Money Management

Homeownership might be within your reach, even if you don’t have a large down payment. Learn which programs can help you buy your first home in New York. 

The average home value in the state of New York, according to Zillow, is about $441,500. That’s significantly less than the average home value in California ($743,362), but higher than the average home value in the U.S., which is currently $348,900.

Fortunately, New York offers numerous programs to first-time home buyers through the State of New York Mortgage Agency (SONYMA), as well as others not associated with that agency. Some of these are grants (read: free money), while others are second mortgages. Below we’ll take a closer look at four of the most significant SONYMA programs and help you find one that’s right for you.

1. Achieving the Dream

What is it? A program that can reduce the interest rate on a 30-year mortgage and lower your down payment requirement to 3%.

How does it help? The reduced interest rate can make your monthly mortgage payments more affordable. In addition to a lower down payment requirement (just 3% of the property’s value), Achieving the Dream only requires 1% to be your own funding. The other 2% can come from down payment assistance.

Who’s it for? First-time home buyers who meet the low income limits for their region (which you can find here).

2. Neighborhood Revitalization Program

What is it? A statewide program that gives home buyers $20,000 to make necessary renovations to a home in disrepair.

How does it help? The program gives home buyers a major incentive to buy and renovate distressed properties. In addition to $20,000 for necessary repairs, the program also offers home buyers up to 3% of the home’s purchase price in down payment assistance up to a maximum of $15,000.

Who’s it for: Home buyers who meet income requirements (the same as those under Achieve the Dream). You must also have good credit, stable income, and are buying a primary residence in New York.

3. Conventional Plus Program

What is it? A mortgage program that lowers the requirements for a 30-year mortgage while also offering down payment assistance.

How does it help? The program has flexible underwriting, which can help more borrowers qualify for conventional loans. The down payment assistance can be used for closing costs or to pay mortgage insurance.

Who’s it for: You must purchase a primary residence, and your income must be less than 80% of the area’s median income (which you can find here).

4. Low Interest Rate Program

What is it? A mortgage program that offers competitively low interest rates to home buyers and lowers the down payment requirement to 3%.

How does it help? A low interest rate can reduce your monthly mortgage payment. The program also offers down payment assistance up to 3% of the home’s purchase price for eligible home buyers (but the interest rate on your loan might be higher).

Who’s it for: This program is great for home buyers whose income is above the limits for the Achieving the Dream program mentioned above. If your income is below those limits, however, you might get a lower interest rate with Achieving the Dream (you can check interest rates here)

More ways to save on your first home

In general, the best ways to save on your first home are to save a larger down payment and improve your credit score. The larger your down payment, the more likely you can get a low interest rate on your mortgage. Plus you can avoid having to pay for private mortgage insurance (PMI) when your down payment exceeds 20% for conventional loans. Likewise, a high credit score can help you snag a lower interest rate. If neither of those are viable options, the programs mentioned above can put homeownership within reach without making you settle for an unreasonably high mortgage rate.

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A family of four could receive up to $973 a month in food benefits for FY 2024. Learn more about the changes and how to make your SNAP payments go further. 

Once a year, the USDA makes cost-of-living revisions to the amount that families receive in food benefits. It has just announced the new amounts households will receive for the 2024 fiscal year, starting Oct. 1, 2023. Under the new provisions, a family of four can receive a maximum of $973 a month, up from $939 in the current fiscal year.

The Supplemental Nutrition Assistance Program (SNAP) helps millions of low income American households keep food on the table. The Center on Budget and Policy Priorities (CBPP) says that, “SNAP reduces hunger by as much as 30% and is even more effective among children.”

SNAP benefits for 2024

The USDA bases food benefit payments on something called a Thrifty Food Plan, which it uses to estimate the cost of providing low-cost meals. SNAP benefits are calculated for each fiscal year, which is why the 2024 allocations kick off in October. The maximum payments for 2024 are up between 3.5% and 3.7% on the 2023 allocations.

The amount a household receives depends on a number of factors, including income and location. Payments are higher in states with higher living costs like Alaska and Hawaii. SNAP benefits are calculated by making deductions from the maximum payment, and many households will not receive the maximum amount. Broadly speaking, eligibility depends on income and the amount of money in your bank account.

