American Pacific Mortgage Blog

APM Elevate: October 2024

Written by American Pacific Mortgage | October 21, 2024 at 3:00 PM

REACH YOUR GOALS

Mortgage Review: Take Advantage of Improving Interest Rates

The Federal Reserve is lowering interest rates, and now is the perfect time to take a fresh look at your mortgage. A quick review could yield lasting benefits, especially if you have purchased a home in the past few years or need to tap into your home equity. 

A reduction in your interest rate can lead to significant savings over the life of your loan and in your monthly payments. Plus, a refinance could help you pay off and free up cash for other financial goals or expenses.

Here are ways refinancing your loan can help you save money and reach your financial goals faster.

1. Lower Your Monthly Payments

Refinancing your mortgage at a lower interest rate offers an immediate benefit: a lower monthly mortgage payment. This reduction, even by a fraction of a percentage point, can significantly impact your household budget.

On top of that, a lower payment frees up cash for other essential expenses. It gets easier to cover costs like utilities, groceries, or healthcare. You could build an emergency fund or save for future goals, like education or retirement. A simple change in your mortgage rate or term can have far-reaching effects on your financial situation.

2. Pay Off Your Mortgage Faster

Refinancing isn't just about lowering your monthly payments. It can also be a strategy to become mortgage-free sooner. With lower interest rates, you might be able to shorten your loan term without significantly increasing your monthly payments.

Imagine switching from a 30-year real estate loan to a 20- or 15-year term. You could pay off your home years earlier, saving tens or hundreds of thousands of dollars in interest over the life of your loan. This is a powerful way to set yourself up for a more financially secure future.

3. Tap into Your Home Equity

Refinancing isn't just about lowering your mortgage interest rate. A cash-out refinance allows you to access the equity in your home or investment property. 

Equity is the difference between your home's value and your loan amount. It grows over time as your home increases in value and you pay down your mortgage. Refinancing lets you turn some of that equity into cash, which can be wise if you need funds for a large expense like home improvements or college education, to pay off high-interest debt, or to make future investments.

You could use this cash to renovate your home, potentially increasing its value further. The choice is yours, but remember: You're borrowing against your home, so use this option wisely.

We're here to help.

When interest rates change, timing is everything. A mortgage review gives you the chance to jump on current market conditions. You can save money, improve your loan terms, and move closer to your financial goals. There are even more advantages to getting a review - read the entire article here.

Don't let this opportunity pass you by. The sooner you act, the sooner you can benefit from these potential improvements - and even if rates aren't exactly where you want them to be, we can set up a target rate for you and have everything ready to jump as soon as your target is reached!

MORTGAGE IQ

The Fed Cut Rates, So Why Aren't They Going Down More?

Ever since Federal Reserve Chair Jerome Powell announced a half-point reduction to the central bank rate, it's been a frustrating couple of weeks. Many believed that mortgage rates would begin to fall a little faster after the Fed's rate cut, including the respondents to a Fannie Mae sentiment survey. The percentage of respondents who expected rates to go down was the highest since 2021.

However, the recent jobs report was considerably stronger than expected. This affected the market and convinced some traders to wait for next month's jobs numbers before expecting rates to fall. This, combined with other factors such as inflation data and next month's election, have contributed to creating a slow-moving, unpredictable market that won't tell us where it's headed until more economic data is available.

Source: mortgagenewsdaily.com

FINANCIAL NEWS

Factors Affecting Gasoline Prices

Have you ever taken a longish road trip and noticed how gas prices changed as soon as you crossed a state line? While prices depend largely on the price of oil and refining costs, drivers in each state also have federal, state and local taxes and fees affecting their wallets.

In addition to a current federal tax of 18.4 cents per gallon, most states charge multiple taxes and fees. States use tax revenue to fund infrastructure improvements and environmental initiatives.

Those costs add up to an average of 32.6 cents per gallon in state taxes, according to U.S. Energy Information Administration data. Combined with the federal tax, that's about 51 cents per gallon factored into the total price.

