الثلاثاء، 27 أغسطس 2019
Metro Credit Union Mortgage Rates Reviews: Today’s Best Analysis
Metro Credit Union was founded in 1926 as a small member-owned banking institution with less than 35 members.
Over its 93 years in business, Metro has grown into the largest state-chartered credit union in Massachusetts, with over $1 billion in assets and more than 200,000 active members.
This lender’s commitment to low-fee services, competitive loan rates, and community outreach have contributed significantly to its positive reputation and long-term success.
Metro Credit Union Quick Facts
- Only operates within the state of Massachusetts
- Formal credit union membership is required
- Offers an incredibly diverse selection of mortgage options, including adjustable and conventional fixed-rate, FHA, VA, HomeReady, Home Possible, and more
- FHA loans can be secured with as little as 3.5 percent down
- Supports low- to moderate-income borrowers by providing a variety of home loans with flexible qualification requirements
- Members can apply for a mortgage in person or online
- The website does not contain a rate quote process
Overview
Metro Credit Union was founded in 1926 as a small member-owned banking institution with less than 35 members. Over its 93 years in business, Metro has grown into the largest state-chartered credit union in Massachusetts, with over $1 billion in assets and more than 200,000 active members.
This lender’s commitment to low-fee services, competitive loan rates, and community outreach have contributed significantly to its positive reputation and long-term success.
Metro Credit Union has provided Massachusetts residents with affordable home financing solutions for over 90 years and has earned a reputation as one the state’s most reliable lenders.
The credit union’s massive catalog of government-backed and conventional mortgage products eclipses many of its regional and nationwide competitors, though formal membership is a strict prerequisite.
This lender offers a variety of specialty programs aimed at low- to moderate-income borrowers and those unable to make a sizeable down payment, including Fannie Mae’s HomeReady mortgages and Freddie Mac’s Home Possible loans.
Both of these programs feature down payment minimums of just 3 percent, along with flexible credit requirements.
Almost all of Metro’s mortgages are tailored to borrowers who may face difficulties qualifying for a conventional loan from other lenders, which has helped the credit union distinguish itself as a community-focused lending institution.
Metro’s main branch earned an A+ rating from the Better Business Bureau, though it does hold a one-star customer review score. This credit union determines program eligibility by reviewing a wide range of financial information, including debt-to-income ratios, credit scores and histories, and household income, yet it is markedly flexible compared to other lenders.
Current Metro Credit Union Mortgage Rates
—–
Metro Credit Union Loan Specifics
Compared with most regional and nationwide lenders, Metro Credit Union offers a staggering variety of mortgage options to choose from.
The credit union’s website lists more than ten unique home loan programs, including conventional fixed- and adjustable-rate, FHA, VA, HomeReady, Home Possible, MassHousing, and a whole lot more.
Fixed-rate Loans
This popular mortgage type benefits from set interest rates that will not fluctuate over the full life of the loan, making it a solid choice for home buyers that plan to settle down for more than seven years.
Metro provides a variety of loan terms to choose from, including 10, 15, 20, and 30 years, though longer repayment terms often mean higher interest rates and monthly payments.
Adjustable-rate Loans
Unlike fixed-rate mortgages, this home financing option features variable rates that may fluctuate over the repayment period. Borrowers can negotiate an initial fixed-rate period of 5, 7, 10, or 15 years, after which their interest rates and monthly payments will automatically adjust to the market index.
This mortgage type is well-suited to home buyers who are unsure about their long-term plans, as it typically offers lower starting rates than traditional alternatives.
Jumbo Loans
Borrowers who plan to purchase or refinance an expensive home can take advantage of this specialty mortgage program, which provides loan amounts of up to $2.5 million.
Metro’s jumbo loans are available as either fixed- or adjustable-rate and feature markedly flexible loan terms. This home financing option was designed to support purchases that exceed the maximum conforming limits set by the Federal Housing Finance Agency, which currently stands at $484,350 in Massachusetts.
FHA Loans
This government-backed program was created by The Federal Housing Administration to support first-time home buyers and borrowers who are unable to make a sizeable down payment. FHA loans are available for 1-4 unit properties and do not possess income limitations, but some credit score restrictions do apply.
Qualified borrowers can secure an affordable rate with as little as 3.5 percent down, though mortgage insurance is required for down payments below 20 percent.
VA Loans
Eligible veterans and active-duty military personnel may want to consider this flexible home loan program, as it features 100 percent financing options for borrowers with credit scores as low as 620.
VA loans are federally insured by the U.S. Department of Veterans Affairs and have some of the lowest available interest rates and monthly payments. Additionally, mortgage insurance is not required to qualify, even for borrowers who put no money down upfront.
Operation Welcome Home Loans
This unique home financing option extends the closing cost and down payment assistance to members of the National Guard, active-duty military personnel, and veterans who are purchasing their first home.
The program is sponsored by MassHousing and features competitive rates that will not fluctuate over the repayment period, though certain income and loan limits do apply. Eligible borrowers can secure a closing cost credit of up to $2,500, along with discounted mortgage insurance premiums.
HomeReady Loans
This specialty mortgage was created by Fannie Mae to help creditworthy low- to moderate-income borrowers secure affordable rates and monthly payments.
Qualified home buyers with credit scores of 620 or higher can land a HomeReady loan with just 3 percent down, though some income restrictions do apply. These mortgages can be negotiated as either a fixed- or adjustable-rate loan, and possess a variety of repayment term options.
Home Possible Loans
Much like HomeReady mortgages, this financing program is designed to support low- to moderate-income borrowers in their search for affordable interest rates and flexible loan terms.
Eligible home buyers with credit scores of 660 and above can qualify with as little as 3 percent down and may submit non-traditional credit information alongside their mortgage application.
Metro Credit Union, in partnership with Freddie Mac, offers its members a choice between fixed or variable interest rates with a wide array of loan terms to choose from.
MassHousing Loans
This fixed-rate mortgage option features flexible underwriting and down payment requirements for Massachusetts borrowers looking to purchase a single-family home or condo.
While MassHousing has somewhat strict loan and income limits for this program, they do offer qualified borrowers the choice to opt-out of mortgage insurance.
At Home Mortgage Loans
Metro Credit Union offers this specialty mortgage program for low- to moderate-income home buyers who are interested in moving to specific Massachusetts gateway cities.
The credit union works with MassHousing and other community development partners to supply affordable interest rates and flexible repayment terms on homes located in Chelsea, Everett, Revere, and Lawrence.
Additionally, this mortgage option can be used to finance a home in need of rehabilitation, as it will help cover the cost of repairing and restoring the property.
Metro Credit Union Mortgage Customer Experience
Metro Credit Union provides conventional lending services tailored to the specific needs of Massachusetts residents and is particularly committed to supporting low- to moderate-income home buyers.
While this lender only operates 15 physical branches throughout the Greater Boston area, it allows members to apply for a home loan directly through its website. Metro also supplies its members with a variety of useful online resources, including FAQ pages, rate calculators, and a dense collection of educational articles.
