Blogging Fusion Blog Directory the #1 blog directory and oldest directory online.

GrowthRapidly

Home GrowthRapidly

GrowthRapidly

Rated: 3.00 / 5 | 320 listing views GrowthRapidly Blogging Fusion Blog Directory

United-States/Illinois

 

General Audience

  • 8472082409
  • Joel
  • November 09, 2019 07:18:39 PM
SHARE THIS PAGE ON:

A Little About Us

Growth Rapidly is a personal finance blog, intended to help you save money, make money, and build wealth. Our articles and financial tools are there to assist you to make the best financial decisions, including buying a house, choosing a financial advisor, etc

Listing Details

  • Related URL:
  • How to Dispute Your Transunion Credit Report - GrowthRapidly
  • If you’ve noticed errors or wrong listings on your free credit report, it’s always a good idea to dispute them right away. Failure to do so can cost you. Transunion allows consumers to dispute any inaccuracies listed on their credit report. There are three ways to file a Transunion dispute: by phone, by email, and by mail.
  • Featured Blog Expires: 2020-11-09 19:18:39 (294 days left)
  • Listing Statistics

    Add ReviewMe Button

    Review GrowthRapidly at Blogging Fusion Blog Directory

    Add SEO Score Button

    My Blogging Fusion Score

    Google Adsense™ Share Program

    Alexa Web Ranking: 123,662

    Alexa Ranking - GrowthRapidly

    Subscribe to GrowthRapidly

    How to Buy a HUD Home at the Hudhomestore Website?

    Using the Hudhomestore to buy a HUD home is easy. If you’re looking to buy a HUD home, the Hudhomestore website is the best place to do it. It can be found here at hudhomestore.com. HUD homes are listed for sale at the site. While anyone can buy a HUD home, you will need to … Continue reading "How to Buy a HUD Home at the Hudhomestore Website?" The post How to Buy a HUD Home at the Hudhomestore Website? appeared first on...

    Using the Hudhomestore to buy a HUD home is easy.

    If you’re looking to buy a HUD home, the Hudhomestore website is the best place to do it. It can be found here at hudhomestore.com. HUD homes are listed for sale at the site.

    While anyone can buy a HUD home, you will need to get approved for a loan first.

    Just like buying a house through the conventional route, all financing options are available for HUD homes. That includes conventional loans, FHA loans, VA loans, etc.

    However, most people used an FHA loan to buy a HUD home due to its low down payment and credit score requirements.

    If you’re interested in getting pre-approved for a HUD home click here.

    What is the Hudhomestore?

    The hudhomestore is a website operated by the U.S Department of Housing and Urban Development (HUD). The website can be found here at hudhomestore.com. Homes are listed there for sale after they have gone through foreclosures. Real estate agents and/or brokers can place bids on your behalf to buy a house.

    What is a HUD home?

    A HUD home (usually a 1 to 4 unit) is a property owned by HUD. Before a home became a HUD home, it was owned by a homebuyer who had purchased the home with an FHA loan. Once the borrower stopped paying his or her FHA loan, the home went to foreclosures. Then the home goes to HUD and becomes a HUD home.

    Why you should buy a HUD home?

    The benefits of buying a HUD home are huge. The main benefit is that most of these homes are priced below market value.

    In addition, if you’re an EMS personnel, police officer, firefighter, or teachers, and live in revitalized areas and plan to live there for at least 36 months, HUD’s Good Neighbor Program offers HUD homes at a 50% discount. This program is listed at the hudhomestore website.

    In addition, HUD offers other perks such as low down payment and sales allowances you can use to pay for moving, repair and closing costs. The low down payment, that is on top of the FHA financing that you may be qualified for.

    Another huge benefit of buying a HUD home is that HUD gives preferences to buyers who intend to live in the home for at least one year. So this puts you ahead of investors.

    Click here to get approved for a HUD home.

    Are you qualified to finance a HUD Home?

    All financing options, including conventional loans, VA, and FHA loans, are available when it comes to buying a HUD home. But FHA loans are very popular among first time home buyers, due to its low requirements. But before you start searching for HUD homes through the Hudhomestore website, you should compare multiple loan offers so you can the best mortgage rates.

    FHA loan requirements:

    • 580 Minimum score
    • 3.5% down payment

    If your credit score is below 580, you can still be qualified but you’ll have to pay at least 10% down. Or, you can always take time to raise your credit score.

    Don’t know what your credit score is, visit CreditSesame.

    Our Review of Credit Sesame.

    Steps to buy a HUD Home at the HUDhomestore website:

    HUD homes can be hard to find if you don’t know where to look. In other words, they are not listed on conventional real estate websites such as Zillow or Redfin. Instead, they are listed at the HUDhomestore webiste, which can be found at hudhomestore.com. They also have HUD Homestore Mobile Apps.

    Knowing these steps is important to mastering one of the best strategies to buy a house at below market or wholesale prices.

    Step 1: Shop and compare home loans

    Before you start searching your house through the hudhomestore site, it’s a good idea to

    The worst thing that can happen is to find a house that you like to then realize that you cannot secure a home loan.

    To get the best mortgage rates, you need to compare multiple loan offers. Buying a home is major expense, and getting the best rates could save you a lot of money. I can spend a lot of time talking about why it is a bad idea to only speak with one mortgage lender.

    But when it comes to having multiple loan offers, I highly suggest LendingTree.

    LendingTree is an online platform that connects you to several mortgage lenders without visiting a dozen bank branches.

    LendingTree will provide you up to 5 loan offers from multiple lenders for free, so you can compare and make sure you get the best deal.

    So if you’re at this step right now, go and compare current mortgage rates for free at LendingTree, and come back to this article.

    Our LendingTree Review.

    Step 2: Finding a HUD Home at the HUDhomestore website.

    To find a HUD home, simply go to the hudhomestore website. It can be found at hudhomestore.com.

    There are three ways to find HUD homes on the hudhomestore website. The first way is through a map.