As you're already aware, state taxes can vary widely. Here are a few examples:

California's rate of 69.8 cents per gallon puts it #1 for pricey fuel, followed by Illinois and Pennsylvania.

While Alaska gas is a bargain with a 9-cent state tax per gallon, you'll have to drive almost 2,000 miles from the state of Washington to enjoy the savings. Mississippi (18.4 cents) and Hawaii (18.5 cents) also have some of the lowest state taxes.

Source:  nerdwallet.com 

DID YOU KNOW?

Origins of Popular Halloween Animals

If you've recently decorated your home or office for Halloween, chances are it features a few of these animals. If you've ever wondered why they're spooky superstars, here are some facts.

Black cats are one of the most popular Halloween animals. The superstition that they represent bad luck goes back to Greek mythology, where they were associated with Hecate, the goddess of magic, witchcraft, and sorcery.

Bats are another famously spooky animal. The association may have begun with the Celtic festival Samhain, where bonfires attracted insects, which in turn attracted bats. These were thought to be spirits disturbed by the fires. Bram Stoker's 1897 novel Dracula cemented their sinister reputation by portraying them as vampires.

Spiders and spiderwebs are often associated with dark places, old buildings, and other spooky locations. While they don't have the mythological background of other Halloween animals, it's difficult to find a picture of a haunted house without a few spiderwebs for creepy effect.

Crows congregate in groups called murders, which some feel is sufficient reason to include them in Halloween decor. While you may have seen them scavenging unappetizing items like roadkill, they're one of the most intelligent animals around. For example, a Swedish city has trained crows to pick up and dispose of cigarette butts in exchange for food.

Source: mentalfloss.com

PERSONAL FINANCES

Why People Overspend, And How to Stop

According to a new survey, almost 40% of us are guilty of overspending to impress others, and around 10% of the overspenders are struggling to get out of debt. Here are some findings from the survey—some may surprise you!—together with some strategies to help you resist temptation.

  • Many people who feel the need to impress also feel the need to prove they're successful. Others overspend to impress a date, or to give back to someone who's made a generous gesture.
  • Generation Xers aged 45 to 58 are most likely to currently be in debt to impress others. It's the reason 34% of them overspent.
  • Most who overspent to impress others regret their spending, with 77% regretting it. Also, more than 30% aren't in contact with one or more of the people they wanted to impress.
  • Overspending is also fueled by feelings of competition. Nearly 30% of Americans feel financially pressured to keep up with others, mainly their family (17%) and friends (13%). Generation Zers aged 18 to 26 feel the most pressure (51%).
  • There's no gender divide—38% of men have overspent to impress, versus 39% of women.

Peer pressure is nothing new, and it's not going away soon. So here are some tips to keep more of your money.

Review your budget regularly. A well-planned budget allows you to prioritize spending, so you may feel less pressure to overspend. It also lets you shuffle money around when you go off the rails.

Ask yourself why you want to buy. Do you really need the item, or do you think it will make you appear more successful or generous? Make sure you're spending for the right reasons.

Give yourself a cooling off period. When you have the temptation to buy a designer item, gift or similar item, walk away and tell yourself you'll think about it. There's no reason it can't wait a few days, and chances are, you won't go back for it.

Source: lendingtree.com

FOOD

Halloween Cupcakes

No matter what your family's favorite themes, these Halloween Cupcakes can be decorated in a variety of spooky ways. You can bake the cupcakes or save time with store-bought, then check out this video with your kids to see how to add worms, spiders and other ghoulish toppings. (Milano cookies make great tombstones!)

CHARITABLE GIVING

Options for Supporting Hurricane Recovery

Several states were hit hard by hurricanes Helene and Milton, and many of us are looking for ways to help those made homeless. If you're planning to make a donation to help recovery efforts and want to ensure it goes to the best possible charity, your first stop should be Charity Navigator. This site provides details of local and national nonprofits.

While the American Red Cross and Salvation Army are providing disaster relief to communities, there are also smaller, local organizations who have received little media attention such as these:

If you would like to donate to the care of pets made homeless, visit Petsmart Charities online, or visit your local Petsmart.

Source: kiplinger.com