Expert stacking: How I earned $80 in cash back and rewards from one dinner – The Points Guy


How I earned $80 in cash back and rewards from one dine out


Advertiser Disclosure


Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com

Everyone I Know Is Trying to Refinance

There’s been a lot of talk (and worry) that the higher mortgage rates of late might derail the apparent housing market recovery.

After all, many believe the only reason things were improving was because of the ultra-low rates the Fed facilitated with the likes of QE3.

Without them, some argue, home prices would have to come back to more realistic levels. And optimism would probably also be somewhat deflated.

Unfortunately, such a scenario was not feasible, seeing that foreclosures were getting out of control, and lower prices would have meant so many more would have lost their homes, either involuntarily or by choice.

Higher Rates Are Motivational

Interestingly, I’ve seen a different reaction, albeit an early one. Many individuals I know who own homes are seeking to refinance their mortgages. Why they didn’t do it last year or even last month is beyond me, but we all know people procrastinate.

Many also grew complacent with the low rates, as it got to a point where one just assumed rates would keep on falling. I’m sure most people figured there was more downside in store, and if rates did happen to rise, they probably would do so slowly.

But now that mortgage rates have shot up in no time at all, it seems to have given many people a kick in the rear to finally go about getting that refinance, even if rates are significantly higher than they were just weeks ago.

One friend of mine seemed content locking in a rate of 4.5% on a 30-year fixed, even though he may have been able to snag a rate of around 3.75% last month.

He didn’t even seem that upset about missing the lower rates, and instead looked at the bigger picture. In the grand scheme of things, a 4.5% 30-year fixed mortgage is still a great deal.

Another pal of mine used the recent rise in rates as motivation to finally start calling around and inquiring about a refinance.

For him, there were home equity issues that made it difficult to refinance (he’s not eligible for HARP). So you can’t blame him for waiting for his home to appreciate a bit more, and alleviate some LTV concerns.

He too seemed happy enough to snag a rate at current levels. He’s even looking at a 15-year mortgage instead of his current 30-year as a way to take advantage of a lower rate and pay down his mortgage faster, without too much of a cost burden.

Possible Mortgage Rate Easing Ahead?

All said, it seems everyone is keeping things in perspective, despite the less attractive pricing of late.

And who knows, we may even see rates fall a bit over the next couple weeks, seeing that they increased so much so fast.

The market probably overreacted to the Fed news, so there’s definitely a chance things could improve in the near-term.

Additionally, the Fed owns a ton of the mortgage-backed securities out there, so they can control the price to some degree, even if everyone else wants to bail.

Whatever direction mortgage rates go in the next month or so, loan originators should stand to benefit from all the last-minute refinancers.

Banks and lenders will probably receive a flurry of refinance applications in coming weeks as more borrowers get off the fence and take advantage before it’s seemingly too late.

Unfortunately, borrowers might have to contend with sizable delays, so if you’re refinancing, get your ducks in a row to avoid any potential mishaps.

As far as home purchases go, the rate increase alone shouldn’t deter too many folks. It may disqualify some if their proposed payments rise too much, but I doubt it would completely dictate one’s decision to buy a home.

Remember, rates would have to rise to about 7% for the median priced home to fall out of reach for the average American family, so there’s still plenty of room.

Read more: Do higher mortgage rates lead to lower home prices?

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com

When Will the Next Housing Market Crash Take Place?

I’ve noticed a trend lately. Everyone’s a real estate expert.

It seems the most recent crisis and recovery has turned just about every single person into a guru on all things to do with home buying and selling.

I suppose part of it has to do with the fact that the massive housing bubble that formed a decade ago swept the nation and was front page news.

It also directly affected millions of Americans, many who serially refinanced their mortgages, then found themselves underwater, then eventually short sold, were foreclosed upon, or held on for the ride back up to new heights.

It’s a common conversation piece these days to talk about your local housing market.

Thanks to greater access to information, folks are scouring Redfin and Zillow and coming up with theories about what that home should sell for, or what they should have listed it for.

Neighbors are getting upset when nearby listings are not to their liking for one reason or another. What were they thinking?!

A New Housing Bubble Mentality

  • Real estate is red-hot again thanks to limited supply and intense demand
  • It can feel like an ominous sign that we’re headed down a dark road again
  • But that alone isn’t reason enough for the housing market to crash again
  • There have to be clear catalysts and financial stress for another major downturn

All of this chatter portends some kind of new bubble mentality in my mind, though it seems everyone is just basing their hypotheses on the most recent housing bust, instead of perhaps considering a longer timeline.

One could look at the recent run-up in home prices as yet another bubble, less than a decade since home prices bottomed around 2012.

After all, many housing markets have now surged well beyond their previous lofty levels seen about 15 years ago when home prices peaked.

For example, Denver area home prices are about 86% higher than they were in 2006. And back then, everyone felt home prices were completely out of control.

In other words, home prices were haywire, and are now nearly double that.

Meanwhile, the typical U.S. home is currently valued around $273,000, per Zillow, which is about 27% higher than the peak of $215,000 seen in early 2007.

It’s also nearly 70% higher than the typical home price of $162,000 back in early 2012, when home prices more or less bottomed.

