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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

Remote Workers Get Paid to Live In These Locations

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remote workers paid to live in these locations

When you work remotely, you’re not stuck living in a specific city or state. This gives you a lot of freedom, as you can essentially take your job with you no matter where you head. Plus, it creates a unique opportunity. As a means of attracting more professionals, some locations actually pay remote workers to relocate there. If you want to see if these programs could work for you, remote workers are paid to live in these locations.

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Should You Care About Warren Buffet’s Stock Trades

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warren buffett's stock trades

Warren Buffett is a bastion in the world of investment. The billionaire has a reputation for making smart choices. As a result, many investors wonder if they should mimic his moves or if keeping an eye on his trades would help them achieve better results. If you are trying to figure out if you should care about Warren Buffett’s stock trades, here’s what you need to know.

Why Investors Follow Warren Buffett’s Stock Trades

Generally speaking, when an investor spends time tracking Warren Buffett’s stock trades, their main goal is usually to snag similar results. Following the investment moves of a legend usually seems like a great idea. Many think that, by using an approach that mimics the Oracle of Omaha’s strategy, they can reach the same level of success.

However, some many also watch Warren Buffett’s stock trades for other reasons. For example, instead of attempting to follow his moves directly, they may use his trades to identify sectors that could be poised for gains or losses. At times, investors simply enjoy seeing how their strategy aligns with or differs from what others are doing, including individuals with some fame.

Changing Your Investment Approach to Match Warren Buffett

As mentioned above, some people watch Warren Buffett stock trades in hopes of following his strategy to increase their gains. In reality, that isn’t always a great idea.

One of the biggest reasons why you may not want to follow in Warren Buffett’s footsteps is that his investment goals may differ from your own. For example, he isn’t stashing cash for retirement, while that may be your main objective. As a result, his choices may not align with your preferred risk level.

Additionally, there are certain moves that he can make that are out of the reach of the vast majority of investors. For instance, he can establish massive stakes in companies that are household names, something that most investors can’t pull off.

Finally, Warren Buffett can make deals that an individual investor just can’t. For example, his $5 billion investment in Goldman Sachs in 2008 – which many considered to be a bailout – resulted in a $3+ billion gain when he unloaded it. But he didn’t purchase Goldman Sachs’s stock the way a normal investor would when that happened, putting him in a different position.

Generally, Warren Buffett’s unique position means that he can make moves that nearly everyone else can’t. Mimicking his approach is, therefore, practically impossible.

Overall, all of the points above suggest that changing your investment approach to match Warren Buffett isn’t a great idea. His strategy doesn’t rely on traditional kinds of investing, so it may not be compatible with you.

Warren Buffett’s Stock Trades: Should You Care?

Even if you shouldn’t copy Warren Buffett stock trades directly, that doesn’t mean keeping an eye on what he does is a bad idea. You may be able to use his choices to figure out options that you were previously overlooking, like an emerging sector.

The trick is to make sure that, even if you want Warren Buffett’s trade activity, you only make moves that align with your strategy, goals, and risk tolerance. That way, you’re doing what’s right for you and not just copying a billionaire whose unique position gives them different kinds of options.

Do you think investors should care about Warren Buffett’s stock trades? Why or why not? Share your thoughts in the comments below.

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5 Steps For Getting The Most Money for Your Used Car

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get the most money for your used car

When you want to sell your used car, getting as much as you can out of the deal is typically the goal. While some factors – like the make, model, and mileage – of your vehicle aren’t changeable, there are things you can do to make sure you get the most money for your car. If you don’t know where to begin, follow these five steps.

1. Spruce Up Your Vehicle

If your car looks nicer, it may sell for more. Before you list it as available for purchase, spend time sprucing it up. Get it detailed. Repair any minor cosmetic defects. Make sure it smells nice.

You should also handle routine maintenance that’s come due. For example, if it’s almost time for an oil change or its fluids are low, take care of those issues, if possible.

