Advertiser Disclosure

Mortgage

The 5/1 ARM: What Is It and Is It for Me?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

5/1 ARM mortgage
iStock

Homebuying involves a lot of decisions. You choose your neighborhood, your home, your mortgage program and your down payment. But you’ll also need to decide on the structure of your interest rate — fixed or adjustable.

While most people prefer a fixed-rate mortgage, there is a market for adjustable-rate loans. Nearly 7% of all loans originated in April 2019 were adjustable-rate mortgages, according to Ellie Mae’s latest Origination Insight Report.

One common adjustable-rate mortgage is known as a 5/1 ARM. It has an initial fixed rate for five years before the interest rate starts adjusting. The rate can change every year for the remaining life of the loan.

An adjustable-rate mortgage can be a good way to get a better initial interest rate, usually lower than a traditional 30-year fixed-rate loan. But before you dive in to an adjustable-rate mortgage application, you’d better know how the changing interest rate will affect what you pay.

Here’s a guide to how 5/1 ARMs work, how they differ from fixed-rate mortgages and their pros and cons.

What’s a 5/1 ARM?

Before defining a 5/1 ARM, we should first define an adjustable-rate mortgage, or ARM. An ARM is a type of mortgage that has an interest rate that changes, or adjusts, multiple times over the life of the loan.

Different types of adjustable-rate mortgages have interest rates that change at different intervals and are limited to certain levels of increase each time. Most ARMs start out with a fixed interest rate for several years and eventually transition to a period with an variable interest rate for the rest of the term, usually a total of 30 years.

In the case of a 5/1 ARM, the mortgage rate is fixed for the first five years. That’s what the “5” refers to. Then, the mortgage can adjust each year thereafter for the remaining 25 years of the loan term. That’s what the “1” refers to, since the rate changes after one year.

Since the 5/1 ARM is a blend of a fixed-rate and adjustable-rate loan, it can also be known as a hybrid mortgage.

How 5/1 ARM interest rates adjust

Adjustable-rate mortgages are less predictable than fixed-rate loans and are directly impacted by economic factors after you’ve started repaying the loan.

Changes to the interest rate on an adjustable-rate mortgage are based on an index, which is a benchmark interest rate that reflects general market conditions, according to the Consumer Financial Protection Bureau. The most common index used for mortgages is the one-year London Inter-Bank Offer Rate, or LIBOR for short.

Mortgage lenders use the index and then add on a fixed margin to determine your interest rate. A margin is a set number of percentage points added on to the index. So, if the one-year LIBOR is 2.65% and your lender’s margin is 2.15%, your mortgage rate, or “fully indexed rate,” at that time would be 4.8%.

Interest rates on 5/1 ARMs typically start out lower than those for fixed-rate mortgages. As of mid-May 2019, the average 30-year fixed-rate mortgage was 4.07%, while the 5/1 ARM was 3.66%, according to Freddie Mac’s Primary Mortgage Market Survey.

Let’s take a look at how a 5/1 ARM stacks up against a 30-year fixed-rate mortgage after the first five years. We’ll use a hypothetical $250,000 house and assume the buyer is putting down 20%, which means they’ll borrow a $200,000 mortgage.

 

5/1 ARM

30-Year FRM

Interest rate

3.7

4.1

Monthly payment
(Principal and interest)

$920.57

$966.40

Interest paid after five years

$6,639.60

$7,406.94

Principal paid after five years

$4,407.19

$4,189.82

As shown above, because the 5/1 ARM has a lower interest rate during its fixed-rate period than the 30-year fixed does, the buyer would pay $767.34 less in interest after five years and pay down $217.37 more of the principal balance of the loan. The results could quickly reverse once the 5/1 ARM’s interest rate begins adjusting, however.

Let’s look at the 5/1 ARM (on a $250,000 home with a $50,000 down payment) after two interest rate adjustments to understand how the changes can impact the monthly mortgage payment.

