I’ve been chugging along on the Hood Canal Cottage design – I know I am SO overdue for an update for you, but when you’re in the throes of design deadlines it can be really hard to find a moment to pause and recap everything. But I swear, it’s coming slowly. In recent weeks I’ve moved on from major architectural design and finish decisions into the interior design side of things. It’s been a tad overwhelming, as I haven’t decorated a space from scratch since we moved to San Francisco nearly 10 years ago (did you ever catch the tour of my first place in SF? I’m almost embarrassed to share it, but I was SO proud of it at the time).
Designing the Hood Canal Cottage is a unique situation to be in for a hobby designer like me. Usually, you move and take pieces with you, but since the cottage won’t serve as a full-time residence, I’m starting from a literal blank slate.
My focus this week has been on the dining room – or in this case dining space as the dining area sits within a great room that also houses the kitchen and living room. I’ve been shopping around like a madwoman trying to hone in on the look and feel I want to bring to life in the dining area. I want it to feel distinct and anchored – its own little zone within the larger room. And the idea I keep coming back to again and again is banquette seating.
Banquettes and built-ins have been having a moment for a while now, but I would argue for very good reason. A built-in banquette is a great space saver in a smaller space and increases the capacity around a dining table. Since I envision the Hood Canal Cottage as our hub for future Thanksgiving dinners and holiday gatherings, I definitely want to be able to cram as many people around the table as possible.
Like many of the examples you see here in this post, our dining table will also run parallel to a long wall, rather than float in the middle of the room. This actually limits the ability to pull back a dining chair. I would probably have to use a bench on that side of the table, but a banquette will allow the table to sit a little closer to the wall and not have legs you have to work around, saving precious floor space.
I also love how a banquette offers the opportunity to add big long seat cushions, back pillows, or both! Adding cushy upholstery to a dining space softens areas often dominated by hard surfaces. I love how that brings a sense of coziness, inviting you to sit and linger over your morning coffee, or pour that last little bit of wine and stay up talking. I want this home to encourage anyone who stays there to slow down and enjoy the little moments. Kinda like you’re living on vacation. That is the goal.
Adding a major upholstered piece at the dining table will also help me bridge the living room space and kitchen.
While I am obviously leaning toward jumping on the banquette bandwagon, I do have some convincing to do. Not everyone in my household is into the idea of a banquette. To add to that resistance, I’m not finding any good off-the-shelf options so it’s likely I’d have to go custom to create my vision. Custom is certainly not the most affordable of options.
So what say you? Do you happen to have a banquette in your home?? Do you like it? Have you found it comfy? Useful? Are there downsides you’ve dealt with? I think I’m pretty committed to this design choice at this point, but I would love to hear what you think! Please share in the comments section.
Catch up on the Hood Canal Cottage HERE.
Check out more design ideas HERE.
images vincent van duysen | home designing | mr & mrs white | danthree | amber interiors shoppe / larritt-evans design | poppy talk | nicole franzen | decus interiors /Â
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Power outages do more than just put out all your lights. Losing power can lead to ruined food, loss of internet and the inability to live comfortably in your apartment.
On average, according to the U.S. Energy Information Administration, a typical power outage lasts around two hours. While this isn’t long enough to wreak major havoc in your home, it’s enough to highly inconvenience you.
What to do in a power outage
The most important thing to do in a power outage is not panic. These things happen, and as long as you’re able to think clearly and make good decisions, you’ll get through the darkness.
1. Check your circuit breaker box
The first thing to establish when you lose power is whether it’s a single unit issue or something more widespread. Making sure a circuit breaker isn’t tripped in your own apartment is the best place to start.
You’ll usually find your breaker box in a bedroom closet or on the wall in a hallway. Look for a gray or black door, assuming it wasn’t painted over to match the wall. Make sure you have a flashlight with you to see everything clearly.
When you open the box, you’ll notice if a breaker has tripped because it won’t firmly be in the “on” position. You can check each breaker to see if it wiggles too. If a breaker is in the “off” position or looks like it’s sitting in the middle, you’ve got a tripped breaker. Just flip the breaker back on and you’re back in business. If the breaker is in the middle, switch it all the way off before turning it back on.
2. Report the problem
If you check your breaker box, and everything looks in order, it’s time to take the DIY out of the process. Contact your property manager to report the problem and get more information. They’ll most likely be able to tell you whether or not it’s affecting the entire building and what steps are in place to remedy the situation.
You can also simply look around to other buildings in your area to see if they look like they don’t have power either. If all the windows in neighboring buildings look dark, you know this is a much larger problem and something the electric company is most likely already working on repairing.
It still doesn’t hurt to report your outage to your electric company though.
3. Avoid damage from power surges
When the power does come back on, there’s a risk a power surge will take place. This can scorch walls or even lead to small electrical fires.