Here’s how the maximum SNAP monthly allocations will change from 2023 to 2024 in most U.S. states:

Are SNAP benefits enough?

A monthly payment of $973 for a household of four equates to around $8 per person per day. While SNAP benefits aren’t designed to cover everything, it isn’t easy to feed a family on around $2.66 per person per meal. Indeed, research from the Urban Institute showed that the maximum benefits often don’t cover a family’s food costs. “Amid inflation, SNAP benefits did not cover the cost of a meal in 99 percent of counties in 2022,” said the report.

The new benefit amount — a monthly increase of $34 for a household of four — is roughly in line with cost-of-living increases measured by the Bureau of Labor Statistics (BLS). Its latest Consumer Price Index figures show that the cost of all items in June, 2023 was up 3% over the year before. However, inflation does not impact all aspects of life equally.

The BLS data also shows that food at home increased by 5.7% year over year. The new SNAP benefits do not match this. Hypothetically, a 5.7% increase in benefits for a family of four would mean a new monthly payment of $992, rather than the planned $973.

In addition, this year brought the end of the pandemic-era emergency food benefits throughout the country. According to CBPP calculations, this meant the average person received about $90 a month less in SNAP benefits. Even factoring in the increased SNAP benefit amount, many households have seen a significant drop in their food benefit amount, and the revised 2024 payments will do little to close this gap.

How to make your SNAP benefits go further

It can take time and energy to provide healthy food for your family on a strict budget. The challenge is that in a busy household, time and energy are also limited resources. Even so, if you can carve out some time to plan your grocery-shopping trip, it can make a big difference.

Here are some ways you might stretch your SNAP benefits a little:

Use cash back apps and coupons: Look for cash back apps that work in stores that take your EBT card. You’ll usually need to download an app and then scan your receipt after you’ve been to the store. Pay attention to coupons, whether in store or online as these can often carry hefty discounts.Always shop with a list: Planning your food shopping is one of the best ways to reduce costs. Even more so if you use a cash back app or coupons. Check what offers are available on items you normally buy before you go shopping. Mark the items that qualify for rewards or discounts on your list, so you don’t miss them when you’re shopping.Look for double up programs: There are Double Up Food Bucks or other programs in various states that essentially give you two for one on all produce at participating farmers markets and stores. It’s a great way to get more fruit and vegetables for your SNAP dollars.Buy in bulk and batch cook: It isn’t always easy to find the extra cash for bulk buying when you’re eking out every cent. However, if you can manage it, you may be able to save both money and time. You might, for example, batch cook a stew and freeze portions for future meals.

Unfortunately, food insecurity still impacts many American households. If you don’t have enough money to feed your family this month, look for additional help. Find out what food pantries and soup kitchens are operating in your area on which days, and whether you’ll need to present any documents. Call United Way at 211 for information about assistance programs in your area.

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Waiting until your 50s to buy life insurance could drive up the cost. Read on to learn more. 

Putting a life insurance policy in place could protect your loved ones financially in the event of your passing. Now, by the time you reach your 50s, it may be that your kids are grown and are holding down jobs of their own, so it’s only a spouse you need to worry about. But every situation is different.

It may be that you don’t have a spouse or kids, but rather, you’ve become a caregiver for your aging parents. And in that case, if you were to pass away, your parents might be forced to take up residence at an assisted living facility at an astronomical price they can’t afford.

Either way, there are different situations that might explain why you’re first applying for life insurance in your 50s. And one thing you should know is that you can, in fact, get approved for coverage despite being older. But don’t be surprised if that coverage ends up costing you more.

Your age might drive your premium costs up

Life insurance companies don’t just set premium rates at random. Rather, they set those rates based on risk — specifically, the risk of them having to pay out on a policy while it’s in effect.

If you have a heart condition, for example, that might drive the cost of your premiums upward, since it might make you more likely to pass away at a younger age. Similarly, life insurance companies will generally ask about your hobbies and habits when you apply. If your favorite weekend activity is skydiving, that, too, could result in higher premiums.

Similarly, life insurers take the age of an applicant into consideration when determining premium rates. So if you’re on the older side, you should expect to pay more for life insurance than someone who’s younger.