 

Adjustment #1

Adjustment #2

Index

2.65%

2.8%

Margin

2.15%

2.15%

Interest rate (Index + margin)

4.8%

4.95%

Monthly payment (Principal and interest)

$1,049.33

$1,067.54

In the above scenarios, the 5/1 ARM interest rate jumps significantly higher than 3.7%. By the time the rate jumps to 4.8% and again to 4.95%, the monthly payment increases by nearly $130 and $150, respectively.

Pros and cons of 5/1 ARM

As with any financial product, there are benefits and drawbacks. Consider the following pros and cons of borrowing a 5/1 adjustable-rate mortgage.

Pros

  • ARM interest rates are usually lower than 30-year fixed-rate mortgages (and sometimes 15-year fixed-rate mortgages) for the first five years, which means you’ll pay less in interest during that time.
  • Monthly mortgage payments are also typically lower in the first five years, thanks to the lower interest rate.
  • There is a limit to how high your interest rate can increase over the life of your loan, which is called a lifetime adjustment cap. The cap is typically five percentage points, but your lender’s cap could be higher, according to the CFPB.

Cons

  • After the first five years of a 5/1 ARM, the interest rate can adjust each year and is not predictable. Although there’s a cap on how much your rate can increase the first time it adjusts, it can still be significantly higher than the fixed rate you’re losing.
  • Because your interest rate adjusts over the life of your loan, so does your monthly mortgage payment. If a higher mortgage payment would greatly impact your budget, this could cause you some affordability problems.
  • If you want to keep a fixed interest rate, you must refinance into a fixed-rate mortgage, which comes with closing costs and other fees. You must also qualify for a refinance in order to get out of your existing mortgage.

A 5/1 ARM might work for you if …

“For certain people, like first-time homebuyers, 5/1 ARM mortgages are very useful,” said Doug Crouse, a senior loan officer with nearly 20 years of experience in the mortgage industry.

Homebuyers in the following scenarios could benefit from a 5/1 ARM:

  • First-time buyers who plan to move within the first five years of owning their home.
  • Buyers who plan to pay of their mortgage very quickly.
  • Buyers who are borrowing a jumbo mortgage.

Crouse explained that with some first-time buyers, the plan is to move after a few years. This group can benefit from lower interest rates and lower monthly payments during those early years before the fixed rate changes to a variable rate.

Mindy Jensen, a real estate agent and community manager for BiggerPockets, an online community of real estate investors, agrees. “You can actually use a 5/1 ARM to your advantage in certain situations,” she said.

A 5/1 ARM could work well for someone who wants to aggressively pay down a mortgage in a short amount of time, Jensen explained. After all, if you know you’re going to pay off your loan early, why pay more interest to your lender than you have to?

“The lower initial interest rate frees up more money to make higher principal payments,” Jensen said.

Another group of people that can benefit from 5/1 ARM are those who take out or refinance jumbo mortgages, Crouse added.

For these loans, a 5/1 ARM makes the first few years of mortgage payments lower because of the lower interest rate. This, in turn, means that the initial payments will be much more affordable for higher-end properties.

Plus, if buyers purchased these more expensive homes in desirable areas where home prices are projected to rise quickly, it’s possible the value of their home could soar in the first few years while they make lower payments. Then, they can sell after five years and hopefully make a profit.

However, keep in mind that real estate is a risky investment and nothing is guaranteed.

What Mortgage Amount Do you Need?
Calculate Payment Secured

on LendingTree’s secure website

A 5/1 ARM isn’t right for you if …

For homebuyers who plan to stay put for longer than five years, Crouse and Jensen share the sentiment that a 5/1 ARM might not be as beneficial for them.

Homeowners should also consider whether they want to be landlords in the future, Jensen added. If you decide to move out of your home but keep the mortgage and rent out your home, a 5/1 ARM may not serve you.

Additionally, if you think there’s a chance you might not be able to refinance out of a 5/1 ARM by the time your interest rate starts adjusting, you might consider a fixed-rate mortgage instead.

The bottom line

The 5/1 adjustable-rate mortgage can offer you the benefits of a lower interest rate and monthly payment, especially in the first five years of the loan. This alone may make it an attractive product for homebuyers.