To prevent this from happening, go through your home and unplug appliances and electronics. Even though you’re eager to get back to using everything as soon as you get electricity back, it’s best to play it safe until after the power returns.
4. Monitor alerts
Even with the power out, as long as your phone is already charged, you should have the ability to monitor alerts regarding your electricity. Check in with your power company for regular updates and report your issues if they haven’t documented anything wrong in your area.
If your power outage is weather-related, keep an eye on local news updates and weather reports to stay on top of any evacuation announcements or other important information.
5. Keep a clean supply of water
With prolonged or widespread power outages, there’s a chance drinking water could get contaminated. This happens when the loss of electricity extends to the water sanitation system in your area.
Even if this happens, the water you can immediately pull out of your faucets is still okay to drink. To provide yourself with a solid amount of clean water when the lights go out, fill up tubs and sinks right after you lose power.
What not to do during a power outage
The most important thing not to do during a power outage is panic. You need to think with a clear head to act safely. However, a few other no-no’s are worth noting when it comes to staying in your apartment while the power is out.
Do not open your refrigerator or freezer if you can help it. This will keep the food inside cooler for longer and prevent spoilage.
Do not try to use a gas stove to heat your home. You should also avoid bringing in an outdoor grill for indoor heat. Doing so can lead to carbon monoxide poisoning. If you have a fireplace, go ahead and light that, but otherwise, bundle up with blankets or get to a warmer location.
Do not leave lit candles unattended for light. It’s OK to use them while you’re in the room with them, but make sure you blow them out before you leave. Flashlights are always a safer bet when moving from room to room and make a great first choice in light sources when you lose power.
Do not assume you can get out of your apartment complex. If you live in a gated community, chances are the gate runs on electricity. If you’re opting to leave your apartment while the power is out, make sure you either know how to manually open your community gate or that your management office has taken care of the issue.
Do not go near pooling water or power lines. If you’re outside at all during a widespread power outage, stay clear of fallen power lines and large puddles of water. You have no way of knowing when the electricity will come back on and charge up a wire or a pool of water where a line is hiding.
Do not waste hot water. Losing power doesn’t mean you can’t flush toilets or even take a shower, but the amount of hot water you have when the power goes out is not much. To avoid cold showers, on top of everything else, use the hot water you have sparingly.
Prepare in advance
Since the odds are good you’ll experience a power outage at least once, why not prepare in advance? You can make a lights-out kit to ensure everything you’ll need in an emergency is in one place.
Put together a few flashlights, extra batteries and an emergency radio if you have one. Consider adding a remote charger for your cell phone and even a few bottles of water.
Store your lights-out kit somewhere that’s easy to get to even in the dark.
Stay safe when the lights go out
We all pay an electric bill and come to rely on the utility’s availability whenever we need it. This is what makes it so stressful when the lights do go out. Knowing what to do in a power outage, and preparing in advance, are the best steps you can take to handle the issue until the light returns.
The post What to Do in a Power Outage at Your Apartment appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
The survival skills cockroaches have are amazing. They can continue living, for a short time, without their heads. They can hold their breath underwater for 40 minutes. They can run up to three miles in a single hour.
This is all great for roaches (and pretty interesting too) â until the ugly bugs infest your apartment. Once they’ve made their way into your home, all you want to do is get rid of them. But, before you make an appointment with an exterminator, consider an organic, DIY approach. Use one of the many natural remedies for roaches to keep them away.
How to get rid of cockroaches
Once you’ve established you’ve got unwanted visitors, whether you’ve seen roaches or just their nasty trails, it’s time to consider how you want to get rid of them. You can use chemicals to do the job, but if you have pets or young children or you’re sensitive to certain products, going natural might be a better option.
When it’s time to get rid of unwanted insect visitors, look to your pantry first, you might already have some of these natural remedies for roaches ready to go.
1. Sugar
This is an example of using something sweet to lure cockroaches to their demise. You just have to add a little something extra. Mix one part powdered sugar with three parts boric acid. The sugar brings the bugs in â the boric acid takes them out.
Boric acid isn’t toxic to people or pets, but it can irritate skin. When putting this mixture down, avoid counters and stick to the hidden spots roaches can use for hiding places. Good spots are behind appliances, under the sink and in any cracks along the edges of cabinets.
If either ingredient isn’t readily available, this is a versatile recipe, so you can swap out ingredients to achieve the same effect. Instead of powdered sugar, you can use peanut butter or jelly. You can also replace the boric acid with food-grade diatomaceous earth.
2. Soapy water
If you spot a cockroach and want to kill it without having to get close enough to step on it, keep a spray bottle of soapy water handy. Use diluted dish soap so that whatever surface it gets on also gets clean (an added bonus).
Spraying this mixture directly onto a roach makes it impossible for the bug to breathe. It clogs up their skin, which is how they take in air. It may take an extra little bit to do the trick, and you still have to dispose of the roach but hey â it won’t head back to hang with its buddies.