So if want to look at home prices alone, you could start to worry (though you also have to factor in inflation which will naturally raise prices over time).

But they say bubbles are financially driven, and we’ve yet to see a return to shoddy underwriting.

I will say that there’s been a recent return of near-zero down financing, with many lenders taking Fannie and Freddie’s 97% LTV program a step further by throwing a grant on top of it.

This means borrowers can buy homes today with just 1% down payment, and even that tiny contribution can be gifted from someone else.

So things might be getting a little murky, especially if you consider the increase in prices over the past four or five years.

One could also argue that affordability is being supported by artificially low mortgage rates, which history tells us won’t be around forever.

There’s also a general sense of greed in the air, along with a feeling amongst homeowners that they’re getting richer and richer by the day.

That type of attitude sometimes breeds complacency and unnecessary risk-taking.

But When Will Home Prices Crash Again?!

real estate cycle

  • If you believe in cycles, which seem to be pretty evident in real estate and elsewhere
  • We will see another housing crash at some point relatively soon
  • There appears to be an 18-year cycle that has been observed for the past 200 years
  • This means the next home price peak (and then bust) might begin in 2024

All of those recent home price gains might make one wonder when the next housing market crash will take place.

After all, home prices can only go up for so long before they drop again, right?

Well, the answer to that age-old question might not be as elusive as you think.

The real estate market apparently moves in cycles that some economists think can be predicted to a relatively high degree.

While not a perfect science, there seems to be “a steady 18-year rhythm” that has been observed since around the year 1800.

Yes, for over 200 years we’ve seen the real estate market follow a familiar boom and bust path, and there’s really no reason to think that will stop now.

It puts the next home price peak around the year 2024, followed by perhaps a recession in 2026 and a march down from there.

How much home prices will fall is an entirely different question, but given how much they’ve risen (and can rise still), it could be a long, long way down.

And we might not have super low mortgage rates at our disposal to save us this time, which is a scary thought.

You’ll Never Get Back Into the Housing Market…

  • There are four main phases in a real estate cycle
  • A recovery period and an expansion period
  • Followed by hypersupply and an eventual downturn
  • Don’t believe the hype that if you don’t buy today, you’ll never get the chance!

Another housing bust in inevitable, despite folks telling us we’ll never get back in again if we sell our home today, or don’t buy one tomorrow.

There are four phases to this predictable cycle, including a recovery phase, which we’ve clearly experienced, followed by an expansion phase, where new inventory is created to satisfy demand. This is happening now.

At the moment, home builders are ratcheting up supply to meet the intense demand in the market, with some 45 million expected to hit the average first-time home buyer age this decade.

The problem is like anything else in life, when demand is hot, producers have a tendency to overdo it, creating more supply than is necessary.

That brings us to the next phase, a hypersupply period where builders overshoot the mark and wind up with too much new construction, at which point prices plummet and a recession sets in.

The good news (for existing homeowners) is that according to this theory, we won’t see another home price peak until around 2024.

That means another three years of appreciation, give or take, or at least no major losses for the real estate market as a whole.

So even if you purchased a home recently and spent more than you would have liked, it could very well look cheap relative to prices a few years down the line.

The bad news is that the real estate market is destined to stall again in just three short years, meaning the upside is going to diminish quite a bit over the next few years.

This might be especially true in some markets that are already priced a little bit ahead of themselves, which may be running out of room to go much higher.

But perhaps more important is the fact that home prices tend to move higher and higher over time, even if they do experience temporary booms and busts.

So if you don’t attempt to time the market you can profit handsomely over the long term, assuming you can afford the underlying mortgage.

And remember, there’s more to homeownership than just the investment.

Source: thetruthaboutmortgage.com

The Pros & Cons of Offering Owner Financing (When You Sell Your Home)

Sometimes, home sellers find a buyer eager to purchase but unable to finance the property with traditional mortgage financing. Sellers then have a choice: lose the buyer, or lend the mortgage to the buyer themselves.

If you want to sell a property you own free and clear, with no mortgage, you can theoretically finance a buyer’s full first mortgage. Alternatively, you could offer just a second mortgage, to bridge the gap between what the buyer can borrow from a conventional lender and the cash they can put down.

Should you ever consider offering financing? What’s in it for you? And most importantly, how do you protect yourself against losses?

Before taking the plunge to offer seller financing, make sure you understand all the pros, cons, and options available to you as “the bank” when lending money to a buyer.

Advantages to Offering Seller Financing

Although most sellers never even consider offering financing, a few find themselves forced to contemplate it.

For some sellers, it could be that their home lies in a cool market with little demand. Others own unique properties that appeal only to a specific type of buyer or that conventional mortgage lenders are wary to touch. Or the house may need repairs in order to meet habitability requirements for conventional loans.

Sometimes the buyer may simply be unable to qualify for a conventional loan, but you might know they’re good for the money if you have an existing relationship with them.

There are plenty of perks in it for the seller to offer financing. Consider these pros as you weigh the decision to extend seller financing.

1. Attract & Convert More Buyers

The simplest advantage is the one already outlined: You can settle on your home even when conventional mortgage lenders decline the buyer.

