Money

The countdown to buying your first home is innately defined by one thing: the balance in your savings account. Unlike car loans and the too-expensive shoes you put on your charge card, you can’t exactly buy a home with zero money down, so most people who have their sights set on homeownership begin by saving for a (sizeable) down payment.

So you found the perfect apartment—everything seems to check out, from the desirable neighborhood to the amazing rent. But is it really as wonderful as it seems? Before you start shifting those extra dollars from your rent fund to your coffee budget, double check your new home to make sure none of these hidden expenses are going to end up emptying your wallet.

My dad was frequently unemployed while I was growing up. When he had a job as a software salesman, things were pretty bountiful in our household: We’d go on vacation, build a playhouse, have another sibling join the family, etc. But it always seemed that right after we’d get used to living in “boom times,” he’d get laid off. And since my mom chose to stay home and homeschool us, there wasn’t money coming in when my dad wasn’t working.

Whether you have an economical heat pump or a decades-old oil burner, you’re probably looking for a way to cut your heating costs this winter (holiday gifts are so expensive!) The good news? It’s totally easy to keep warm (and on budget) with these expert tips: The first step to managing your energy spending is inspecting it, says Josh Prigge, founder of Sustridge, a sustainability consulting firm in Las Vegas, Nevada. For most people, that means checking your electric bill.

We’ve all seen the ads: Rent a unit in our building and you’ll get access to amazing common areas! Dog spas! Bike storage! Real estate companies and landlords will toss in freebies until the cows come home to ensure you sign a lease. However, nothing lures prospective renters in as much as the appearance of a serious dent in their rent. But “appears” is the key word here.

Feeling like it’s time to size up your space? By all means, do it. But know that it’s going to likely require a bigger investment month-to-month, and probably drain your change right now as you scramble to pay for moving costs and the other expenses that inevitably creep up when you decide to pick up your roots and settle down in a new spot.

Anyone who’s buying their first home has probably gotten used to stalking their bank accounts leading up to their closing making sure they’re beefing up their savings for a down payment and closing costs. According to Zillow, the median price of a home sold in America is $230,800. Putting 20 percent down on that home will cost you $46,160.

It’s common knowledge that owning a home is cheaper than renting (at least in the long term), but anyone who has ever sat down to try and figure out the numbers knows that finding out how much you’ll save is harder than it looks. There are so many factors to consider. To try and help you come as close to the real number as possible, we’ve outlined three ways your rent-vs-buy math might be wrong — and how to straighten things out to give you the best picture possible.

In the immortal words of Jimmy McMillan, “The rent is too damn high!” I live in Austin, which means my wallet cries each time I pay rent. Of course, I don’t live in a city where rent is sky-high like New York or San Francisco… but still, I don’t live in Toledo or Memphis, cities where the rent is barely-there. The burden for this writer is heavy to bear alone.

As if selling your home wasn’t stressful enough already — from the emotional freefall of saying goodbye to the place you live, to the logistical nightmare of packing up and moving all of your worldly belongings — it costs a hell of a lot of money to do it, too. The costs associated with selling a median-priced U.S. home total about $13,357, according to a report by Zillow and Thumbtack.

If you have any extra space in your home — a spare bedroom, guest house, a finished garage — chances are you’ve toyed with the idea of listing it on Airbnb. Pros: extra money for bills or savings, a fun way to meet cool people, and not a lot of real work. Cons: the potential for weirdos in your space, property damage, and near-constant mental labor in the form of requests and bookings.

For the first time, Airbnb hosts can now count their home-sharing earnings as additional income when refinancing their mortgage at three national lenders: Citizens Bank, Better Mortgage, and Quicken Loans (the company behind that Rocket Mortgage app you see each Super Bowl). That may sound trivial, but like Ron Burgundy, it’s kind of a big deal. Refinancing a mortgage isn’t exactly easy; it’s almost as tedious as taking one out in the first place.

A shutdown of the federal government — which will occur if Congress can’t approve at least a temporary funding bill today, an increasingly likely scenario — could throw a monkey wrench into many corners of our economy. And if you’re getting ready to close on a house, look out, because one of those wrenches might be headed your way.

Did you know that most studies of average rents pull their data from apartment listings? That can provide a pretty accurate snapshot of the prices a newcomer can expect to encounter on their apartment search—but it’s not always reflective of real-life rental situations. Asking rents generally skew higher, since there are plenty of listings for brand-new luxury units, but you’re not likely to find a rent-controlled apartment or a word-of-mouth hand-me-down deal listed online.

Millennials can’t do anything without there being some sort of stigma attached—they’ve been accused of killing everything from chain restaurants to doorbells, and they’re constantly being labeled lazy and wasteful, despite countless studies proving that that’s not necessarily the case.

‘Tis the season to be house hunting. Yep, you heard us right; if you’re looking to score a deal on your dream home, the end of the year is a great time to do it. Now, you may be asking yourself, “Who would want to trek to open houses in 20-degree weather when you could be curled up by the fireplace at home?” And the answer would be: People who really, really want to get a good deal.