The credit union’s website does not feature a rate quote or pre-qualification process, though interested borrowers can contact a lending agent by filling out a webform, reaching out by phone, or by visiting one of its branches in person.
On the downside, Metro’s website lacks specific information about many of its conventional mortgage programs, which may make comparative shopping a bit difficult.
Additional information about the credit union’s government-backed programs can be easily obtained by visiting one of its partners’ websites.
Despite its shortcomings, the credit union’s overwhelming selection of home financing options ensures that every one of its members has access to an affordable mortgage that suits their unique financial needs.
Metro Credit Union Lender Reputation
Metro Credit Union has been in operation for over 95 years and is considered a reliable and member-focused lending institution. The credit union’s main branch, located in Chelsea, Massachusetts, was awarded an A+ rating by the Better Business Bureau, yet it has not earned formal accreditation from the agency.
While Metro’s profile currently features a one-star customer review score, only ten complaints have been filed with the BBB over the past three years. Metro Credit Union is federally insured by NCUA and is a Member MSIC.
- Information collected on March 1, 2019
Metro Credit Union Mortgage Qualifications
|
Loan Type |
Rate Type |
Down Payment Requirements |
|
Fixed-rate Loans |
Fixed |
5 – 10% |
|
Adjustable-rate Loans |
Variable |
5 – 10% |
|
Jumbo Loans |
Fixed or Variable |
10 – 20% |
|
FHA Loans |
Fixed or Variable |
3.5% |
|
VA Loans |
Fixed |
0% |
|
Operation Welcome Home Loans |
Fixed |
3% |
|
HomeReady Loans |
Fixed or Variable |
3% |
|
Home Possible Loans |
Fixed or Variable |
3% |
|
MassHousing Loans |
Fixed |
0 – 5% |
|
At Home Mortgage Loans |
Fixed |
3 – 5% |
Each of Metro Credit Union’s mortgage products has different qualification guidelines, though formal membership is a universal requirement.
A vast majority of this lender’s home financing options feature low down payment minimums, making it a solid choice for first-time homebuyers and low- to moderate-income earners.
For example, an FHA loan can be secured with just 3.5 percent down, while its HomeReady and Home Possible mortgages require down payments of 3 percent.
Although Metro’s website does not list concrete down payment guidelines for its conventional fixed- and adjustable-rate loans, most lenders ask for at least 5 percent of the total purchase price.
Typically, the higher your down payment, the lower your interest rate will be, though some restrictions do apply.
Many of Metro’s mortgage programs benefit from flexible credit score conditions, which can help borrowers with less-than-perfect credit obtain affordable interest rates. HomeReady loans are available to members with scores as low as 620, but a robust credit history may be required.
Home buyers with limited credit histories should look into Freddie Mac’s Home Possible mortgage program, as it allows applicants to submit non-traditional credit histories alongside their applications.
One limitation is that Metro does not list any information about its median income requirements, debt-to-income guidelines, or its loan-to-value expectations, which may complicate the comparative shopping process.
Metro Credit Union Phone Number & Additional Details
- Homepage URL: https://www.metrocu.org/
- Company Phone: 1-877-696-3876
- Headquarters Address: 200 Revere Beach Parkway, Chelsea, MA 02150
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Rent vs. Buy a Home: Which is Better for You?
The rent vs. buy a home debate is an ongoing one, that seems to rise and fall with property values.
With house prices now sitting at record levels, the debate is relevant than eve.
This is especially true in high-priced markets, where house prices have reached nosebleed levels, and will require a massive financial investment – if that’s even possible.
First Things First: Where You Live Figures into the Rent vs. Buy Decision
It shouldn’t come as a surprise that geography plays a major role in the rent vs. buy a home decision.
In some markets, with either very high house prices or an abundance of rental housing, renting will be the better choice. But in others, where rents are higher than a typical house payment, buying stands out as the preferred strategy.
A CNBC report late last year, It’s better to rent than to buy in today’s housing market, disclosed that buying a home is now cheaper than renting in only 35% of US counties. They report that renting is a better investment than buying in 16 of 23 major metropolitan markets.
Metropolitan areas where it’s better to rent include Atlanta, Dallas, Denver, Houston, Los Angeles, Miami, San Francisco and Seattle. However, buying outperforms renting in much of the Midwest and Northeast, with Chicago and Cleveland being the best places to buy.
San Francisco is a classic case in point. As of the middle of this year, the median sale price of a single-family home reached an incredible $1.7 million dollars, and $1.3 million for condos. Buying at those price levels may be out of the question for the great majority of households.
By contrast, the median price of a house in Buffalo is $115,750, versus an average monthly rent of $1,100. Numbers like that make owning a better investment than renting, since the monthly payment for the median priced home will be below the average monthly rent.
If You Don’t Qualify for a Mortgage Then It Doesn’t Matter
This is another fundamental fact of life when it comes the homebuying.
Simply put, the rent vs. buy a home question doesn’t apply if you can’t qualify with a mortgage lender for the financing.
This can include several factors, including:
- Insufficient or unstable income.
- Bad credit history.
- Excessive non-housing debts and obligations.
- Lack of funds for a down payment.
If you hope to buy a home in the future, the good news is that each of these issues can be fixed in going forward. It’ll take time, but it’s certainly doable.
In the meantime though, we’re going to focus this debate on the rent vs. buy question with the assumption that you do have the financial resources to buy.
Rent vs. Buy a Home: Which is Better for You?
There are a lot of factors that go into the rent vs. buy a home decision. Not all have to do with money either.
Below, we’ll break down each factor individually, discuss the details of how it affects renting or owning, then attempt to declare a winner in each category.
Monthly Payment vs. Actual Cost
This one may be the most complicated of all. If you purchase a house for $300,000, with a $60,000 down payment (20%), you’ll need a mortgage of $240,000. At 4% for a 30-year loan, the monthly mortgage payment will be $1,145. Property taxes, at $3,000 per year, will add another $250 to your monthly payment. You should also figure an additional $100 for homeowner’s insurance.
That will bring the total monthly cost to buy to $1,395.
If the cost to rent the same house is $1,800 per month, buying will certainly be the better choice.
But let’s say instead of making a 20% down payment, you go in with only 5%. That will increase your mortgage to $285,000. At 4% for a 30-year loan, the mortgage payment itself will be $1,360. You’ll also need to add $350 for property taxes and homeowner’s insurance, bringing the total to $1,710.
But that’s not the end of the story. By putting 5% down, you’ll be required to pay private mortgage insurance. The monthly premium on a $285,000 that represents 95% of the value of the house will add about $185 to the payment.
That will bring the total monthly cost to buy up to $1,895.
But there’s one more variable for owners: repair and maintenance costs.
HGTV reports that average annual repair and maintenance costs for homeowners is between 1% and 3% of of the home’s purchase price. For a house bought for $300,000, using the midpoint of 2%, the repair and maintenance costs comes to $6,000 per year. That will add about $500 to your monthly payment, whether you put down 5% or 20%.
