in October, locals enjoy year-round nightlife and a vibrant party scene.

A change of pace is easy to find with the numerous seaside beaches and the expansive nature preservatory at Salem Woods.

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Framingham

Framingham, MA.

  • Distance from downtown Boston: 22.7 miles
  • One-bedroom average rent: $1,876 (down 7.7 percent since last year)
  • Two-bedroom average rent: $2,357 (down 15.2 percent since last year)

Framingham is a commercial hub that acts as a midway point between Boston in the east and mini-metropolis Worcester farther to the west. In addition to its strategic location, Framingham residents enjoy in-town attractions such as the Garden in the Woods and Jack’s Abbey brewery.

Framingham has several residential neighborhoods and is a popular town for city commuters as the MBTA Framingham/Worcester Commuter Rail offers a comfortable ride to both Boston and Worcester.

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Boxborough

Boxborough, MA, one of the cities near boston

Photo source: Boxborough, MA / Facebook
  • Distance from downtown Boston: 29 miles
  • One-bedroom average rent: $1,806 (down 17.8 percent since last year)
  • Two-bedroom average rent: $1,868 (down 21.6 percent since last year)

The cozy town of Boxborough is ideal for those wishing to partake in the joys of countryside life while keeping the conveniences of the big city within distance.

Locals here enjoy charming estates, lush greenery and a close-knit community. For schooling and other purposes, this town is often combined with nearby Acton as the Acton-Boxborough area.

Nature lovers enjoy the numerous Boxborough farms selling locally-grown produce. A breath of the wild is always at hand for residents who have access to in-town parks such as Flerra Meadows and the nearby Wachusett Mountain with its hiking trails and ski slopes.

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Foxboro

foxboro ma

  • Distance from downtown Boston: 30.1 miles
  • One-bedroom average rent: $2,144 (up 0.9 percent since last year)
  • Two-bedroom average rent: $3,067 (down 5.3 percent since last year)

Written officially as “Foxborough,” locals refer to this town as “Foxboro” and the “Home of the New England Patriots.” The stunning Gillette Stadium here is the base of Massachusetts’ most beloved football team. During a game, locals across Massachusetts know to give Foxboro a wide berth as the traffic is as legendary as the team playing.

Luckily, Foxboro locals don’t have to leave town to have a great time. The expansive Patriot Place shopping plaza surrounding the stadium offers thrills such as an escape room and a themed cafe.

Fans of nature aren’t left out here — the Nature Trail and Cranberry Bog, as well as the numerous bucolic farms and scenic landscape nearby, offer much to explore.

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Bridgewater

Bridgewater, MA, one of the cities near boston

  • Distance from downtown Boston: 32.3 miles
  • One-bedroom average rent: $1,878 (up 1.1 percent since last year)
  • Two-bedroom average rent: $2,211 (up 1.5 percent since last year)

A college town with a youthful vibe and lively downtown, Bridgewater is home to Bridgewater State University and boasts the high energy and hip scene of an international campus.

Bridgewater and neighboring towns East Bridgewater and West Bridgewater are great midway points between Boston and Cape Cod.

Residents can take the MBTA Commuter Rail from Bridgewater Station to reach the big city in under an hour or enjoy a scenic drive over the Bourne Bridge to bask on the Cape beaches.

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Gloucester

Gloucester, MA.

  • Distance from downtown Boston: 36.2 miles
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: $1,760 (0.0 percent change since last year)

Located on Cape Ann, Gloucester is a dream come true for those who want to live by the sea. This peninsula paradise has beaches on two sides and is right next to the famous town of Rockport. Locals enjoy fresh seafood and an artsy scene — many creative souls appreciate the breathtaking scenery these towns have to offer.

Keep in mind that summer is the high season for coastal towns like Gloucester, and many of the beachy parts of Cape Ann cater to tourists and elderly snowbirds. While Gloucester is not as touristy as Rockport, year-round residents here should expect the liveliness of summer and a much quieter reprieve in winter.