Beyond salvaging a lost deal, sellers can also potentially attract more buyers. “Seller Financing Available” can make an effective marketing bullet in your property listing.

If you want to sell your home in 30 days, offering seller financing can draw in more showings and offers.

Bear in mind that seller financing doesn’t only appeal to buyers with shoddy credit. Many buyers simply prefer the flexibility of negotiating a custom loan with the seller rather than trying to fit into the square peg of a loan program.

2. Earn Ongoing Income

As a lender, you get the benefit of ongoing monthly interest payments, just like a bank.

It’s a source of passive income, rather than a one-time payout. In one fell swoop, you not only sell your home but also invest the proceeds for a return.

Best of all, it’s a return you get to determine yourself.

3. You Set the Interest Rate

It’s your loan, which means you get to call the shots on what you charge. You may decide seller financing is only worth your while at 6% interest, or 8%, or 10%.

Of course, the buyer will likely try to negotiate the interest rate. After all, nearly everything in life is negotiable, and the terms of seller financing are no exception.

4. You Can Charge Upfront Fees

Mortgage lenders earn more than just interest on their loans. They charge a slew of one-time, upfront fees as well.

Those fees start with the origination fee, better known as “points.” One point is equal to 1% of the mortgage loan, so they add up fast. Two points on a $250,000 mortgage comes to $5,000, for example.

But lenders don’t stop at points. They also slap a laundry list of fixed fees on top, often surpassing $1,000 in total. These include fees such as a “processing fee,” “underwriting fee,” “document preparation fee,” “wire transfer fee,” and whatever other fees they can plausibly charge.

When you’re acting as the bank, you can charge these fees too. Be fair and transparent about fees, but keep in mind that you can charge comparable fees to your “competition.”

5. Simple Interest Amortization Front-Loads the Interest

Most loans, from mortgage loans to auto loans and beyond, calculate interest based on something called “simple interest amortization.” There’s nothing simple about it, and it very much favors the lender.

In short, it front-loads the interest on the loan, so the borrower pays most of the interest in the beginning of the loan and most of the principal at the end of the loan.

For example, if you borrow $300,000 at 8% interest, your mortgage payment for a 30-year loan would be $2,201.29. But the breakdown of principal versus interest changes dramatically over those 30 years.

  • Your first monthly payment would divide as $2,000 going toward interest, with only $201.29 going toward paying down your principal balance.
  • At the end of the loan, the final monthly payment divides as $14.58 going toward interest and $2,186.72 going toward principal.

It’s why mortgage lenders are so keen to keep refinancing your loan. They earn most of their money at the beginning of the loan term.

The same benefit applies to you, as you earn a disproportionate amount of interest in the first few years of the loan. You can also structure these lucrative early years to be the only years of the loan.

6. You Can Set a Time Limit

Not many sellers want to hold a mortgage loan for the next 30 years. So they don’t.

Instead, they structure the loan as a balloon mortgage. While the monthly payment is calculated as if the loan is amortized over the full 15 or 30 years, the loan must be paid in full within a certain time limit.

That means the buyer must either sell the property within that time limit or refinance the mortgage to pay off your loan.

Say you sign a $300,000 mortgage, amortized over 30 years but with a three-year balloon. The monthly payment would still be $2,201.29, but the buyer must pay you back the full remaining balance within three years of buying the property from you.

You get to earn interest on your money, and you still get your full payment within three years.

7. No Appraisal

Lenders require a home appraisal to determine the property’s value and condition.

If the property fails to appraise for the contract sales price, the lender either declines the loan or bases the loan on the appraised value rather than the sales price — which usually drives the borrower to either reduce or withdraw their offer.

As the seller offering financing, you don’t need an appraisal. You know the condition of the home, and you want to sell the home for as much as possible, regardless of what an appraiser thinks.

Foregoing the appraisal saves the buyer money and saves everyone time.

8. No Habitability Requirement

When mortgage lenders order an appraisal, the appraiser must declare the house to be either habitable or not.

If the house isn’t habitable, conventional and FHA lenders require the seller to make repairs to put it in habitable condition. Otherwise, they decline the loan, and the buyer must take out a renovation loan (such as an FHA 203k loan) instead.

That makes it difficult to sell fixer-uppers, and it puts downward pressure on the price. But if you want to sell your house as-is, without making any repairs, you can do so by offering to finance it yourself.

For certain buyers, such as handy buyers who plan to gradually make repairs themselves, seller financing can be a perfect solution.

9. Tax Implications

When you sell your primary residence, the IRS offers an exemption for the first $250,000 of capital gains if you’re single, or $500,000 if you’re married.

However, if you earn more than that exemption, or if you sell an investment property, you still have to pay capital gains tax. One way to reduce your capital gains tax is to spread your gains over time through seller financing.

It’s typically considered an installment sale for tax purposes, helping you spread the gains across multiple tax years. Speak with an accountant or other financial advisor about exactly how to structure your loan for the greatest tax benefits.


Drawbacks to Seller Financing

Seller financing comes with plenty of risks. Most of the risks center around the buyer-borrower defaulting, they don’t end there.