Still, you can’t predict how high your interest rate can go when it transitions from fixed to variable, and that’s a budgeting concern you’ll need to consider when weighing your home financing options.

If after reading this guide you think a 5/1 ARM might be right for you, keep this list of questions in mind as you gather mortgage quotes from lenders:

  • How long do I want to live in this house?
  • Will this house suit my family if my family grows?
  • Is there a chance my job will transfer me elsewhere?
  • How often does the rate adjust after five years?
  • When is the adjusted rate applied to the mortgage?
  • If I want to refinance in five years, how much might that cost me?
  • How comfortable am I with the uncertainty of a variable rate?
  • Do I want to rent out my house if I decide to move?

Once you’ve filled in the answers to the above questions, your next step is to understand the minimum mortgage requirements for the available loan programs.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Cat Alford
Cat Alford |

Cat Alford is a writer at MagnifyMoney. You can email Catherine at [email protected]

Crissinda Ponder
Crissinda Ponder |

Crissinda Ponder is a writer at MagnifyMoney. You can email Crissinda here

Compare Mortgage Loan Offers for Free

Home Purchase Quotes

Home Refinance Quotes

(It only takes 3 minutes!)

NMLS #1136 Terms & Conditions Apply

Advertiser Disclosure

Mortgage

What to Know About Getting a Mortgage on a Second Home

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

iStock

Although 36 percent of investors and 29 percent of vacation home buyers pay cash for their properties, many finance their homes, according to a survey by the National Association of Realtors Research Department. But even buyers who finance their second homes have a lot of cash on hand: 47 percent of investors and 45 percent of vacation home buyers finance less than 70 percent of the home’s purchase price.

That’s not to say you can’t get a second home with a smaller down payment, but it’s one of many important things to think about when looking to get a mortgage on a second home.

Is buying a second home right for you?

Before making a huge financial commitment like this, make sure you ask yourself these crucial questions:

Can I afford a second home?

Many families love the idea of buying a second home, but think about all the costs you incurred when buying your primary residence:

  • Down payment
  • Closing costs
  • Monthly mortgage payment
  • Property taxes
  • Property insurance
  • Private mortgage insurance (PMI)
  • Utilities
  • Landscaping and upkeep

You’ll incur many of these same costs with a second home, too. For example, Doug Crouse, a senior loan officer with nearly 20 years of experience in the mortgage industry, says PMI can be especially costly: “When it comes to second homes, PMI rates are about 50% higher than what they would be for a primary residence.”

However, a second mortgage isn’t inherently more expensive than a first mortgage. Dan Green, founder of Growella and a former top producing loan officer with 15 years of mortgage lending experience, says, “There is no closing cost difference on a second home [or] vacation home mortgage as compared to a primary residence.”

Keep in mind that if your second home is in a faraway location, you have to consider the long-distance costs of upkeep.

Will this be a vacation rental or an investment property?

There are typically two reasons people want to purchase a second home: buying it as a vacation home or buying it as an investment property. How you use it will have implications for your taxes.

According to the IRS, your home is a vacation home if you spend the greater of 14 days a year or 10% of the time you rent it to others.

Keep in mind that if you use your home solely for your family to vacation there, you can’t deduct items on your tax returns like utilities and real estate taxes like you would if it was an investment property. While you can deduct mortgage interest on a vacation home like you do for your first home, the new tax law for 2018 only allows you to deduct mortgage interest on your total properties up to $750,000. So if you already own a $750,000 home, you would not be able to deduct your mortgage interest on a second home.

If you use your second home to generate income from rent, you may be able to deduct items on your tax returns like utilities, real estate taxes, the fees you pay your property manager and more, according to the IRS. (Think of it like being a business owner who gets to deduct business expenses versus a vacation home owner.)

If you don’t want to choose between your second home being a vacation home or being an investment property, you don’t have to. It can be used as both, but you have to keep impeccable records that show when it’s being used and how, so you can properly itemize your deductions. For example, if you use it for half the year as a vacation home and rent it out the other half of the year, the IRS says you can only deduct your utilities, etc., on your taxes for the portion of the year you’re treating your home as a business and renting it out. It’s a good idea to consult a tax professional about how such an investment will affect you before you commit to buying a second home.

