Culture

Travel

Milestones

Overview

Fraud

Financial Pathways

Take a new approach to managing credit, savings and making smarter financial choices with expert advice from Life and Money by Citi.

Money

Well-being

Credit Cards

Banking

Lending

Investing

Citigold®

Citi Financial Pathways

Around the world, Citi has strategic locations where our employees go to work each day to support our core businesses and drive solutions for our clients. 

Products and Services

NavBar

Home

FooterNav

<p>Buying a home is an exciting milestone, and yet it can also be an emotional time and, of course, expensive. All the questions, searches, decisions and document-drafting can make it feel overwhelming &mdash; but it doesn't have to be.</p>
<p>Along with having experienced experts in your corner (like a real estate agent and lender), you can turn to the internet for added support. These online tools offer insights and calculations that can streamline your home buying process.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/LAM_6Onlinetools_BodyImage_1000x667_B_0.jpg" alt="A father sits at a table working on a laptop, his wife and baby sit next to him"></p>
<h2>1. Home affordability calculator</h2>
<p>A <a href="https://www.citi.com/mortgage/affordability-calculator" data-link-source="tiny">home affordability calculator</a> gives an estimate of how much you can afford to spend on a home, taking into account some or all of these factors:</p>
<ul>
<li>Debt-to-income ratio (DTI): This is a measure of your income versus your existing debts. It tells the lender how much debt you can afford to take on in a home loan. You'll need to input accurate estimates of your gross monthly income and total monthly debt payments, and then the tool will use this figure to calculate how much you can afford to spend on a home.</li>
<li>Down payment: The amount paid upfront toward the home's purchase price (typically ranging from 3% to 20%).</li>
<li>Anticipated loan term: The expected length of your home loan, which is often either 15 or 30 years.</li>
<li>Current interest rates: Interest rates are determined by market fluctuations and are generally auto-populated by the calculator itself. According to Freddie Mac, one of the largest buyers of residential mortgages, interest rates for 30-year, fixed-rate mortgages currently sit at an average of of 6.87% and have ranged from 6.27% to 7.79% over the past year.</li>
</ul>
<p>Having an accurate home price estimate is important to help set the right expectations for your search, says Zachary Rose, a Citi home lending officer in Laguna Niguel, CA. "You don't want to be looking at houses that are $800,000 or $900,000 when, at the end of the day, all you can qualify for is $700,000 or $750,000," he says, and using a home affordability calculator is an easy way to tailor your search to your budget.</p>
<h2>2. Loan amount calculator&nbsp;</h2>
<p>Once you&rsquo;ve determined the maximum price within your budget, you&rsquo;ll want to think about the right type of loan. Considering how much you&rsquo;re comfortable paying each month is part of that and, often, &ldquo;the payment you can qualify for and the payment you feel comfortable making are two different things,&rdquo; says Rose.&nbsp;</p>
<p>Entering your desired monthly mortgage into a&nbsp;<a href="https://www.citi.com/mortgage/home-loan-amount-calculator" target="_blank" rel="noopener" data-link-source="tiny">loan amount calculator</a>&nbsp;gives you an estimate of how much you could borrow in either a 30-year or 15-year, fixed-rate loan.&nbsp;By playing around with different numbers, says Rose, you&rsquo;ll be able to arrive at the total monthly cost that suits your budget best.</p>
<h2>3. Monthly mortgage payment calculator</h2>
<p>This tool estimates how much you can expect to pay each month based on the total amount you plan to borrow.</p>
<p>By factoring in your loan amount, interest rate and loan term, a&nbsp;<a href="https://www.citi.com/mortgage/monthly-payment-calculator" target="_blank" rel="noopener" data-link-source="tiny">monthly mortgage payment calculator</a>&nbsp;can ensure your new housing payment fits comfortably into your budget, especially when you get specific.</p>
<p>&ldquo;It's very important to include as much information as possible,&rdquo; says Gonzalo Maturana, Goizueta Foundation term associate professor of finance at Emory University in Atlanta. &ldquo;Do your best to include estimates for property taxes and homeowners insurance, as well as homeowners association fees and private mortgage insurance.&rdquo;</p>
<p>These factors are important because they can increase the monthly payment significantly, says Maturana, and the more information you can give the calculator, the less likely you are to be taken by surprise when you talk to a loan officer.</p>
<blockquote>
<p>The payment you can qualify for and the payment you feel comfortable making are two different things</p>
</blockquote>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/LAM_6Onlinetools_BodyImage_1000x667_A.jpg" alt="A couple sit at a table talking "></p>
<h2>4. Real estate agent finder</h2>
<p>Once you've talked to a loan officer and have a <a href="https://www.citi.com/mortgage/surestart-preapproval" data-link-source="tiny">mortgage pre-approval</a> in hand, connecting with an experienced real estate agent is key. You'll want one who has local market knowledge and the ability to put together a strong offer.</p>
<p>Your best approach is to interview multiple agents and ask lots of questions, says Maturana."Inquire about their track record, including how many recent transactions they've closed," he suggests, keeping in mind that, according to a report from the National Association of Realtors(NAR), the typical agent closed 12 transactions in 2022. "Then, try to assess whether they seem knowledgeable about the neighborhoods where you're looking to buy. A good agent will meet both criteria."</p>
<h2>5. Home value estimator</h2>
<p>When you're ready to submit an offer on a home, a <a href="https://www.mortgage.homecaptain.com/homevalue" data-link-source="tiny">home value estimator</a> is useful for getting a sense of how much the home is worth in the current market. The tool uses recent sales data to provide an estimate of a property's fair market value. As a buyer, you can use this information to help you determine what to offer as a purchase price.</p>
<p>It's worth noting these estimates are based on the sales data provided, so they're likely to be more accurate in areas where there are frequent transactions and less so in areas with low turnover rates, says Maturana.&nbsp;</p>

