Prospective homebuyers are finding more leverage through a 20% year-over-year increase in housing inventory, along with cooling sticker prices for homes. A few of these buyers may be able to find a potential mortgage at a lower rate as of early 2021. While the “thaw” in the housing sector is providing some relief, inflation is still weighing on consumer spending, although showing signs of slowing slightly.
Home financing
Are you nostalgic for low prices? So are assumable mortgages.
While mortgage interest rates are not expected to fall to pandemic-era levels, it is still possible to secure a home financed under current market rates. This can be achieved through an assumable mortgage, because it allows the buyer to assume the seller’s existing mortgage.
Most conforming loans and jumbo loans cannot be assumed, but most government-backed mortgages, including FHA, VA and USDA mortgages, allow the new buyer to assume the existing loan. However, there are some drawbacks: In addition to having very few loans available, obtaining a loan can be expensive. This is because a down payment equal to the difference between the purchase price and the seller’s loan balance is usually required. Depending on the age of the loan, this can amount to much more than a 20% down payment.
If you’re interested, there are several ways you can locate properties with potential loans. Specialized search companies may be able to help (subscriptions are usually necessary), and some buyers have found homes with potential financing near military installations. Questions about possible financing options? Contact your local APM Loan Advisor for more information.
Source: npr.org
Assumptions are subject to lender approval, qualifying credit scores, and program eligibility requirements.
insurance
Life changes. As well as your insurance needs.
Although we recognize our basic insurance needs — auto, homeowners, health, and life — that doesn’t mean the best coverage will always be the easiest to find, or the cheapest. Here are three situations where you may benefit from consulting an insurance professional, depending on your future plans and your family’s needs.
If you have young children. If your employer offers group life insurance, you probably think it’s appropriate as long as you’re at your current job. However, the wage may not be more than one or two years’ salary.
This means that if you have younger children, you may want to purchase additional coverage. It is recommended to supplement your employer’s group coverage with an individual whole life policy worth $1 million or more.
If you plan to purchase long-term care coverage. More than 80% of older Americans will eventually need assistance with daily activities, such as dressing and preparing meals. The costs of such care are rising rapidly, even for those who are able to “age in place.”
Although long-term care insurance is an option, it can be expensive, especially if you wait until you’re almost ready to retire before purchasing it. However, you can look at a hybrid product that offers both long-term care coverage and life insurance. For example, you might consider a life insurance policy with a long-term care rider.
If you are looking for more ways to save. One misconception about life insurance is that its sole purpose is to pay a death benefit. However, you have other options. For example, you can purchase permanent life insurance that lasts until the end of your life, building cash value for you. This money can fund your retirement or someone else’s education.
Remember that tax laws are subject to change. This is not tax advice. If you would like assistance reviewing your insurance needs, contact me for a referral to a financial advisor or insurance agent, or consult a qualified tax professional.
Source: usatoday.com
In the news
How to open a 530A account for a child
You may remember the news about a special savings account for under 18s that was announced last year. These accounts evolved into 530A tax-deferred investment accounts, called Trump accounts. Children born between January 1, 2025 and December 31, 2028 will receive $1,000 in seed money for their accounts, courtesy of the federal government.
To qualify for a 530A account, your child must be a U.S. citizen and have a Social Security Number (SSN). You may open a Trump Account for any eligible child under the age of 18; However, the $1,000 match is only open to those born between 2025 and 2028.
To start, File Form 4547 (Trump Account Elections) With your 2025 federal income tax return. Form 4547 enables you to apply for the account and claim the $1,000 “newborn match” if you qualify. After you submit your application, the Treasury Department (or its “partner financial firm”) will contact you to begin the authentication process. The formal review is expected to begin after tax season ends.
Remember that tax treatment depends on individual circumstances and may change. Consult a qualified tax advisor before making investment decisions. You may also want to visit For updates.
Source: Kiplinger.com
Credit and consumer finance
Three lesser-known ways to activate your tax refund
If you expect your tax refund soon, you may have already decided to divert it to savings or pay off outstanding debt. Although these two strategies are common, there are other ways to use your refund wisely.
1. Move it to your emergency fund.
This fund helps you cover unexpected expenses such as purchasing a large home or repairing a car. So, if your home’s heater or your car’s transmission stops working, you’ll be able to handle it without relying on credit. It can also help you manage in the event of a job loss. Ideally, this fund should provide enough to cover basic expenses for three to six months.
2. Fund future medical or dental expenses.
If you or a loved one has scheduled elective surgery or major dental work for 2026, a tax refund can help you prepare. If you qualify for a health savings account (HSA), you may want to consider depositing your refund here, as it allows you to put pre-tax money aside to pay for qualified medical expenses. Or you can choose to put this money into a personal savings account.
3. Start your savings toward a large purchase.
Are you planning to buy a new home, or renovate your current home? Is it time to take that vacation you’ve been dreaming of? Your tax refund can help achieve this. However, it matters where you store your refund, depending on when you plan to withdraw the funds. Consider whether a savings account, high-yield money market account, or certificate of deposit (CD) is the best option for you. The longer the time horizon, the more options there are to earn a return on the money you put aside.
Source: ameriprise.com
Did you know?
Pet care costs are escalating faster than child care costs
No matter who is part of your family — children, pets, or both — the costs of caring for them are rising. But did you know that pet daycare prices are catching up with some forms of child care? For example, if your dog is in daycare five days a week, you might pay between $150 and $300 per week. Infant day care costs between $320 and $345 per week.
While you probably won’t have to pay for your cat’s wedding or your dog’s braces, the costs of caring for them have been rising steadily over the past five years. Since 2020, prices for pet services have risen 34.6%, compared to a 25.8% rise in child care prices, according to the Consumer Price Index (CPI). This is approximately 1.4 times the growth rate.
Gen Z and Millennial pet owners are the biggest contributors to this trend, with 42% saying they prefer pets over children. But most consider providing food and shelter to be the bare minimum of care. Services such as boarding, walking, training, veterinary care and grooming are also important for their pets’ physical and mental health.
Finally, there’s a positive side to pet ownership that you may not have thought about. More than 35% of Americans say their pets motivate them to work harder and find better-paying jobs. So, the next time you see an office sign describing its owner as working hard so his pet can have a better life… maybe don’t be kidding.
Source: Tamkeen.com