Buying a home can be crazy expensive, and for most first-time buyers, the hardest part is saving up a sizable down payment. You’ve no doubt heard that the traditional down payment should be 20% of the purchase price — any less, and you’ll likely have to pay private mortgage insurance (PMI) or get stuck with a higher long-term interest rate. And who’s got 20% of, say, $300,000 just kicking around in their bank account? However, that 20% figure isn’t set in stone.

In some expensive cities, it can feel like every dollar you earn goes straight toward housing. It turns out, it may not be your imagination. A new data visualization by HowMuch.net shows how many hours the average household in 98 U.S. cities would need to work each month just to afford the median mortgage payment in their city.

In 2008, the U.S. housing market was already cratering as the Great Recession took hold. To try and stop the bleeding, Congress passed a series of first-time homebuyer tax credits, each more generous than the last. First came a $7,500 tax rebate, to be repaid over 15 years with no interest. By early 2009, it had grown to $8,000, and required no payback whatsoever. And for most of 2010, even some repeat home buyers were eligible for a tax credit worth up to $6,500.

Unless you have a fairy godmother or a cool half million sitting around, you’re probably going to need a mortgage if you want to buy a home. Here’s how to qualify for and choose a mortgage, and what to expect throughout the process. Let’s face it: You can go to as many open houses as you want, but you’re not going to be able to buy one without a mortgage. So get the ball rolling early and get pre-approved before you even start house hunting.

You know want to buy a home — you’re just not sure where to begin. And no wonder: Buying your first home can be a long, intimidating process, full of gross stuff like math, legal documents, and cutthroat competition. But have no fear: First-time buyers just like you do it all the time, and we’ll walk you through the process. First, you’ve got to make sure you’re emotionally and financially ready to buy a home.

While a six-figure salary might offer more than enough income to most households, believe it or not, there are still cities in the U.S. where $100K-a-year won’t get you far. For a recent report, “The Best and Worst Cities to Live On Six Figures,” Magnify Money analyzed 381 major cities across the country to see which ones offered the least financial wiggle room for two-earner households (with two adults and one child) with a gross annual income of $100K.

Are you a New Yorker who has found yourself chatting with someone from a smaller city, only to discover that their rent is about what you spent on Seamless last month? Okay, an exaggeration (we hope) but it’s safe to say that the contrast between living expenses in New York and those in smaller “secondary” cities can be significant. Recently, Mercer’s Cost of Living survey determined that New York continues to be the most costly US city to live in.

Before you hop onto the roof of your car on the 405 and bust out some dance moves, we have some devastating news: Life in Los Angeles isn’t like a scene out of La-La Land. But that certainly doesn’t mean that the City of Angels is without merits. With almost four million residents, Los Angeles is a diverse metropolis that attracts people from every corner of the world in search of success, be it professional or personal.

The sharing economy promises the freedom to earn extra money on your own time and terms. Just how much money varies, but one platform makes its users far more cash than any other. San Francisco-based loan provider Earnest analyzed income on tens of thousands of loan applications to measure the impact of sharing economy work. They found that the average Uber driver makes $364 a month, while the average Lyft driver pulls in $377.

Aside from the obvious benefit of helping the planet, solar power can be pretty enticing to homeowners who are tired of paying an arm and a leg for their electric bill every month. Given that outfitting a home with solar panels comes with considerable costs upfront, though, is doing so practical from a financial standpoint? Can solar power in fact pay off?

Much like finding out your new boyfriend is actually the heir to the throne of a small European country, living a life without rent is something that most of us will only dream about. But there are actual, real, human people living that life—who eat, sleep and work in the five boroughs without spending their hard-earned cash on their apartment. How do they do it? They’ve managed to co-opt the conventional “hard-earned cash” equation and cut out the middle man.

If the concept of rent being no more than 30% of your take-home (after tax) pay seems about as realistic as purple unicorns, you might be wondering why rent is so high anyway. In 2015, 11.8 million U.S. households spent half or more of their income on rent, and this figure is projected to increase, according to the Enterprise Resource Center and the Harvard Joint Center for Housing Studies.

The first thing my next door neighbor and I talked about on the stoop the day I moved in was how old the building actually is; he had heard it was built before the 1900s. A huge white house with an astounding six apartments held within, I fell in love the moment I walked inside my cozy 500-square-foot apartment with wood floors, a big white fireplace mantel and tall ceilings with thick molding.

While buying a home often seems like the mark of adulthood and stability, there are plenty of reasons home ownership is not all it’s cracked up to be. So whether you aren’t in a position to buy a home at this point or you just aren’t sure about taking the plunge, here are some reasons to celebrate your non-homeowner freedom. If you buy a home, get ready to take on the management and expense of every single thing that goes wrong.

Knowing what you want in a rental apartment is pretty easy: space, location, storage, beautiful floors, light, etc. Finding all of those things within your budget can be a bit more difficult. But before you even start contemplating your rental possibilities, you should probably know what your budget is, and fortunately, this step isn’t all that difficult.