Term life insurance may be your most affordable option

When it comes to buying life insurance, you have choices. You could get a whole life policy that accumulates a cash value and provides coverage on a permanent basis, or you could get a term life policy with no cash value that runs out after a period of time.

Term life insurance can be far more affordable than whole life insurance. So if you’re applying on the later side, then you may want to stick to a term life policy. Of course, in that case, you’ll need to decide how many years of coverage you want.

If you’re buying that insurance to protect a spouse financially, you may decide that a 10-year term is adequate, since your spouse might be able to get on Social Security once they reach their 60s (this assumes your spouse is roughly the same age as you). Or in the case of putting a policy in place to protect your elderly parents, a 10-year policy might also suffice if you don’t think they’ll live beyond that point.

And to give you an idea of the costs you might face, if you’re looking for a $1 million policy and you’re a non-smoker, a 10-year term life insurance policy might cost you $126.50 a month at age 50, says Dave Ramsey, while a 20-year term life policy might cost you $195.50 a month. But that’s also based on $1 million in coverage, which may be more than you need.

All told, buying life insurance in your 50s will generally mean paying more than you would have for coverage had you applied earlier. But if you shop around for rates, you might manage to secure coverage that’s affordable for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Getting a personal loan could be a good idea if you are consolidating debt or avoiding more expensive borrowing. Check out these great reasons to borrow. 

If you are thinking about borrowing money, a personal loan could be an option for you. Personal loans tend to have lower interest rates than other kinds of debt, with the average rate coming in at 11.48% as of May 2023 according to the Federal Reserve.

There are good and bad reasons to take out a personal loan, though. Here are three of the best justifications for borrowing via this method.

1. To consolidate debt

Consolidating debt could be one of the best reasons to get a personal loan. When you consolidate, you use the proceeds from your new personal loan to pay off other debts you owe.

Where you previously may have had multiple monthly payments to keep track of, you will now have just one. This single payment can be more affordable and easier to manage, you are less likely to forget it, and you won’t have choices to make about which debts to concentrate on paying first.

You may also be able to reduce the interest rate on the debts you’re consolidating and thus save money on total payoff costs. Say, for example, you have a $5,000 credit card balance with a 21% APR that you’re currently paying $95 a month toward and a $6,000 loan at 15% that you’re paying $150 a month on.

If you got a new 36-month loan at 7.49%, your new monthly payment would be $342.11, so about $97 a month more. But you would save $9,957.04 in interest and reduce your repayment time by 9.2 years, so you would end up a lot better off in the end.

2. To avoid expensive payday loans or credit card debt

As mentioned above, the average interest rate on personal loans was about 11.48% as of last May. By comparison, the average interest rate on a credit card during that same time period was 20.68%.

If you must borrow for a big purchase — think new appliances or a car repair — you are a lot better off paying 11.48% on your purchase than paying 20.68% — or, worse, paying upwards of 400% APR on a payday loan.

Not everyone can pay cash for everything they buy, and there may be times when you have to finance something. If that’s the case, consider whether a personal loan with its more affordable interest rate is a better option. Your personal loan will also come with a set payoff schedule of a few years, unlike a credit card where you could get stuck in a cycle of debt for decades if you make only minimum payments.

It can be faster and easier to just charge stuff on your credit cards rather than going through the process of applying for a personal loan. But, the easiest approach isn’t always the right one, and a personal loan could save you big in total interest costs.

3. To make minor improvements to your home

Finally, if you are making some minor improvements to your home, a personal loan could be a good way to fund them.

A personal loan will have a higher interest rate than a home equity loan and the interest won’t be tax deductible, while interest on the home equity loan might be. But, getting a home equity loan requires jumping through several hoops, potentially including getting an appraisal to determine your home’s current value and paying closing costs.

If you just need to borrow a small amount for a minor repair, the hassle of a home equity loan may not be worth it and you may want to opt for the simpler, easier-to-qualify-for personal loan instead.

If you find yourself in any of these situations, aim to get at least three different quotes from different personal loan lenders to find out if an affordable, effective borrowing option exists for you. You may just find a personal loan is the best choice for your borrowing needs.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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