The current decrease in interest rates is making headlines this month, although it's partially driven by less positive factors such as fewer employment opportunities. Even before the Federal Reserve announced a quarter-point rate cut, demand for mortgage refinancing rose. In addition to rate-term refinancing, over 10% of refinancing applicants decided to switch to an adjustable-rate mortgage (ARM).
The last few years have been rough for consumers, especially with sticky inflation hanging around like an unwanted party guest. This has caused many consumers to rely on unsecured credit, which can lower credit scores. If your current FICO score is under 700, here are some possible ways you can refinance to a lower rate.
Refinancing an FHA mortgage. If your current mortgage is an FHA product, you may be able to refinance to a lower rate without a credit check. However, your refinance must result in a "net tangible benefit", such as a 5% reduction in loan payments.
Do you qualify for VA refinancing? If you're a military veteran or still on active duty, you may be able to refinance a non-VA mortgage to a VA loan. If you already have a VA loan, ask me about "streamlined" refinancing to a lower rate. In addition to lowering your interest rate, you may be able to get cash out.
You can look at Fannie Mae's RefiNow and Freddie Mac's Refi Possible. Both programs feature lower credit score requirements, although income limits may apply. You may be required to have a history of on-time mortgage payments.
Enquire at your bank or credit union. If you've maintained a checking and/or savings account for several years, this can help a lending decision go your way.
Source: bankrate.com
If you're shopping for insurance for your car or truck, you'll probably be asked to choose liability-only or full/comprehensive coverage. You may not have a choice if your vehicle is financed, as most lenders insist on full coverage. But if you own it outright, you can choose your coverage.
Here's what you can expect from each option.
Full coverage generally describes comprehensive and collision insurance coverage, as well as liability insurance. Typically, if you choose full coverage, your vehicle will be replaced or repaired if you're in an accident. If you're at fault during an accident, the other driver's costs will be covered. Depending on your policy, you may also be protected from theft, vandalism and uninsured drivers.
Full coverage is generally a better choice, especially if you're driving or leasing an expensive vehicle. However, full coverage is a generic term, and even if a policy is described as such, it may not cover everything you want it to cover. You'll want to read the fine print and make sure your policy offers protection that provides real peace of mind.
Liability coverage will pay for the damages and medical bills for the driver and any passengers in an accident that's determined to be your fault. Any additional expenses, including damage to your vehicle, will be your responsibility. You would also need to pay for medical treatment for yourself and any passengers. Also, liability doesn't pay for damage if you're caught in a hailstorm, or if your vehicle's stolen.
Insurance that goes further than liability is almost always a better option. Even if you're insuring an older vehicle that's not worth much, replacing it could make a bigger dent in your budget than you'd like.
Source: experian.com
The Federal Reserve recently announced a quarter-point cut in the benchmark rate. It's hoped that this and future 2025 cuts will deliver some relief from high borrowing costs that have weighed on consumers.
Here's the breakdown of how the Fed's rate cut may affect consumer mortgages, credit cards, and other financial accounts going forward.
Credit cards: Since most cards have a variable rate, there's a direct connection to the Fed's benchmark. With a rate cut, the interest rate that applies to credit card balances is likely to follow. Still, the average credit card rate is currently more than 20%, so APRs are expected to remain close to 20% during the rest of 2025.
Mortgage rates: While these aren't directly connected to the Federal Reserve's rates, they've already fallen considerably during the past weeks. This is encouraging many homeowners to refinance their mortgages and could also fuel more home sales.
Auto loans: Since the average rate on a five-year car loan is currently around 7%, according to the vehicle experts at Edmunds, car and truck buyers may benefit if rates are reduced for new loans.
Savings rates: Alas, rate cuts are better news for borrowers than savers. While the central bank has no direct influence on deposit rates, yields tend to be correlated to changes in the target federal funds rate, which means that yields for newer CDs and high-interest savings account may fall. Savers may want to act now by locking in higher rates.
Source: cnbc.com
Today's shopping options have become as simple and fast as a few clicks. Almost any item can be purchased online and delivered in a day or two...by gig workers who rarely receive benefits. Some consumers have decided that switching to more ethical shopping habits would help break habits like impulse shopping.
Ethical shopping experts admit that breaking these habits can feel overwhelming at first. However, concentrating on the long-term benefits and savings can help. Here are some steps to consider:
Become an insightful shopper. You may already know that many goods are priced cheaply because of their origins. It's easy to snap up several items of clothing during lunch hour because of their low prices...but many of these come from countries where children are employed to make them. This could involve investigating the origins of products you're planning to buy to ensure you're not supporting a business you don't respect.
This approach also works if you're concerned about eco-friendly production or want to support local businesses instead of big-box retailers.
Buy less stuff. While this may seem to contradict the idea of ethical shopping, this can help you buy fewer, more sustainable items. It can also help increase your bank balance. If you're having problems putting things away or deciding what to wear, you may want to take inventory of your closets before buying more clothes.
Research mindful purchases. Before you buy, ask yourself: is this in the best interest of those involved in its creation? Will it last? For example, ethical shoppers buy goods from companies with proven social responsibility such as Patagonia. While they may be expensive, this company guarantees their clothes for life.
Check out secondhand options. While nonprofits like Goodwill are one place to stop, there are other ways to help reduce the tons of clothing going to landfills. Plenty of sites specialize in like-new items, such as Poshmark and Etsy. Sites like NextDoor, BuyNothing, and Facebook Marketplace can be ideal for buying or trading furniture and household items with your neighbors.
Source: money.com
As 2025 brings new tariffs and laws, it's a good time to examine the "pink tax". This is a nickname that describes the extra costs (up to 15%) women still face when shopping.
These price hikes can be applied to anything from dry cleaning to personal care products. Even toys for girls are often more expensive than generic ones...because they're pink.
While more than 20 states have passed laws dealing with the pink tax, there is no federal pink tax ban. The Pink Tax Repeal Act has been introduced in Congress more than once, but it never gained enough votes to go to the House and Senate.
Even before 2025 tariffs were announced, rates for women's clothing were over 3% higher than for men. It remains to be seen if future tariffs will worsen the situation.
Two State Representatives have reintroduced The Pink Tariffs Study Act. The bill calls for the U.S. Treasury Department to investigate potential gender bias within the U.S. tariff system.
Source: kiplinger.com