2. Know the Value to Get The Most Money For Your Used Car

Understanding what your car is worth is a critical part of the equation. It allows you to set a reasonable price based on the vehicle’s condition, mileage, features, and general desirability.

If you don’t know where to begin your research, sites like Kelley Blue Book, Edmunds, and Consumer Reports can be great starting points. You can also lookup how much used cars like yours are selling for in your area by checking out used car sites, Craigslist, or other similar resources.

3. Understand the Pros and Cons of Each Approach

Typically, if you’re selling a used car, you can go one of two routes. First, you can try to sell it to a dealership. With this option, you may be able to offload your vehicle quickly, which could be ideal if you need fast cash.

However, you’ll have to deal with negotiating with a professional salesperson, which can be challenging. Additionally, you’ll usually get less this way as they need to have enough of a margin to turn a profit when they sell the car. If you shop around, you can find the best deal, potentially netting you a little more.

Otherwise, you can try to sell your vehicle privately. With this approach, you’ll typically make more. But it usually takes more time and effort. You’ll probably need to place ads, follow up with interested parties, handle showings, negotiate prices, and more.

4. Gather Your Records

Maintenance records can make it easier to get top dollar. You can show that you’ve actively followed manufacturer service recommendations and otherwise stayed on top of things.

If you have receipts, that could be enough. Put them in order by date, potentially in a binder, so you can easily show what you’ve handled.

If you don’t have records, reach out to your service station. Some can print out copies of everything that’s been handled by them, giving you a quick list of the maintenance that’s been performed over the years.

5. Be Ready to Negotiate

Negotiation is simply part of the game. In nearly every case, a buyer’s initial offer is going to be on the low side. Make sure you’re ready to reject lowball offers outright and are prepared to counter.

Usually, the best approach is to know your car’s value, as well as the minimum amount you’re willing to accept. If you need to sell fast, you’ll usually need to be open to less than the market value. However, that doesn’t mean you have to start there or can’t counter against an offer that’s ridiculously low.

Negotiating can be stressful. But with some care, you can secure a fair price for your used car.

Do you have any tips that can help someone get the most money for their used car? Share your thoughts in the comments below.

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Refinancing at Lower Rates: Pros and Cons

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refinancing at lower rates

Deciding whether to refinance your mortgage or vehicle at a lower rate isn’t always easy. While there are coms clear benefits, you’ll also face a few drawbacks. In some cases, those negatives aren’t immediately noticeable if you don’t do your research first. However, you may feel that the positives outweigh them. If you’re thinking about refinancing at lower rates, here are the pros and cons you need to consider.

Pro: You Might Save Money

One of the biggest benefits of securing a lower rate on your mortgage or auto loan is the potential savings. First, you usually end up with a smaller payment, and that can be a boon for your monthly budget.

Second, you could pay less in interest, leading to a long-term savings, too. However, this isn’t technically guaranteed. Your interest rate is only one factor in this equation; the other big one is the length of your new loan.

If your existing mortgage only had, for example, 15 years left, and you refinance into a 30-year loan, you could actually end up paying more in interest over the life of the loan, even with the lower rate. However, if you had 27 years left on your initial loan and refinance it with a lower rate 30-year mortgage, you may not spend more in interest, depending on the exact terms.

Con: You Might Reset the Clock

When you refinance your loan, you generally select from a few term lengths. For mortgages, 15, 20, and 30 years are most common. For vehicles, 36, 48, and 60 months are the norm. That means there may not be an exact match to the number of months or years you have left on your existing loan.

While this isn’t always a problem, if you only plan on making minimum payments, you could be defaulting to a longer term than your existing loan has left. As a result, you’ll have to deal with the monthly payment longer, and that does impact your budget and, potentially, other aspects of your finances, like savings goals.