5 Online Tools That Make Home Buying So Much Easier

<p>Self-care may be equated with doing things to recharge, like exercising and getting rest, but two other aspects of life can benefit from some TLC too: your home and your finances.</p><p>Focusing time and energy on these areas can help you feel more comfortable and secure, and ultimately happier — and all it takes are a few updates or habit changes. Read on for tips on how to refresh your home and establish a healthy money mindset.</p><h3 class="MsoNormal" style="margin-bottom: 0in; line-height: 24pt; background: white;">Build an estate planning team<o:p></o:p></h3><p>One way to protect your wealth is to <a href="https://www.lifeandmoney.citi.com/lam/articles/money/family/personal-financial-planning-for-families">create a plan</a> and an estate planning team. You'll need at least three pros:<o:p></o:p></p><ul type="disc"><li>A financial advisor who will manage your estate's finances, making recommendations and funding investment, retirement and trust accounts.  <o:p></o:p></li><li>An estate-planning attorney who will guide you in choosing the best options for maintaining your estate after death or in the event of incapacity.  <o:p></o:p></li><li>A tax professional who will support the personal representative or executor of an estate with closing responsibilities by setting up an estate account, preparing tax filings and paying the final distributions to beneficiaries.<o:p></o:p></li></ul><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-1173619393_web_0.jpg" alt="A young woman taking a break from technology" class="right_image" /><h2 class="MsoNormal" style="margin-bottom: 0in; line-height: 24pt; background: white;">Self-care strategies for your home<o:p></o:p></h2><h3>Liven up your space<o:p></o:p></h3><p>A fresh coat of paint or a new accent piece can be an easy, wallet-friendly way to give your home — and your mood — a boost. Color psychology has shown that the shades we choose in our homes impact our emotions, feelings and actions, so be strategic.<o:p></o:p></p><h3>Become a plant parent<o:p></o:p></h3><p>Houseplants not only beautify our rooms and potentially improve air quality but, according to studies, they may also deliver <a href="https://www.lifeandmoney.citi.com/lam/articles/well-being/well-being/wellness-benefits-of-houseplants">health benefits</a> like reducing stress, increasing productivity and improving memory retention and concentration. If you're new to plant care, you may want to choose low-maintenance greenery like a snake plant or pothos. Anyone with animals at home should look for pet-safe options like a Boston fern or a ponytail palm.<o:p></o:p></p><h3>Sort and declutter <o:p></o:p></h3><p>Taking stock of your stuff is a feel-good activity; it's satisfying to purge all the items you no longer need. Even better, it's also a chance to return borrowed items to owners, donate to charity or make extra money reselling the unwanted clothes clogging up your closets.</p><p> </p><p> — <em>With additional reporting from Life and Money by Citi editors.</em></p>