Is a second home a good investment?

Whether or not a second home is a good investment depends on the individual. Roger Wohlner, a fee-only financial planner, says, “One should be buying a second home for a specific reason such as a family gathering spot, an affinity to a location (a lake, etc.) or some other reason. Because of that, it can’t really compare to another investment.”

In other words, you can’t quantify relaxation, memories or family time as part of a return-on-investment calculation. That’s why it’s crucial you make sure you can afford the second home from the get-go.

If you’re considering a second home strictly as an investment property, whether or not it’s a good decision depends on many other decisions you make along the way, like how much you choose to charge in rent, which improvements you make to the property and how you plan to manage the property, to name a few. Before you decide to rent out an income property, make sure you’ve considered these seven major cost areas.

How to get a mortgage on a second home

What’s the difference between your primary mortgage and your second home mortgage?

There are a few differences between these two mortgages. Depending on your credit score and other qualifications, you may be able to get a conventional mortgage for a primary residence with as little as 3 percent down (but you will have to pay private mortgage insurance, or PMI.) You might also qualify for an FHA loan with 3.5 percent down. Generally, the higher your credit score, the better interest rate you will qualify for, but lenders may consider your application with a 620 or lower credit score. (You can read more here about the most important factors in getting approved for a mortgage.)

For a second home, you could be required to put 10 percent to 30 percent down, depending on your credit or debt to income ratio. Lenders like to see cash reserves, as well, to show that you can cover one to 12 months of payments. Additionally, lenders like to see a 640-700 credit score for second homes, and your interest rates might be a quarter of a point to a half a point higher than your primary mortgage, although Green says, “Mortgage rates on second homes may be slightly higher, or may not be higher at all.”

When it comes to credit qualifications for a second home, Crouse says, “Second home credit requirements are typically the same as primary residence for conventional lending.” Additionally, he says there’s no difference in the approval process. Green corroborates this. He says, “Minimum credit score thresholds aren’t usually different for vacation homes as compared to primary residences. However, lenders often ask for additional monies down.”

If you want to find a mortgage for a second home, Crouse says, “Typically lenders who offer primary home loans would also offer second home financing.” Green advises, “The mortgage-comparison process is the same. Do your research, talk to two or more lenders, and choose the lender that works best for you.”

You’ll also want to ask yourself these questions in order to avoid common mistakes:

Can I really afford this place? Wohlner says, “If you don’t have the cash for the down payment on a second home you shouldn’t be buying one.”

What loan terms make the most sense for this property? Just because you have a 30-year fixed-rate mortgage on your primary residence doesn’t mean that’s the right choice for a second home. Crouse says, “A common mistake is not looking at adjustable rate loans as an option,” because second homes are often “a luxury item and therefore something people liquidate when there is a change financial situation.”

Have I explored all my options? Green says, “When you’re shopping for a mortgage on a second home, make sure to actually shop.” He adds, “You’re looking for the best combination of price and service on your loan. It’s good to shop around.”

What are some ways to pay the down payment on a second home?

The best way to pay for a down payment on a second home is to pay for it with cash. Crouse says, in his experience, most people use cash as their down payment on second homes. The reason, he says, is, “Most buyers don’t want to tie up personal residence equity into their second home.”

If you don’t have the cash on hand and you’re committed to buying a second home, you can consider taking out a HELOC on your primary residence and using that money for the downpayment for your second home.

Taking out a HELOC comes with risks, though. You are leveraging your primary residence to purchase a second residence, which could cause you to lose your home if you fail to make your HELOC payments. In fact, Wohlner completely advises his financial planning clients against getting a HELOC to pay for a down payment on a second home. He says you should pay for it in cash.

Alternatives to mortgages for a second home

Getting a mortgage for a second home isn’t the only way to get the vacation property or investment property you want. Here are some other options:

Pay cash

Paying cash for your second home is a great way to ensure you don’t pay interest to a bank. It also means you’ll have no monthly mortgage payments on your second home, and that’s a great feeling. Of course, you’ll no longer have easy access to that money in case of an emergency. You might also prefer to get a mortgage at a low-interest rate and instead invest your cash in the stock market. Again, this is up to you, your risk tolerance and your cash reserves.