    Once you on the website, you will see a map to the right with all of the states listed there. You simply look for your state and click on it to see all of the available HUD homes.

    The hudhomestore site will show you a list of all of the HUD homes available for that particular state. It will include the photo of the HUD home, the address, the asking price, etc.

    If you click on the photo of the house, you will be able to see more information of the property, including more photos, street views and information of the property.

    Another way to find a house through the hudhomestore website is by clicking on the HUD Special program links.

    The hudhomestore site specifically lists three HUD Special Programs: Good Neighbor Next Door; Nonprofits; $1 Homes-Government Sales. It specifically states on the hudhomestore website that if you click on any of these special programs, you will see available properties.

    The third way to find a HUD home via the hudhomestore site is through the Search Properties. At the middle of the homepage, you will see a Search Properties where you can enter more detailed criteria.

    Step 3: Buy your HUD home

    Once you have found your desired HUD Home, it’s time to buy your HUD home.

    But note that HUD homes are sold through an auction process. When you’re searching for the property through the hudhomestore site, it will tell you a deadline by which to submit your offer.

    So if the deadline has not passed, submit your bid. Once it has passed, HUD reviews all offers. Just like any auction, the highest bid wins. If all of the offers are too low, HUD will extend the offer period and/or lower the asking price.

    Note that you will not be able to place the bid yourself. Only real estate agents need to register to place bids on the hudhomestore website. You will need to find a real estate agent or you can specifically search for HUD registered agents at hudhomestore.com.

    For more information on buying a home through the hudhomestore website, visit www.hudhomestore.com.

    More on Buying a Home:

    Work with the Right Financial Advisor

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.


    The post How to Buy a HUD Home at the Hudhomestore Website? appeared first on GrowthRapidly.


    How To Buy A House: A Complete Guide

    Understanding how to buy a house can make the home buying process easier. When you search for “how to buy a house,” the results seem identical and decent at best. They only show you a few basic steps. I bought my first house two years ago, and I wish I knew the actual and real … Continue reading "How To Buy A House: A Complete Guide" The post How To Buy A House: A Complete Guide appeared first on...

    Understanding how to buy a house can make the home buying process easier.

    When you search for “how to buy a house,” the results seem identical and decent at best. They only show you a few basic steps. I bought my first house two years ago, and I wish I knew the actual and real steps to purchase a home. Now that I have gone though the home buying process, I am happy to share these steps with you.

    So, if you’re a first time home buyer, or you have bought a house before but just want a refresher, this step-by-step home buying guide will walk you through it.

    This guide is pretty long. But I highly recommend that you read it top down. Buying a house is a major expense and it also takes time.

    So, it should not be taken lightly.

    But if you feel comfortable with one or two steps, feel free to use this overview or the table of contents to skip around.

    But no matter what stage you are in your home buying journey, you should always check to see how likely you’ll be qualified for a mortgage loan.

    The worst thing that can happen is to find a house that you like to then realize that you cannot secure a home loan.

    Compare Multiple Mortgage Loan Offers For Free

    How to Buy a House: A Brief Overview

    Here are the steps to buying a house.

    • Step 1: planning to buy your house: here, I will list everything you need to know about planning to buy your house. That includes making a budget, saving for a down payment, checking your credit score, considering how much house you can afford and considering the upfront costs of buying a house.
    • Step 2: Search for your house – Get an pre-approval mortgage letter so sellers can take you seriously. Make a list of all the neighborhoods you wouldn’t mind living in and research the market. Also, do some research about other ways you can buy a house.
    • Step 3: Choose the right mortgage: There are 4 possible mortgage you might be qualified for: FHA loans, conventional loans, VA loans, USDA loans. Each has their own requirements. We will go over the details. And finally, compare and shop for the best mortgage rates.
    • Step 4: Buying your home. This section includes everything from finding a property you like, making an offer, applying for a loan, closing and moving in.

    How to Buy a House: A Step-by-Step Guide

    Step 1: Planning to buy your house

    This step while seems simple is where a lot of people got wrong (including myself, to be honest).

    I was too impulsive enough to do any planning and jump right over a few steps. But planning to buy a house is as important as the other steps, and you should not skip it.

    It will not only save you time and money, but you’ll be confident during your search and the home buying process.

    Make a budget

    The first step in the home buying planning process is to make a budget. Write down you current expenses and be as realistic as possible. Your expenses should be your food, transportation, student loans, other personal loans you’re currently paying, credit card debts. Your rent will no longer be an expense, but it will be substituted with your mortgage. Making a budget will give you an idea how much you can afford.

    Check your credit score

    The higher your credit score, the more likely you’ll be qualified for a mortgage and the more likely you’ll get a good mortgage rate.

    In other words, a low credit score can lead to a high interest mortgage loan, or even worse, a loan rejection. Given the fact that your credit score is the number 1 item mortgage lender looks at, it pays off to know where you stand.

    Credit Sesame will let you know what your credit score is for free and monitor it for you. It will also offer tips on how to raise your credit score and reduce your debt.

    Just sign up for a free account – it only takes 90 seconds.

    Consider how much you are able to borrow

    How much house you will be able to afford will depend on three things: 1) your income; 2) your living expenses (see above) – that also includes other debts and obligations such as credit card debts, student loans, child support, etc; 3) the type of loan you want (i.e., FHA loans, VA loans, Conventional loans, USDA loans – see step below for more information on loan types.)

    Consider your upfront costs of buying a house

    Your down payment and mortgage repayments are not the only costs you’ll need to consider when buying a house.

    That’s where I messed up.

    There are other upfront costs of buying a house, like inspection costs, loan application fees, moving costs, repair costs, closing costs, etc.

    So consider these upfront costs when planning to buy your house so to avoid any surprises later.

    Save for a down payment

    The larger your down payment, the less money you’ll need to borrow. There are several ways to save money for a down payment, including cutting back on your spending and making a regular savings plan.