Pro: Pay Your Debt Off in Less Time

As mentioned above, when you refinance, you typically have to choose from a handful of set term lengths. However, there is no rule that says you have to choose a longer one than what’s left on your current loan.

With a lower rate, you may be able to select a shorter term and keep your monthly payments affordable. For example, if you have 20 years left on your 30-year mortgage but choose to refinance with a lower rate 15-year loan, you could come out ahead financially in the long-run. Not only will you be able to tackle the debt faster, but you’ll also pay less in interest.

Con: Refinancing Fees and Expenses

When you refinance a loan, particularly a mortgage, you’ll have to contend with some fees. For example, you may need to pay mortgage refinance closing costs, origination or underwriting fees, escrow fees, appraisal fees, or similar costs associated with securing the mortgage.

Exactly what you owe will depend on the lender you refinance with, as each lender has their own fee structures. Some lenders do offer no-closing-cost refinance options, for example. Or, if you aren’t doing a cash-out refinance, you may not need an appraisal.

However, if you do have to contend with fees, they could offset any savings you receive from securing the lower rate. It’s critical to do the math to estimate their impact. That way, you can figure out if refinancing at lower rates is actually a smart financial move.

Pro: You Might Reduce Your Debt-to-Income Ratio

Your debt-to-income ratio is a comparison between your monthly debt obligations and your monthly income. Usually, lenders use it to determine your ability to repay a loan, credit card, or another form of debt.

When your debt-to-income ratio is lower, you may be viewed as a safer risk. If your debt-to-income ratio is too high, a lender may not view you as a good bet, causing them to deny you financing.

If you refinance your mortgage with a lower rate, you may be able to shrink your debt-to-income ratio. This could make it easier for you to secure credit while you are still paying down your mortgage, should the need arise.

Con: You’ll Impact Your Credit Score

When you refinance your loan, you’re going to end up with a hard pull on your credit score. Additionally, if you move forward with the refinance, the new loan will reduce the average age of your accounts.

While these aren’t universally guaranteed to hurt your credit score, they certainly can. The impact will depend on the number of credit inquiries you have listed on your report within the past two to three years, as well as the age of your other credit accounts and other factors.

However, it’s almost guaranteed to make some kind of impact, and it’s critical to keep that in mind. This is especially true if you may need a different type of financing in the near future, as a decline in your credit score, if one happens, could make that harder to obtain.

Pro: You May be Able to Tap Your Equity

If you are refinancing a mortgage and have some equity, you might be able to access it when you refinance. Cash-out refinancing allows you to access some of your home’s value, giving you money you can use for any purpose. For example, you might take the cash and fund some home improvements or use it to pay off high-interest debt.

Generally, the interest rates on mortgages are lower than most other forms of consumer debt, particularly unsecured personal loans and credit cards. That can make a cash-out refinance an attractive option for handling expensive home repairs or getting out from under credit card debt.

Now, this isn’t a risk-free move. Your home secures the mortgage and, if you take out enough money to put a strain on your budget, you could lose your house if you can’t make the payments. However, that doesn’t mean cashing out can’t be beneficial. It will all depend on what you intend to do with the money and the current state of your finances.

Cons: Refinancing At Lower Rates Isn’t Fast

If you’re in financial trouble right now, refinancing may not solve your immediate woes. Whether you’re looking at refinancing your mortgage or vehicle, the process can take a little bit of time, especially with the former.

When you refinance a mortgage, you’re essentially going through the same process you did when you first financed a house. It can take weeks or months to finish, depending on the lender, the refinance type you choose, and your financial situation. Plus, you have to keep paying on your current mortgage (and other bills) until the process is complete, as a missed payment while the refinance is in-process could bring the whole thing to a halt.

Even vehicle refinancing isn’t always immediate. While it can certainly be quicker than refinancing a mortgage, there’s no guarantee it’ll be done in just a day or two. This is especially true when it comes to closing out the old loan.

