APM BLOG

With the 2024 elections behind us, quite a few are reconsidering their plans for buying or selling a home. While rates are still higher than many of us would like, there are still plenty of rate-reducing strategies available for first-time and move-up buyers alike. Retirement savings options recently improved, and you can learn how to maximize both 401(k) and Social Security retirement income here.

Home Financing

Strategies for Lower Mortgage Rates

While it may seem sensible to postpone a home purchase until interest rates fall, this prevents you from earning equity. And besides, who wants to rent forever? With this in mind, here are some ways you can secure a competitive rate now.

Increase your down payment. While 20% down will generally qualify you for the lowest rate for a conventional loan, bigger is always better. If 20% down seems too far away, consider checking out state and local down payment assistance programs. They're all at one convenient site: DownPaymentResource.com

Improve your FICO score. Even a 20-point bump can save you thousands. In addition to paying down credit balances, be sure to check your credit reports to ensure no errors are lowering your score.

Consider an adjustable-rate mortgage. These include a lower "starter rate" than a fixed-rate loan, with the first adjustment generally not until 5 to 10 years after you close. If you know you'll be moving again in a few years, these can save you thousands in interest. Staying put? You'll have up to 10 years to consider refinancing.

Ask about a mortgage rate lock. A rate lock may be something to consider, especially if you think rates will rise before you find the right home. If possible, get a "float-down" rate lock. While these may incur a charge, it also means you can potentially get a lower rate than the number you originally locked down.

Source: kiplinger.com

Insurance

Seven Tips to Safeguard Your Home During the Holidays

If you're a homeowner who enjoyed a disaster-free Halloween, congrats! On average, there's a 14% increase in homeowners insurance claims on October 31st. However, we're not out of the woods yet, as Halloween kicked off a potentially expensive season.

Trips, falls, thefts, fires and pet-related accidents are among the insurance perils of the holiday season. According to claim-related data from past years, the average homeowners' loss from fire or lighting is almost $84,000. Average costs of bodily injury or property damage liability claims came in at $31,690.

To minimize your claims risk, consider adding these to your to-do list:

• If you're expecting snow, be sure to clear the paths to your home so partygoers and visitors are safe.
• Using a turkey fryer this Thanksgiving? Be sure to follow directions and never leave it unattended.
• If your holiday party involves alcohol, you may risk liability or property damage if a guest has too much to drink. Encourage ridesharing, taxis, or Uber/Lyft to and from your event.
• Consider using LED or battery-powered lights for decorations, instead of traditional candles.
• If you enjoy decorating a real tree, make sure to water it properly and avoid putting candles or portable heaters nearby.
• If you have a dog, make sure they're secured when visitors arrive. Dog bite claims can be costly.
• Ordering gifts online for home delivery? It's a good time to install a smart doorbell/camera combo. Or be sure you're home when a delivery is scheduled.

Source: cnbc.com

In the News

New Catch-up Contributions for 401(k) Benefits

If you're aged 60 to 63, get ready to turbocharge your 401(k) contributions. Beginning in 2025, you can contribute an extra $11,250 to your 401(k) each year through a new increased catch-up provision. This is a big jump from the current catch-up limit of $7,500 available to employees 50 and older.

This change is part of the Secure 2.0 Act which was passed in 2022. It contains provisions that enable more workers to bump up their retirement savings.

In addition, the IRS is raising the general 401(k) deferral limit to $23,500 for 2025, up from $23,000 in 2024. Catch-up contributions are in addition to the general limit. People who qualify can invest a maximum of $34,750 into their 401(k) for the year.

Sources: empower.com

Credit and Consumer Finance

Hate High Taxes? So Do These 10 States.

The arrival of a global pandemic in 2020 changed the way many Americans chose where to live. Instead of major metro areas, the arrival of the remote office meant that many headed for the hills (and suburbs).

While inter-state migration figures aren't as high as in previous years, quite a few of us are still on the move. A 2023 survey found that many of those who moved home in 2022 weren't happy for a variety of reasons. For example, 20% said their new place was too small, and 15% said they simply didn't like their new home.

For those of us seeking a lower cost of living, the following ten states are currently the most tax-friendly in the nation.

• Wyoming
• Nevada
• Tennessee
• Florida
• Alaska
• Washington
• South Dakota
• North Dakota
• Arizona
• Montana

These rankings were determined by estimating the state taxes paid by a family comprised of two adults and one dependent child. Wyoming came in first at 3.3%, with Nevada and Tennessee at 4.3%.

Source: moneygeek.com

Did You Know?

How To Max Out Future Social Security Benefits

You may have noticed a recent news item about Social Security recipients receiving two checks this month.The reason's simple: checks go out the first of every month, except when it falls on a Sunday, and December 1st is a Sunday.

This may have you anticipating how much you'll enjoy receiving your own Social Security payments when you retire. Since bigger payments can buy more fun, here are three strategies for 2025 for ensuring you get a bigger, fatter check every month.

Look for ways to increase your earnings

Since your Social Security retirement benefits are income-based, it pays to scope out ways to boost your earnings in 2025. You can do this by improving your skill set at work, as that could land you a promotion that comes with a raise. Or consider a lucrative side hustle, as this income can help you increase your check amounts.

Make sure your SSA records are correct

It's possible that the Social Security Administration (SSA) may not have a 100% accurate earnings statement for you. If your income was underreported, this could lead to smaller benefit payments. If you haven't already set up a secure login at the SSA website, take a few minutes to do so, then click on the "Get a benefits estimate" link.

Compare the costs of retiring sooner than later

You can begin claiming your Social Security payments when you celebrate your 62nd birthday. However, continuing to work can pay off big-time. First, waiting until full retirement age helps you avoid a reduction to your monthly Social Security benefit. Delaying the start of your benefits payments also increases your benefits for the rest of your life.

Source: finance.yahoo.com