    Typically, conventional loans requires 20% down payment. You can pay less than the 20%, but you’ll have to pay for a private mortgage insurance. The PMI is just to protect the lender in case you default on your loan.

    If you’re a veteran, you may also be qualified for a VA loan, where the down payment will be $0.

    If you’re a first time home buyer, you may eligible for an FHA loan where the down payment is 3.5 % of the home purchase price.

    Planning to buy your house will give you a clear idea of how much you can really afford and help you start your home search on the right foot.

    Step 2: Search for your house

    Obtain a pre-approval letter so you can search with confidence

    Before you start house hunting, it’s important to get pre-approved for a mortgage first. One reason is because you have an idea of how much you can borrow. Another reason this step is important is because the seller will know that you’re serious. If you don’t have one handy, the seller will likely move to the next buyer.

    Getting pre-approved for a mortgage in order to buy a house can take a while. That is because you have to make sure your financial situation is in shape. For example, your income-to-debt ratio, your down payment, and your credit score must be good.

    Even when these things are in order, shopping and comparing mortgage rates and fees can take several weeks.

    To get the best mortgage rates, you need to compare multiple loan offers. As I said earlier, buying a home is major expense, and getting the best rates could save you a lot of money.

    I can spend a lot of time talking about why it is a bad idea to only speak with one mortgage lender. (More on this below).

    But when it comes to having multiple loan offers, I highly suggest LendingTree.

    LendingTree is an online platform that connects you to several mortgage lenders without visiting a dozen bank branches.

    LendingTree will provide you up to 5 loan offers from multiple lenders for free, so you can compare and make sure you get the best deal.

    So if you’re at this step right now, go and compare current mortgage rates for free at LendingTree, and come back to this article.

    Compare home loan rates from top lenders in your area.

    Meet with your real estate agent

    Working with a real estate agent to help you find the right house is very important. You may think you can do it all by yourself, but a real estate agent has the insider knowledge that you may not have. They may be more familiar with the area you want to live.

    Plus, their service is free. They’re paid commission from the seller.

    Talk to family or friends for a referral. Or you can just google “real estate agent” in your area. You may also go through Zillow or Redfin.

    The real estate agent should be able to give you a personalized property report for your preferred neighborhood.

    They should also give you an estimation of upfront costs of buying a house.

    Research the neighborhoods where you want to buy your house

    You may have an idea of where you want to live. But whether you want to live in the suburbs or in the city, make sure you write down a list of all the things. Does the area have good schools, shopping centers, public park, etc.

    These things are important, especially if you’re planning of raising a family there. Also, research the area thoroughly for recent crimes, etc.

    Your real estate agent can give you recent reports of properties in a particular neighborhood. The reports should tell you about recent sales in the neighborhood, average sale prices, listings, etc.

    Step 3: Choose the right mortgage: decide which home loan is the right for you

    When you’re buying a house, it’s important to choose a mortgage that works for you. There are different home loan types. Each one of them has different requirement.

    Again, to compare loan types, visit LendingTree.

    FHA loans

    One type of loan that is popular among first time home buyers is FHA loan. It is so popular because it’s easier to get qualified for it. And the down payment is very little comparing to that of a conventional loan.

    For example, FHA loans require a 580 credit score and a down payment as low as 3.5% of the home purchase price. This makes it easier to qualify for a home loan when you’re on a low income.

    If your credit score is below 580, you will still be qualified but you will have to put 10% down.

    To see if you’re qualified for an FHA loan, again I recommend my favorite platform, LendingTree.

    Conventional Loans

    A conventional loan is any loan that requires you to put 20% down payment of the home purchase price. A down payment less than 20% won’t make buying a house with a conventional impossible. However, you will have to pay a private mortgage insurance.

    But the credit score for a conventional loan is usually around 650 and up.

    VA Loans

    VA loans are another great option for first-time home buyers. However, you have to be a veteran. Unlike a FHA or a conventional loan, VA loans require no down payment and no mortgage insurance. This can save you thousands of dollars per year.

    Compare and shop for loans

    Once you decide which type of loan you will use to buy your home, you need to shop and compare for a mortgage.

    Why you should use LendingTree to shop for your mortgage:

    • Get approved in just 2 minutes
    • Over 1500+ lenders in one platform
    • Multiple mortgage offers – to make sure you choose the best mortgage rate.
    • Checking is free

    Step 4: Buying Your House

    Make an offer

    Once you have found your property, then the next step is to make an offer. Again, this is the time where your pre-approval letter (and we talked about this earlier) comes in handy.

    Sellers are more likely to accept your offer with a pre-approval letter in hand. There will be several back and forth (or negotiations) between your agent or you and the seller.

    But once accepted, you and the seller sign a contract. with confirms the selling price, settlement terms and other conditions for the sale.

    Then, you will have to pay the down payment, usually between 3.5% and 20% depending on the type of loans you want (see above).

    Then the next step is to actually apply for the loan. But in the meantime, you can arrange for an inspection. This is not mandatory, but it’s highly recommended to avoid bad surprises later on.

    You should also hire a lawyer to go over the contract to see if there are any errors. They charge a legal fee, so make sure you’re aware of how much they charge before you commit.

    Apply for a home loan

    Once you have made an offer on the house, the next is to apply for the loan. You can back to the actual lender who gave you the pre-approval letter and apply with them.

    If you want other options, you can always go back to LendingTree to shop and compare multiple loan offers, to find the best mortgage rates.

    At this time, you should gather all important documents:

    • Your identification (I.D.) – passport or driver’s license
    • Bank statements
    • Your income – employment verification letter, pay stubs, W2s, recent income tax returns.
    • If you’re self employed: most recent personal and business tax returns, business financial statements, etc.

    Sign your loan document

    Once your home loan has been approved, then it’s time sign the loan documents.

    Closing and move in to your home

    The final step to buying a house is the closing.