Self-Care Tips for Your Money and Home

<p>Whether you're looking to sell your home or just spruce it up, there are lots of ways to update your space. But which ones are worth the time and money?</p>
<p>Boosting curb appeal is generally a smart move because a beautiful exterior makes a good first impression on potential buyers; it's also the first thing you see when you leave and return home each day. Simple interior switch-ups (new fixtures, hardware or tile, for example) can refresh your rooms too.</p>
<p>To pin down some of the best projects to tackle, we tapped five pros &mdash; including a realtor, a stager and a landscape artist &mdash; to share their value-adding favorites.</p>
<h2>Level-up the entrance</h2>
<p>A well-cared-for path to the front door instantly elevates the look of a home, so consider putting in a new brick or stone walkway, suggests David Migdal, president of Highland Park, IL-based Garden Consultants. If that&rsquo;s not an option, you can also make this spot more welcoming by setting up a seating area with a few chairs and a small table.</p>
<p>And don&rsquo;t overlook the front door, says Migdal. &ldquo;You could paint it so it stands out or replace it with a glass door if the house is modern.&rdquo; To dress it up even more, add some stylish accessories; think earthy planters, an elegant new mailbox or sleek address numbers.</p>
<h2>Focus on the foyer too</h2>
<p>This often-underrated area sets a tone for the whole home, so if yours feels spare or uninviting, it may be worth a refresh. &ldquo;Look at ways to simply activate that space,&rdquo; says Brian Wickersham, founder of AUX Architecture in Los Angeles, CA. &ldquo;Hang fixtures, put art on the walls, have fun with paint color. It can give punch and life to that space immediately when you walk in.&rdquo;</p>
<blockquote>
<p>Hang fixtures, put art on the walls, have fun with paint color.</p>
</blockquote>
<h2>Give high-traffic spots a little love&nbsp;</h2>
<p>When it comes to improving your rooms, you can maximize your efforts and budget by putting yourself in the mindset of a potential buyer. &ldquo;Most buyers are unwilling to do the work and want to walk into a home that&rsquo;s move-in ready,&rdquo; says Brad Lippitz, president of Chicago-based Brad Lippitz Group, Compass. &ldquo;The whole idea is balancing your return with what you put out.&rdquo;</p>
<p>To help your home feel move-in ready, suggests Lippitz, your best bet is to concentrate on key areas like these two:</p>
<ul type="disc">
<li><strong>Bathrooms.</strong>&nbsp;These spaces get a lot of use, so any spruce-ups will make a noticeable difference in your daily life. Plus, run-down bathrooms can be a big turnoff. &ldquo;The worst thing for a buyer is to walk into a bathroom and feel like you&rsquo;ve walked into someone else&rsquo;s used bathroom,&rdquo; says Lippitz. Giving walls a fresh coat of paint and buffing floors so they are scratch-free can go a long way, he says. And it's a good idea to re-caulk bathtubs and showers so they look &rdquo;crisp and fresh.&rdquo;</li>
</ul>
<p>&nbsp;</p>
<ul type="disc">
<li><strong>The kitchen.</strong>&nbsp;A kitchen is the hub of the home, and because the backsplash is a focal point, it warrants special attention. If yours is outdated, consider changing it out for one that's more current, Lippitz suggests. When in doubt, white subway tile is a timeless and universally appealing choice.</li>
</ul>
<blockquote>
<p>Most buyers are unwilling to do the work and want to walk into a home that&rsquo;s move-in ready.</p>
</blockquote>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/easy-upgrades_body-1_1361359903.jpg" alt="white and light wood kitchen with a honeycomb pattern white tile backsplash"></p>
<h2>Make some fast fixes</h2>
<p>A few simple solves can help a room feel notably more polished, which is why it's important to look around your home every once in a while as though you're a visitor; otherwise, it's easy to miss details that are feeling dated or shabby. "Like any other relationship, over time you get used to it and take it for granted," says Amy Bloomer, owner of Baltimore, MD-based home organizing company Let Your Space Bloom.</p>
<p>It's quick and easy to change your hardware, Bloomer says, and replacing your brassy kitchen cabinet handles or old-school wooden knobs on a dresser can modernize the whole room. Look for clean-lined hardware in muted metals or an edgy matte black.</p>
<p>Lighting is another update that can make a dramatic difference. Consider swapping out an ornate chandelier or floor lamp with sleeker versions or plug-in sconces.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-601128064_web.jpg" alt="white walled living room with a gray couch, a low wooden table and a gray wooden cardboard deer head mount on the wall"></p>
<h2>Streamline your spaces</h2>
<p>When professional home stager Justin Riordan, founder of Space and Archer Design Agency in Portland, OR, and Seattle, WA, preps clients' homes for sale, he'll often take a "less is more" approach to furnishing a vacant space or reconfiguring the home and existing household items.</p>
<p>That can mean stripping out some decor in a family room. "We tell everyone to take down their window coverings and bring in as much light as possible," Riordan says.</p>
<p>Or it can be as simple as removing shelving from the walls of a basement. "Making the basement clean and empty so people can see exactly what they're getting will make for a faster sale," he notes. Another top tip: Play up the plants in your yard, Riordan suggests. "Put down mulch that's almost black to make sure your flower beds look rich."</p>
<p>&nbsp;</p>
<p><em>&mdash; With additional reporting from Life and Money by Citi editors</em></p>