With a 20% down payment, the monthly payment then rises to $1,895. With a 5% down payment, it rises to $2,395.
Winner: Renting
Job Stability
This is an often under-appreciated rent vs. buy criteria. If you have a very stable job, or you work in a very stable career field, buying can make more sense. But if, like many occupations today, future employment is uncertain, you may be better off renting.
Part of the problem with unstable employment is income reliability. If you change jobs frequently, there’s a real possibility that at some point you’ll be earning less than you did when you first bought your home. If that even potentially describes your situation, renting is the better course.
Winner: Buying for those with stable employment, renting for all others.
Mobility
This is looking at the job stability situation from a different angle. If you live in a small city or rural area, and jobs in your field are scarce, you may need to relocate if you lose your job.
Another example is where you may be getting married in the near future, requiring relocation. Still another possibility is an ailing loved one in another city, that may require you to make a move at some point.
In any of the above situations, renting will give you the needed mobility to make a move with the fewest hassles. You can get out of a lease at the end of the term at the latest, and some will allow you to break the lease at minimal cost. But trying to sell a home to make a move is not only more time-consuming, but if you need to move quickly, you may lose money on the sale.
Winner: Renting
Tax Implications
There was a time when the tax code was extremely homeowner friendly. But the tax code changes implemented at the end of 2017 changed that equation for millions of homeowners.
First and foremost, the standard deduction increased dramatically. For 2019, it’s $24,400 for married filing jointly, and $12,200 for single filers.
Continuing our example from above, if you have a $240,000 mortgage at 4%, you’ll pay mortgage interest of something under $9,600 in the first year of the loan. Even if you add in $3,000 for real estate taxes, you’re only up to $12,600 in tax-deductible expenses related to your home.
That may give you a slight deduction – $200 – if you’re single. But it’ll barely exceed 50% of the standard deduction for a married couple.
There’s another limitation in the new tax code as well. State and local tax (“SALT”) deductions are now limited to $10,000 per year. If you live in a high tax state, your real estate tax deduction will be capped, denying you the full benefit of the expense deduction.
The renter will get the standard deduction, which may be all the homeowner gets as well.
Winner: Buying, as long as you have large itemized deductions apart from your home. Otherwise, the win goes to renting.
Liquidity & “Trapped Capital”
Money invested in the down payment on a house is effectively trapped capital. That’s because it can’t be accessed, apart from selling the home or taking out a home equity loan. One is entirely inconvenient, and the other adds to the cost of owning. The take-away however is that down payment money is not liquid. It’s there, but it’s really not.
Let’s take an example of two people, each of whom has $60,000 in savings. The first takes the entire amount and uses it as a 20% down payment on a $300,000 house. The second keeps it in savings and rents her home.
By investing his savings and a house, the buyer has lost liquidity. But by retaining $60,000 in savings, the renter remains completely liquid. Because of that liquidity, the renter has more options in life, as well as a generous cushion against financial uncertainty.
Winner: Renting, if liquidity is important to you – and it should be.
Building Wealth
There are a lot of variables with this factor, but let’s take renting and buying individually.
Person A puts the $60,000 down payment on a $300,000 house and faithfully makes the mortgage payments for 30 years. At the end of that time, not only is the mortgage paid in full, but the house has doubled in value. Person A has grown is wealth from $60,000 to $600,000 in 30 years.
Person B also has $60,000, but instead of buying a house, she invests it in a blended portfolio of stocks and bonds, with an average annual rate of return of 7%. After 30 years, her $60,000 portfolio has grown to $456,735.
Person A nets an advantage of more than $153,000 as a result of buying rather than renting. However, if his house doesn’t rise in value, his net worth will be only $300,000 after 30 years. That will put him behind by more than $156,000.
Winner: It could go either way, depending on the price-performance of the homeowner’s house, versus the savings and investment commitment of the renter.
Opportunity Cost
We just did an example of how a person can choose to invest money in a portfolio of stocks and bonds that would otherwise go toward the purchase of a home. That’s one form of opportunity cost that could go either for or against the homeowner.
But there are less certain opportunity costs. For example, if rather than buying a house, you chose to invest the money in your career or in buying a business, the increase in income – as well as the potential resale value of the business – could put you well ahead of the investment return on owning a house.
Self-made millionaire real estate investor Grant Cardone has stated many times that you shouldn’t buy a house to live in, but instead rent, then invest your money in yourself. (He rents his home while owning a portfolio of income producing rental properties.) Using the money to buy a business or improving your career skills is largely what he was referring to.
Winner: Renting
Personal Preference
This covers a wide range of potential topics, that depend on your individual circumstances. For example, some people just feel better emotionally owning. They prefer the permanence of ownership – as well as the ability to customize their home – to any benefits that may be provided by renting. As well, if you have children, it’s likely you’ll strongly prefer owning to provide them with a greater sense of security.
On the other hand, if you have a very demanding career, you like to travel, or you have hobbies and passions that don’t see you spending much time at home, renting may be preferred. It’s also the better choice for anyone who doesn’t want to get involved in the hands-on maintenance that owning a home requires.
Winner: It’s a certified toss-up.
Should YOU Rent or Buy a Home?
As you can see from the various factors we’ve evaluated in the rent vs. buy a home decision, it’s really a complicated choice.
It starts with the big picture factors, like the market you live in. If the area has particularly high housing costs, owning may not be an option, no matter how desirable it may be from an emotional standpoint.
There are also financial considerations, which tend to dominate the debate. First and foremost is the long-term financial advantage of owning versus renting. That really hangs mostly on the likelihood house prices in your area will rise substantially in the future. That is, of course, a variable, since it involves the use of a crystal ball that none of us have.
Then there are personal factors. First in that category is whether you can even afford to buy a house. That will depend on the strength of your finances, against levels of affordability in your area. You’ll also need to determine if owning will be a benefit from a tax standpoint, as well as the impact of variable costs, like repairs and maintenance.
Finally, there are issues of personal preference. As much as you may want to own a home, renting may better accommodate your lifestyle. If your occupation, hobbies, or traveling frequently keep you away from home, renting may be the better choice, even if other factors favor owning.
If you’re facing the rent vs. buy decision right now, carefully consider the choice against all the factors listed above. You may be surprised at your final conclusion.
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First Federal of Lakewood Mortgage Rates Review: Today’s Best Analysis
Founded in 1935, First Federal of Lakewood is the largest independent depositor-owned bank with a headquarters in Ohio.
Today, First Federal has 18 branches to serve Ohio residents in the Lakewood area. First Federal mortgage options include fixed and adjustable-rate mortgages, Federal Housing Administration (FHA), Veterans Affairs (VA), United States Department of Agriculture (USDA), jumbo, construction, bridge, and many other options.