    Closing is when the purchase of your house is completed and the house becomes yours. The mortgage lender will arrange a closing date, time location with your lawyer. Once the closing is successfully completed, your lender will let you know and it’s time for you to pick up the keys from the seller’s real estate agent.

    Learn more about how to buy a house

    I hope you learn one thing or two about how to buy a house. As I mentioned earlier, buying a house is a major expense, so you should make sure you make all the right moves. If you’re still looking for more information, feel free to read through these articles below:

    Work with the Right Financial Advisor

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

    The post How To Buy A House: A Complete Guide appeared first on GrowthRapidly.


    401k Contribution Limits for 2020: What Are They?

    The 401k contribution limits for 2020 is $500 more than the contribution limits for the year of 2019. If you’re at least younger than 50 years old, you can contribute up to $19,500 in 2020. The 401k contribution limits for older employees, i.e., 50 years and older, is $19,500 plus an extra $6500. That extra … Continue reading "401k Contribution Limits for 2020: What Are They?" The post 401k Contribution Limits for 2020: What Are They? appeared first on...

    The 401k contribution limits for 2020 is $500 more than the contribution limits for the year of 2019. If you’re at least younger than 50 years old, you can contribute up to $19,500 in 2020. The 401k contribution limits for older employees, i.e., 50 years and older, is $19,500 plus an extra $6500.

    That extra is called a catch up contribution limit. That brings the total 401k contribution limits to $26,000 (for tax year 2020), for those 50 and older.

    If you work for a profit employer, you may have access to a 401k plan. If so, a good advice is to take advantage of it as a 401k plan is perhaps the best tax-advantaged retirement there is.

    In fact, the money you contribute to the 401k plan grows tax free until you take it out. That also means interest and/or dividends you receive grows on a tax deferred basis. Also, the money you contribute to your 401k plan is tax deductible.

    So, even if you can’t afford to take advantage of the full 2020 401k contribution limits, you should absolutely contribute something no matter how small. That way you can reach your retirement goals sooner.

    Sponsored content from SmartAsset:

    What is a 401k plan?

    A 401k plan is a plan where your employer deducts a certain amount of money from your paycheck upon your request and puts it into a retirement account for you. Many employers offer a 401k plan.

    If you’re lucky enough that your job offers one, you should participate. Not only is it the easiest way to save for retirement, but it also reduces and defer your taxes.

    How does a 401k plan work?

    If you decide to make 401k contributions in the year of 2020, not only should you know the maximum limits, but also you should know how it works.

    Your employer sets up the 401k account for you with an approved investment firm such as Vanguard, Fidelity. You decide the maximum amount you want to contribute every paycheck.

    That percentage is then deducted from your paycheck. It’s the easiest way to save money, because you don’t even miss the money.

    You are responsible to choose your investments within the 401k accounts. It can be individual stocks, or a stock mutual fund, or a combination of stocks and bonds, or a stock and bong mutual fund, or a money market fund, etc.

    Sometimes deciding what investment options to choose from, when you’re not well versed in the matter, can be difficult. But do not worry. This is where a company called Blooom comes in. They analyze your 401k account for you and help you grow it.

    Click here to connect your 401k accounts to Blooom.

    What are the 401k contribution limits for the year of 2020.

    Just as every year, 401k contribution limits have been raised for 2020.

    The maximum amount employees can contribute in their 401k plan in 2020 is $19,500 if they are younger than 50 years old. That contribution amount is $500 more than it was last year. The 401k contribution limits for employees who are 50 years and older is $19,500 plus an extra $6500, which brings the total contribution limits to $26,000 (for tax year 2020). The $6500 is just a catch-up contribution limit.

    According to the IRS website, announcing the 401k contribution limits increase for 2020:

    The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.

    The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.”

    Moreover, your contributions to a 401k plan is deductible on both state and federal taxes in the year you make them.

    Benefits of matching your employer 401k contribution with the new limit

    The higher 2020 401k contribution limits is not only the benefit of participating in your employer’s 401k plan. Another great benefit to a 401k plan is the employer matching. In most cases, your employer offers a match. It can be dollar for dollar or 50 cents for each dollar.

    How much should you save with the new 401k contribution limits to meet retirement savings goals?

    When it comes to saving for retirement, most financial advisors who specialize in retirement planning would recommend saving 10% to 15% of your monthly paycheck. Let’s say you save 5% of your paycheck and your employer matches another 5%, that’s already a 10% savings rate.

    Of course, you can save more money each month. Again, beware of the contribution maximum limit for a 401k for 2020. Whatever 10 or 15% of your paycheck is, it can not be more than $19,500 for 50 or younger, or more than $26000 for 50 and older.

    The 401k contribution limits change every year, so make sure you check the limit amount for that year.

    If you’re not sure if your 401k or IRA accounts are doing well, Blooom can help you. Blooom is an online retirement management software that can help you grow your 401k or IRA accounts.

    They will do a free analysis of your account and get you personalized suggestions on how to invest your current 401k in minutes.

    Click here to connect your 401k accounts to Blooom.

    Withdrawing money from a 401k account

    When you contribute to a 401k plan, tax is deferred until you reach the age of 59 1/2. However, there is a 10% penalty tax for withdrawing money before that age. However there several exceptions.

    Withdrawing money

    There are instances where you can withdraw money before reaching age 59 1/2, like becoming totally disabled. But you will have to show some type of hardship. A hardship is defined as your inability is to pay for medical expenses for yourself or an ill member of the family.

    To meet that hardship, however, you must be able to show that you cannot get the money anywhere else.

    Borrowing money from your 401k

    Some 401k plans allow employees to borrow money from them. By law, you can borrow up to half the amount invested and no more than $50,000.

    Borrowing money from your 401k is the same as taking out a loan. That means you’ll pay interest on the loan. The one exception is that the interest rate is so much lower than that a personal loan from a bank. Another exception is that the loan most be repaid fully within 5 years.

    You’ll pay a 10% penalty on the money you take out, plus federal and state taxes on the whole amount. For example, if you take out $10,000 from your 401k plan before age 59 1/2, you will get hit with a penalty plus any taxes on the entire $10,000.