Regardless of whether you successfully complete the refinance process and are formally approved, if you have a payment due on your existing loan within a few days, the pay-off through your new lender might not process before that due date arrives. If that’s the case, you’ll have to make the payment or take a hit on your credit.

Ultimately, refinancing at lower rates can be beneficial, but it isn’t a risk-free proposition. Make sure you understand the risks and drawbacks before you begin. Also, do the math to make sure that the lower rate genuinely results in a meaningful savings. That way, you can make the financial move that’s right for you.

Can you think of any other refinancing at lower rates pros and cons? Share your thoughts in the comments below.

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Is It Too Late to Invest In FAANG Stocks?

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is it too late to invest in FAANG stocks

If you explore any information about the stock market, you’ll be hard-pressed not to trip across an article talking about a FAANG stock or two. These tech behemoths are always movers and shakers, at times for better, at times for worse. But when you see the price tags associated with these investment options, you may be wondering, “Is it too late to invest in FAANG stocks?” If you fall into that category, here’s what you need to know.

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Don’t Keep These 7 Things In Your Wallet

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please don't keep these 7 things in your wallet

When you choose items to go into your wallet, you typically have a few goals in mind. Usually, the first priority is to ensure certain necessary items are accessible, like your driver’s license or debit card. However, some people also carry around additional items, predominately because it seems convenient. The issue is, some things are incredibly risky to keep with you, leaving you open to identity theft, fraud, or other hardships if you misplace your wallet or the items fall out. If you want to make sure you’re as protected as possible, don’t keep these 7 things in your wallet.

1. Social Security or Passport Card

Identity theft is much easier for a fraudster to pull off if they have access to your Social Security number. Since your Social Security card isn’t something you regularly use, carrying it around means you’re taking an unnecessary risk.

Ideally, your Social Security card should be stored in a safe place, such as a fireproof safe in your home or a safe deposit box at a bank. That way, it is accessible on days you do need it – such as if you have to present it to complete an I-9 verification for a new job – but won’t easily fall into the hands of someone else.

Technically, you also shouldn’t carry any documents or notes with your Social Security number on them, especially in your wallet. Your ID card or driver’s license contains a lot of your personal information. If you lose your wallet and it also has your Social Security number on a piece of paper inside, you’re making it particularly easy for them to steal your identity.

The same goes for passport cards. While they are convenient for border crossings, they also contain a ton of personal information. Unless you’re planning on crossing a border or need it for an I-9 verification, leave it securely stored elsewhere.

2. Credit Cards You Don’t Use Regularly

Carrying credit cards that you don’t use frequently creates an extra level of risk. Even if you notice your wallet is missing quickly, it takes time to contact every issuer to let them know your card is missing. That could give a criminal enough time to use your card before you get it canceled.

While you may want to keep your main credit card and debit card with you, reconsider any extras. For example, you may want to lock up your store cards in a fireproof safe, only removing them when you plan to shop at that store. Not only is that safer, but it could also reduce the urge to impulse shop, which could make it easier to keep your budget on track.

3. PINs and Passwords

Some people struggle to remember their debit card PIN and various account passwords. While keeping it on a piece of paper might seem convenient, it also means that someone else gets access to it if you lose your wallet. Thieves will have an easier time using your card, as they can enter the PIN directly, or could the passwords to break into your bank accounts.

Similarly, writing your PIN on the back of the card is a no-go. You never want a copy of your PIN and your card in the same place, as that makes it much easier for someone to use the card without your permission.

If you have trouble remembering, you may want to use a password keeper app. That way, you only need to remember one password, and the rest will be securely encrypted inside the app.

4. Checks

A check – whether blank or filled out – contains a lot of information that a fraudster could use to steal money from the connected account. Along with the accountholder’s name and address, the routing number and account number both appear on paper checks. That could be enough detail for a criminal to initiate a transaction, allowing them to take money out of your account.