3. Coffee grounds
This easy-to-find food staple helps make a perfect cockroach trap. They serve as bait to bring the roaches in and are non-toxic for every other member of your home. To make a trap, all you need is a glass jar, coffee grounds and water.
To build your trap:
Fill a large glass jar about halfway with water.
Add 1-2 tablespoons of moistened coffee grounds.
Place the jars as close to potential nesting spots as possible.
The roaches will come in to check out the coffee, climb into the jar and get stuck and eventually drown. Then, dump the entire contents of the trap into the toilet for a goodbye flush.
4. Lemon
While lemon won’t work on its own to keep roaches away, using lemon-scented cleaners around your home can have a big impact on keeping the place cockroach-free.
A clean home is the best way to avoid an infestation, and the scent of a lemon actually works to keep a variety of insects from wanting to live in your place.
For an easy, all-purpose cleaner you can make at home, you only need two ingredients â citrus peels and vinegar. To make:
Fill a glass jar with clean, chopped-up lemon peels.
Pour white vinegar over the peels to submerge them and seal the jar.
Let the mixture sit for about four weeks, shaking it regularly.
Strain out the peels and put the liquid into a spray bottle.
This will keep countertops, appliances, floors and glass all clean and smelling great, while also helping you deal with the cockroaches.
Make sure to clean your place regularly, focusing on areas like the kitchen and dining room. Roaches love crumbs and can smell food if packages get left open in your pantry. It’s also a good idea to empty your trash regularly to keep food odors out of your home.
5. Plants
Another big attractor for roaches is moisture. One way to deal with excess moisture in your home is to check your pipes regularly for leaks, but sometimes it’s a matter of high humidity. To deal with this, consider buying a few house plants.
You’ll need a specific type, epiphytes like ferns, orchids and cacti. These are special plants that work as a natural dehumidifier, pulling water from the air to keep themselves hydrated. They’re easy to care for and will help reduce moisture levels in your home.
Place one in every bathroom, on a screened-in porch, or anywhere where the air feels heavy. They won’t repel cockroaches themselves but will help take away a serious temptation for the bugs to come into your home.
6. Onions
This is maybe the strangest of the natural remedies for roaches, but it uses ingredients you’re bound to have at home right now. All you need is an onion and baking soda. Again, the food attracts hungry insects, and the baking soda does the dirty work.
To set this up:
Dice up about half an onion.
Sprinkle baking soda over it.
Place on a small paper plate anywhere roaches may hide overnight.
Since roaches prefer the dark, you’ll most likely âfeed” more if you wait until evening to put out your trap. It’s also best to do it when there’s minimal risk of running into the nasty guys yourself.
7. Cornstarch
When you need to cover up cracks to keep the roaches away, this remedy is a great choice. Not only will it fill the space to let fewer roaches through, but it will also kill any of them who eat it.
Mix equal parts of cornstarch and Plaster of Paris to make a powder you can sprinkle anywhere. Don’t activate the Plaster of Paris with water beforehand. The roaches do that after they eat the concoction when they drink water. It’s the mixing in their stomach that ultimately kills them.
It’s important to note that Plaster of Paris is a toxic ingredient and dangerous for children and pets. Using this recipe specifically in cracks helps keep it away from everyone but the roaches.
8. Peppermint
Roaches hate the smell of peppermint. They’ll avoid it like the plague. It can also actually harm them if they come into contact with it. Spraying a mixture with peppermint oil directly onto roaches can mean lights out, but that’s only if you see the invaders around.
You’ll have more success using mint as a repellent, targeting areas near where you think roaches are hiding. To make a mint-infused spray:
Mix two parts water with one part white vinegar into a spray bottle.
Add about 10 drops of peppermint oil.
Shake up and spray.
Chemicals aren’t required to keep the roaches away
The question is never if you’ll see a roach in your apartment, but rather when. They’re out there, and there’s a lot of them, but knowing how to repel them and say good-bye for good means you don’t have to live with them. Us
ing natural remedies for roaches allows you to live insect-free without having to buy harsh chemicals or spend money on an exterminator. Just make sure you’re targeting the right areas. Roaches love to live in places like boiler rooms, basements, crawl spaces, steam tunnels, drains and sewers. Happy hunting!
The post Natural Remedies for Roaches: 8 Prevention Methods to Try appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
The pandemic threw many Americans into financial disaster, but credit card delinquencies surprisingly declined during the health crisis.
According to the Experian 2020 Consumer Credit Review published in January 2021, the number of accounts one month past due fell by 37%, two months past due by 36% and three or more months past due by 53%.
And although the American Banking Association reported that consumer delinquencies rose in the fourth quarter of 2020, it noted that credit card delinquencies remained near all-time lows.
“Consumers have done a good job of managing their spending throughout the pandemic and paid down their credit card balances at a record pace last year,” said Rob Strand, ABA senior economist, in a news release.