    However, you will not pay a penalty if you can show that you become totally disabled; a court order instructing to give the money to an ex-spouse after a divorce or a dependent child; you die and your beneficiaries are collecting the money.

    Tips for taking advantage of the new 401k contribution limits

    The IRS increase the 401k contribution limits every year. These past four years alone, they have increased the 401k limits by $500. This year (2020) the max 401k limit is $19,500. That’s a lot of money that can grow tax free in your account. So follow the below tips to maximize your retirement account.

    • Participate. The best way to take advantage of the new 401k contribution limits is to participate in your employer 401k plan. Again the money grows tax free until you take it out. Also, your contribution is deducted from your paycheck, so don’t ven miss it. Indeed, it is an automatic way to save for retirement.
    • Make the maximum contribution. The 401k limits for 2020 is $19,500. That’s a lot of money you can contribute. So max it out.
    • Take advantage of your employer match. In addition to the maximum contribution of $19500 you can make to your 401k, your employer also contributes. In some cases, they match dollar for dollar or 50 cents for each dollar the worker pays in.
    • Make small contributions to your 401k. Even if you can’t afford the make the higher 401k contribution limits, you should contribute some amount no matter how small. Not doing so if leaving free money on the table.

    In conclusion, if you’re wondering what are the 401k contribution limits for the year of 2020, you have got it. You can contribute up to $19,500 if you are younger than 50 years old. The 401k contribution limits for employee who are 50 years or older is $26,000. Again, your money in a 401k plan grows tax free. Participating in your employer’s 401k plan is one of the best ways to become a millionaire.

    Read More:

    Still have more questions about 401k contribution limits for 2020? A financial Advisor can help

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

    The post 401k Contribution Limits for 2020: What Are They? appeared first on GrowthRapidly.


    How The Market Works: Tips for Beginner Investors

    Knowing how the market works can make you an intelligent investor. If you want to build wealth, investing in the stock market is really one of the best ways to do it. Indeed, most of the world’s wealthiest individuals own some piece of a company. But some of us don’t invest in the stock market … Continue reading "How The Market Works: Tips for Beginner Investors" The post How The Market Works: Tips for Beginner Investors appeared first on...

    Knowing how the market works can make you an intelligent investor. If you want to build wealth, investing in the stock market is really one of the best ways to do it. Indeed, most of the world’s wealthiest individuals own some piece of a company.

    But some of us don’t invest in the stock market either because we think we have very little money to invest, or because we don’t know how the market works.

    Or, we think investing in the stock market is risky business.

    Who could blame you!

    After the 2008 financial crisis, investing in the stock market got scarier. But if you really want to grow wealth through stocks and don’t mind the risks that come with it, you must know how the stock market works.

    Check Out:

    Luckily for you, investing in the stock market is easy. It is also something that can be learned. No one is born knowing how to invest. The difference between those who know how the market works and those who don’t is is that those who do take the time and learn how it works.

    I don’t want to scare you into quitting your job and become a full-time stock investor. If that’s what you want, yes, you have that option. But if you want to go on with your daily life, while at the same time building wealth, you can.

    Investing intelligently can be done passively without taking a lot of your time. And you don’t need to have a fancy business degree or PHD in order to start investing.

    But you do need to understand how the market works. Doing so can help you avoid many bumps and can help you tremendously.

    Investing in the stock market, however, is not a guarantee of wealth. Just as you can make a lot of money, you can lose all of your money in a heartbeat.

    So you must have the stomach to take the risk. Indeed, any investment vehicle with great potential to make you rich also comes with great risks. Your shares can be worth $1 Million today, but worth $500 within a matter of seconds.

    So, don’t rush into investing if you’re not ready. Knowing how the stock market works is one thing, investing in products you understand is quite another.

    So if you’re comfortable taking some risks, let’s see if we can learn how the market works.

    See: How to Invest 100k to Build Real Wealth?

    How the stock market works?

    A better understanding of how the stock market works starts with knowing the basics. That means, what is the stock market? what are stocks? How do you buy and sell stocks them? Why companies issue stocks?

    What is the stock market?

    The stock market, simply stated, is a collection of markets or exchanges where people buy and sell stocks. Very simple.

    The stock market works like an auction, really. It is a place where buyers and sellers come together to bid on something. It can be a car, a piece of art or some tangible goods.

    The crazy thing about the stock market is that there is no tangible good. Unlike a piece of art, you cannot touch or see a stock. The stock market is where people trade shares electronically. But apart from that the market works in the same way like an auction.

    You’ve probably heard of the New York Stock Exchange (NYSE)! Well, if you haven’t, it’s where people buy and sell stocks of a company. It’s indeed one of the two largest public exchanges in the world. It lists 2400 companies. The other largest one is the Nasdaq. It lists 3800 companies.

    There are several other exchanges like the Tokyo Stock Exchange or Shanghai Stock Exchange. So individual stocks will trade on one of those exchanges.

    Now that you have an idea of what the stock market is, you might be asking yourself this next question: what is a stock?

    What is a stock?

    A stock is a share of ownership in a company. For example, if you want to own a piece of a public company likeTesla (the company that makes those beautiful and shiny cars), you can! You simply buy a share or shares of Tesla through a brokerage firm.

    And anytime someone buys a Tesla car, Tesla makes money. And you, in turn, makes money because you own a piece of the company.

    Likewise, if you own shares of Apple, anytime someone buys an ipad, iphone, ipod, and so on, you make money.

    So, by now, you may have an idea of what a stock or a share is and how the market works. Let’s take another example of how owning shares of a company can make you money.


    Still not sure how the stock market works? Speak with the Right Financial Advisor

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.


    How do you make money in the stock market?

    You can make money with stocks in two ways: through capital appreciation and income from dividends.

