Tuesday links: Again?! Wells Fargo offering mortgages with 3% down and other bits

Wells Fargo is offering mortgages with 3% down payments – Again?! This just feels like a slippery slope. I have to believe that lenders lean from history.

Is it ever too early to start saving for college? – It’s never too early to start saving for college. If you plan to pay for your children’s education, you might need $250K or more per child. When your child is born, you probably have 18 years to start saving up the money. While that might sound like a long time, it goes by in a blink. Having almost 20 years to let your money compound is very helpful. If you can deposit $2000 a year and get 7% on your money, after 18 years, you will have about $73K. Yikes! You need $250K in today’s dollars. If the cost of college increases by 2.5% a year, in 18 years, that $250K will have grown to about $390K. In order to get $400K in 18 years, assuming a 7% return on your money, you need to invest about $11K a year.

Okay, maybe I was being a bit of a sensationalist. I said that college might cost $250K. That’s at the high end. The average cost for private college education is $47,831, so that’s $191,324 for four years, according to CollegeData.com. Regardless, you get the idea. If you are going to pay for your child’s education, start putting money away as soon as you can.

Are we fat or what? – Nearly one in four American homes have 2 (or more) refrigerators. Or is it that we just like to stock up at Costco? Either way, all I can say is: wow!

Microsoft is getting rid of crappy passwords. Google is looking to get rid of all passwords.




Photo by JeepersMedia

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