If the check is blank, that’s even riskier. If you drop your wallet and it contains an ID card, driver’s license, debit card, or another item with your signature, the person who finds it could use that as a reference. Then, they could write themselves a check, fake your signature, and get the money that way, too.

5. Extra Cash

If you’re a fan of the envelope budgeting system, you may get in the habit of carrying large sums of cash. While that may be necessary if you’re about to handle a major shopping trip, it isn’t wise to walk about with big amounts of money when you’re not about to shop.

Instead of keeping all of the envelopes on you at all times, leave them secured in a fireproof safe. Then, remove only the ones you need when you’re about to shop.

Additionally, while it might be less comfortable, you may want to avoid carrying large bills, like $100 bills. If someone notices that you’re removing large bills from your wallet, that could make you a target. While having to carry a stack of $20s means a thicker wallet, it could be a wise move.

It’s important to remember that, unlike with credit or debit cards, there’s no fraud protection with cash. Often, if you lose your wallet and someone removes the money, recovering it is practically impossible.

6. Extra Gift Cards

Like cash, gift cards are hard to recover if they are stolen. As a result, it’s best not to carry any you aren’t planning on using that day in your wallet. That way, if you misplace your wallet, you don’t have to worry about their value being stolen.

Additionally, if you have the option of registering your gift card online, consider doing it. Usually, this process is required for online purchases, allowing the card to be associated with a physical address for traditional verifications. As an added bonus, it could make it harder for a thief to use your card, suggesting they didn’t manage to get their hands on your driver’s license or ID, too.

Without your zip code, they can’t make it through the verification process. However, if they do have your ID, they can input the right information while checking out. But that doesn’t mean that registering isn’t worth doing, as it could offer you a degree of protection.

7. Spare House, Car, or Valet Keys

While many people worry about what they’ll do if they lose their house or car key, keeping the spares – even the valet key – in your wallet isn’t ideal. If you do happen to misplace your wallet, the person who finds it can do more damage than just take your money. For example, they could use the address on your driver’s license or ID to locate your home, using the key to gain access. They could then keep an eye out for your arrival and take advantage of the spare car keep to steal your vehicle.

If you’re concerned about getting locked out of your home or car, your best bet may be to give the spare to a trusted friend or family member. Then, if you lose your keys, you can contact them for assistance.

Can you think of anything else people shouldn’t keep in their wallets? Share your thoughts in the comments below.

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Should We Expect to See a Social Security COLA Increase in 2021?

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social security cola increase

As the year begins to come to a close, many retirees start to wonder if they will see a Social Security COLA increase. When payment amounts go up, it can be a boon for retirees on tight budgets, giving them a bit more breathing room and ensuring inflation doesn’t impact them too severely. If you are wondering if a Social Security COLA increase is coming in 2021, here’s what you need to know.

What Is a Social Security COLA Increase?

Every year, the federal government examines the Consumer Price Index (CPI-W), which is tracked by the Department of Labor, to determine if the cost of living has increased. When the CPI-W rises, it’s usually a mark of inflation, meaning that the prices of goods and services have gone up, overall.

When that occurs, Social Security recipients may receive a cost of living adjustment (COLA). Usually, this means their Social Security income payments go up by a certain percentage, reflecting the change in the CPI-W.

Should We Expect a Social Security COLA Increase in 2021?

In 2021, around 70 million Americans who are receiving Social Security will see their benefits increase. Additionally, individuals who get Supplemental Security Income (SSI) payments will also see a boost.

The increase is set at 1.3 percent. That means, if a person is receiving $1,500 a month in Social Security benefits, their payment will likely go up to $1,519.50 in the new year.

How Do You Find Out If Your Social Security Benefit Is Going Up?

When there is a Social Security COLA increase, the Social Security Administration sends out notifications in the mail to every recipient. In that letter, they share how much the person’s benefits have changed based on the COLA increase.

