It’s time for many Americans to decide on their vacation destinations, although fewer are headed to expensive, exotic destinations than in 2024. Consumers are concerned about continued economic volatility and possible overseas conflicts. However, would-be homebuyers are enjoying an increasing number of properties to choose from, as more sellers are entering the market and even lowering their asking prices.
Home Financing
Buy a Home Sooner with Your BFF
If you’re shopping for a home but don’t want to go it alone, consider finding the right person for a co-buying arrangement. This can make home ownership considerably more affordable, from the initial purchase to sharing monthly expenses. Here are some co-buying basics.
While you won’t need a special type of loan, the number of people included in the purchase may be limited. The application is completed with all borrowers’ details, and reviewed for combined incomes, assets, debts and credit scores. This is called “collective eligibility.”
After move-in, everyone’s name will be on the mortgage, so it’s up to the co-borrowers to decide how the mortgage will be repaid. If one person can’t make a contribution to a payment, it’s up to the other (or others) to handle that month’s payment.
When preparing a shared home’s title, co-borrowers generally choose one of two options.
Joint tenancy: Everyone shares equal ownership of the home, regardless of their initial investment.
Tenancy in common: Ownership shares are equal to how much each person invested in the property.
While it’s vital that co-borrowers are all equally dedicated to a major investment, it’s an arrangement that can be uniquely satisfying…especially when co-borrowers share some hobbies and interests. Interested? Contact me to learn more about your options.
Source: myhome.freddiemac.com
Insurance
Cut-Rate Home Coverage Can Be Expensive
Premiums for homeowner’s insurance have risen this year by over 17%. In addition to the increasing severity of weather events like hurricanes, inflation and rising property prices are also straining household finances. As a result, some consumers are cutting costs where they can, including their homeowners insurance coverage.
However, reducing this type of coverage may only save money in the short term. Even worse, it could contribute to homeowners ending up with expenses that surpass the savings of a cheaper premium.
For example, do-it-yourself projects are popular with first-time homeowners, yet mistakes made during the process may not be covered under insurance. Another example: If a policyholder’s home is damaged and the HVAC or electrical system needs to be replaced, being under-insured will mean that the homeowner will have to pay the difference.
Fortunately, there are alternatives to being underinsured. In addition to “bundling” different types of insurance with the same company for a discount, homeowners may earn discounts for home improvements such as an alarm system or new roof. Ultimately, being smarter about insurance can translate to lasting affordability and peace of mind. Contact your local APM Loan Advisor if you have any questions.
Source: propertycasualty360.com
In the News
A Market in Waiting: Mortgage Rates Hold Steady as Buyers Hesitate
If it feels like mortgage rates haven’t moved much lately, you’re not imagining things. Rates for 30-year fixed mortgages have been hovering between the high-6% and low-7% range for several weeks, creating a kind of “holding pattern” in the housing market.
This plateau is leaving many buyers unsure of what to do next. Should you wait for rates to drop—or move forward before home prices rise further? The truth is, the current market is tricky, and many are pressing pause while they watch how things play out.
Rates are staying put largely because of broader economic uncertainty. While inflation is gradually improving, the Federal Reserve hasn’t yet signaled a clear plan to lower rates, and bond yields—which heavily influence mortgage pricing—have been bouncing up and down without making a definitive move. All of this has contributed to a “wait and see” mentality for both buyers and sellers.
So, what does that mean for you? If you’re in the market for a home, this could be a good time to get prepared. Locking in a rate now could protect you if rates climb higher—but if they drop, you may have refinancing options down the road. And if you’ve been pre-approved already, this could be a smart time to revisit your budget, explore different loan options, or talk to your lender about ways to boost affordability, like rate buydowns or adjustable-rate mortgages.
The bottom line: While the market may be in a holding pattern, you don’t have to be. Taking small steps now—whether it’s improving your credit, boosting your savings, or simply staying informed—can put you in a strong position to act when the time is right.
Source: cnbc.com
Credit and Consumer Finance
Should You Pay for Credit Monitoring?
Chances are, you’ve seen ads for credit monitoring services from a variety of sources, including the three major credit bureaus. Here’s how it works.
Credit monitoring helps protect you from identity theft. It alerts you when a new credit application’s been made in your name, when new users are authorized, and when your credit score changes.
Some offer more intel, such as informing you of credit limit increases, changes to your personal information, and alerts of large transactions.
If you’re considering subscribing to a credit monitoring service, here are some things to keep in mind.
– Some offer helpful extras, such as credit score simulators and educational tools.
– If you’ve already been a victim of identity theft or fraud, this service can provide assurance that it won’t happen again.
– Some offer reimbursement for stolen funds and other expenses related to identity theft. Be sure to read the small print if this coverage appeals to you.
– Monitoring services offered by one of the three credit bureaus may be attractively priced, but they won’t inform you of changes to your two other credit scores. Be sure the service includes “three-bureau credit monitoring”.
Since these services’ pricing and options vary widely, be prepared to do some comparison shopping before you decide.
Source: nerdwallet.com
Did You Know?
Strategies For Raising Money-smart Kids
Some of us inherit at least a few of our parents’ habits, including how we manage our money. However, not all parents are Warren Buffets; some are more like Nicolas Cage. You may have had to learn your money smarts after leaving home.
If you’d like to help your children or other kids in your life develop smart money management habits, here are some tips you can personalize and share.
Children aged four to nine may not understand basic cash flow. This is why they don’t understand why they can’t have that toy now instead of later. This is an ideal time to explain the basics. Parents and caregivers work so everyone has a home, clothing and food, and to have fun now and then.
It’s also a good time to explain how delayed gratification works, and why it’s better than impulse buying.
Charitable giving can also be learned at a very young age. Explain how even small donations can make a big difference.
Instead of a simple piggy bank, give children a “Give, Save, Spend” bank or help them make their own. This teaches them that spending isn’t the only thing money does.
Children aged 10 and older can be introduced to more complex ideas. For example, a lemonade stand teaches them how to make change, plus basic rules of profit and loss.
Comparison shopping is another financial habit to teach. For example, you can ask children to compare the prices of their favorite fruits and soda at the grocery store.
Make some time to share your investment portfolio details with children. Explain how they work: “When McDonald’s makes money, we make money too.”
As children grow older and develop their math skills, you can introduce them to things like compound interest, choosing a stock or bond, and how charging purchases can be more expensive than they appear.
Source: whitecoatinvestor.com