    Appreciation. Suppose you own shares of Starbucks, which you bought at $90 a share. If the price of Starbucks rises to $135 the next year, you have made yourself a 50 percent profit on your original investment. That’s called capital appreciation. Your share value has appreciated. But that’s not the only you can make money in the stock market.

    You can also make money in the stock market through dividends, which are payments companies make to their shareholders.

    Dividends. Some companies also pay shareholders dividends. Let’ say the current dividend per share is 50 cents per quarter. So every 90 days you will make money. In other words, even if the share of Starbucks stays the same in price or decrease in value the next year, you will still make money via dividends. So as long as you hold Starbucks stocks, you get dividends.

    You can get those dividends as a cash payment or you can reinvest them by buying more shares of the company.

    However, not all companies pay dividends. And even those that do give out dividends have no obligation to do so. Think of dividends as a company bonus.

    Why do companies sell or issue stocks?

    Companies sell or issue stocks mainly to raise money to grow their business. Most people when they start a company, they usually start with getting a personal loan. Then the next step is that they go to a bank and ask for a business loan.

    Once the company starts to grow, and they want to take the company to next level, then they need more money to expand. The best way to do that is by listing shares of the company’s stock through a process called Initial Public Offering (IPO). So investors like you an I can buy these shares.

    How do you buy and sell stocks?

    Part of knowing how the market works is knowing how to buy stocks. Buying stocks is easy. With a click of a button, you can buy and sell shares of companies. There are a few ways you can buy stocks.

    You may buy stocks through a 401k plan. You may have already bought stocks already without knowing it. If you have a 401k account, then you have indirectly bought stocks through your employer’s 401k plan.

    You may also pay a fee-only financial advisor who would buy stocks for you and manage them for a fee of 1 percent of assets. The advantages of using a financial advisor can be well worth any additional cost if you’re getting started or don’t have time to do your own research.

    But buying and selling stocks on your own can be rewarding.

    Buying stocks through a stockbroker

    The most common and easiest ways to buy individual stocks is online through a brokerage firm. To buy stocks through a stock broker, you’ll need to open a brokerage account.

    You will be required to provide certain personal information such as proof of identity and tax information.

    The best brokerage firms out there are:

    • M1 Finance
    • TD Ameritrade
    • Fidelity
    • Charles Schwab
    • E-trade
    • Webull
    • Merrill Edge

    Stockbroker’s costs

    When you buy and sell stocks on the stock market, you pay a brokerage fee for each trade. Brokerage fees vary between stockbrokers depending on the services they offer. A brokerage fee can $20 for each trade.

    For example, you’re buying 20 shares of Apple at one time (that is a trade), then you might be paying a $20 brokerage fee.

    Once you buy stocks through the stockbroker, you will get an email stating that your order or trade takes place.

    So if you’re just getting started and you don’t feel confident to buy your own stock, then the advice of a professional may be worth it. However, if you’re confident and know by now how the market works, you may go with a no advisor.

    Buying stocks through mutual funds

    Another way to buy stocks, is not to buy stocks individually, but through mutual funds. This is good option if you are a beginner investor with very little money to invest in the stock market.

    A mutual fund is an investment company where you buy stocks and bonds. A professional manager will pool your money and that of other investors together and invest it.

    Buying stocks through a robo-advisor

    Another way to buy stocks and start investing in the stock market is through a robo-advisor like Acorns.

    Acorns takes your spare change from your regular transaction and invest that change for you in a range of exchange-traded funds (ETFs). It rounds up all your transactions to the nearest dollar. And once the spare changes stack up to $5, Acorns will invest it for you.

    That means if you spend $5.55 at the grocery store, 45 cents get dropped into your Acorns account. And Acorns invests it for you. The idea is that you will not miss this spare change and because the investment is automatic, it adds up fast.

    While Acorns is not ideal if you want be rich, it’s a very good option for beginner investors while learning how the stock market works.

    Plus, Acorns will give you a $5 bonus just for signing up

    M1 Finance is another robo-advisor where you can buy your stocks.

    In fact, it’s a great way to invest in ETFs and index funds without worrying about picking up your own individual stocks.

    M1 Finance is perhaps the best robo-advisors out there, not only because the account minimum is pretty low ($100 minimum account), but also there is no maintenance fee. That is a big advantage, especially if you have very little money to invest.

    Plus you get a $10 when you refer a friend or family member. They will then use that referral link and fund their account with that $100 account minimum.

    To get your referral money from M1 Finance, visit its website.

    Bottom line is the stock market works by having investors to buy and sell stocks. While sounds simple, investing in the stock market can be intimidating and confusing. So, if you want to build wealth in the stock market, you must have an understanding of how the market works.

    Read More:

    Still wondering how the market works? A financial advisor can help!

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

    The post How The Market Works: Tips for Beginner Investors appeared first on GrowthRapidly.


    Should I Refinance My Student Loans?

    Should I refinance my student loans? It depends on your situation. But a common reason for people to refinance their student loans is that they want to pay less interest. Even a small decrease in the rate could save you a lot of money over the life of the loan and ultimately help you pay … Continue reading "Should I Refinance My Student Loans?" The post Should I Refinance My Student Loans? appeared first on...

    Should I refinance my student loans? It depends on your situation. But a common reason for people to refinance their student loans is that they want to pay less interest. Even a small decrease in the rate could save you a lot of money over the life of the loan and ultimately help you pay off your student loans faster.

    Another reason could be that you want to change the loan type (i.e., switching from a fixed rate to a variable rate or vice versa).

    Whatever your reasons for wanting to refinance your student loans may be, you should always compare your student loan rate with other rates on the market. Some lenders always update their rates to make sure they are competitive on the market. So the chance is high that you could get a better deal with another lender.

    The best way to compare student loan rates is through LendKey. LendKey’s rate starts as low as at 1.9%. And they have 5, 7, 10, 15 & 20 year loan terms. The great thing about LendKey is that checking your rates will NOT affect your credit score.

    What does refinancing your student loans mean?