First Federal of Lakewood Mortgage Facts
- Offers mortgages in Ohio
- Largest independent depositor-owned bank with a headquarters in Ohio state
- A large variety of alternative loan options for borrowers
- Fixed and adjustable-rate, jumbo, Freddie Mac Home Possible, Fannie Mae HomeReady, and other mortgage options
- Online application available
- Request information online, find current rates, and connect with a quote
Overview
First Federal was founded in 1935 in Lakewood, Ohio and continues to serve the Lakewood area today. As the largest independent depositor-owned bank with a headquarters in Ohio, the bank offers a wide range of loan options, with a special emphasis on local grants and state-supported lending programs.
Borrowers can apply online or speak with a mortgage specialist at a local branch. Educational information about mortgages and guidance on the many programs offered by First Federal is available on their website.
The bank’s reputation appears to be positive, although very little news could be found online.
Currently, First Federal is not on Trustpilot. The bank has an A- rating from the Better Business Bureau (BBB), with a one-star average based on two customer reviews.
Current First Federal of Lakewood Mortgage Rates
First Federal of Lakewood Loan Specifics
First Federal of Lakewood offers a wide variety of loan options, that can benefit many different home buyers. They help those looking to purchase for the first time to doctors, service members, those looking to buy land and build, and more.
Fixed-Rate Loans
With a fixed-rate mortgage loan from First Federal of Lakewood, borrowers can get a consistent rate and monthly mortgage cost that will stay consistent throughout the lifetime of the loan, even if market rates change later. This is a household budget item that can consistently be accounted for every month.
For homeowners who plan to stay in their homes or own their property for several years, having a fixed-rate mortgage may make the most sense. It’s also true, however, that fixed-rate payments stay the same later even if market rates decrease. This means buyers could also end up paying more overall than they have to if rates go down. First Federal of Lakewood offers 10, 15, 20 and 30-year loans.
Adjustable-Rate Loans
An adjustable-rate mortgage (ARM) from First Federal of Lakewood can go up or down based on market conditions. This means that borrowers planning to sell their homes soon may benefit from what they save with an ARM loan. ARM rates usually start low and are fixed for a specific period. For example, a 5/1 ARM stays at a single rate for the first five years of the loan and becomes subject to change every year after.
Jumbo Loans
For financing more than $484,350 in a mortgage, a jumbo loan from First Federal of Lakewood provides special terms and can make the purchase more affordable. These loans are structured for high-value homes and can have higher balances than what conventional loans usually cover. Borrowers must be able to qualify. A lower minimum down payment option may be available through First Federal.
Construction Loans
Interest-only loans for financing the cost of new construction. This makes it less challenging for buyers to cover their mortgage costs while also paying for their current housing expenses.
Doctor and Resident Loans
Special financing is available to make purchasing a home more affordable for healthcare professionals such as medical doctors, residents, podiatrists, veterinarians, ophthalmologists, and residents training to enter a medical profession.
Due to the realities of financing professional training, many healthcare professionals have student loans, but a doctor and resident loan from First Federal can provide up to 100 percent financing and special rates for qualifying applicants. Borrowers may be able to apply without student loan amounts counting against them during the loan qualification process.
Bridge Loans
Designed for home buyers who are also selling their current residence, bridge loans make it possible to transition from one mortgage into another, so buyers don’t have to worry as much about coordinating closing dates.
Community Programs and Grant Loans
First Federal has several community programs and local grants available for applicants who are looking to make their mortgages more affordable. These programs may ask borrowers to meet specific requirements. Ohio Financing Housing Agency (OHFA) loans, for instance, are generally for first-time home buyers, recent grads, and others who meet the qualifications.
Family Loans
Special financing programs for family members to assist with mortgages.
Fannie Mae HomeReady Loans
With this program through First Federal, buyers with low incomes can qualify for more affordable mortgages.
Fannie Mae HomeStyle Loans
A HomeStyle loan includes additional funding to cover repairs and updates to a home during the purchase process.
FHA Loans
With insurance backing FHA loans, more affordable options are available for buyers, bringing down payments as low as 3.5 percent.
USDA Rural Housing Loans
Backed by the USDA, these loans offer affordable home financing for buyers purchasing homes in rural areas of the United States. Low and no down payment options are available for those who meet the qualifications.
VA Loans
With backing by the VA, these loans for veterans, service members, and spouses provide an affordable mortgage option for applicants connected to the military.
Lot Loans
To help with the land purchase before construction, lot loans can provide flexible financing. Construction can begin later, enabling future homeowners to determine construction plans and design their dream homes after buying the perfect lot.
First Federal of Lakewood Mortgage Customer Experience
First Federal has a wide variety of mortgage options for borrowers. This bank has a particularly great selection of loans for first-time home buyers, low-income buyers, and others who may benefit from affordable and flexible lending options. Those applicants with credit challenges may find more favorable options through First Federal, also.
To get started, borrowers should request a free consultation with a First Federal loan specialist or start an online application. The bank provides a decent amount of information and mortgage education through their website for buyers hoping to learn more about the process and how to make the most of the experience of shopping around for a loan.
To get the most accurate estimate and information, buyers should prepare to provide detailed information about assets, income, and personal credit profiles. Self-employed applicants and others may be asked to provide additional documentation, depending on their finances and situation.
Borrowers may be required to pay private mortgage insurance (PMI) if they do not have enough of a down payment, which is traditionally 25 percent down at closing. First Federal of Lakewood seems to have a positive reputation with customers. Very little information or news is available. The bank is currently not listed on Trustpilot, although it has an A- rating with the BBB.
First Federal does not have a Trustpilot score and has an A- rating from the BBB.
- Information collected February 25th, 2019
First Federal of Lakewood Lender Reputation
|
Credit score |
Quality |
Ease of approval |
|
760+ |
Excellent |
Very easy |
|
700-759 |
Good |
Easy |
|
621-699 |
Fair |
Somewhat easy |
|
620 and below |
Poor |
Somewhat difficult |
|
n/a |
No credit score |
Somewhat difficult |
Prospective borrowers with credit scores at or above 760 have the best opportunities with First Federal and can access the best rates and down payment options. Borrowers with scores that are between 700 and 759, however, typically don’t have as many choices available to them, but usually, have a couple of options at the very least to choose from.
Applicants with scores in the 621 to 699 range may find it somewhat easy to get a favorable offer from First Federal if they are eligible for a grant-based or government-backed program. Applying with a score below 620 or with no credit score may make it more challenging to qualify for a mortgage.
The bank does have a wide range of alternative loan options, so this may be an ideal lender for applicants with less-than-perfect credit histories. As is often the case, bringing plenty of documentation with you or including additional supporting information in your application can help improve your approval odds and opportunities with First Federal.
|
Debt-to-income ratio |
Quality |
Likelihood to get approved by a lender |
|
35% or less |
Manageable |
Likely |
|
36-49% |
Needs improvement |
Possible |
|
50% or more |
Poor |
Less likely |
Applicants with debt-to-income (DTI) ratios that are at or under 30 percent are the most likely to get great offers from First Federal. This bank has plenty of alternative loan options, so applicants with higher ratios may find an option that fits them, although higher debt levels do generally decrease your opportunities.
