REACH YOUR GOALS
Travel Smart and Live a Little…Or a Lot
While Americans haven’t lost interest in the traditional summer vacation, fewer are planning to fly to exotic locales this year. Instead, road trips are becoming more popular, especially as fuel prices are easing and more of us are charging our vehicles.
In addition, shopping for hotels has become easier since the Federal Trade Commission (FTC) introduced a rule that requires them to disclose all costs and fees in advance.
If you’re still in the planning stages of your summer holiday, or ready for a quick getaway, here are some ideas.
Don’t want to be stuck in a hotel? Airbnb, VRBO and Expedia have introduced all-in-one holidays that bundle your accommodations with luxuries like personal chefs and spa treatments. Choose a destination near your favorite beach, fishing area or amusement park and you’re all set.
Road trips don’t have to resemble the Griswolds’ trip to Walley World. Sites like Roadtrippers can help you find and plan destinations off the beaten path. You can also check out Atlas Obscura and view a list of curiosities for every state, such as the world’s largest truck stop in Iowa or a WWII bunker still on a New Jersey beach.
While baseball is still popular, you can plan a vacation that includes attendance at a football, soccer or basketball game. While football is still largely a men’s sport, women’s soccer and basketball have become hugely popular. Arranging a family trip to a live sports event can make even a weekend trip truly memorable.
Source: empower.com
MORTGAGE IQ
How H.R. 1 Affects Home Financing
Recently, President Trump signed H.R. 1, nicknamed the Big Beautiful Bill, into law. Here are some provisions of the bill that may affect you, whether you’re a homeowner, would-be buyer or real estate investor.
If you own a home and are within income limits, you can permanently deduct your mortgage insurance premiums from your federal taxes. This deduction isn’t available for incomes above $175,000 for single tax filers, and joint filers making over $250,000. H.R. 1 also put a permanent $750,000 cap on mortgage interest deductions.
H.R. 1 raised the state and local tax (SALT) deduction cap to $40,000 per household from 2025-2029, with a phase-down starting for incomes over $500,000. This could make home ownership more attractive for you if you’re in the appropriate income bracket.
If you own investment properties and qualify for the 20% deduction for Qualified Business Income, good news…this has been made permanent.
No new federal down payment or homebuyer assistance/grants were included. This means that if you’re looking for down payment assistance, you can still consider state housing financing agencies, local grants, and employer-assisted programs.
Ask your local APM loan advisor for details of assistance in your state.
Source: nationalmortgageprofessional.com
FINANCIAL NEWS
Stagflation Rumors: What It Is, What to Do
If you’ve seen news articles that mentioned stagflation, you may be wondering what this is, especially as the last time it reared its ugly head was during the 1970s. Stagflation combines the words stagnant and inflation, describing an economy plagued by sticky inflation, double-digit interest rates, and high employment. (Spare a thought for 1979’s home buyers who were faced with mortgage interest rates that peaked at over 11%.)
Recent talk of stagflation was triggered by the Federal Reserve’s May 6-7 meeting, with Reserve members concerned that tariffs could contribute to this condition. Other numbers that worry economists: slower economic and job growth during 2025, combined with prices at the grocery store still on the rise.
However, today’s economy isn’t dealing with some major problems from the 1970s. For example, we’re not dealing with the 1973-74 OPEC oil embargo that hit the US hard back then, as we weren’t the leading energy producer we are now. Also, EV charging stations have replaced long lines at gas pumps.
American businesses also have advantages that didn’t exist 50 years ago, such as digital technology, global supply chains, and advanced automation. Still, today’s conditions are causing some to pause and consider whether stagflation might be a possibility, even in a milder form.
While nobody is totally immune, there are ways you can make yourself and your finances less vulnerable.
– Consider improving your job skills or adding new ones.
– Reduce discretionary spending and postpone purchases of big-ticket items.
– Paying down debt is always a good idea, especially if you have some high-interest debt on your spreadsheet.
– Make sure your savings will cover three to six months of basic living expenses, just in case someone in your family loses their job.
Want to make sure your budget can stand up to stagflation? Contact your local APM loan advisor to discuss your options.
Source: empower.com
DID YOU KNOW?