Get a joint mortgage with family

Sharing a second home and getting a mortgage with a family member could be a great way to split the costs and responsibilities of having a second home. Of course, involving multiple applicants in the mortgage process may make it a bit more logistically challenging.

You should also know that there are tax implications. When claiming the mortgage interest deduction, you may have to include an attachment in your tax return showing how much of the mortgage interest you paid. If you’re the person who receives the Form 1098 (the mortgage interest statement), you will deduct only the portion you paid and have to let the other borrowers know what their shares are.

Timeshare

Timeshares are an $8.6 billion industry, and the average price of a timeshare interval is $20,040, according to the American Resort Development Association. (A timeshare interval is the set number of days and nights per year an owner uses the property, usually a week, according to the ARDA.)

Now, you can go to large, well-known companies like Disney to find your own timeshare. With a timeshare, you typically get to visit a specific place every year for a set amount of time, like one week. So, you don’t have the flexibility of getting to visit your second home any time you want, but it can be more cost-efficient. Another con is that timeshares come with hefty dues that can increase each year.

Bottom line

Ultimately, buying a second home is an exciting prospect. If you vacation often to the same place, it can be a great way to become an official part of that community. However, buying a second home is a serious financial commitment that requires a large down payment and other maintenance costs. Luckily, if you decide you aren’t ready to buy a second home yet, you can still use vacation rental websites and continue to try new locations until you’re finally ready to take the plunge.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Cat Alford
Cat Alford |

Cat Alford is a writer at MagnifyMoney. You can email Catherine at [email protected]

Compare Mortgage Loan Offers for Free

Home Purchase Quotes

Home Refinance Quotes

(It only takes 3 minutes!)

NMLS #1136 Terms & Conditions Apply

Advertiser Disclosure

Reviews

Discover Customer Service Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

iStock

These days, financial companies need to have impeccable customer service. Not only are there a significant amount of competitors, but consumers now go to social media to air their grievances. With this in mind, it’s important for financial companies to take the time to listen to their customers and serve them well.

One financial company that has a particularly good customer service reputation is Discover.

Discover’s customer service reputation

Discover has an award-winning customer service team and is known for high customer satisfaction rates. It has won numerous industry awards and has been in the top rankings on several customer satisfaction surveys in recent years. It ranked high in several studies, multiple years in a row, which indicates a continued dedication to customers.

Below are some examples of recent praise and awards Discover earned:

What’s impressive about this list is that Discover wins awards in multiple categories. Not only does the financial industry recognize its excellence with credit cards and banking, but it also gets top honors in new customer service categories, like with its mobile app.

How Discover compares

Although Discover ranked the highest in customer satisfaction with credit card users in J.D. Power’s 2016 rankings, it came in second place behind American Express in 2017.

Still, Discover has several standout features when compared with other major financial companies, especially with its app. You can communicate with Discover’s customer service team through the app 24/7. Another noteworthy feature is that you can “freeze” your account through the app if you lose your card. Discover also touts its 100 percent U.S.-based customer service, though the effect that has on the bank’s customer service quality is hard to measure.

Also, Discover is what’s called a branchless bank, which means there are no physical locations. Among branchless banks, Capital One 360 ranks the highest in customer satisfaction, whereas Discover Bank ranks second, followed by E*TRADE Bank. J.D. Power noted in its direct banking study. (The rankings in this category were extremely close.)

However, if you’re the kind of person who likes the ability to go into a bank branch to resolve account issues, this sort of bank structure may not appeal to you.