Phone Number & Additional Details
Homepage URL: http://www.ffl.net/
Company Phone: 1-800-966-7300
Headquarters Address: 14806 Detroit Ave, Lakewood, OH 44107
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Commerce Home Mortgage Rates Review: Today’s Best Analysis
Commerce Bank was founded in 1865 under the name Kansas City Savings Association and has significantly expanded over its 154 years of business.
While the bank is headquartered in Kansas City, Missouri, it operates branches in several neighboring states, including Colorado, Kansas, Illinois, and Oklahoma.
This lender is owned and operated by Commerce Bancshares, Inc., which was listed as the 63rd largest U.S. bank holding company in 2018, as reported by the Federal Reserve.
Commerce Home Mortgage Facts
- Founded in 1865
- Offers a standard variety of mortgage products, including conventional fixed- and adjustable-rate, FHA, USDA, VA, and construction loans
- Only works with borrowers looking to finance a home in MO, KA, IL, OK, and CO
- The website lacks specific information on down payment minimums and credit score requirements
- Fixed-rate FHA loans can be secured with as little as 3.5 percent down
- Most branches have earned an A+ rating from the BBB
Overall
Commerce Bank has helped its customers obtain mortgages with competitive interest rates and flexible terms for over 150 years. The bank offers a diverse selection of home loans that are well suited to a wide range of financial needs.
This includes first-time homebuyers, moderate-to-low income applicants and borrowers interested in moving to a rural or suburban community.
This lender’s customer-focused approach earned it a spot on Forbes’ 2019 list of America’s best banks, due, in part, to its long-standing commitment to affordable home financing solutions. Commerce Bank is an excellent example of a strong “all-around” lender, with over 150 branches available to homebuyers looking for a traditional face-to-face banking experience.
Online applicants can benefit from the bank’s extensive digital resources, which include educational articles, loan and rate calculators, and a simple rate quote process.
One advantage of working with Commerce Bank is its robust mortgage catalog. This lender offers conventional fixed- and adjustable-rate loans, along with several government-backed options, including FHA, USDA, and VA mortgages.
Borrowers who plan to build their own home may benefit from Commerce’s construction loan program. The program simplifies the financing process and provides up to $2 million toward labor, materials, and land costs.
On the downside, this lender does not list specific qualification guidelines for most of its mortgage products. Online users may have trouble locating down payment minimums, credit score requirements, and information on debt-to-income ratios.
This will likely complicate the comparative shopping process for homebuyers that want an online lending experience, though you can apply for a mortgage directly through Commerce Bank’s website.
Current Commerce Mortgage Rates
Commerce Loan Specifics
Commerce Bank provides a standard selection of mortgage products to its customers, including conventional fixed and adjustable-rate, Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), Veterans Affairs (VA), and construction loans.
The bank’s relatively small service area allows it to offer home financing solutions that are uniquely tailored to the needs of Midwestern homebuyers. While Commerce does operate a large number of physical branches across several states, it only supplies mortgages to residents in Missouri, Kansas, Illinois, Oklahoma, and Colorado.
Fixed-Rate Loans
This conventional mortgage option is great for borrowers that plan to settle down long term. It features consistent interest rates and monthly payment amounts over the full life of the loan.
Home buyers can select a loan term of 10, 15, 20, or 30 years for their mortgage, though longer repayment periods typically come with higher rates. Down payments of less than 20 percent require mortgage insurance, which is standard for home loans of this type.
Adjustable-Rate Loans
Home buyers that are unsure of their plans may prefer this variable financing option, as it benefits more from lower interest rates than its fixed-rate counterpart.
This mortgage type starts with an initial fixed-rate period, after which interest rates and monthly payment amounts will automatically adjust to the market index. Borrowers can select from several flexible loan term options, including 5/1, 7/1, or 10/1 ARMs.
FHA Loans
This government-backed financing program is well suited to first-time home buyers and those who are unable to qualify for traditional home loans. Commerce Bank offers fixed-rate FHA mortgages with terms of 15 or 30 years, which are insured by the Federal Housing Administration for added security.
Home buyers can secure a competitive interest rate with as little as 3.5 percent down, even if their credit score is below the industry average.
VA Loans
Eligible military veterans and active duty service members can take advantage of this specialty mortgage type, which is fully backed by the U.S. Department of Veterans Affairs. Unlike most home loans, a VA mortgage can be obtained with 0 percent down and does not require private mortgage insurance.
Qualified borrowers with credit scores as low as 620 may be eligible, though certain restrictions do apply. VA loans can be negotiated either fixed- or adjustable-rate mortgages with loan terms of 15 or 30 years.
USDA Loans
This home loan option was created to support moderate-to-low income borrowers and those looking to move to designated rural and suburban areas. USDA loans provide 100 percent financing solutions to qualified applicants and feature some of the most competitive rates available on the market.
There are several important eligibility guidelines for this program, including household income restrictions and geographical limitations, which can be reviewed on USDA’s website.
Construction Loans
Borrowers planning to build their own home may be eligible for this specialty program. It separates the financing process into two parts: a loan for construction and an end loan (or mortgage). Commerce
Bank extends up to $2 million to cover labor, materials, and land costs during the first phase of the program, with a loan term of 12 months and options to extend the repayment period. Once construction is complete, the bank works with borrowers to negotiate a standard mortgage with flexible terms and competitive rates.
Commerce Mortgage Customer Experience
Commerce Bank provides lending services tailored to the specific needs of Midwestern homebuyers and takes a customer-focused approach to mortgage origination and support. This lender ranked 17th on Forbes’ list of America’s Best Banks in 2019, with $25.1 billion in assets and 9.4 percent revenue growth.
The bank operates 169 physical branches across its service region, but only facilitates mortgages for borrowers in Missouri, Kansas, Illinois, Oklahoma, and Colorado. Interested homebuyers can learn more by visiting a local branch in person, contacting a lending agent by phone, or by visiting the lender’s website.
Online customers can access a wide array of educational resources through the bank’s website, which discusses the mortgage application and origination process in detail.
Commerce’s website houses a rich store of information and digital tools that can help applicants understand the nuances of home financing, including loan calculators, topical articles, tip sheets, and FAQ pages.
Borrowers can request a personalized rate quote by submitting their information online, but entering your Social Security number is required. Homebuyers looking for an online lending experience can apply through the bank’s website by filling out a standard mortgage application.
This lender’s website is markedly easy to use and chock-full of useful information that can help you land the best available interest rate on your next mortgage.
Commerce Lender Reputation
Commerce Bank has been in business for over 150 years and has earned the reputation as a trusted lender with a long history of success. Many of the bank’s physical branches have secured an A+ rating from the BBB, though the agency has formally accredited only a few.
Commerce Bank of St. Louis, however, earned its official BBB accreditation in 1961 and currently stands as one of the organization’s largest branches. To date, this location has only had 33 customer complaints filed through the BBB’s website, though it does hold a one-star rating.