Make sure you understand each of these downsides in detail before you agree to and negotiate seller financing. You could potentially be risking hundreds of thousands of dollars in a single transaction.

1. Labor & Headaches to Arrange

Selling a home takes plenty of work on its own. But when you agree to provide the financing as well, you accept a whole new level of labor.

After negotiating the terms of financing on top of the price and other terms of sale, you then need to collect a loan application with all of the buyer’s information and screen their application carefully.

That includes collecting documentation like several years’ tax returns, several months’ pay stubs, bank statements, and more. You need to pull a credit report and pick through the buyer’s credit history with a proverbial fine-toothed comb.

You must also collect the buyer’s new homeowner insurance information, which must include you as the mortgagee.

You need to coordinate with a title company to handle the title search and settlement. They prepare the deed and transfer documents, but they still need direction from you as the lender.

Be sure to familiarize yourself with the home closing process, and remember you need to play two roles as both the seller and the lender.

Then there’s all the legal loan paperwork. Conventional lenders sometimes require hundreds of pages of it, all of which must be prepared and signed. Although you probably won’t go to the same extremes, somebody still needs to prepare it all.

2. Potential Legal Fees

Unless you have experience in the mortgage industry, you probably need to hire an attorney to prepare the legal documents such as the note and promise to pay. This means paying the legal fees.

Granted, you can pass those fees on to the borrower. But that limits what you can charge for your upfront loan fees.

Even hiring the attorney involves some work on your part. Keep this in mind before moving forward.

3. Loan Servicing Labor

Your responsibilities don’t end when the borrower signs on the dotted line.

You need to make sure the borrower pays on time every month, from now until either the balloon deadline or they repay the loan in full. If they fail to pay on time, you need to send late notices, charge them late fees, and track their balance.

You also have to confirm that they pay the property taxes on time and keep the homeowners insurance current. If they fail to do so, you then have to send demand letters and have a system in place to pay these bills on their behalf and charge them for it.

Every year, you also need to send the borrower 1098 tax statements for their mortgage interest paid.

In short, servicing a mortgage is work. It isn’t as simple as cashing a check each month.

4. Foreclosure

If the borrower fails to pay their mortgage, you have only one way to forcibly collect your loan: foreclosure.

The process is longer and more expensive than eviction and requires hiring an attorney. That costs money, and while you can legally add that cost to the borrower’s loan balance, you need to cough up the cash yourself to cover it initially.

And there’s no guarantee you’ll ever be able to collect that money from the defaulting borrower.

Foreclosure is an ugly experience all around, and one that takes months or even years to complete.

5. The Buyer Can Declare Bankruptcy on You

Say the borrower stops paying, you file a foreclosure, and eight months later, you finally get an auction date. Then the morning of the auction, the borrower declares bankruptcy to stop the foreclosure.

The auction is canceled, and the borrower works out a payment plan with the bankruptcy court judge, which they may or may not actually pay.

Should they fail to pay on their bankruptcy payment plan, you have to go through the process all over again, and all the while the borrowers are living in your old home without paying you a cent.

6. Risk of Losses

If the property goes to foreclosure auction, there’s no guarantee anyone will bid enough to cover the borrower’s loan debt.

You may have lent $300,000 and shelled out another $20,000 in legal fees. But the bidding at the foreclosure auction might only reach $220,000, leaving you with a $100,000 shortfall.

Unfortunately, you have nothing but bad options at that point. You can take the $100,000 loss, or you can take ownership of the property yourself.

Choosing the latter means more months of legal proceedings and filing eviction to remove the nonpaying buyer from the property. And if you choose to evict them, you may not like what you find when you remove them.

7. Risk of Property Damage

After the defaulting borrower makes you jump through all the hoops of foreclosing, holding an auction, taking the property back, and filing for eviction, don’t delude yourself that they’ll scrub and clean the property and leave it in sparkling condition for you.

Expect to walk into a disaster. At the very least, they probably haven’t performed any maintenance or upkeep on the property. In my experience, most evicted tenants leave massive amounts of trash behind and leave the property filthy.

In truly terrible scenarios, they intentionally sabotage the property. I’ve seen disgruntled tenants pour concrete down drains, systematically punch holes in every cabinet, and destroy every part of the property they can.

8. Collection Headaches & Risks

In all of the scenarios above where you come out behind, you can pursue the defaulting borrower for a deficiency judgment. But that means filing suit in court, winning it, and then actually collecting the judgment.

Collecting is not easy to do. There’s a reason why collection accounts sell for pennies on the dollar — most never get collected.

You can hire a collection agency to try collecting for you by garnishing the defaulted borrower’s wages or putting a lien against their car. But expect the collection agency to charge you 40% to 50% of all collected funds.

You might get lucky and see some of the judgment or you might never see a penny of it.


Options to Protect Yourself When Offering Seller Financing

Fortunately, you have a handful of options at your disposal to minimize the risks of seller financing.

Consider these steps carefully as you navigate the unfamiliar waters of seller financing, and try to speak with other sellers who have offered it to gain the benefit of their experience.

1. Offer a Second Mortgage Only

Instead of lending the borrower the primary mortgage loan for hundreds of thousands of dollars, another option is simply lending them a portion of the down payment.