He went to say that during the pandemic, online purchases climbed, but that consumers continued to prioritize their credit card payments.
“At the same time, card issuers have worked with customers who have experienced economic challenges related to the pandemic,” he said.
But will delinquencies rise once the pandemic – and help from card issuers and the government – is over?
Keep reading to see what industry experts think will happen in 2021.
See related: Acerage credit card interest rates
Congress and banks stepped in to help consumers
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When unemployment numbers dramatically rose last March, observers presumed that default rates would rise in lockstep, said Martin Lynch, compliance manager and director of education at the nonprofit Cambridge Credit Counseling Corp.
But Congress quickly responded by passing the CARES Act that same month: The distribution of stimulus payments began in April and other efforts followed in short order, including the PPP loan program for businesses, unemployment support for states and forbearance for federal student loans and federally backed mortgages.
Major banks also stepped in and offered relief, trying their best to keep their clients afloat in the hope that the pandemic would exit as quickly as it came.
All of these efforts have combined to help mitigate the economic effects of the virus, but the long-term effect is the subject of considerable debate, Lynch said.
Have the various relief efforts only put off the inevitable? Will the economy enter a significant recession once the forbearances end?
Default rates might give insights into future delinquencies
A closer look at default rates, Lynch said, may be the key that unlocks the answers to the questions above.
In ordinary times, loan default rates are simple data that show how many borrowers are paying and how many aren’t.
The CARES Act included a clause allowing that a loan in forbearance need not be reported as delinquent if it was current when the forbearance was granted.
Now that some of the dust has cleared, it’s apparent that at least some loans that were delinquent prior to the pandemic were also granted forbearance, Lynch explained, and that those loans were reported to the credit bureaus as current.
This means that looking at default rates alone isn’t enough to get an idea about how borrowers are performing during the pandemic.
To get more accurate results, Lynch said, we need to look at the number of defaults as well as the number of loans in forbearance.
But even this approach might not yield a definitive answer because no one knows whether the sheer number of forbearances consists solely of borrowers who were in dire need of assistance or whether that number also includes borrowers who simply took advantage of a pause in payments because it was offered, he pointed out.
And beyond all that, Lynch added, the effect of unemployment support and stimulus checks must have come at a critical momentfor at least some of these same borrowers, allowing them to avoid delinquency and earn the forbearances extended to them.
See related: Poll – 51% of U.S. adults accrued more debt during the COVID-19 outbreak
Banks don’t believe we are out of the woods yet
Ted Rossman, senior industry analyst at CreditCards.com, views all delinquency stats, which have fallen across the board, through the lens of pandemic relief.
“It’s not what we expected at the onset of the pandemic, and it’s artificial, but the stimulus and accommodation programs have helped tremendously,” Rossman said.
The big question now is, what happens moving forward?
Will there be more stimulus and accommodations once the current programs expire? Will the metaphorical bridge that has already been built be enough to carry us through to the other side?
Rossman is hoping for the best and he said there are many reasons to be optimistic, but banks don’t believe we’re out of the woods yet.
While many have begun to release some of the loan-loss reserves they stockpiled in the early days of the pandemic, they’re proceeding cautiously, Rossman pointed out.
They still have significantly elevated reserves and are watching the situation carefully. Many have begun to ease their lending standards a bit, but we still see a lot more caution than we did just prior to the pandemic.
Much of this will depend on how the health situation plays out – with the vaccine rollout and the COVID-19 variant progression – and what the government and consumer responses are.
“We’re optimistic that we’re close to the end of this, but sadly some people are in deep holes created by extended unemployment,” Rossman said.
Several sectors are doing great, others are on the mend and some will be slow to recover, he added.
For example, he said, over the past year, goods have mostly outperformed services – E-commerce, electronics, furniture and other home goods did very well, while travel and restaurants were among the worst performers.
But that’s starting to change.
So, Rossman said, if you work in a restaurant, it has been a very tough year, but if your savings, unemployment benefits and stimulus payments kept you afloat, the hope is you won’t be delinquent going forward because now you’ll be making more money.
Many forbearances will turn into defaults
Lynch said it’s not unreasonable to look at all of this delinquency data and conclude that low default rates are a mirage and that the country’s economy isn’t as healthy as the default rates would suggest.
A fair amount of the forbearances granted will turn into defaults when those programs end, but we won’t know for certain until it happens, he said.
What we can say for certain is that, to their credit, the federal government and a large number of private lenders worked hard to build an economic bridge to the other side of the pandemic.
If they were successful, we’ll have learned lessons that could be applied if something like this happens again. And if some of those efforts turn out to have been in vain, we’ll have learned something else that might still be useful.
If you have loans in forbearance, act now
Consumers with loans in forbearance need to take stock now before those payment holidays come to an end, Lynch warned.
For example, we know that federal student loan payments are set to resume in October 2021, so those borrowers should prepare a budget now to ensure they’ll be able to handle the payments when they start coming due.