- Information collected on Feb. 26, 2019
Commerce Mortgage Qualifications
|
Loan Type |
Rate Type |
Loan Terms |
|
Fixed-Rate Loans |
Fixed |
10, 15, 20, or 30 years |
|
Adjustable-Rate Loans |
Variable |
5/1, 7/1 or 10/1 ARMs |
|
FHA Loans |
Fixed |
15 or 30 years |
|
VA Loans |
Fixed or Variable |
15 or 30 years |
|
USDA Loans |
Fixed |
30 years |
|
Construction Loans |
N/A |
N/A |
Each of Commerce Bank’s mortgage offerings has unique qualification guidelines, but there is some overlap between its conventional fixed and adjustable-rate loans.
Unfortunately, the bank does not list any specific information about down payment minimums for these standard home financing products, which may make it difficult to compare your options. Most lenders require down payments of at least 5 percent for conventional mortgages.
The more money you’re able to put down up front, the better rate you’re likely to receive. Borrowers who are unable to make a sizable down payment can take advantage of Commerce’s government-backed programs. For example, FHA loans can be secured with just 3.5 percent down, while the USDA program requires no down payment at all.
A credit score is another important metric that lenders use to determine eligibility and calculate interest rates. Commerce Bank does not list its credit score requirements online, though many of its government-backed programs feature standardized guidelines.
Borrowers can obtain an FHA loan with scores as low as 580, making it a strong option for first-time home buyers and those with less-than-perfect credit. USDA and VA mortgages are available to home buyers with scores of 620 and above, but feature strict qualification standards compared to other home financing programs.
Home buyers who lack robust credit histories may also face some difficulty qualifying for a conventional mortgage, as it is unclear whether Commerce Bank considers non-traditional credit information.
The best way to learn more about this lender’s eligibility guidelines is to contact a lending agent directly by phone, email, or by visiting one of its physical branches in person.
Commerce Phone Number & Additional Details
- Homepage URL: https://www.commercebank.com/
- Company Phone: 1-816-760-3663
- Headquarters Address: 1000 Walnut Street, Kansas City, Missouri 64106
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Camden National Bank Mortgage Rates Review: Today’s Best Analysis
Are you looking for a home loan in Maine?
Camden National Bank mortgage rates will be among your first options, as the bank is the largest such institution with headquarters in The Pine Tree State. A self-styled community bank with 60 locations spread across Maine, it is also publicly traded on the Nasdaq. The company has 650 employees plus lending offices in New Hampshire and Massachusetts, to meet home loan demand in Maine and greater New England.
Camden National focuses on providing an easy mortgage or refinance experience for borrowers. They accomplish this with an online portal that allows users to complete an application in minutes, plus link tax and other personal accounts for streamlined personal finances.
In addition to mortgage, refinance, and home equity products, it also offers personal and business banking, commercial banking, and wealth management services.
Camden National Bank Mortgage Facts
● The largest bank headquartered in Maine has 60 banking centers throughout the state
● Founded in 1875: a publicly-traded community bank with more than $4 billion in assets under management
● Has received various local and national recognition for customer service
● Offers a number of checking, savings, and lending services to consumers and businesses alike
● Promises borrowers a no-hassle experience with MortgageTouch, an online portal for streamlined applications
● Supports the home buying experience with helpful articles, mortgage calculators, and local loan officers
Overview
Serving primarily Maine customers for over 140 years, Camden National Bank has not only 60 locations across the state but also has a lending presence across New England. Promoting itself as a community bank, its personal and business customers benefit from a wide range of competitive checking, savings, and lending services and products.
The borrower experience is a focus for the company, which supports customers with locally-based loan officers, informative resources, online tools, and various other resources. Camden National Bank mortgage rates are partially viewable on its online site, but information on specific products, including refinances and home equity, must be requested.
While not accredited by the Better Business Bureau (BBB), Camden National Bank earns an A+ rating from the organization. A file has been open on the business since 1995.
Current Camden National Bank Mortgage Rates
Camden National Bank Loan Specifics
It’s essential borrowers pick the best mortgage for them. Each product will vary depending on several factors, including interest rate, value, down payment, term, private mortgage insurance, and qualification standards. Each borrower will have different needs and financial means. They could be a first-time homebuyer with less-than-stellar credit, or an existing homeowner looking to refinance and pay off their loan quicker in exchange for an adjustable rate. Camden National Bank customers can inquire with a loan officer on specific loan options it has; in general, borrowers should be familiar with:
Fixed-rate mortgages
This type of mortgage features one interest rate over the lifetime of the loan. This fixed nature of the interest rate is ideal for customers looking for a consistent monthly payment. Fixed-rate mortgages usually come in lengthier terms, often presented as a 30-year or 15-year loan, which is another benefit for borrowers who want a mortgage that can be easily budgeted for.
A hugely popular style of loan in America, fixed-rate mortgages can be the best fit for homeowners who wish to settle down. The other side of the equation is that the interest rate is comparatively higher to other options, given the lengthier conditions of the loan, which increases the risk to the lender.
Adjustable-rate mortgages (ARM)
Want to pay off a loan quickly or not sure you’re going to stay in one place long? An adjustable-rate mortgage is attractive to such borrowers because it usually comes with a shorter term and lower interest rate. ARMs come with a fixed introductory rate, which then is adjusted on a periodic basis to the prevailing market.
For instance, a 5/1 ARM would come with a fixed rate for one year, then readjust for the five years at pre-established intervals, like annually, or biannually. This means borrowers can save with a rate that trends down, yet they may also be exposed to higher rates. Protections against volatile swings are sometimes offered.
Jumbo mortgages
Borrowers in high-priced markets or who want a high-value loan can opt for a jumbo mortgage. The Federal Housing Finance Authority sets limits for mortgages that can be insured by Fannie Mae and Freddie Mac, see here for 2019. Loans above the threshold are called jumbo loans and have different conditions, like qualifying credit scores or loan-to-value ratios.
FHA, USDA, and VA mortgages
Government-backed loans are an ideal option for first-time homebuyers or borrowers with low credit. These mortgages are made through approved lenders but supported by federal agencies. Each can offer different benefits for those who qualify.
Federal Housing Authority (FHA) loans can come with down payment requirements as low as 3.5 percent, while the U.S. Department of Agriculture (USDA) mortgages can offer no money down and less-strict credit standards. Certain active-duty members of the armed forces, veterans, and widowed spouses can apply for a mortgage from the Department of Veterans Affairs (VA).
These loans feature no insurance requirements, low interest rates, and no prepayment fees.
Cash-out refinance
Homeowners who have built up equity in their property by making timely mortgage payments can potentially get a lower rate if they refinance their loan.
A cash-out refinance refers to when homeowners take out a second mortgage for more than what they owe on the house, and pocket the cash difference between the new and original mortgage. Proceeds are often reinvested back into the house through renovations or other improvements that increase its value.
Camden National Bank Mortgage Customer Experience
The online tools and resources that Camden National Bank makes available to customers is a big piece to its mortgage experience. MortgageTouch is the solution the bank touts to customers as a one-stop-shop for managing their mortgage application, payments, and other finances.