Imagine you sell your house for $330,000 to a buyer who has $30,000 to put toward a down payment. You could lend the buyer $300,000 as the primary mortgage, with them putting down 10%.

Or you could let them get a loan for $270,000 from a conventional mortgage lender, and you could lend them another $30,000 to help them bridge the gap between what they have in cash and what the primary lender offers.

This strategy still leaves you with most of the purchase price at settlement and lets you risk less of your own money on a loan. But as a second mortgage holder, you accept second lien position

That means in the event of foreclosure, the first mortgagee gets paid first, and you only receive money after the first mortgage is paid in full.

2. Take Additional Collateral

Another way to protect yourself is to require more collateral from the buyer. That collateral could come in many forms. For example, you could put a lien against their car or another piece of real estate if they own one.

The benefits of this are twofold. First, in the event of default, you can take more than just the house itself to cover your losses. Second, the borrower knows they’ve put more on the line, so it serves as a stronger deterrent for defaults.

3. Screen Borrowers Thoroughly

There’s a reason why mortgage lenders are such sticklers for detail when underwriting loans. In a literal sense, as a lender, you are handing someone hundreds of thousands of dollars and saying, “Pay me back, pretty please.”

Only lend to borrowers with a long history of outstanding credit. If they have shoddy credit — or any red flags in their credit history — let them borrow from someone else. Be just as careful of borrowers with little in the way of credit history.

The only exception you should consider is accepting a cosigner with strong, established credit to reinforce a borrower with bad or no credit. For example, you might find a recent college graduate with minimal credit who wants to buy, and you could accept their parents as cosigners.

You also could require additional collateral from the cosigner, such as a lien against their home.

Also review the borrower’s income carefully, and calculate their debt-to-income ratios. The front-end ratio is the percentage of their monthly income required to cover all housing costs: principal and interest, property taxes, homeowner’s insurance, and any condominium or homeowners association fees.

For reference, conventional mortgage lenders allow a maximum front-end ratio of 28%.

The back-end ratio includes not just housing costs, but also overall debt obligations. That includes student loans, auto loans, credit card payments, and all other mandatory monthly debt payments.

Conventional mortgage loans typically allow 36% at most. Any more than that and the buyer probably can’t afford your home.

4. Charge Fees for Your Trouble

Mortgage lenders charge points and fees. If you’re serving as the lender, you should do the same.

It’s more work for you to put together all the loan paperwork. And you will almost certainly have to pay an attorney to help you, so make sure you pass those costs along to the borrower.

Beyond your own labor and costs, you also need to make sure you’re being compensated for your risk. This loan is an investment for you, so the rewards must justify the risk.

5. Set a Balloon

You don’t want to be holding this mortgage note 30 years from now. Or, for that matter, to force your heirs to sort out this mortgage on your behalf after you shuffle off this mortal coil.

Set a balloon date for the mortgage between three and five years from now. You get to collect mostly interest in the meantime, and then get the rest of your money once the buyer refinances or sells.

Besides, the shorter the loan term, the less opportunity there is for the buyer to face some financial crisis of their own and stop paying you.

6. Be Listed as the Mortgagee on the Insurance

Insurance companies issue a declarations page (or “dec page”) listing the mortgagee. In the event of damage to the property and an insurance claim, the mortgagee gets notified and has some rights and protections against losses.

Review the insurance policy carefully before greenlighting the settlement. Make sure your loan documents include a requirement that the borrower send you updated insurance documents every year and consequences if they fail to do so.

7. Hire a Loan Servicing Company

You may multitalented and an expert in several areas. But servicing mortgage loans probably isn’t one of them.

Consider outsourcing the loan servicing to a company that specializes in it. They send monthly statements, late notices, 1098 forms, and escrow statements (if you escrow for insurance and taxes), and verify that taxes and insurance are current each year. If the borrower defaults, they can hire a foreclosure attorney to handle the legal proceedings.

Examples of loan servicing companies include LoanCare and Note Servicing Center, both of whom accept seller-financing notes.

8. Offer Lease-to-Own Instead

The foreclosure process is significantly longer and more expensive than the eviction process.

In the case of seller financing, you sell the property to the buyer and only hold the mortgage note. But if you sign a lease-to-own agreement, you maintain ownership of the property and the buyer is actually a tenant who simply has a legal right to buy in the future.

They can work on improving their credit over the next year or two, and you can collect rent. When they’re ready, they can buy from you — financed with a conventional mortgage and paying you in full.

If the worst happens and they default, you can evict them and either rent or sell the property to someone else.

9. Explore a Wrap Mortgage

If you have an existing mortgage on the property, you may be able to leave it in place and keep paying it, even after selling the property and offering seller financing.

Wrap mortgages, or wraparound mortgages, are a bit trickier and come with some legal complications. But when executed right, they can be a win-win for both you and the buyer.

Say you have a 30-year mortgage for $250,000 at 3.5% interest. You sell the property for $330,000, and you offer seller financing of $300,000 for 6% interest. The buyer pays you $30,000 as a down payment.