    In simple terms, when you refinance your student loans, you’re essentially taking out a brand new loan in order to pay off your existing student loan. This can get you a better deal and save you money in the long term. The trick is to figure out if it makes sense to refinance.

    Should I refinance my student loans? Does it make sense to do so?

    When it makes sense to refinance your student loans:

    • Lower interest rates are available.
    • You have other large debts, such as credit card debts and personal loans, and you want to consolidate all of your loans.
    • A major change in your life has happened recently.
    • You want to switch to a fixed rate.

    When it doesn’t make sense to refinance your student loans

    • Your credit score is low and you are less likely to get a good rate.
    • You’re no longer have a stable job, and your income is not reliable.
    • Your current loan is at a fixed rate.

    To decide whether you should refinance your student loans, you should have a reason why you want to refinance. Is it because you want to pay a lower interest rate? Do you want to consolidate all of your loans?

    Wanting a lower interest rate on your student loans should not be your only consideration when wanting to refinance. The life of the loan should also be considered, and not just the interest rate. That means, will it be variable interest rate or fixed interest rate. This is important as it can impact your long term financial obligations.

    You should also consider the cost of switching to another lender. There are fees, such as application fees and ongoing charges associated with switching to another lender.

    Is now the right time to refinance your student loans?

    A better interest rate is not the only factor to consider when thinking of refinancing your student loans.

    The stability of your job should also be considered. How stable is your job? Can you manage to make monthly payments on your income? If you’ve recently gone part-time, or gone freelancing, now is probably not a good time to refinance your student loans.

    Likewise, if you have just switched to a more stable, full time job, you may need to wait for like 6 months or even a year before a bank can consider your loan application.

    This is where a financial advisor can be handy, as they can help you make the right financial decision.

    It’s also a good idea to talk to existing student loans provider when considering refinancing. Some lenders, in order to keep your business, might try to lower your interest rates or waive some fees for you. They’d be very willing to do that especially if you always make your payments on time and have been with them for a long time.

    If you decide to go with another lender, make sure your financial situation is in shape. That means that you don’t have that much outstanding debts such as credit card debts, and that you have always paid your bills on time. This is important not only to get qualified, but also to get a better rate.

    When refinancing your student loans make sense

    There can be several reasons to refinance your student loans. Perhaps you have a better job, making more money. Or perhaps your current student loan rate is not competitive anymore.

    Even if you don’t have any specific reason, it’s always a good idea to know what’s available to you. There might be great deals out there.

    Every once in a while, you might want to reassess your student loan rate and compare it to other student loan rate on the market.

    One easy way to reassess your options is with LendKey. LendKey is an online platform that allows you to browse multiple low-interest loans from almost 300 community banks and credit unions, instead of big banks.

    LendKey allows for more flexibility and lower interest rates. It can help you find the right student loan for you without visiting dozen bank branches.

    Plus applying to a dozen of student loans will not HURT your credit score. LendKey does a soft check on you, so you can compare student loans from multiple lenders before you actually apply for one.

    Click here to check your rates through LendKey.

    Indeed, a lower interest rate and lower repayments are some of the more common reasons to refinance your student loans. Even a slight decrease on your interest rate might make a big difference on your monthly student loan payments.

    Indeed any student loan refinance calculator out there can tell you how much you can save.

    Another common reason to refinance your student loans might be to consolidate all of your debts and have one monthly repayment. Debt consolidation is when you combine all of your debts so you have one big repayment, instead of several.

    If you have other debts such as personal loans, car loan, credit card debts, home loan, then it makes sense to roll these debts together with your student loan. The advantage is that your student loan rate is typically lower.

    When refinancing your student loans doesn’t make sense.

    There are times when refinancing doesn’t make sense.

    For example, if you have built a good relationship with your lender, it might not be a good idea to switch to another lender simply to get a lower interest rate. The new lender might raise your rate once you switch, but you’ve just ruined your good relationship with your old lender.

    Another reason you should not refinance your student loans is if you you have been paying for a long time already. Refinancing to a longer term might reduce your monthly payments, but will cost you many more years and more money. So if your current balance is already low, it’s not very beneficial to refinance.

    You should also not refinance your student loans if your interest rate on your current student loan is low. There is no real benefit to be had from refinancing an already low interest rate. In fact, you may end up incurring more costs and fees when switching.

    Your credit score is low

    Refinancing your student loans may not be a good idea if your credit score is low.

    While you can apply with a co-signer if you have a low credit score, but it can be hard to find someone to co-sign for you.

    So, at a minimum, make sure your credit score is at least 650. If it’s not where is supposed to be, take steps to raise your credit score.

    Don’t know your credit score, get a free credit score with Credit Sesame.

    Bottom line

    If you’re asking yourself: “should I refinance my student loans?” The answer is: it depends on your unique situation. But there are great benefits to refinancing your student loans. To reiterate, it can save you thousands of dollars over the life of the loan; it can reduce your loan payments significantly. However, before deciding to take the plunge you have to make sure you’re getting a better deal.

    After you have checked your rates, you should definitely refinance your student loans. Not only will you get a reduced interest rate, you will also get a lower monthly payment and pay less over the life of your loan.

    Plus when you’re approved for a loan you applied through Lendkey, you’ll get a $100 bonus after the loan is disbursed.

    Read More:

    Work with the Right Financial Advisor

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

    The post Should I Refinance My Student Loans? appeared first on GrowthRapidly.


    How Long Does It Take To Buy A House?

    How long does it take to buy a house? The answer is: it depends. You can buy a house in a matter of weeks or it can take you anywhere from 4 to 6 months. The question is how ready are you? It can take a long time, and that’s just learning about various mortgage … Continue reading "How Long Does It Take To Buy A House?" The post How Long Does It Take To Buy A House? appeared first on...

    How long does it take to buy a house? The answer is: it depends. You can buy a house in a matter of weeks or it can take you anywhere from 4 to 6 months. The question is how ready are you? It can take a long time, and that’s just learning about various mortgage options or improving your credit score.