Easy Upgrades That Can Add Value to Your Home

<p>If you're evaluating your finances, you might wonder whether it's wiser to hold onto your money or to invest it. But a better question may be: What's the best way to do both?</p>
<p>That's the key to building real wealth, according to finance pros, because if you focus only on saving for the near term, you could be short-changing your retirement &mdash; and if you invest in the future but never save money, you may find yourself underfunded when your mechanic tells you the rattle in your car wasn't just a simple fix. For a more comprehensive approach to managing your money, try these expert tip.</p>
<h3>Put your savings to work</h3>
<p>If your funds are in a savings account earning next to nothing, that can be nearly as effective as stuffing your money under a mattress. Ideally your money should go where it will grow at a higher rate &mdash; either in a high-yield, interest-bearing savings account or into another financial vehicle like a <a href=" https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/money-market-account-or-cd-account" data-link-source="tiny">money market account or certificate of deposit</a>.</p>
<p>You'll want to think through the pros and cons. For instance, CDs typically have fixed rates over their term length, whereas money market rates can fluctuate over time, so your earnings may be less predictable. People tend to like the predictability of a CD, knowing how much they'll earn on interest, but the downside is they can't access their funds before the term is up without paying a penalty.</p>
<p>Others like savings accounts because there's often no minimum required to open one, and you can take the money out whenever you need. Money markets operate like both a savings account and a checking account, with high interest rates and the ability to write checks, along with the ability to sometimes make payments with a debit card (with restrictions on how often).</p>
<h3>Explore a laddered approach</h3>
<p>Staggering CDs or bonds can be a smart way to save more, suggests D. Randolph "Randy" Waesche, a financial professional and the president and CEO of Resource Management, LLC, in Metairie, LA, because it takes advantage of rising interest rates and can also help with cash flow.</p>
<p>Here's how it works: Instead of investing, say, $10,000 into one CD that won't mature for two years, you could take the same money and split it up into securities that will mature in 12, 18 and 24 months. This way, you wouldn't have all your money tied up for two years. In one year, you could take the cash from the first CD or reinvest it, possibly landing a better interest rate, and six months later, you'd have another chance to do the same thing.</p>
<h2>Optimized investing</h2>
<p>Your financial goals should be different for investing versus saving, says Mastrolia, and it helps to keep some guidelines in mind. Generally, she says, if you want your money to be available within three to five years, you should save it &mdash; which could mean putting it in short-term investments such as CDs, for example. But if you can go longer without accessing the money, and you have faraway goals that need funding (like saving for retirement or your kids' college funds), it's a good idea to invest it, perhaps in stocks and exchange-traded funds or ETFs.</p>
<p>This is because, even though there's always a risk when investing, "the market, on average, will provide a greater return," Mastrolia says. "If an investor can leave the money in the market for at least three to five years, statistically speaking, they are likely to make money." Here are questions to consider as you explore investing options.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/SaveorInvest_BodyImage.jpg" alt="Couple sitting on a couch talking"></p>
<h3>Go with an advisor or DIY?</h3>