Ordinarily, you would pay off your existing mortgage for $250,000 upon selling it. Most mortgages include a “due-on-sale” clause, requiring the loan to be paid in full upon selling the property.

But in some circumstances and some states, you may be able to avoid triggering the due-on-sale clause and leave the loan in place.

You keep paying your mortgage payment of $1,122.61, even as the borrower pays you $1,798.65 per month. In a couple of years when they refinance, they pay off your previous mortgage in full, plus the additional balance they owe you.

Of course, you still run the risk that the borrower stops paying you. Then you’re saddled with making your monthly mortgage payment on the property, even as you slog through the foreclosure process to try and recover your losses.


Final Word

Offering seller financing comes with risks. But those risks may be worth taking, especially for hard-to-sell properties.

Only you can decide what risk-reward ratio you can live with, and negotiate loan terms to ensure you come out on the right side of the ratio. For unique or other difficult-to-finance properties, seller financing may be the only way to sell for what the property’s worth.

Before you write off the returns as low, remember that your APR will be far higher than the interest rate charged.

Beyond the upfront fees you can charge, you’ll also benefit from simple interest amortization, which front-loads the interest so that nearly all of the monthly payment goes toward interest in the first few years — the only years you need to finance if you structure the loan as a balloon mortgage.

Just be sure to screen all borrowers extremely carefully, and to take as many precautions as you can. If the borrower can’t qualify for a conventional mortgage, consider that a glaring red flag. Seller financing involves risking many thousands of dollars in a single transaction, so take your time and get it right.

Source: moneycrashers.com

The Best Places to Live in Illinois in 2021

There is more to Illinois than Chicago, although the largest city in the state is home to almost three million people.

When thinking about some of the best places to live in Illinois, you probably immediately consider Chicago and its densely populated suburbs. While these are all great places to live, there are hidden gems all throughout Illinois that you should consider.

So, whether you’re seeking an affordable apartment in Chicago or a quiet tree-lined city downstate, you have a number of great options from which to choose.

Here are the best places to live in Illinois.

Aurora, IL, one of the best places to live in illinois

  • Population: 199,687
  • Average age: 37
  • Median household income: $71,749
  • Average commute time: 35.9 minutes
  • Walk score: 45
  • Studio average rent: $1,142
  • One-bedroom average rent: $1,344
  • Two-bedroom average rent: $1,590

The second-largest city in Illinois with almost 200,000 residents, Aurora offers a mix of options that appeal to everyone from young and single professionals to families.

During the first Friday of each month, food trucks serve up dishes along Benton Street Bridge. In addition, the revitalized downtown district has a great range of restaurants, from steakhouses to coffeehouses, and the area also has destination shopping outposts.

Plus, Aurora is nestled along Fox River, so nature-lovers will appreciate the opportunity to kayak and explore other activities nearby.

Bloomington, IL.

  • Population: 78,023
  • Average age: 39.8
  • Median household income: $67,507
  • Average commute time: 20.3 minutes
  • Walk score: 47
  • Studio average rent: N/A
  • One-bedroom average rent: $827
  • Two-bedroom average rent: $865

Bloomington often shares the limelight with its neighboring city, Normal, since it’s the home of Illinois State University.

While Bloomington lies in the heart of Illinois, at the junction of Interstates 55, 39 and 74, and within a few hours from Chicago and St. Louis, there is plenty to do in Bloomington.

Residents enjoy great restaurants, shopping and visiting attractions such as the historic Ewing Manor, named Sunset Hill by the Ewing family, or the David Davis Mansion which delights history buffs and garden lovers alike.

Bloomington is also the headquarters for State Farm Insurance and COUNTRY Financial.

Champaign, IL, one of the best places to live in illinois

Photo source: Visit Champaign County / Facebook
  • Population: 85,008
  • Average age: 36.5
  • Median household income: $48,415
  • Average commute time: 19.9 minutes
  • Walk score: 61
  • Studio average rent: $435
  • One-bedroom average rent: $629
  • Two-bedroom average rent: $947

Like Bloomington, Champaign is often associated with its neighboring city, Urbana, since the cities share the University of Illinois at Urbana-Champaign campus.

Champaign has a thriving arts scene, award-winning restaurants and great outdoor spaces. It’s a mix of rural and urban, giving residents options, whether they want a more quiet rural setting or a bustling urban environment.

Chicago, IL, one of the best places to live in illinois

  • Population: 2,721,615
  • Average age: 40.2
  • Median household income: $58,247
  • Average commute time: 43.4 minutes
  • Walk score: 84
  • Studio average rent: $1,796
  • One-bedroom average rent: $2,287
  • Two-bedroom average rent: $3,150

There is no shortage of things to do in the largest city in Illinois. Chicago is a city of neighborhoods and like any major metropolitan city in the country, it’s home to award-winning restaurants, world-class museums and Cloud Gate, the bean-like sculpture in Millennium Park also known as “The Bean” among locals.

In addition, the lakefront and the many parks throughout the city offer its residents a place to rest and enjoy their surroundings.

Rental rates vary based on the neighborhood but, in general, the closer to the downtown district and Lake Michigan, the higher the rental rates. Also, depending on where you live, it’s entirely possible to live in Chicago without needing a car since public transportation is pretty robust and accessible.