How to get in touch with Discover customer service

You can get in touch with Discover customer service in the following ways:

Mail

Payment Address

Discover Financial Services
P.O. Box 6103
Carol Stream, IL 60197-6103

Customer Service – General Inquiries

Discover Financial Services
P.O. Box 30943
Salt Lake City, UT 84130-0943

Discover Gift Cards

P.O. Box 52145
Phoenix, AZ 85027-2145

Phone

U.S. Calls

1-800-DISCOVER

Outside U.S. Calls

1-801-902-3100

TDD (for the hearing impaired)

1-800-347-7449

Live chat

In order to speak to a Discover customer service representative via live chat, you need to log into your account first on the top right of the Discover homepage.

Self-service

There are also numerous places where you can get help with specific Discover products. Find answers to frequently asked questions, redeem rewards, learn how to find out your FICO score and more at the links below.

Credit Card Help Center

Make payments, register your account,
report a lost or stolen card, activate your card, get a cash advance,
live chat, call 24 hours a day

Credit Resource Center

Read content about credit card tips, credit health, saving money,
debt management, credit scores, budgeting, and more.

Banking Help Center

A homepage that lists several different ways to contact
Discover to talk about their banking products, like opening an
account or reporting fraudulent activity.

Home Equity Help Center

Use this page to access financial calculators, learn how you can use
your home equity, find loans and rates, and of course apply
for a home equity loan.

Student Loans Help

Use this page to log into your student loan account and email
Discover specific questions. You can also use this page to pay your
student loans, learn how to apply for student loans, and access student
loan calculators.

Personal Loans Help

Use this page to find out the types of personal loans Discover offers.
You can also access resources, calculators, make payments, and see
if you qualify for a personal loan in just a few minutes
(with no impact to your credit score.)

Business Card Help

This page leads to the same general “Credit Card Help Center”
page mentioned above.

Gift Card Help

You can use this page to get contact information related to
Discover gift cards. You can also activate the card, check your balance,
and see a list of FAQs.

Discover card options to consider

Discover has several different credit card options to consider. Below are some of the most popular Discover it cards.

Keep in mind that one of the best perks among these cards is no annual fee. Additionally, there is significant protection for shopping and purchases. For example, Discover covers your purchases up to $500 if they are stolen or damaged. It also offers extended product warranties and will refund the difference if you find a lower price on one of your purchases elsewhere within 90 days.

Discover it® Balance Transfer

The best part of this card is definitely the introductory 18-month balance transfer offer. Keep in mind that you will have to pay a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* , but then you get 0 percent interest for 18 months (13.99% - 24.99% Variable APR, thereafter). This card is best for people with good credit scores who want to get out of credit card debt. Keep in mind you cannot transfer a balance from another Discover card to this card. You can read our full review here.

Discover it® Balance Transfer

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Discover it® Secured

This credit card is for people who have no credit or bad credit. Cardholders put down a minimum deposit of $200 to secure a credit line so they can work on improving their credit scores. There is a $0 annual fee but there is a high APR (24.99% Variable APR), which should not be a problem if you pay your card off every month. The card stands out from other secured cards in that it offers rewards and automatic account reviews after eight months, to see if you can “upgrade” to an unsecured credit card and get your deposit back. You can read our full review here.

Discover it® Secured

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Discover it® Miles

Like the other Discover cards on this list, this card comes with a  $0 annual fee. The biggest benefit is that you’ll earn 1.5 points on every dollar you spend, which you can use toward travel. This card is best for those who love to travel and would rather all of their points go toward that. What sets it apart from other popular travel credit cards is that Discover will match ALL the Miles you’ve earned at the end of your first year, automatically. For example, if you earn 35,000 Miles, you get 70,000 Miles. That’s $700 towards travel! The more you earn, the more you get.

Discover it® Miles

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Discover it® chrome

This card is similar to other Discover cards except it’s perfect for people who enjoy dining out. Discover will give you 2 percent cash back at restaurants and gas stations up to $1,000 in combined purchases every quarter — no sign-ups required. Plus, Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched.

Discover it® chrome

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

To see other types of Discover credit cards and find the one that fits you best, check out all of the Discover cards, which includes student cards. Don’t forget you can also get your FICO® score for free.

Check out all the other cardmember benefits here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Cat Alford
Cat Alford |

Cat Alford is a writer at MagnifyMoney. You can email Catherine at [email protected]