However, for those who want to find out faster, they can log into the mySocialSecurity portal and check their message center. There, they can see the same information that will appear in the mailed notice.

Using the portal can be an ideal option. The benefit information is available online in early December, while some may not receive their notification in the mail until later in December. Since knowing how much you’ll receive in Social Security can be critical for budgeting and planning, finding out as quickly as possible is often preferred.

As an added convenience, users can log into the portal now and sign up for text or email alerts. With those, they’ll receive a notification whenever a new document is available for viewing online. When it comes to the COLA increase, the notification will let you know as soon as the information is available for viewing, ensuring you find out at the earliest possible moment.

Is Anything Else Changing with Social Security in 2021?

Yes, there are other Social Security changes going into effect in 2021. One of the most notable changes is the increase in the maximum Social Security benefit for workers who retire at full retirement age. The maximum in 2020 was $3,011 per month. In 2021, it will go up to $3,148 per month.

Additionally, the maximum earnings amount subject to Social Security payroll taxes is rising with the new year. This will impact working individuals and raises the maximum from $137,700 to $142,800.

The retirement earnings tax exemption will also shift. It’s set at $18,240 per year ($1,520 per month) for 2020 for those under full retirement age. In 2021, that will go up to $18,960 per year ($1,580 per month).

For those who’ve reached full retirement age (which varies depending on the year you were born), the exemption in 2020 was $48,600 per year ($4,050 per month). In 2021, that goes up to $50,520 per year ($4,210 per month).

A Few Other Increases

There are also a few other increases that impact certain population segments. For example, there will be changes to the Substantial Gainful Activity (SGA) maximums in 2021. The thresholds will increase for non-blind and blind Social Security Disability recipients, as well as those in a Trial Work Period (TWP).

Other changes may also be coming in 2021. If you are a Social Security recipient of any kind, it’s wise to keep an eye on your online notifications and mail notices. That way, you can see if anything on the horizon will impact your benefits in the new year.

What do you think about the Social Security COLA increase in 2021? Do you think it’s enough, or do you think it falls short? Share your thoughts in the comments below.

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Is Long Term Disability Insurance a Good Buy?

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Is Long Term Disability Insurance a Good Buy?

Most professionals spend time planning for the future. The issue is, not everyone considers what they would do if they were suddenly unable to work. Having your income disappear due to a disability could be earth-shattering. As a result, many begin to explore their long-term disability (LTD) insurance options. But figuring out whether LTD insurance is a good buy can be challenging. If you want to see whether securing a policy is a smart move. Here’s what you need to know.

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What Is the Grace Period for Mortgage Payments?

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grace period for mortgage payments

Many households struggle to keep up with their mortgage payments. In some cases, uncertain financial times – like those created by the COVID-19 pandemic – are largely responsible. However, there are certainly other triggers that may make handling your payment difficult. That’s why understanding your mortgage payment grace period is so important. It lets you know how much time you have to manage your obligation before there are serious ramifications. If you want to learn more about the grace period for mortgage payments, here’s what you need to know.



What Is a Mortgage Payment Grace Period?

First, it’s important to understand what a grace period is and what it isn’t. In the simplest terms, for mortgage payments, a grace period is a specific amount of time after your payment due date. As long as your payment comes in during that window, you typically don’t experience any repercussions for your payment technically being late.

For example, by getting your payment in before the grace period ends, you shouldn’t face any late fees. Additionally, the lender usually won’t ding your credit.

Now, you may or may not accrue interest on the unpaid amount during your grace period. Whether that occurs depends on how interest is calculated on your loan and whether the lender opts to delay charging interest on that amount until the grace period expires.

How Do Grace Periods for Mortgage Payments Work?

A grace period is an automatic benefit that is part of your mortgage agreement. Generally, you don’t have to do anything to take advantage of it, aside from ensuring your payment comes in before that time period ends.