The same approach will work for other loans, though lenders won’t have the same flexibility as student loan servicers.
“At this point, I’d be making sure my budget accurately reflected appropriate repayment priorities,” Lynch said.
If you can’t meet your obligations, consider talking to a nonprofit credit counselor to review your budget and credit report, then go over your options, Lynch suggested.
You’ll also want to let your creditors know what’s happening before you start missing payments, Lynch advised; “It’s the adult thing to do, and they may be able to help.”
Bottom line
What happens now very much depends on your individual circumstances, such as the industry you work in and how much savings you have, Rossman said.
Ironically, many people’s finances have improved during the pandemic because they were able to save more and spend less and their home values and investment portfolios grew, he added.
But, sadly, others have not shared in these gains, Rossman said, and they’re the ones who could cause the delinquency stats to rise once stimulus and accommodations run out.
See related: How to protect your credit during the coronavirus crisis
Winter always seems to sneak up on us, year after year. Because most climates experience the most dramatic change in weather during the colder months, it’s important to understand what apartment winter maintenance or preparatory tasks you’ll be responsible for at your rental property.
While some tasks fall on the shoulders of your landlord or property manager, there are certain steps you can take as a renter to ensure a safe and comfortable winter at home.
1. Check in with your landlord or property manager
Before the winter hits, touch base with your landlord if you’re unclear on what are tenant responsibilities and what are landlord responsibilities. Who’s responsible for removing snow and ice at the property, and what are the expectations?
Some states have local snow and ice removal regulations regarding public sidewalks or other public areas. Discuss acceptable de-icing measures to make sure you aren’t causing damage to any surfaces.
2. Test out the heat
While it’s your landlord’s responsibility to have heating and cooling systems serviced regularly, it’s helpful to turn on the heat a bit early for a short period of time to make sure everything is functioning properly.
It’s always better to learn about any issues ahead of time instead of discovering a winter maintenance problem in your apartment when the cold temperatures set in.
3. Avoid unwanted guests
Cooler weather and more precipitation means bugs, rodents and other pests are looking for a warm place to call home. An easy way to attract unwanted pests is by providing them with a food source, so be sure to take a few preventative steps, especially now that many of us are cooking at home more than ever before.
Store your dry, perishable food items inside air-tight containers that pests can’t chew through. Try to take trash containing food scraps out as soon as possible instead of letting it sit. Aim to wipe down countertops at least once each day to get rid of crumbs and food remnants.
4. Prevent frozen pipes
Be sure to follow all of your landlord’s instructions to avoid frozen or burst pipes due to cold weather. Most landlords or property managers will provide guidance on temperature levels and other preventative measures to avoid this issue.
If you’re leaving on vacation or will otherwise be away from your rental for a period of time this winter, give your landlord a heads up and ask if they want you to set the temperature at a certain point or leave a couple of faucets on a slow drip.
5. Stay warm and save money
Of course, you want to be comfortable in your own home, but keeping a few things in mind when it comes to turning on the heat can have a dramatic impact on your monthly bill. Experts say you can save up to 10 percent on your yearly heating expenses by turning down the thermostat just 7-10 degrees for approximately eight hours per day, like while you’re at work or while you’re sleeping.
Ceiling fans are an excellent tool to help distribute heat evenly. Many models have a switch that forces blades to spin clockwise, which will push warm air down into a room.
6. Be prepared for emergencies
If you live in an area where winter weather and storms are a frequent occurrence, it’s wise to make sure you’re prepared ahead of time for any worst-case scenarios. Sign up for weather and emergency alert systems to stay informed about any potentially threatening storms and actions should take. In general, stay indoors during major storms and avoid road travel until it is safe to do so.
7. Notify your landlord of any issues as soon as possible
Common winter issues like ice dams, frozen pipes or issues with the heating system can quickly spiral out of control. It’s important to keep tabs on your home and alert your landlord of any potential issues as soon as possible so they can be taken care of as quickly as possible.
Winter is coming
Whether you’re dreading winter or it’s your favorite season, taking the time to prepare your apartment for winter maintenance will help set you up for success as a renter. Come to a clear and established understanding of what your responsibilities are and what your landlord is responsible for, and make sure to hold up your end of the bargain.
The post 7 Apartment Winter Maintenance Tips for Renters appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
The weather is turning, fall is in the air, and Halloween is around the cornerâwhich means itâs National Cybersecurity Awareness Month. How can you ensure October is full of treats while not falling for any scammers’ tricks? By arming yourself with these identity protection tips.
Every American should understand the basics of identity theft protection. According to the most recent report by the Bureau of Justice Statistics, 10% of people 16 and older have been the victim of identity theft. That’s why we’re encouraging people to educate themselves on identity protection tips this autumn. After all, there’s nothing quite as scary as identity fraud!