<p>If you'd rather make financial decisions on your own, there are apps and tools you can use to manage your portfolio and <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/getting-started-with-mobile-investing-apps" data-link-source="tiny">make investments from your smartphone</a><a data-link-source="tiny">. </a>The DIY approach is less expensive, but you miss out on guidance and the professional point of view that an experienced financial advisor can provide.</p>
<p>An advisor's deeper understanding of the financial landscape and investing options can be particularly useful, especially if there's <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/questions-ask-financial-advisor" data-link-source="tiny">market volatility</a>. It's the same principle as working with a real estate broker. Yes, you can sell a house on your own, but you may have a less stressful and more profitable experience working with a professional.</p>
<h3>When's the ideal time to start saving for retirement?</h3>
<p>It doesn't pay to put it off &ndash; the earlier you start, the more you'll have when you need it &mdash; and that means making your <a href="https://www.lifeandmoney.citi.com/lam/home" data-link-source="tiny">401(k) account</a> a priority, not only because contributions are tax-deductible, but also because employers often match 401(k) contributions up to a certain amount.</p>
<p><a href="https://online.citi.com/JRS/pands/detail.do?ID=IRAInvesting" data-link-source="tiny">Individual retirement accounts</a> &mdash; IRAs and Roth IRAs &mdash; are other long-term savings accounts that are worth focusing on&nbsp;and are subject to contribution limits and other eligibility rules. With a Traditional IRA,&nbsp;the amounts contributed may be tax deductible at the time of contribution and, together with earnings, are taxable at the time of distribution. On the other hand, contributions to a Roth IRA are not tax deductible, but earnings on them may not be taxable when withdrawn when certain conditions are met.</p>
<p>If you're deciding which to invest in, keep this in mind: With a Roth IRA, the tax break comes when you retire, since you'll get tax-free withdrawals. That may sound great, and it is, but a traditional IRA's annual tax breaks might help you save more money every year. That said, if you fear you won't make shrewd financial decisions with the annual tax benefits, it may be best to go with a Roth IRA.</p>
<h3>What are your goals and appetite for risk?</h3>
<p>Experts tend to recommend diversifying your financial portfolio and sticking with safer investments the closer you are to retirement. You can also minimize risk with <a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/what-is-systematic-investing" data-link-source="tiny">systematic investing</a>, a process that uses data, algorithms and proven policies designed to grow your financial portfolio.</p>
<p>If you have decades to go before this stage, generally you can take more chances for a potentially bigger return; the thinking is that, if your investments lose money, you'll have time to try to recover it. Granted, markets will fluctuate and there are no assurances, but if you're in a position to wait, you may be able to limit any losses to paper. As Mastrolia points out, "If you look at the S&amp;P 500 as a proxy for the market return over the past 100 years, the average annual return was about 10%."</p>
<p>Building real wealth can take some balanced thinking, but it's worth weighing what you're putting away for the future with your spending choices today to land on your ideal spending-and-saving mix.</p>
<p>&nbsp;</p>
<p><em>&mdash; With additional reporting from Geoff Williams and Life and Money by Citi editors</em></p>

Save or Invest? To Build Wealth, Try a Balance — Here's How.

Boiler Plate 1

L&M Article Template

header