APM BLOG

REACH YOUR GOALS

The Year of the Great Decide

Earlier this year, a national investment firm conducted a survey they dubbed "The Great Decide". Over 2,000 respondents shared their financial concerns and plans for 2025 and beyond.

Respondents were concerned with their current finances, rating their overall happiness as 4.97 out of 10. Satisfaction with their retirement savings was even lower and averaged 4.54. Financial success generated one of the lowest scores (4.46). Over half of the respondents felt that financial success was further away now than it was in spring 2024, and 35% felt that their expenses were increasing.

However, this doesn't mean that the respondents have given up on finding solutions. Here are some of their shared strategies for improving their financial outlook.

- Discretionary spending is being reduced to 32%, while the same number is switching to cheaper grocery brands.
- Around 49% of respondents said they're "ignoring the noise" and taking a long-term approach to stocks.
- Almost half say they are going back to basics by investing in cash and gold.

The study also uncovered a "generational decide" underway. Many respondents feel they're at a financial crossroads, and plan to strengthen family networks. Younger generations will gain around $84 trillion as older generations pass their inheritances to their children and other beneficiaries.

Achieving financial independence was the most important goal, especially as it would enable respondents to provide financial support to their loved ones. If this is one of your goals, contact your local APM loan advisor to discuss your future plans.

Source: empower.com

MORTGAGE IQ

Buy Sooner with An Interest Rate Buydown

While mortgage interest rates are as unpredictable as ever, predictions for the rest of 2025 don't include any major reductions. For example, the Mortgage Bankers Association (MBA) is only predicting a slight fall to around 6.6%, which isn't much lower than the current rate.

Still, not all prospective buyers want to keep postponing a home purchase, and more sellers are offering incentives. One that can be a win-win for both parties is a mortgage rate buydown.

A buydown reduces a mortgage's initial interest rate for the first one to three years. Senior lending specialists recommend buydowns as they enable buyers to act now, even within an unstable market.

While a buydown may incur a fee, a seller who's eager to close a deal may offer to pay this fee as an incentive.

Here's how a 2-1 buydown works:

The buyer's mortgage interest rate is reduced by 2% during the first 12 months of the loan, increasing by 1% per year for the next two years. The buyer will begin to start paying the full, original interest rate during the third year of the loan.

The temporary buydown also makes life easier for new homeowners, who will welcome these savings during their first years after move-in. The freed-up cash can help them pay for furniture and interior decorating.

Want to learn more about buydowns? Contact me for an informal chat.

Source: cbsnews.com

FINANCIAL NEWS

How a Rising National Deficit Could Affect You

The package of tax cuts passed in May is expected to increase the U.S. debt, bringing it to $53 trillion. Since the factors involved may be difficult to understand, and especially as news media tends to emphasize different factors, the national deficit may seem unimportant to our daily finances. But it could eventually make things more expensive.

Higher national debt could cause higher interest rates for consumer lending, affecting anything from an auto loan to a mortgage. This is because loan pricing is based on U.S. Treasury yields, especially 10-year Treasury bonds.

Since the U.S. relies on these bonds to fund its operations, investors could be nervous enough to stop buying them. Or they could demand higher interest rates to compensate for the risk created by a higher deficit.

Consumers shopping for loans may not be the only ones affected. Certain investors may see their portfolios' overall value go down. This is because rising Treasury bond yields would mean falling prices for current bondholders, making their portfolio less valuable.

If you're concerned about any of these possibilities, let's discuss your options soon. I may be able to recommend one or more solutions.

Source: cnbc.com

DID YOU KNOW?

How To Train Your YouTube

Equity. The word alone sounds promising, doesn't it? It should. Equity equals value, and it's a great strategy for building wealth. 

But before you can put that equity to good use, you should first understand what home equity is.

What Is Home Equity?

Equity is calculated by taking the market value of your home and subtracting what you still owe on it (aka the balance of your mortgage).

How Can I Build Equity in My Home?

Part of understanding home equity is understanding how it builds. 

Your home's equity increases when... read more

PERSONAL FINANCES

Managing the Return of Student Loan Collections

After a five-year pause, the Department of Education restarted involuntary collections on defaulted student loans earlier this month. Depending on the type of loan, collection efforts could include wage garnishments and tax refund seizures.

However, those with defaulted loans may have more options than they realize, such as these two.

1. Default loan rehabilitation features payments that are typically based on income. A series of on-time payments can put the loan back in good standing, and remove the default from borrower credit histories. Loan rehabilitation can restore access to other student-friendly benefits like deferment, forbearance, and federal forgiveness loans.

2. Consolidation helps fast-track a solution, mainly by enabling borrowers to combine their defaulted loan amount into a new Direct Consolidation Loan. This stops wage garnishments and may restore eligibility for other repayment programs.

After resolving a defaulted student loan, borrowers may enroll in an income-driven repayment plan that can lower the payments. For those who qualify for the Saving on a Valuable Education (SAVE) Plan, repayments may be reduced or even eliminated.

Resolving a student loan may be intimidating, but the rewards are worth it, especially as it gives borrowers the ability to apply for future loans and grants, deferments, and future forgiveness programs.

Source: empower.com

FOOD

Homemade Fruit Popsicles

Since berry fruits are in season now, it's a great time to make some Homemade Fruit Popsicles. This recipe only needs five ingredients, and you can choose your favorite fruity flavors. For even more fun, check out the popsicle molds available online. Freeze up treats that resemble dinosaurs, zoo animals, and penguins!

AROUND THE HOUSE

Do Your Air Ducts Need Cleaning? Probably Not.

Whether you're the owner or tenant of a single-family residence, you may receive mail or flyers that insist that your home's central air ducts need to be cleaned. Sales messages will claim that air duct cleaning will improve air quality and your family's health while making your HVAC system more efficient.

Sounds like duct cleaning could be worth the expense, right? Usually, it's not. Here's why.

Experts at the Environmental Protection Agency (EPA) found that there's zero evidence that some dust in a home's air ducts will cause illness. This is because the dust tends to stay in the ducts. In addition, your HVAC system's filter is already cleaning the circulating air.

If you're concerned about your air ducts or notice a moldy smell, remove a duct cover and take a look inside. If you see mold or bugs, it's time to call your HVAC repair provider, not an air duct cleaning company. These are symptoms of bigger problems such as excessive humidity, poor ventilation, or roof damage.

Source: secondnature.com