Here are some identity theft tricks to watch out for and identity security treats to take advantage of.
Trick: Using Your Data to Open New Accounts
According to the FTC, credit card fraudâincluding opening new credit card accountsâwas the most commonly reported form of identity theft in 2019. Thieves can rack up hundreds of dollars’ worth of bills before you know it happened.
Here are a few things to keep in mind when it comes to your cybersecurity to avoid your data being used to open new accounts in your name:
Never use the same password across multiple accounts. Switch your passwords up.
Never use a password that’s easy to guess. This includes passwords that include your birthday, first or last name, or address.
Use passwords that are random combinations of numbers, letters, and symbols.
Never click on unknown email links or pop-ups on websites.
Make sure websites are secure before entering your payment information.
Never connect to public Wi-Fi that isn’t secure.
Never walk away from your laptop in public places.
Enable firewall protection.
Monitor your accounts and credit reports for unusual activity.
Treat: Check Your Credit Reports
Identity theft protection starts by being proactive and regularly monitoring your information for suspicious activity. That includes monitoring your credit report.
Did you know that you’re entitled to one free copy of your credit report each year from all three credit reporting agencies? In honor of National Cybersecurity Awareness Month, make October the month that you request your reports and go over them with a fine-toothed comb. Make sure you recognize all the open accounts under your name.
[Note: Through April 2021, you can review your credit reports weekly.]
An added bonus of checking your reports early in the month is that you can give your credit a good once-over before the upcoming holiday shopping season. Unexplained dips in your credit score could be a sign that something is wrong.
When you request your free credit report from the credit bureaus, your report does not come with your credit scoreâyou have to request that separately. Sign up for ExtraCredit to get 28 of your FICO® scores and your credit reports from all three credit bureaus. Youâll also get account monitoring and $1 million identity theft insurance.
Protect Your Identity with ExtraCredit
Trick: Charity Fraud
October also happens to be Breast Cancer Awareness Month, and everywhere you look, pink is on display. With so much national attention on breast cancer, it’s easy to fall for scams that claim to be legitimate charities.
Consumers should also be on the lookout for phony COVID-19 related scams this fall and winter. For example, watch out for fake charities that pretend to provide COVID relief to groups or families but are simply stealing money.
Even worse than handing over money to these heartless fraudsters is that you may have handed over your credit card numbers or other personally identifiable information in the process.
Treat: Know Your Worthy Causes
Before donating to a charitable cause, do your homework. You can use websites such as Charity Navigator, CharityWatch, and the Better Business Bureau’s Wise Giving Alliance to check a charity’s reputation. Additionally, consider contacting your state’s charity regulator to confirm the organization is registered to raise money in your state.
After you’ve verified the status of the charity, consider making donations directly through the national organization. Avoid giving money or financial information directly to someone that reaches out to you through email, phone calls, or door-to-door interactions.
It might be a bit of extra work, but at the end of the day, you can feel good knowing your money is going to support a real cause. If you want to support October’s Breast Cancer Awareness Month, consider donating directly on the national website. An added bonus is that you’ll receive a receipt you can use for tax deduction purposes.
Trick: Tax Refund Fraud
Every year, the Internal Revenue Service announces its “dirty dozen” scams. These are the tax fraud scams the IRS determines to be the most common for the year. The 2020 list includes refund theft. A tax thief gains access to your information, files a fraudulent return in your name before you do, and has the funds paid out them. The only way you find out about it is that your legitimate tax returnâthe one you submitâis rejected for having already been filed.
Another way individuals fall victim to tax refund fraud is by using an unscrupulous return vendor. Dishonest vendors and ghost preparers steal personal information to file a tax refund and pocket the money or use that information for other types of identity fraud.
Itâs unclear what exactly the next round of stimulus legislation will include, but if another stimulus check is included, watch out for attempts to steal your COVID stimulus checks. Remember that the IRS never contacts you via email, social media, or text.
Treat: File Early
It may feel like you just finished filing your 2019 taxes, but itâs never too early to start preparing for next year. While filing your taxes might be the last thing you want to think about this month, it’s crucial to stay on top of your tax return documents so you’re ready to file as early as possible. This is especially true for individuals who have reason to believe that their personal data has already been breached.
Always ensure you work with a reputable tax return vendor. You can look at the vendor’s online reviews before considering them as an option for tax return help.
Additionally, individuals that are paid to assist with or prepare federal tax returns must have a Preparer Tax Identification Number (PTIN). Paid preparers must sign and include their PTIN on returns. Always ask for this number before you hire an individual and hand over your personal information.
If you file early, you can beat out someone filing before you and receiving your return first. The earliest you can file is January.
Trick: Social Media Scams
Our social media accounts allow us to stay connected with friends and family. Unfortunately, scammers understand this and have started using social media to commit identity fraud.