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Plymouth

Plymouth, MA, one of the cities near boston

  • Distance from downtown Boston: 39.8 miles
  • One-bedroom average rent: $2,151 (up 2.8 percent since last year)
  • Two-bedroom average rent: $2,700 (up 4.5 percent since last year)

Often referred to as “America’s hometown,” Plymouth, founded by the Pilgrims in 1620, offers rich history alongside spectacular views of the ocean. The Mayflower II is on display in the downtown memorial park, not far from the monument protecting Plymouth Rock.

Enthusiasts of early American history will enjoy exploring the world-renowned Plimouth Plantation, where Plymouth residents enjoy a steep discount.

Locals and tourists alike love strolling downtown Plymouth with its waterfront shops and a picturesque harbor. Outside of the main commercial areas, scenic cranberry bogs and numerous nature parks dot the landscape.

Business picks up around Thanksgiving time, but unlike many other coastal parts of Massachusetts that host seasonal residents, Plymouth enjoys a steady population year-round.

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Make one of these cities near Boston your home city

Between a prosperous city life and oceanside charms, it is no wonder that Boston and its surrounding area have some of the most sought-after real estate in the country. Whether you want to bask in the rich history of the region or live an idyllic life by the sea, you can find your ideal place in one of these great cities near Boston.

Properties are in high demand, and space is exclusive, so start looking for your new home today.

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory of one-bedroom apartments in April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

The post 10 Cities Near Boston To Live in 2021 appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

Source: apartmentguide.com

Guide to Managing Finances for Deploying Service Members

Life in the military offers some distinct experiences compared to civilian life, and that includes your budget and finances. The pre-deployment process can feel overwhelming, especially when you’re organizing your money and bills. 

It’s important you provide your family with everything they need to keep you and any dependents comfortable and stable. This means gathering paperwork, making phone calls to service providers, creating new budgets, and organizing your estate. The more you prepare ahead of time, the less you have to worry about the state of your investments and finances when you return home. 

To help make the process easier, we’ve gathered everything you need to know for deployment finances. Read on or jump to a specific category below:

Pre-Deployment Needs

  • Review Your Estate
  • Reassign Financial Responsibilities
  • Update Your Services
  • Build a Budget
  • Prepare a Deployment Binder

Deployment Needs

  • Protect Yourself From Fraud
  • Adjust Your Savings
  • Financial Assistance

Post-Deployment Needs

  • Update Your Budget
  • Pay Off Debt
  • Review Legal Documents

Before Your Deployment

There’s a lot of paperwork and emotions involved in preparing for deployment. Make sure you take plenty of time for yourself and your loved ones, then schedule time to organize your finances for some peace of mind. 
investments, and dependents. It’s an important conversation to have with your partner and establishes:

  • Power of attorney
  • Living will
  • Last will and testament
  • Long-term care
  • Life insurance
  • Survivor benefits
  • Funeral arrangements

Anyone with property, wealth, or dependents should have some estate planning basics secured. These documents will protect your wishes and your family in the event you suffer serious injury. There are several military resources to help you prepare your estate:

  • Defense Finance And Accounting Services’ Survivor Benefit Plan and Reserve Component Survivor Benefit Plan
  • Department Of Defense’s Military Funeral Honors Pre-arrangement 
  • Service Member’s Group Life Insurance
  • Veterans Affairs Survivor’s Benefits
  • The Importance Of Estate Planning In The Military
  • Survivor Benefits Calculator

Servicemembers Civil Relief Act (SCRA) allows you to cancel a housing or auto lease, cancel your phone service, and avoid foreclosure on a home you own without penalties. Additionally, you can reduce your debt interest rates while you’re deployed, giving you a leg up on debt repayment or savings goals. Learn more about the SCRA benefits below:

  • Terminating Your Lease For Deployment
  • SCRA Interest Rate Limits
  • SCRA Benefits And Legal Guidance

 

Build a Deployment Budget

Your pay may change during and after deployment, which means it’s time to update your budget. Use a deployment calculator to estimate how your pay will change to get a foundation for your budget. 