Evanston, IL.

Photo source: City of Evanston Illinois / Facebook
  • Population: 75,574
  • Average age: 41.4
  • Median household income: $78,904
  • Average commute time: 39.1 minutes
  • Walk score: 82
  • Studio average rent: $1,720
  • One-bedroom average rent: $2,141
  • Two-bedroom average rent: $2,974

Evanston borders the northern part of Chicago and while it’s a northern suburb, parts of it feel very much like a busy metropolitan city.

Northwestern University calls Evanston home so part of the north and east part of Evanston is home to students as well as established families who live in older and grand single-family homes.

Residents love their tree-lined and quiet streets and easy access to the beaches along Lake Michigan.

The city is large enough to have a few distinct shopping districts, including downtown Evanston, which has been completely transformed over the past decade with a large movie theater and larger retail establishments, while Central Street has more independent boutiques.

Naperville, IL, one of the best places to live in illinois

  • Population: 144,752
  • Average age: 41.3
  • Median household income: $125,926
  • Average commute time: 41.6 minutes
  • Walk score: 46
  • Studio average rent: $1,286
  • One-bedroom average rent: $1,483
  • Two-bedroom average rent: $1,828

The original home of the fictional Byrde family before they moved to the Ozarks, Naperville is a picturesque western suburb of Chicago.

The Naperville Riverwalk curves along the banks of the DuPage River and features independent boutiques, restaurants, bars and hotels with river views.

The DuPage Children’s Museum has fun hands-on exhibits that attract both residents and visitors to the area. In addition, the Naper Settlement is a family-friendly, 13-acre outdoor history museum that traces the history of Naperville.

Oak Park, IL.

  • Population: 52,227
  • Average age: 42.1
  • Median household income: $94,646
  • Average commute time: 43.1 minutes
  • Walk score: 84
  • Studio average rent: $1,427
  • One-bedroom average rent: $1,651
  • Two-bedroom average rent: $2,707

Oak Park is a tree-lined suburb just west of Chicago.

The Chicago Transit Authority (CTA) Green Line includes several Oak Park stops, making it particularly convenient for those who want to live in a suburb but still have easy access to Chicago.

Even so, Oak Park is a bustling city with an active downtown full of restaurants and independent boutiques, strong schools and active community members. It’s also home to the Frank Lloyd Wright Home and Studio, which attracts thousands from around the world to see the architect’s prairie-style home.

Peoria, IL, one of the best places to live in illinois

  • Population: 114,615
  • Average age: 40.8
  • Median household income: $51,771
  • Average commute time: 22 minutes
  • Walk score: 44
  • Studio average rent: $678
  • One-bedroom average rent: $771
  • Two-bedroom average rent: $954

Peoria is a laid-back city and most residents work for one of the major employers: Caterpillar (which still employees thousands despite its corporate move to Chicago), OSF Healthcare Saint Francis Medical Center or the school district.

Nestled along the Illinois River, it’s located between St. Louis and Chicago, which is approximately a two-and-a-half-hour drive. There is a mix of things to do in the city, from hiking outdoors to enjoying a cocktail at one of the many restaurants, bars or casinos.

In mid-2014, Peoria began offering bus route service on Sundays, something it hadn’t been offering since 1970, making it easier to get around town for those without a car.

Rockford, IL.

  • Population: 148,485
  • Average age: 41.9
  • Median household income: $44,252
  • Average commute time: 25.6 minutes
  • Walk score: 46
  • Studio average rent: N/A
  • One-bedroom average rent: $714
  • Two-bedroom average rent: $1,070

There is no shortage of outdoor entertainment options for those living of visiting Rockford. There are pools to swim, a river to kayak and nature preserves to hike.

The Klehm Arboretum and Botanic Garden as well as the Anderson Japanese Garden attract thousands of garden lovers.

Residents can choose between downtown lofts to quieter tree-lined streets in historic neighborhoods. Each Rockford community is active in its own way, with great restaurants, museums and shops located throughout the fifth-largest city in the state.

Springfield, IL, one of the best places to live in illinois

  • Population: 115,968
  • Average age: 43.2
  • Median household income: $54,648
  • Average commute time: 22.2 minutes
  • Walk score: 47
  • Studio average rent: N/A
  • One-bedroom average rent: $665
  • Two-bedroom average rent: $749

Home to the Illinois State Capitol, Springfield is a mix of those who serve the legislative and executive branches of the government during sessions as well as residents who live in the city full-time.

It’s also home to the Abraham Lincoln Presidential Library and Museum which honors and documents the life and work of the 16th U.S. President, Abraham Lincoln so the area gets a lot of tourists year-round.

Springfield feels a bit like living in a suburban setting but also has plenty of bars, restaurants and parks to keep locals and visitors entertained.

Choose among the best cities in Illinois

With world-class attractions, sprawling rural towns to fast-paced urban cities, Illinois has something for everyone. If you’re thinking about moving to the Land of Lincoln, we hope this list of the best places to live in Illinois helpful.

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 March 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.
Other demographic data comes from the U.S. Census Bureau.
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.