There are many variations of social media phishing scams, but the basics are generally that a scammer creates an account to gain your trust and gather personal information from you. For example, many people have their name, birthday, and workplace information on their Facebook or other social media account. Those three things alone could be enough for someone to gain everything else they need to create a credit card application under your name or access your existing accounts.
Treat: Be More Exclusive and Private
Consider taking a quiet October morning to comb through your social media accounts. Start with your followers. Consider deleting everyone you don’t know personally.
If a follower base is important to you, consider another approach. Go through each social profile and scrub any personal details. Change the spelling of your last name slightly, delete your birthday, and remove other personal information, such as place of work. Ultimately, this can reduce the risk of being an easy target for identity fraud.
These core identity protection tips should help you stay safer online. With COVID-19 causing people to feel scared, individuals are more vulnerable to being tricked. Remember that identity fraud happens to millions of people every year, and it’s important to remain vigilant.
Stay Vigilant This Fall
Identity theft can have long-lasting consequences. If you’re recovering from identity fraud or simply unhappy with your credit score, consider signing up for ExtraCredit. ExtraCredit is a five-in-one credit product that provides tools to helps you build, guard, track, reward, and restore your credit.
Sign Up Now
The post Don’t Get Tricked: Identity Protection Tips You Need appeared first on Credit.com.
When it comes to affording a new home, you have a few types of home loans to choose from. Prospective homebuyers often compare the FHA vs. the conventional loan when researching loans. Each loan type has certain stereotypes associated with them, but we are here to give you the facts about both FHA and conventional loans. This post will help you understand what each loan is, familiarize you with the differences between them, and provide some guidelines for how to pick which one is best for you.
What Is An FHA Loan?
An FHA loan is insured by the Federal Housing Administration (FHA). These loans are issued by private lenders, but lenders are protected from losses by the FHA if the homeowner fails to repay. FHA loans are generally used to refinance or buy a home.
What Is A Conventional Loan?
A conventional loan is supplied by a private lender and isnât federally insured. Requirements for obtaining a conventional loan vary depending on the lender. When used to buy property, conventional loans are typically known as mortgages.
Differences Between FHA and Conventional Loans
The main difference between FHA and conventional loans is whether or not they are insured by the federal government. Conventional loans arenât federally backed, so itâs riskier for the lender to loan money. On the other hand, FHA loans are protected by the government, and as a result of less risk, they can typically offer better deals.
This difference in federal insurance is the reason why FHA and conventional loans vary when it comes to the details of the loan. Keep reading to learn the differences regarding credit requirements, minimum down payments, debt-to-income ratios, loan limits, mortgage insurance, and closing costs.
FHA Loan
Conventional Loan
Minimum Credit Score
500
620
Minimum Down Payment
3.5%
3%
Maximum Debt-to-Income Ratio
Credit score of 500: 43%
Credit score of 580+: 43-50%
Credit score of 620: 33-36%
Credit score of 740+: 36-45%
Contiguous US: $548,250
High-cost counties, AK, HI, and US territories: $822,375
Mortgage Insurance
Mortgage insurance premiums required.
Private mortgage insurance required with down payments less than 20%.
Property Standards
Stricter standards, property purchased must be a primary residence.
Flexible standards, property purchased doesnât have to be a primary residence.
Sources: FHA Single Family Housing Policy Handbook | Fannie Mae 1 2 | Federal Housing Finance Agency | Freddie Mac | HUD 1 2 | Consumer Financial Protection Bureau 1 2
Credit Score
Your credit score is a determining factor in your loan eligibility. Your credit score is measured on a scale of 300 (poor credit) to 850 (excellent credit). Good credit helps you get approved for loans more easily and at better rates. FHA and conventional loans differ in their credit score requirements and represent financial options for individuals at either end of the credit spectrum.
Minimum Credit Score for FHA Loan: 500
Accepts a credit score as low as 500, but usually with a 10% down payment
These loans accept lower credit scores because they are insured
Note: Some lenders may only issue FHA loans with higher credit scores
Minimum Credit Score for Conventional Loan: 620
Accepted score may vary from lender to lender
These loans are usually offered to individuals with strong credit because they present less risk to lenders
Minimum Down Payment
A down payment is the sum of money that is paid as a percentage of your purchase up-front.
Minimum Down Payment on an FHA loan:
10% of your purchase with 500 credit score
3.5% of your purchase with 580+ credit score
Minimum Down Payment on a Conventional Loan:
3% of your purchase can be put down with good credit
5% to 20% of your purchase price is typical
Debt-to-Income Ratio
Your debt-to-income ratio is the amount of money paid toward debt each month divided by your total monthly income. To be eligible for a loan, you must be at or below the maximum debt-to-income (DTI) ratio.
