APM BLOG

REACH YOUR GOALS

From The Great Resignation to the Job Hug

A few years ago, we witnessed the Great Resignation, when record numbers of people quit their jobs. Next, the Great Reshuffle saw millions of workers find new career opportunities. Now, we have...Job-Hugging?

The phrase "job-hugging" describes people who aren't 100% happy with their current jobs but are doing what's needed to stay put. They've realized that it's not nearly as easy to reshuffle to a new one this year due to fewer vacancies. Last month, the economy added just 22,000 jobs, down from 79,000 in July. Uncertainty about the national economy is causing employers to hold back on hiring.

There's nothing wrong with job-hugging, especially when a position provides health coverage and a retirement plan. Putting more cash into an emergency savings account—ideally, enough to cover three to six months' worth of living expenses—can also help reduce stress.

But what if the Perfect Job becomes available? Changing positions during a slow job market can be a bit scary, even if the risk appears to be worth it. Career coach and podcaster  Mandi Woodruff-Santos has her own take: "It's very comfortable to think 'stay put'...but at the same time, what are ya'll hugging? It ain't hugging you back."

Source: nerdwallet.com

MORTGAGE IQ

Rates Continue Dropping, Even with Inflation Up

After months of waiting, mortgage rates just went through their biggest weekly drop for 2025. According to Freddie Mac, the average interest rate for a 30-year fixed-rate mortgage in the past week slid to 6.35%, down from last week's 6.5%.

If you're wondering why interest rates finally began to move lower, here are some reasons why.

Last week's jobs report showed that U.S. employers added just 22,000 jobs in August, and a revised report on Tuesday showed that hiring for the last 12 months ending in March was much lower than initially tallied.

The 10-year U.S. Treasury note yields recently moved lower when new data showed that the labor market is weakening. The Treasury note is the primary benchmark influencing mortgage interest rates.

The Federal Reserve is expected to cut interest rates next week, even though the most recent consumer price index (CPI) showed that inflation is rising. In the past, rising inflation has resulted in postponement of rate cuts. However, next week's announcement may not affect current mortgage rates, as the expectation of a federal rate cut has already been factored into some mortgage rate offerings.

Source: npr.org

FINANCIAL NEWS

An Alternative to Early Retirement: Coasting

Chances are, you've heard of the Financial Independence, Retire Early (FIRE) approach to savings. It became popular around 15 years ago, especially with those who didn't want to wait until they were in their mid-60s to retire.

While the FIRE strategy focuses on intense monthly saving to retire decades early, some who followed its rules realized that if they saved their target amount sooner before their planned retirement arrived, they could exit the career fast-track. This became known as the Coast FIRE approach.

Coasters may or may not continue to add to their retirement funds, since they've already reached their goal. Instead, they find a low-stress job and work to pay monthly bills without touching their still-growing retirement fund. Coast FIRE may offer a more balanced approach, with less extreme sacrifices than what's required for traditional FIRE savings goals.

According to the retirement savings experts at Empower, the typical American plans to acquire around $1,148,441 by the time they're in their 60s. Since early retirement is the goal with FIRE, participants take savings to extremes during their 30s and 40s. Some save as much as 50%-75% or more of their earnings, adopt frugal living habits, and participate in smart, aggressive investing. Once they reach their savings targets, FIRE participants typically retire to live off their nest egg indefinitely.

However, the FIRE approach isn't ideal for everyone. Some found it so intense as to be stressful. There's another potential risk: the earlier a person retires, the longer their money may need to last. Downshifting to a Coast FIRE strategy may be the answer for these savers.

Coasting to full retirement also provides flexibility. Savers have the freedom to work fewer hours, or work in a low-pressure environment, without the pressure to put away large chunks of their take-home pay. Continuing to work may also make it easier to maintain benefits like health insurance, and even open a new, employer-sponsored retirement account.

No matter how you've scheduled your retirement, or determined how much you need to save, it's important to review your retirement savings on an annual basis—either on your own, or with the assistance of a professional.

If you'd like to learn more about the FIRE approach, you may want to check out the 2018 book Your Money or Your Life or the Mr. Money Mustache blog.

Source: empower.com

DID YOU KNOW?

HOAs Clash with Water Rationing

More homeowners living with the rules set by their homeowners' association (HOA) are finding themselves stuck in an uncomfortable situation: HOA rules versus climate-conscious city and state ordinances.

Those familiar with HOAs are aware that homeowners are usually required to keep their front lawns green and attractive. This usually requires regular watering, especially during summer months. However, more counties and states are introducing watering restrictions as climate change continues to bring hotter weather.

Last summer, Texas residents were getting brown lawn warnings from their HOA while also receiving reminders from local utility companies not to exceed water limits. Another Florida homeowner ended up spending a week in jail after an HOA lawn violation snowballed into a lawsuit, and an eventual warrant for her arrest. Like many other Southern states, watering restrictions had been in place.

Homeowners who decide to switch out a high-maintenance grass lawn to something more eco-friendly have had their own problems. For example, a Long Island homeowner replaced thirsty turf with her area's native plants, only to have her village mayor call them "hideous".

Some states have decided to call out HOAs. Texas now requires green-lawn rules to be suspended when watering restrictions are active. Other states, including Colorado and Maryland, have passed bills that force HOAs to allow residents to install more eco-friendly landscaping.

Source: morningbrew.com

PERSONAL FINANCES

How Does a Home Equity Line of Credit Work?

If you're in need of cash but already have a killer rate on your first mortgage, and you don't want to pay the high interest rates associated with a credit card, then a home equity line of credit—HELOC for short—may be the perfect solution. HELOCs work by utilizing the equity in your home. You've worked hard and consistently made your monthly payment, so why not let all the equity you've built up in your home now work for you?