    So understanding the various factors involved in buying a house can give you an estimate of how long it will take you to buy the house

    Check out now: 5 Signs You Are Not Ready To Buy A House

    How long does it take to buy a house? A step-by-step guide.

    It can take a homebuyer a few weeks to several months to complete the home buying process. But when determining how long it will take you to buy a house, you first have to find out if you will be pre-approved for a mortgage. There is no sense of shopping for a house to then realize you can’t afford it.

    If you are interested in comparing the best mortgage rates through LendingTree click here. It’s completely free.

    I. How long does it take to get a pre-approved mortgage letter in order to buy a house?

    If you’re serious about buying a house, it’s important to get pre-approved for a mortgage. So when it’s time to make an offer, the seller will know you’re serious. If you don’t have one handy, the seller will likely move to the next buyer.

    Getting pre-approved for a mortgage in order to buy a house can take longer. That is because you have to make sure your financial situation is in shape. For example, your income-to-debt ratio, your down payment, and your credit score must be good. That’s exactly what a mortgage lender will look at.

    Even when these things are in order, shopping and comparing mortgage rates and fees can take several weeks.

    Let’s take a look on how long it will take you to get these things in shape before buying a house.

    Click here to compare mortgage rates through LendingTree. It’s completely FREE.

    A. How good is your credit score?

    A low credit score can make buying a house take longer, because it can take months to a year to improve a bad credit score.

    A conventional loan will usually require a 640+ credit score.

    In fact, your credit score is the number 1 item mortgage lenders look at to decide whether to offer you a mortgage. And if it is not where it’s supposed to be, you might get rejected.

    Luckily for you there are other ways to get a loan with much lower credit score: FHA loans.

    FHA loans only require a credit score of 580 with 3.5% down payment. You may get qualified with a 500 credit score, but you’ll have to come with a 10% down payment.

    So before you get into the fun part of shopping for a mortgage or visiting homes, it’s best to know what your credit score is and take steps to improve it.

    You can get a free credit score at Credit Sesame.

    B. Fix errors on your credit report.

    Fixing errors on your credit report in order to get pre-approved for a loan in order to buy a house can take 30 days.

    According to Transunion, “most investigations are completed within 2 weeks, but some may take up 30 days.”

    Again, we recommend you get a free credit report at Credit Sesame. A credit report will give you a detail analysis of your credit history, how much debt you owe, and how creditworthy you are, etc. If there are any errors or inaccuracies, fix them immediately so there’s no surprise when you’re actually applying for a mortgage.

    The best way to do that is by filing a Transunion dispute or Equifax dispute.

    C. Do you have a down payment for the house?

    How long it will take you to buy a house will also depend on whether or not you already have money saved up for a down payment.

    Unless you’re going to buy the house with outright cash, you’ll need a down payment. And saving for a down payment can take a long time. Depending on your income and expenses, saving for a down payment on a house can take years.

    Assuming, for example, you want to buy a house that will cost you $450,000, and you’re using a conventional loan to finance the house. With a 20% down payment, you will need to come up with $90,000.

    Let’s say again, because of other monthly expenses, you can only save $1500 a month for the down payment.

    You see how long it will take you to save for a down payment to buy the house? 5 years. And that doesn’t even take into account other upfront costs of buying a house, such as closing cost.

    While it’s possible to get a mortgage with a down payment as low as 3.5% of the home purchase price, it’s advisable to put at least 20% down. The reason is because you will avoid paying private mortgage insurance (PMI), which protects the lenders in case you default on your mortgage.

    Home buyers with a down payment below 20% are usually charged with PMI.

    Another reason for a larger down payment is that it reduces the cost of the mortgage, grows equity much faster, and saves you on interest over the life of the loan.

    As you can see, it can take you as much as 5 years from the time you’re thinking about buying the house to the time you’re actually ready to start the process.

    But once you have taken care the things above, buying a house can go a lot faster.

    II. How long does it take to find a real estate agent?

    Average time: 1 day to a month

    Once you have been pre-approved for a mortgage, the next step is to find an experienced real estate agent. Finding a good real estate agent can take a day to a month. Websites such as Zillow and Redfin list real estate agents you can use.

    III. Shopping for a home.

    Average time: a few weeks to a few months

    With the help of a real estate agent and your own due diligence, finding a home can can go faster or take longer depending on available homes, the season and your desired location.

    But experts say on average it can take a minimum of three weeks to a few months.

    IV. Making an offer, negotiation, and inspection.

    Average time: 1 to 10 days

    Once you have found the home of your dream, the next step is to make an offer. You and the seller can go back and forth negotiating the price.

    Once your offer has been accepted, you and the seller sign something called a purchase agreement. Then, the next step is to hire a professional to inspect the home for defects. Depending on your state, a home inspection must be completed within 10 days. And if the inspection finds some defects in the house, that could delay the process.

    V. How long does it take to close on a house?

    Average time: 30 to 45 days.

    Once the inspection is done, your lender will need to officially approve you for the loan. And depending on the lender, it can also affect how long it takes to buy a house. You may need to provide additional documents. But the lender will need to assess the home for its value. And depending on the program (whether it’s conventional loan or FHA loan) it can take anywhere from 30 to 45 days to close on a home.

    Bottom line

    When asking yourself this question: “how long does it take to buy a house?” The answer is : it depends. If you have your credit score, your down payment, your other finances under control, you can buy your house in two months or less. But if you have to save for a down payment, fix errors on your credit report, raise your credit score, the whole home buying process can take years.

    Click here to compare mortgage rates through LendingTree. It’s completely FREE

    Still wondering how long it takes to buy a house? Read the following articles:

    Work with the Right Financial Advisor

    You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

    The post How Long Does It Take To Buy A House? appeared first on GrowthRapidly.


    Link to Category: Finance Blogs

    Or if you prefer use one of our linkware images? Click here

    Follow your favorite blogs and discover new ones.