Typically, we recommend you put 50 percent of your pay towards needs, like rent and groceries. If you don’t have anyone relying on your income, then you should consider splitting this chunk of change between your savings accounts and debt. 

Make sure you continue to deposit at least 20 percent of your pay into savings, too. Send some of this towards an emergency fund, while the rest can go towards your larger savings goals, like buying a house and retirement. 

Use these resources to help calculate your goals and budgets, as well as planning for your taxes:

  • My Army Benefits Deployment Calculator
  • My Army Benefits Retirement Calculator
  • Mint Budget Calculator
  • IRS Deployed Veteran Tax Extension
  • IRS Military Tax Resources
  • Combat Zone Tax Exclusions

 

Prepare a Deployment Binder

Mockup of someone completing the deployment checklist.

Illustrated button to download our printable depployment binder checklist.

It’s best to organize and arrange all of your documents, information, and needs into a deployment binder for your family. This will hold copies of your estate planning documents, budget information, and additional contacts and documents. 

Make copies of your personal documents, like birth certificates, contracts, bank information, and more. You also want to list important contacts like family doctors, your pet’s veterinarian, household contacts, and your power of attorney. 

Once you have your book ready, give it to your most trusted friend or family member. Again, this point of contact will have a lot of information about you that needs to stay secure. Finish it off with any instructions or to-dos for while you’re gone, and your finances should be secure for your leave. 

While You’re Deployed

Though most of your needs are taken care of before you deploy, there are a few things to settle while you’re away from home. 
Romance and identity scams are especially popular and can cost you thousands. 

  • Social Media Scams To Watch For
  • Romance Scam Red Flags
  • Military Scam Warning Signs

 

Adjust Your Savings 

Since you won’t be responsible for as many bills, and you may have reduced debt interest rates, deployment is the perfect time to build your savings.

While you’re deployed, you may be eligible for the Department of Defense’s Savings Deposit Program (SDP), which offers up to 10 percent interest. This is available to service members deployed to designated combat zones and those receiving hostile fire pay.

Military and federal government employees are also eligible for the Thrift Savings Plan. This is a supplementary retirement savings to your Civil Service Retirement System plan.

  • Savings Deposit Program
  • Thrift Savings Plan Calculator
  • Civil Service Retirement System
  • Military Saves Resources

 

Additional Resources for Financial Assistance

Deployment can be a financially and emotionally difficult time for families of service members. Make sure you and your family have easy access to financial aid in case they find themselves in need. 

Each individual branch of the military offers its own family and financial resources. You can find additional care through local support systems and national organizations, like Military OneSource and the American Legion. 

  • Family Readiness System
  • Navy-marine Corps Relief Society
  • Air Force Aid Society
  • Army Emergency Relief
  • Coast Guard Mutual Assistance
  • Military Onesource’s Financial Live Chat
  • Find Your Military And Family Support Center
  • Emergency Loans Through Military Heroes Fund Foundation Programs
  • The American Legion Family Support Network

After You Return Home

Coming home after deployment may be a rush of emotions. Relief, exhaustion, excitement, and lots of celebration are sure to come with it. There’s a lot to consider with reintegration after deployment, and that includes taking another look at your finances. 

 

Update Your Budget

Just like before deployment, you should update your budget to account for your new spending needs and pay. It’s time to reinstate your car insurance, find housing, and plan your monthly grocery budget. 

After a boost in savings while deployed, you may want to treat yourself to something nice — which is totally okay! The key is to decide what you want for yourself or your family, figure if it’s reasonable while maintaining other savings goals, like your rainy day fund, and limit other frivolous purchases. Now is not the time to go on a spending spree — it’s best to invest this money into education savings, retirement, and other long-term plans.