Borrowers can complete an application in minutes and link tax records and other accounts to streamline their finances and mortgage banking. Dedicated personal support is a companion ideal to the efficiency of technology, as the bank assigns local loan officers and has 24/7 customer service.
Borrowers can better understand what mortgage is best for them by browsing through the library of articles the bank has built up. First-time homebuyers can increase their knowledge, while others can get information about how to calculate home affordability. A mortgage glossary and application checklist are also helpful items that borrowers can access from the bank’s site.
Camden National Bank Lender Reputation
Camden National Bank emphasizes its community ties, local investment, and significant Maine presence as attesting to its reputation as a high-quality and trustworthy lender. The bank has an A+ rating from the BBB. While it does not have accreditation, the file on the business has been open since 1995 and received only four registered complaints in the last three years.
The bank is FDIC insured, and Equal Housing Lender and has the NMLS identification number of #486887.
● Information collected on Feb. 26, 2019
Camden National Bank Mortgage Qualifications
Customers can inquire about Camden National Bank’s specific qualification standards, but in general, should be aware of the factors that will affect what mortgage they can be approved for and at what rate. Borrowers should become familiar with how their debt-to-income ratio can influence qualification and offered rates.
A higher DTI may lead to a higher interest rate because of perceived risk to the lender. The credit score is perhaps the most important concept to study when researching and comparing mortgage products. A measure of your overall history of making payments and credit profile, this score is often a litmus test for mortgage approval.
|
Credit score |
Category |
Likelihood of Approval |
|
760 or higher |
Excellent |
Very likely |
|
700-759 |
Good |
Likely |
|
621-699 |
Fair |
Somewhat likely |
|
0-620 |
Poor |
Somewhat unlikely |
|
None |
N/A |
Unlikely |
Camden National Bank Number and Additional Details
- Homepage URL: https://www.camdennational.com/
- Company phone: 207-236-8821
- Headquarters address: 245 Commercial Street, Rockport, ME 04856
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From the Life You Have To the Life You Want
Mary wrote in with a great question:
Loved your article about personal finance and time and philosophy. I had a question about the last part, about figuring out what you want out of life. I know what I want my life to be like but it feels like an impossible leap from where my life is right now. What do you do if the life you have now and the commitments and financial situation make the life you want impossible to reach?
This is a common problem that happens to people when they start to really figure out what they want out of life. Often, they’ve already made a lot of fundamental life decisions that have given them a lot of responsibilities. They’ve committed to a career path and invested a lot of money in training for it (by going to college). They might be married. They might have children. They might have very limited financial resources.
What exactly do you do if you know what you want out of life but you’re so far away from it that you don’t know where to start?
I can really empathize with this. The point at which I really started to figure out what I wanted out of life saw me very, very far away from it. I knew what I valued most in life and what I wanted to do with my life, but everything seemed to be as far away from it as possible. I was working in a drastically different career path with an investment in education for that path. I had very little in terms of financial resources. I didn’t have a lot of great relationships in my life. In short, I felt extremely far from where I wanted to be.
I frequently hear and read stories about people who feel like their life is being swept along in a river running in the wrong direction. Many aspects of their life are very far away from where they want to be going and it feels like each day, each week, each month is carrying them further away. They’re getting older with each passing day and it makes that destination feel even further off.
What do you do first if you find yourself in that kind of situation?
The First Step: Figuring Out What You Control
The first thing you need to do is to understand what things you actually have control over in your life. That sense of being “swept along by life” or being so far away from what you want in life is a result of not taking advantage of what you have control over in your life.
I want to point out some of the big pieces. You’ll probably think of others.
The money you spend. You control virtually every dollar that comes out of your pocket. Yes, you have some required bills due to contracts you’ve signed and debts you’ve taken on, and you do have to meet some basic minimum requirements for nutrition and water and shelter, but aside from that, you have complete control over every dollar you spend.
How you spend your time. Aside from moments actively attending to basic life functions – eating, drinking water, sleeping, hygiene, and acquiring those things – you have complete control over how you spend your time.
The place you live. You chose wherever it is that you live. Sure, this is somewhat influenced by the amount of money you bring in, but for most people, all that does is set an upper bound on what you can afford and most people push that upper bound, going for the most expensive (“nicest”) place they can afford. In reality, you have a very wide range of choices, from sleeping in a car or a tent to renting a single bedroom to renting a larger apartment to having roommates… on and on and on.
The people you spend time with. Outside of your work, the only situation where you have to spend time with someone is if you’re the guardian of a child or if you’re committed in some way to someone’s care and they’re unable to do it on their own. Aside from that, you choose who you spend time with.
What you do for income. You choose what job you work at. If your current job is making you miserable, choose something different. If you “can’t” do this because of money reasons, you’re perhaps not exercising control over your spending.
The things you say and do in response to your feelings. You are in control of how you respond to your feelings. You choose what to say and whether to say it. You choose what you do. If you feel angry, it’s your choice as to whether it bursts out of you. If you feel sad, you choose how it impacts your behavior and words.
Saying and believing you’re not in control of these things is ceding control of your life to someone else. You’re ceding control over yourself to the nebulous idea of what other people might think of you. You’re ceding control over yourself to the whims of your emotions. You’re ceding control over yourself to people who just want to manipulate you for your own benefit.
And, along the way, you’re losing the opportunity to be who you want to be, because you’re giving away all of these resources. You’re giving away your money, your time, your focus, your words, your relationships, your energy … you’re giving it all away. Whenever you use those things you control in exchange for other things that aren’t in line with what you want out of life, you move further away from what you want out of life.
So, what can you do about it? You have to start trading all of those things you have for other things that move you toward your life goals, not away from them.
A Long Journey Ahead
Imagine that your life is like a giant map. Currently, you’re somewhere in the West, in some rural area, without a whole lot of resources to your name. You want to get to New York City – the life you want. How do you get there?
It’s easy to say something like “get in a car and drive there,” but that leaves out a lot of things you need to have in place to be able to do that. You need a car. You need money for gas. You need food and water along the way.
In other words, to get to where you want to be in life, a lot of pieces have to be in place. It’s not just a matter of having one giant goal. In fact, if you just look at that one big goal without having a lot of pieces in place to get there, it looks impossible.
That’s where I was at ten or so years ago. That’s where Mary is at, too.
So, the next step in the thought process is that you can make a big list of what you need and start acquiring those things. That’s goal setting, and it’s a very powerful next step.
I’ll use my own story as an example. As I said earlier: “I knew what I valued most in life and what I wanted to do with my life, but everything seemed to be as far away from it as possible. I was working in a drastically different career path with an investment in education for that path. I had very little in terms of financial resources. I didn’t have a lot of great relationships in my life. In short, I felt extremely far from where I wanted to be.”
I needed to seriously fix my financial situation. I needed to make a career change. I needed to make a lot of relationship changes. I needed to make a lot of other changes, too.
That translates easily into a list of medium-term goals.