Source: rent.com

10 Filling and Cheap Pantry Staples

[embedded content]

Welcome back to the collaboration between Mint and Brewing Happiness. I’m Haley, the girl behind Brewing Happiness – a blog about celebrating the small healthy choices we make in our lives, complete with recipes for everybody! I’m here to give you tips on living a healthy, happy life on a budget.

Today I am going to share with you my top 10 pantry staples that are both filling and cheap. I always keep these stocked, so that I can make a healthy and satisfying meal at a moments notice. I know that eating healthy can feel daunting and expensive, so I hope this list helps dispel any fears you may have. I promise it’s easier (and more affordable) than you think to stock your shelves full of healthy food!

10 Filling and Cheap Pantry Staples

1. Tofu

Although tofu comes with a stigma, I love it because it’s so versatile and affordable. You can make sauces, scrambles or breakfast burritos with it. Or try frying it and adding it to salads or bowls. Don’t be afraid – it’s loaded with protein and super cheap.

Tofu recipes to try: The Best Tofu Scramble, Carrot Noodle Vegetarian Ramen, 30 Minute Crispy Tofu and Squash Bowl, Cajun Tofu Nuggets

2. Grains

I choose my grains based on what is on sale, but some of my favorites are rice, quinoa, farro, buckwheat, and millet. I use these as the base for most of my meals, or put them on salads. Grains are great, healthy carbs to fill you up, instead of leaving you hungry in an hour.

Grain recipes to try: Autumn Harvest Quinoa Salad, Asian Quinoa Snack Bowls, Beet Farro Mediterranean Salad, Spicy Curried Cauliflower and Millet Bowl

3. Oats

Oats are great for breakfast, but you can also blend them to make oat flour or use them in muffins or other sweet treats! It’s both the price and versatility that make oats one of my favorite pantry staples.

Oat recipes to try: Blueberry Almond Overnight Oats, No Bake Blueberry Crisp Granola Bars, Pumpkin Ginger Breakfast Cookies, Healthified Oatmeal Cream Pies

4. Beans

Beans pair great with your grains, because together they make a complete protein. Therefore, you can get full for very little money. I always keep different varieties of beans in my pantry to throw on meals for added protein and fiber.

Bean recipes to try: Healthy Southern Baked Beans, White Bean and Kale White Wine Pasta, Black Bean and Sweet Potato Taquitos

5. Chickpeas

Chickpeas are similar to beans, but I find them to be much more versatile. I use them on nearly everything. I love them straight from the can, fried, or baked. These are my go-to protein add to all salads, soups, bowls, tacos or wraps.

Chickpea recipes to try: 5 Minute Chickpea Salad Wrap, Masala Chickpeas with Coconut Rice, Vegetarian Blueberry Cobb Salad, Chickpea Street Corn Tacos

6. Potatoes

Potatoes are a filling and cheap carb to use as the base of any meal. Stuff them with tons of veggies, protein, and herbs and you have a great meal in no time! Plus, potatoes are versatile so you get a lot of bang for your buck.

Potato recipes to try: Sweet Potato Sheet Pan Dinner Salad, Spaghetti Squash Pasta with Sweet Potato Sauce, Kale and Potato Swiss Cheese Melt, Texas BBQ Potato & Tempeh Tacos

7. Lentils

Lentils can serve the same purpose as a grain, but the great part about lentils is that they are packed with protein. This makes them even more filling and worth your money, in my opinion. Use them for soups or stews or bowls or salads!

Lentil recipes to try: Lentil Sloppy Joe Stuffed Sweet Potatoes, Lentil and Sweet Potato Vegetarian Chili

8. Olive Oil

Everyone needs a fat in the kitchen to cook with. And if we are talking about getting the best quality for a budget, I think olive oil is the best choice. It works well to cook eggs with, as well as heating lunch and dinner. The versatility and price make it my go-to cooking oil.

Olive oil recipes to try: Grilled Spanish Tomato Bread, Pumpkin Chia Olive Oil Cake, Olive Oil Granola Crumble, Moroccan Harissa Salad

9. Eggs

I always have eggs in my refrigerator so that I can eat them for breakfast, add them as protein to a meal, hard boil them for snacks or use them in baked goods. While good quality eggs aren’t always that cheap, the utility wins out here.

Egg recipes to try: Greens and Brie Egg White Frittata, Apple Fennel Fall Fried Egg Sandwich, Spicy Egg and Mushroom Wrap, Smashed Potato Eggs Benedict

10. Chia Seeds

Chia seeds are not only a superfood, packed with Omega-3 fatty acids, but they become gelatinous and pudding like when soaked in liquid. Therefore I always keep some around to make an overnight breakfast pudding or a quick dessert. You don’t need a lot of seeds to make a great meal, making them pretty cost effective!

Chia seed recipes to try: Healthy Banana Pudding, Nut & Seed Overnight Porridge, Strawberry Chia Jam, Green Tea Chia Pudding

Follow along!

Over the next few months I’ll be covering a variety of ways to be healthy on a budget. Keep an eye out for those and head over to Brewing Happiness for healthy recipe inspiration in the meantime!

Learn more about security

Mint Google Play Mint iOS App Store

Source: mint.intuit.com