Money Management

Sorry, you can’t keep your loan amount a secret. 

In February, the average home buyer who took out a mortgage borrowed $406,953, according to the Mortgage Bankers Association. Now, you may be looking to take out a home loan that’s higher or lower than that average. But either way, you’d probably like your mortgage to be your business, and yours only, right?

Well, unfortunately, that’s not how mortgages work. Mortgages are a matter of public record, so pretty much anyone can get a copy of your mortgage and see what your loan entails.

Bye bye, privacy

Many home buyers are shocked to learn that the sum they borrow to finance a home purchase is information anyone can be privy to. You can pretty much find mortgage information in any state, city, or county. But in some cases, looking it up may be more straightforward than in others.

Often, you’ll need to access a county clerk’s office to find mortgage records, and they’re often available online. In some cases, though, you may need to make a phone call or visit a county clerk’s office in person to get that information.

In reality, the fact that mortgages are public record shouldn’t come as such a surprise. When you finalize a mortgage, you’re required to pay closing costs on that loan. When you look at the breakdown of your closing costs, you’ll generally see that one of the fees you’re being charged is a recording fee. That’s the cost of having your mortgage entered into public records. Incidentally, it’s also an aspect of your closing costs that you generally can’t negotiate, since your lender itself doesn’t set that fee.

Your mortgage is public. Now what?

Some people have argued that mortgages should not be public record because it’s an invasion of privacy. There’s really nothing stopping your friends, for example, from doing some digging to find out how much you borrowed for your home. And your only consolation, if you want to call it that, is that you have the option to do the same thing back.

So where does that leave you? In a nutshell, stuck. But just as you’d probably want to respect your friends’ privacy by not looking up their mortgage data, so, too, may they be inclined to respect yours.

Also, the reality is that home sale records themselves are public. Anyone can go onto Zillow, for example, and see what your home last sold for. So if a nosy person in your life enters your address and sees that you bought your home for $500,000, the fact that you borrowed $400,000 to do so may not come as such a shock.

Ultimately, buying a home can be a rewarding experience, but don’t expect it to be a private one. Like it or not, people can look up your mortgage details. But in many cases, those who do are simply satisfying their curiosity. That may or may not give you some comfort, but it’s better that you know how mortgage recordings work than remain in the dark.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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Getting a second credit card with the same bank could offer several benefits.  

If you use credit cards, ensure you’re not missing out on the opportunity to earn valuable rewards. Did you know that having more than one credit card from the same issuer can be beneficial? If you want to earn more rewards, you may want to add a second card to your wallet.

Boost your rewards potential

One significant advantage to having more than one credit card from the same bank is to earn rewards in multiple purchase categories. While some credit cards reward users at a set rate for all purchases, not all do.

Many credit cards offer a higher rewards rate for purchases made within specific spending categories. You may earn minimal rewards if you use a card like this for purchases outside of those categories — so you miss out on the ability to earn more.

If you have multiple purchase categories where you spend a significant amount of money regularly, you want to ensure you don’t miss out on rewards. Finding one card that rewards you for all of your biggest purchase categories can be a challenge. The good news is you can carry multiple credit cards in your wallet — even if they’re from the same card issuer. Doing this may help you earn more credit card rewards from your everyday spending.

Imagine your biggest spending categories are dining and takeout, groceries, and gas. You may want to use multiple cards to earn rewards for these purchases. For example, one card might offer rewards on gas and grocery purchases, but may not reward you well for restaurant spending. In this case, you could boost your rewards by getting a separate dining and restaurant credit card.

If you do this, familiarize yourself with how each card earns rewards and be strategic when you make purchases so you don’t miss out on rewards. Using each card for its intended spending categories could help you boost your earnings.

Other benefits to having multiple credit cards with one bank

Here are a few more ways having two or more cards with one issuer can be a win.

Access more card perks

Not all credit cards include the same benefits. You can access more perks by having two or more credit cards from the same bank. If you want more benefits, consider getting another card with different perks so you get more out of your credit cards.

Earn the same rewards

You may find it easier to stick with one bank to earn the same rewards. There are several popular credit card rewards programs, but they don’t all function the same. Having two cards with one bank can make it easier to redeem your rewards since you’re already familiar with the rewards program. Juggling rewards between multiple rewards programs could be confusing.

Improve your credit

Having multiple credit cards may help you improve your credit. Your credit utilization ratio, or how much of your available credit you use, is one factor that helps determine your credit score. Having multiple cards can boost your overall credit limit, which could help lower your credit utilization ratio. Experts recommend having a credit utilization ratio of 30% or less.