In addition to your savings goals, make sure you’re prepared to take care of yours and your family’s health. Prioritize your mental health after deployment and speak with a counselor, join support groups, and prepare for reintegration. Your family and children may also have a hard time adjusting, so consider their needs and seek out resources as well. 
FTC | NFCC 

The post Guide to Managing Finances for Deploying Service Members appeared first on MintLife Blog.

Source: mint.intuit.com

What You Should Know About the Right of Redemption

If you are a homeowner with a mortgage, you might have heard about your right to redemption. For those who have been struggling to make their house payments, this is one route that can be taken to avoid foreclosure.  

What is the Right of Redemption?

If you own real estate, making mortgage payments can be hard, but foreclosure is something that most people want to avoid. The right of redemption is basically a last chance to reclaim your property in order to prevent a foreclosure from happening. If mortgagors can manage to pay off their back taxes or any liens on their property, they can save their property. Usually, real estate owners will have to pay the total amount that they owe plus any additional costs that may have accrued during the foreclosure process. 

In some states, you can exercise your right to redemption after a foreclosure sale or auction on the property has already taken place, but it can end up being more expensive. If you wait until after the foreclosure sale, you will need to come up with the full amount that you already owe as well as the purchase price.  

How the right of redemption works

In contrast to the right of redemption, exists the right of foreclosure, which is a lender’s ability to legally possess a property when a mortgager defaults on their payments. Generally, when you are in the process of purchasing a home, the terms of agreement will discuss the circumstances in which a foreclosure may take place. The foreclosure process can mean something different depending on what state you are in, as state laws do regulate the right of foreclosure. Before taking ownership of the property through this process, lenders must notify real estate owner and go through a specific process. 

Typically, they have to provide the homeowner with a default notice, letting them know that their mortgage loan is in default due to a lack of payments. At this point, the homeowner then has an amount of time, known as a redemption period, to try to get their home back. The homeowner may have reason to believe that the lender does not have the right to a foreclosure process, in which case they have a right to fight it. 

The right of redemption can be carried out in two different ways:

  • You can redeem your home by paying off the full amount of the debt along with interest rates and costs related to the foreclosure before the foreclosure sale OR
  • You can reimburse the new owner of the property in the full amount of the purchase price if you are redeeming after the sale date. 

No matter what state you live in, you always have the right to redemption before a foreclosure sale, however there are only certain states that allow a redemption period after a foreclosure sale has already taken place. 

Redemption before the foreclosure sale 

It’s easy to get behind on mortgage payments, so it’s a good thing that our government believes in second chances. All homeowners have redemption rights precluding a foreclosure sale. When you exercise your right of redemption before a foreclosure sale, you will have to come up with enough money to pay off the mortgage debt. It’s important that you ask for a payoff statement from your loan servicer that will inform you of the exact amount you will need to pay in order save your property. 

Redemption laws allow the debtor to redeem their property within the timeframe where the notice begins and the foreclosure sale ends. Redemption occurring before a foreclosure sale is rare, since it’s usually difficult for people to come up with such a large amount of money in such a short period of time. 

The Statutory Right of Redemption after a foreclosure sale 

While all states have redemption rights that allow homeowners to buy back their home before a foreclosure sale, only some states allow you to get your home back following a foreclosure sale. Known as a “statutory” right of redemption, this right as well as the amount of time given to exercise it, has come directly from statutes of individual states. 

In the case of a statutory right of redemption, real estate owners have a certain amount of time following a foreclosure in which they are able to redeem their property. In order to do this, the former owner must pay the full amount of the foreclosure sale price or the full amount that is owed to the bank on top of additional charges. Statutory redemption laws allow for the homeowners to have more time to get their homes back. 

Depending on what state you live in, the fees and costs of what it takes to exercise redemption may vary. In many cases during a foreclosure sale, real estate will actually sell for a price lower than the fair market value. When this happens, the former owner has a slightly higher chance of being able to redeem the home. 

What You Should Know About the Right of Redemption is a post from Pocket Your Dollars.

Source: pocketyourdollars.com