Meet The New Generations: Alpha and Beta
Even if we can’t remember their exact ages, most of us are familiar with nicknames for generations, such as Millennials and Baby Boomers. But did you know that anyone born this year is a member of Generation Beta, and that Generation Alpha is already here?
Anyone born during 2025-2039 will be part of Generation Beta. It’s already estimated that in ten years, Betas will make up 16% of the population. It will be the first time we’ve seen seven living generations. Betas will grow up surrounded by artificial intelligence, the effects of climate change, and greater sociopolitical instability.
Members of Generation Alpha were born between 2010 and 2025. This means that the oldest Alphas will turn 15 this year. They’re growing up within an atmosphere of advancing technology, artificial intelligence, and virtual reality. They’re expected to be the most digitally connected, diverse generation so far.
Need to catch up? Here are the nicknames and current ages of other, older generations.
Generation Z, aka Zoomers, will be between 13 to 28 years old this year.
Millennials will be 29 to 44 years old by the end of 2025.
Generation Xers will be 45 to 60 this year.
Baby Boomers, or Boomers, will be 61-79 this year.
The Silent Generation will be between 80-97 years old by the end of 2025.
Source: newsweek.com
PERSONAL FINANCES
Buy Now, Pay Later Loans Added to Credit Reports
Many of us have taken advantage of a “Pay in 4” or similar option, either online or at a retailer. Many consumers use Klarna, Affirm, and Paypal’s Pay in 4 to manage cash flow, especially when we’re short on cash. But while consumers like these plans, not all lenders agree…it’s one reason why they may affect credit scores later this year.
FICO, the company that calculates most credit scores, recently announced that they’re creating a new product that includes Pay in 4 loans, also called Buy Now Pay Later or BNPL for short. Lenders would be able to compare two applicant scores—one that includes BNPL loans and one that doesn’t—before making a credit decision.
Currently, only one BNPL — Sezzle — offers credit reporting to customers, and it’s optional. Other BNPL plans don’t directly impact users’ credit scores if repaid on time. Only those that are seriously delinquent may go to a debt collector.
BNPL plans are useful for those with limited incomes as they can help them get from one paycheck to the next, and they’re also popular with younger consumers with limited credit histories. However, traditional lenders often take a negative view, as many BNPL plans are used by people with low credit scores. In addition, BNPL users often take out several of these loans at one time and tend to spend more than non-users.
Another lender concern: small, everyday purchases such as a takeout meal shouldn’t require a loan. However, these are encouraged by BNPL lenders, such as Klarna’s partnership with Doordash.
Source: cnbc.com
FOOD
Watermelon Breeze Cocktail
A fruity and refreshing cocktail that tastes like summer in a glass. Fresh watermelon, basil, and lime come together perfectly to make a Watermelon Breeze — a must-serve for pool parties and backyard get-togethers.
One-Pot Chicken Pasta
A fruity and refreshing cocktail that tastes like summer in a glass. Fresh watermelon, basil, and lime come together perfectly to make a Watermelon Breeze — a must-serve for pool parties and backyard get-togethers.
AROUND THE HOUSE
Add Up Pool Costs Before You Take the Dive
Whether you’re planning to buy a home with an inground pool or are considering having one installed, you may quickly become more popular with neighbors. However, the initial cost is just the beginning. You’ll need to factor in additional costs and do the math before you make a decision.
Here are some important things to consider before you hold your nose and jump in.
1. Routine maintenance can be expensive. Pools need weekly cleaning and pH testing. If you don’t want to do these yourself, it’s smart to get estimates from local pool maintenance services before proceeding.
2. Repairs can be costly. If you suspect a leak, having this detected and repaired costs an average of just over $700.
3. Safety risks exist. Keeping unattended children safe is important, so you’ll need specialized pool fencing if it doesn’t already exist. This can cost from $15 to $40 per foot, depending on the materials. Installing alarms on doors leading to the pool is also recommended.
4. You may need additional insurance. Since slip-and-fall injuries are fairly common, you’ll want to consider increasing your homeowners’ insurance liability or adding umbrella insurance to make sure you’re 100% covered.
5. Not all buyers like pools. Adding a pool to your backyard doesn’t provide an attractive Return On Investment (ROI). Your home’s value may increase slightly, but only if you’re in a neighborhood where most neighbors also have a pool. In addition, some potential buyers may not want the expense or risks that come with an inground pool.
Source: kiplinger.com