Don’t miss out on rewards

Just like having two checking accounts with one bank, having two credit cards with one bank could be a win. Before getting a second credit card from the same issuer, consider your spending habits and how your current card earns rewards. Is there a purchase category where you’re spending a lot of money but not earning rewards? If so, adding another card to your wallet may be ideal. Check out our list of the best rewards credit cards to find your next card.

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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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Dealing with flood damage is enough of a headache without worrying about how you’ll pay for it. 

Everyone knows the saying “April showers bring May flowers.” It conveniently leaves out the part about how heavy April showers and melting snow can also cause flooding, especially in low-lying areas. Flooding can occur in every state and every time of year, and if your home is in the path of one, you could be in for some serious headaches — and a massive bill.

Purchasing flood insurance now can help reduce a homeowner’s financial burden, should a flood occur. Here are three reasons to consider getting a flood insurance policy.

1. Nowhere is safe from flooding

Floods are one of the few types of natural disasters that can happen anywhere. Living on the coast or in a low-lying area can increase the risk of flooding, but they can still happen elsewhere, even in areas that might seem “safe.”

In general, the Midwest and parts of the Northeast and Northwest can experience flooding during spring when the snow melts. Coastal areas can be at high risk of flooding during the hurricane season, which typically runs from June to November. And heavy summer rains can cause flooding or flash flooding anywhere at any time.

2. A typical homeowners insurance policy doesn’t cover flooding

Many people don’t realize it, but flood damage isn’t covered by a standard homeowners insurance policy. If that’s all the coverage a homeowner has, they’ll be on the hook for any home repairs and the cost to repair or replace damaged personal items after a flood. This can easily run into the tens of thousands of dollars.

The average flood claim payout in 2019 was $52,000, according to the Federal Emergency Management Association (FEMA). And some people pay much more than that. These high costs are part of what deters home insurers from covering flood damages in the first place.

3. You’re buying a home in an area at high risk of flooding

Flood insurance is helpful but not required in many parts of the country. However, if you’re moving to an area that’s experienced costly flooding in the past, your mortgage lender may require you to purchase flood insurance.

This is necessary to protect the lender’s investment. If a homeowner doesn’t have flood insurance and their home is severely damaged or destroyed in a flood, the lender would have no way of recouping the loss.

How to purchase flood insurance

Homeowners can buy a flood insurance policy through the National Flood Insurance Program (NFIP). These policies generally cover the home, including its foundation, electrical and plumbing systems, appliances, and flooring as well as personal property. A typical policy provides up to $250,000 in coverage for the home itself and up to $100,000 in coverage for personal property.

But it’s important to note that these policies only cover flooding due to natural disasters. Problems like sewer backups aren’t covered under a flood insurance policy. For that, one would need a homeowners insurance policy with a sewer backup endorsement.

The NFIP partners with several popular home insurers, and you can find a list of providers on the NFIP’s website. Though you may purchase your policy through one of these private companies, you’ll deal with the NFIP directly if you need to file a claim.

Premium costs vary depending on a home’s location, age, and construction, among other factors. In 2019, the average policy cost about $700 per year, according to FEMA. But some people pay less than this.

You never know when a flood could strike, so it’s best to prepare yourself right away. Check to see whether you already have a flood insurance policy if you’re unsure and consider adding one if you don’t.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

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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Before bringing a new cat home, ensure you can afford to care for it without stressing about money.  

Cats are the ideal furry companion. They’re curious, lovable, playful, funny, and independent creatures. Some may call me biased — since I have two fuzzy felines at home. But as a long-time cat owner, I know how expensive these adorable animals can be.

If you’ve been considering getting a cat, it’s essential to consider the responsibility required. Yes, cats require regular care and attention — but unless you can convince your cat to get a side hustle (I haven’t had luck yet!), you’ll also need to pay for that care. Before you sign adoption paperwork, consider the yearly cost of owning a cat.

Annual cat care costs can reach $1,000+

Yearly pet care costs vary, but it’s a good idea to research estimated costs to ensure you can afford to give your new cat the best life possible. You may not realize how expensive it can be to care for a cat. According to research compiled by Rover, estimated cat care costs range from $300 to $1,450 per year. That is about $25 to $120 monthly, depending on your cat’s needs.

Of course, those costs will be even higher if you have a multi-cat family. However, pet owners should also expect to pay upfront costs when adopting a new feline friend. During the first year, cat owners can expect to pay anywhere from $695 to $3,100 in upfront costs.

If you’re considering adopting a cat, review your budget before bringing your new furry family member home. You want to feel confident that you’ll be able to take care of your curious companion without feeling stressed about money. Even small everyday expenses can add up.

How to prepare for the financial responsibility of cat ownership

Cats make life better, and they’re a lot of fun! But while they think they’re independent creatures, they still rely on their owners to provide water, food, toys, and a clean litter box. They also look to their owners for medical care. As a cat gets older, its healthcare needs can change.