I needed to build an emergency fund and pay off my debts in 18 months.
I needed to come up with a plan to move from my current career – data mining (which I did enjoy when I was actually doing the data mining work, I had just become disillusioned with the bureaucratic and peripheral issues) – and move to the career I wanted since I was a kid – writing.
I needed to build a lot of social relationships in my community, ones that weren’t built on unsustainable spending habits.
I needed to build a really strong marriage with Sarah.
I needed to build a really strong parental relationship with my young son and with the kids that were about to become part of my life.
There you go – some very powerful medium-term goals, all of which fed into the life I wanted to lead.
Each of those goals can be broken down into a progressive series of smaller and smaller goals and tasks until I have something I can work on today for each of them. I’ve written about breaking down goals in this way many times before, but suffice it to say that this type of breakdown, in which those big lifetime goals translate directly into things on my to-do list for the day, is a huge part of my journey from the place I was to the place I am now, which is a lot closer to the life I’ve always wanted than I would have ever thought possible ten years ago.
It goes a little further than that, though, and it wasn’t something I really realized until recently.
What Does the Person You Want to Be Do Today?
When I look at the big vision I have for my life, it really breaks down into fulfilling several roles really well.
I want to be an excellent husband. I want to be an excellent father. I want to be a pillar of the community with a strong social network. I want to be a writer, writing things that have an impact on readers. I want to be a healthy person. I want to have the financial stability needed to nurture and protect all of those things. I want to do all of those things with a very strong sense of values.
This breaks down into a series of interesting questions.
What would an excellent husband for Sarah do today?
What would an excellent father for my children do today?
What would a pillar of the community do today?
What would a great friend do today?
What would an excellent writer do today?
What would a very financially responsible person do today?
In each case, those people would do good things in those roles as a matter of course.
An excellent husband pays attention to how his partner is feeling and responds accordingly. An excellent husband knows the ways his partner feels love and touches on those ways. An excellent husband appreciates his partner, privately and publicly. An excellent husband makes his partner feel desired and loved and attractive. Most importantly, these are the natural things an excellent husband does every day.
By doing those things every day as a natural course of habit, I’m developing into an excellent husband. I might be “faking it until I make it” at first, but if I stick to doing those things every day, I’m taking steps every single day toward being an excellent husband.
Let’s look at the money side. A financially responsible person spends significantly less than they earn. A financially responsible person puts money away for the future. A financially responsible person keeps the bills paid and keeps an emergency fund. A financially responsible person knows how to control their spending impulses.
By doing those things every day as a natural course of habit, I’m developing into a financially responsible person. Again, at first, I might be “faking it until I make it,” but I’m moving each and every day toward being a financially responsible person.
These things are more like systems rather than goals. They’re usually oriented toward behaviors and extremely regular habits rather than a concrete checklist of things to do. As of late, I’ve been using many of the strategies in Triggers and Atomic Habits to get better at this approach.
You Need Both Goals and Systems
The truth is that some things in life work better as a set of goals, while other things work better in life as a system.
There are some aspects of good personal finance behavior that work wonderfully as goals, like breaking down a debt repayment plan into actual tangible things you should be doing today.
At the same time, there are some aspects of good personal finance behavior that work wonderfully as systems, like simply mastering control over your spending impulses.
What they have in common is this: they both represent positive daily effort in an area of your life that you need to improve. That’s what really matters, that you’re doing something today that moves you closer to the life you want to live in every area that needs change and that you’re not doing other things to undo that forward progress.
In general, I think goals are really good for the “doing something” part, particularly when that thing is relatively standalone, while systems are really good at the “not undoing it” part and also the “highly repetitive steps” part.
Changing Your Life
So, if you want to change your life, you have to consider all of the things that you can control – your time, your spending choices, your emotional responses to things, your work, and on and on and on – and ask yourself how you can use them to move in the direction of the life you want.
Again, this is going to be a mix of the tools above, but I highly recommend trying to use lots of tools and see what works.
Try defining some big goals, then breaking them down into daily tasks.
Try figuring out what roles in your life need to be front and center in that “best life” you envision, then aim to be excellent in those roles.
Most importantly, try to do some things every single day that move you in that better direction and do your absolute best to not undo them with other behaviors.
This needs to be a constant force, like waves lapping up on a beach. It doesn’t have to be perfect force – you don’t have to be amazing and perfect every single day – but it has to be constant. If you have an imperfect day, shrug it off and go back the next day. If you have a few imperfect days, spend some time thinking about whether the things you’re doing are actually a good fit for you and whether you’re really using the resources in your life that you control.
You can build practically any life that you want. You can’t have everything, of course – not everyone can be, say, an NFL starting quarterback or something like that – but if you have goals, break them down into bits, and strive to be an excellent version of what you want to be in life, and you consistently do that every day, you will move in a direction you’ll be happy with. It won’t be tomorrow or the day after that, but you’ll start waking up and realizing that your life is better, and suddenly that amazing life you’ve dreamed of won’t feel so far off after all.
Good luck.
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19 Ways to Make Money from Home with Paid Surveys
One of the questions that I frequently get from readers is, “Can you really make money from home by taking surveys?” and the answer is YES! There are many legitimate websites where you can offer your opinion in exchange for money, rewards, and sweepstake entries. While you're not going to get rich from participating in […]
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Should you join the electric car revolution?
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My mother wants to give money and gifts to family. What if it leaves her short?
My mother recently received an inheritance from my late father, and also has some money from her late mother. This money was left directly to her, but with an informal understanding that some of it would benefit her children and grandchildren. Taxes have been paid on these sums.
She wants to give quite a large sum to her children and grandchildren. If she dies within seven years of the gift, inheritance tax (IHT) wouldn’t be a problem as she doesn’t own property and her entire estate is worth less than the £325,000 IHT threshold.
She also wants to buy her children gifts including televisions and holidays. My worry is that giving all this money away could affect her in the future. She has no income apart from her state pension so if she runs out of money, she would need to claim housing benefit to help with her rent. What would you advise she does?
Before your mother makes any gifts to children or grandchildren – or indeed buys them expensive items – she needs to consider her own financial position, which sounds a little precarious.
She should work out how much she wants to live on each month. Notice I said “wants” rather than “needs”: it is all about determining her desired lifestyle. How much of this is provided by her existing income? Assuming there is a shortfall, how much would then have to be provided each year from the capital available to your mother from the two inheritances?
Then she needs to work out how long that capital would last her if it is used to make up this shortfall. In other words, a cashflow based on reasonable assumptions about inflation, life expectancy, and returns on the capital. Your mother should also keep a contingency fund in case of any unexpected or emergency spending.
Without going through this exercise, it is impossible to say whether there is scope to make gifts to children and grandchildren during her lifetime, or what amounts these could be.
There is no point in her giving money and gifts away and then having to rely on benefits. In any case, the gifts could mean she is not eligible for certain means-tested benefits if they are construed as “deliberate deprivation”. This means deliberately giving away or spending assets in order to fall below a threshold at which benefits normally become available.
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