However, it’s best to review your mortgage to confirm precisely how yours works. The grace period clause will outline if there are any steps you need to take, such as contacting your lender to let them know that your payment will be late or something similar.

Why Do Lenders Offer a Grace Period on Mortgages?

Grace periods may seem like an odd thing for lenders to offer from a business perspective, as it prevents them from charging late fees the day after your payment is technically late. After all, fees can boost profits.

The trick is, many mortgage lenders are required to offer grace periods. Many states have laws designed to protect borrowers from late fees, including some rules that apply specifically to mortgages.

If a lender operates in a state with a grace period law, they have to offer one. If they don’t, they are breaking the law, and that can come back to hurt them.

However, there can also be other motivators for offering grace periods. For example, back when most people paid their bills by check, mail delays could make a payment seem late when it was actually sent out on time. Grace periods helped account for issues with mail delivery, ensuring borrowers weren’t unfairly penalized. While most people don’t pay by check today, it’s technically still an option available, so some lenders may maintain their grace periods based on that.

Similarly, grace periods can ensure that holidays don’t cause a payment to come in late. Banks generally don’t process transactions on weekends and federal holidays. If a person’s mortgage bill was due on a day when the banks aren’t processing transactions, it could make their payment seem late when it really isn’t.

Additionally, while most mortgages are due on the first of the month, people’s pay schedules may not align with that date. By offering a grace period, it gives borrowers a bit of flexibility, allowing them to send a payment when they receive their paycheck.

How Long is the Mortgage Payment Grace Period?

Precisely how long your mortgage payment grace period is depends on a few factors. Where you live plays a role, as local laws may determine the minimum length. Additionally, who your lender is matters.

Lenders can always choose to offer grace periods that are longer than state law requires, they just can’t make it shorter. As a result, not all lenders within a state use the same time frames.

However, with all of that in mind, a typical grace period lasts 10 to 15 days. If you want to know precisely how long yours is, you’ll need to check your mortgage paperwork, as it will be stated in a clause there.

In some cases, your grace period may also be noted on your monthly mortgage statement. Similarly, that information may be listed in your online mortgage account. But, if you don’t find it there, your best bet is to check your physical mortgage paperwork. If you can’t find the clause, then you may want to contact your lender directly and ask.

What Happens If I Can’t Pay Before Grace Period Ends?

Once the grace period passes, there can be consequences for not making your mortgage payment. The most common ones are late fees and potentially a ding on your credit report.

Late fees – like grace periods – are part of your mortgage agreement. That document will say whether you owe a flat fee, a percentage of your mortgage payment, or another amount for being late.

If your payment is 30 days late or more, then your lender can report the missed payment to the credit bureaus. At that point, you’ll see a derogatory mark on your credit report and, likely, a decline in your credit score. That derogatory mark can remain on your report for as long as seven years, causing long-term harm to your score.

If you know that you can’t make the payment before the end of the grace period, contact your lender. Depending on your situation (the reason you are having trouble missing the payment), there may be assistance available that can help you avoid fees and damage to your credit score. For example, you may qualify for a forbearance, ensuring you won’t be charged fees, penalties, or interest beyond the usual amount for a specific amount of time.

Speaking with your lender allows you to learn more about your options. That way, you can make the right financial choices based on your circumstances and potentially save your home and credit score while avoiding severe monetary penalties.

Do you think the grace period for mortgage payments is long enough? Why or why not? Share your thoughts in the comments below.

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Do Stock Splits Make Sense in 2020?

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history of stock splits

When a company is publicly traded, it has a set number of outstanding shares. This limits the number of potential investors, as there is only so much stock to go around. Additionally, it can, at times, hinder a company’s ability to bring in money. However, businesses do have the ability to practically create more shares out of thin air. With a stock split, they can increase the total number of shares available. The move can be financially beneficial, but it also comes with risk. If you are wondering, “Do stock splits make sense in 2020?” here’s what you need to know.

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