What Is a Home Equity Line of Credit?

A HELOC is essentially a loan you're able to take out with your home as collateral. But you use only what you need, and pay on only what you use. This is different from a second mortgage, which is a lump sum with a predetermined payment schedule. 

HELOCs have two separate phases. The first phase is the draw period. This is when your HELOC is open and you can borrow as often and as much as you need, up to your credit limit. During this phase, you pay interest only on the outstanding balance, whether that's done in multiple draws or in one lump sum. 

The second phase is the repayment period. During this time, you won't be able to access any more money and must make payments on the balance you owe. Though every loan is different, if you opt for, say, a 30-year HELOC, then the draw period may be 10 years, with a 20-year repayment period. 

The great thing about a home equity line of credit is that it's there when you need it. With a personal or straight second loan, you're borrowing a lump sum that must be paid back in full, with interest. With a HELOC, the funds are there…but you're paying interest only on the amount you choose to withdraw. You get funds on demand in the best possible way.

What Can I Use a HELOC For?

Anything, really—your equity is your equity, so your money is your money!

You want to use a HELOC responsibly, though, because it does need to be paid back with interest. Many people use HELOCs to pay off high-interest debts like credit cards or medical bills. Some also use HELOCs to tackle home improvement projects, since that money is going right back into their house anyway. 

You can even leverage the equity in your home to help pay for another home. That's right: You can draw funds from your HELOC for a down payment on another property, be it a second home, a vacation property, or some other type of investment. Of course, emergencies do come up, and a HELOC can assist with those as well, allowing you instant access to cash when you need it the most.

Pros and Cons of HELOCs

Pros

A home equity line of credit can be a great way to consolidate debt at a lower interest rate, carry out some repairs or remodels, or save the day in the case of an emergency. 

Its on-demand nature also allows you to borrow only what you truly need, so you pay for only what you use. When you're taking out a new loan, on the other hand, you must decide upfront how much you'll need—and you'll pay the interest on that entire loan amount regardless of how much you use.

Credit card balances can add up quickly, particularly with home repairs or emergencies. A HELOC typically has a lower rate than credit cards and can provide a better opportunity to pay down balances instead of racking up interest charges. 

For the "draw period"—typically the first 10 years of the loan—you pay only interest on the outstanding balance. For the "repayment period"—typically the 20 years following the draw period—you can no longer access open balances on your credit line but will need to make fully amortized payments to pay off the balance by the end of the loan term.

The interest you pay on a HELOC may also be tax-deductible if the funds are used for home improvements. However, you should always talk to your tax professional when taking out a HELOC to confirm.

Cons

As great as a HELOC can be, you have to be prepared for the trade-off. Your house will be used as collateral on the loan, so you could be at risk of losing your home if you can't pay back your HELOC.

You also have to be prepared for rate and payment increases. A home equity line of credit offers variable interest rates that change with the market. So if you're looking for a fixed interest rate and a payment that doesn't change, a home equity loan or HeLOAN may be a better fit.

More About Home Equity Lines of Credit

A home equity line of credit application is similar to a home loan application. It's actually a little faster and easier, but it has fees for closing costs and the like.

A HELOC will generally require the borrower to have at least 15% to 20% equity built up in their home. Of course, it's important to keep this in mind if you're thinking of selling your home anytime soon. A home equity line of credit won't prevent you from selling your home, but it will need to be paid back out of the sale proceeds, which means less profit for you.

For those reasons, a HELOC shouldn't be used for everyday expenses or unnecessary purchases. Its best use is to pay down or consolidate high-interest debt, reinvest in your current home, or purchase another home for your portfolio.

Our HELOC Program

Our HELOC program is available as a standalone or as a purchase piggyback created simultaneously as part of your financing on a home purchase. 

Have questions? Connect with your local APM loan advisor today.

FOOD

Salted Caramel Apple Cookies

Imagine a caramel apple and a snickerdoodle getting together and creating some seriously delicious magic...like these Salted Caramel Apple Cookies. The best part about this recipe is you can use any apple you'd like—it's a fantastic way to make the most of apple-picking season.

AROUND THE HOUSE

Renovate Without Inviting Mold Indoors

A completed renovation should make your home look attractive, with no worries about mold suddenly appearing. But this can occur even in homes that have never had it before, or if your renovations are carried out using brand-new materials. Here are some ways to make sure you're not inviting mold into your home.

Older homes and ventilation. Unlike new homes, older homes often generate higher power bills as air escapes through elderly sash windows and doors. This is why owners of these homes sometimes go for a total renovation that will provide an airtight environment. However, this can trap moisture indoors, and mold loves interior humidity.

Bathroom redos. These usually require a ventilation fan to reduce moisture. Not just any will do, as the fan needs to be the right size for the room's area, and run until the room is properly dry. Some fans have built-in humidity sensors, so these are worth the additional cost. No matter what fan model is installed, it needs to be vented to the outside, not into the attic or a wall.

Renovation mishaps. Installing a new plumbing, drainage, or attic HVAC system often results in some drips and water spills. No matter how small they may seem, they may cause damp areas on walls and ceilings. Simply painting over a damp spot on a wall doesn't prevent future mold growth and may even encourage it.

New lumber and drywall. Even brand-new renovation materials may not be 100% mold-free, especially if they've been stored in a warehouse that isn't climate-controlled. If the framing lumber used to replace joists supporting a new floor is damp, they'll become a breeding ground for mold after the subflooring is installed. And since drywall is porous, it can harbor moisture while appearing clean and dry.

If you're a DIYer, you may want to pick up a moisture meter that can check lumber and drywall for damp before you proceed with your project.

Source: lifehacker.com