While day-to-day care costs may be low if you have a healthy cat, there may come a time when your cat needs emergency medical care — and unexpected vet bills can be pricey. The last thing you want to do is feel overwhelmed when a costly vet bill comes your way. Luckily, you can prepare. Here are some ways to prepare for regular and unexpected cat care costs:

Budget for regular expenses: Include everyday cat care expenses in your monthly budget. By doing this, you can ensure you can afford to run to the store every time your cat needs more food or litter. If you’re new to budgeting, budgeting apps can help you monitor your spending and stay on track. Set aside extra money for future costs: Preparing for emergencies before they happen is never a bad idea. Opening a high-yield savings account and stashing extra savings away for unexpected future expenses like emergency vet bills can ease your financial stress. Doing this can help you avoid expensive credit card debt. Invest in pet insurance: Investing in pet insurance could make caring for your pet’s needs more affordable. Various plans are available, including accident-only policies, accident and illness policies, and wellness policies that cover preventive care. Before bringing a new cat home, you may want to explore insurance options and get quotes.

Make sure you can afford a cat

Adopting a cat may be the right move if you’re ready to bring a furry companion home and give it all the love, attention, and care possible — regardless of cost. But don’t forget to consider the added financial responsibility you will take on by becoming a cat owner. If you can afford the expense, that’s great news for you and your new pal!

However, it may not be the best time to adopt if you’re experiencing financial difficulties. Instead, it’s best to work to improve your personal finances first before taking on more responsibilities. If it’s best to delay this life-changing responsibility, check to see if local shelters need volunteers. You’ll get plenty of snuggles, can make a difference, and it’ll only cost you time and love.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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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All you need to do is build a case. 

News flash: Breathing is expensive. The cost of living in urban America is up 6% compared to last year, thanks to inflation, which has upped costs on groceries, rent, and just about everything else. Despite rising prices, the government is unlikely to pull through with fresh stimulus checks.

Here’s the good news: Employers are responding to inflation by giving workers pay raises. According to an in-depth report by Payscale, 56% of organizations plan on giving base pay increases of over 3% in 2023.

Does your employer plan on raising your income? Here are the top five reasons employers cited for upping their employees’ wages.

1. Company-wide performance

Nearly three-quarters (72%) of employers say they’ll consider giving raises in 2023 to reward employees for beating company revenue goals. And many do surpass their goals. About 1 in 4 companies surveyed by Payscale believed they outperformed in 2022.

Expecting a raise? Check your company’s yearly earnings. Companies that beat their own revenue goals have a higher chance of distributing raises to employees.

2. Market adjustment and talent competition

Last year was tough as jerky for employers, with around 50 million Americans ditching old jobs for greener pastures. Companies must battle it out for talented employees. Maybe that’s why 67% of employers say they’ll factor competitive market conditions into employee pay increases.

3. Inflation and cost-of-living

In 2022, less than half of employers considered inflation when deciding on pay raises. This year, they flip-flopped — most employers take inflation into account. That’s good news for folks hit hard by rising costs, especially those in metropolitan areas like Los Angeles.

4. Internal pay equity

A little less than half (44%) of employers think equal treatment is worth considering, up from last year. This may be due to the government pushing for greater wage transparency. For example, California passed Senate Bill No. 1162, which requires employers to disclose wage ranges on job listings.

5. Hot skills

Twenty-seven percent of employers consider in-demand skills when determining whether to offer higher compensation. According to LinkedIn’s annual report, here are some of the highest-demand skills in 2023:

Soft skills: management, communication, customer service, leadership, and sales.Hard skills: software development, SQL, finance, Python, and Java.

So what?

Now that you know why employers give employees raises, you can use this information to develop a compelling case for a pay increase.

Example 1: Your company has exceeded its 2022 revenue goals. Whoot! Consider bringing this up to your boss when you request a salary boost. They may appreciate your initiative.

Example 2: Your city’s living cost has risen — rent and groceries are more expensive than ever. Because you use a budgeting app, you know exactly how much more you spent than last year. You can confidently cite numbers when your manager brings up annual raises.

Suze Orman says you are worthy of wealth

Not sure how to request a raise? Financial guru Suze Orman reminds workers that they are worthy of wealth. Employees can build self-confidence by setting small financial goals and contributing to them daily.

Set a daily budget. Reward yourself for meeting your spending goals.Start an emergency fund. Set up automatic deposits with your bank account. Track your savings with a budgeting app. Treat yourself (within reason) for every $100 saved.Pay down debt. Money guru Dave Ramsey suggests using the debt snowball method to pay off small debts first. That way, you’re motivated to stick with it.

Employees’ time and skills are valuable. Consider the top reasons employers give pay raises going into 2023. New insight might provide you with what you need to negotiate a raise successfully.

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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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