Maximum DTI Ratio Guidelines for FHA loans:
43% with a credit score of 500
43â50% with a credit score of 580
Maximum DTI Ratio Guidelines For Conventional Loans:
33-36% with a credit score lower than 740
36-45% with a credit score of 740 or higher
50% highest allowed through Fannie Mae
Loan Limits
Both FHA and conventional loans have limits on the amount that you can borrow. Loan limits vary based on your location and the year your loan is borrowed. Find 2021 loan limits specific to your county through the Federal Housing Finance Agency.
2021 FHA Loan Limits
High-cost counties: $822,375
Low-cost counties: $356,362
2021 Conventional Loan Limits
Contiguous US (excluding high-cost counties): $548,250
Alaska, Hawaii, US territories, and high-cost counties: $822,375
Mortgage Insurance
Mortgage insurance is taken out to protect the lender from losses in case you fail to repay your loan. Whether you will pay private mortgage insurance or mortgage insurance premiums is based on your loan type and down payment percentage.
FHA Loan
Mortgage insurance is required for all FHA loans.
It is paid to the FHA in the form of mortgage insurance premiums and includes an up-front and monthly premium.
MIP payments last the entire life of your FHA loan.
To get rid of MIPs after paying 20% of your loan, you can choose to refinance into a conventional loan.
Conventional Loan
Private mortgage insurance (PMI) is only required when a down payment below 20% is made.
PMI comes in different forms: monthly premium, up-front premium, and split premiums.
PMI requirements stop once you have met one of three requirements:
Principal loan amount is reduced to 80% before the loan term ends.
At least 78% of the principal balance is scheduled to be paid down.
The halfway point of your loan term has passed.
Property Standards
There are different property standards that must be met to use each loan. FHA loans have stricter requirements, while conventional loans have more flexibility.
FHA Loan
Property purchased with FHA loans must be your principal residence, meaning the borrower has to occupy the residence
FHA loans canât be used to invest in property (e.g., renting out or flipping)
Title must be in the borrower’s name or name of a living trust
Conventional Loan
Property purchased with a conventional loan doesnât have to be a principal residence â second or third residences are allowed
Conventional loans can be used to purchase investment properties
Pros and Cons of FHA vs. Conventional Loans
As a result of the various differences between FHA and conventional loans, each type has its respective pros and cons.
FHA Loan
Conventional Loan
Pros
Qualify with low credit and high DTI
Smaller down payments overall
More affordable with low credit
Lowest option for down payments with good credit
PMI cancellable
More affordable with good credit
Property doesnât have to be your main home
Cons
Mortgage insurance premiums required for life of loan
Property purchased must be your main home
Need higher credit and lower DTI to qualify
Typically has larger down payments
PMI required with a down payment less than 20%
Pros and Cons of FHA Loans
FHA loans are government-regulated and insured to extend flexible opportunities for homeownership. Theyâre flexible regarding credit and DTI, but stricter about insurance and property standards.
Pros
Flexible qualification with low credit and high DTI
Smaller down payments overall
More affordable with low credit
Cons
Mortgage insurance premiums required for life of loan
Property purchased must be your primary residence
Pros and Cons of Conventional Loans
Conventional loans can also offer flexibility, but generally only if you have good credit and demonstrate reduced risk to the lender. These loans have stricter qualifications, but flexibility in other areas.
Pros
Lowest option for down payments (3% with good credit)
Private mortgage insurance can be canceled (must meet requirements)
More affordable with good credit
Property purchased doesnât have to be a primary residence
Cons
Strict qualifications require higher credit and lower DTI
Larger down payments are typical
Private mortgage insurance required with a down payment less than 20%
Which Loan Is Better For You?
Both FHA and conventional loans have their advantages and disadvantages. Here are some general guidelines for when to use an FHA loan or a conventional loan.
When To Use an FHA Loan
You have a low credit score (500â619)
Your DTI ratio is on the higher side (between 45â50%)
You can only afford a small down payment
You plan to use the property as your primary residence
When To Use a Conventional Loan
Your credit score is fairly good (620 or above)
Your DTI ratio is on the lower side (33â36%)
You can afford a larger down payment
You want flexibility with insurance and repaying your loan
Itâs important to thoroughly research your options before choosing a loan. A key takeaway when comparing FHA vs. conventional loans is that FHA loans are federally insured and conventional loans arenât. This distinction results in different qualification and payment requirements for each loan.
Use the information in this post to carefully compare the differences in accepted credit scores, minimum down payments, loan limits, maximum debt-to-income ratios, mortgage insurance and property standards. In doing so, choose the loan that works for your circumstances and helps you best afford the home of your dreams.
Sources: FHA Single Family Housing Policy Handbook | US Dept. of Housing and Urban Development | Federal Housing Finance Agency | Freddie Mac
The post FHA vs. Conventional Loans: Which Is Better? appeared first on MintLife Blog.
If you’re spending more time outdoors, then you’re probably not alone. Here are some easy tricks and natural hacks to get rid of those unwanted summer pests.
The post How to Keep Common Summer Pests Away from Your Home appeared first on Homes.com.
