Those hoping that inflation would continue to wane were disappointed when June’s Consumer Price Index (CPI) came in at 0.3%, putting the 12-month inflation rate at 2.7%. This resulted in pressure being put on Federal Reserve chair Jerome Powell to cut interest rates, even though economists warned this could accelerate inflation and cause stock markets to falter. Ultimately, Powell did not cut rates, which left mortgage rates flat. However, homeowners may be in for some attractive tax savings because of provisions within H.R. 1, aka the Big Beautiful Bill.
Home Financing
5 Tax Changes Homeowners Should Know in 2025
New year, new tax rules—especially if you’re a homeowner. Here are five 2025 tax changes that could put more money back in your pocket:
1. Standard Deduction Bump
The IRS increased the standard deduction to $14,600 for individuals and $29,200 for married couples filing jointly. That means more of your income is shielded from taxes—no extra work required.
2. Home Office Deduction (Still for Self-Employed Only)
Working from home doesn’t automatically qualify you for this deduction. It’s still only available to self-employed individuals. But if that’s you, it could offer big savings on a portion of your housing expenses.
3. Higher Capital Gains Exclusion Limits
You can now exclude up to $500,000 in gains ($250,000 for single filers) when selling your primary home. Just make sure you’ve lived there for at least two of the last five years.
4. Energy-Efficient Upgrades Pay Off
The federal Energy Efficient Home Improvement Credit offers up to $3,200 in tax credits for qualifying home improvements like new windows, doors, insulation, or HVAC systems.
5. Mortgage Insurance Deduction Update
The deduction for private mortgage insurance (PMI) is no longer available in 2025. If you’re still paying PMI, it might be time to talk to your lender about refinancing or re-evaluating your equity.
We have a full blog article that goes into further detail on how these tax changes could save you money here.
Source: apmortgage.com
Insurance
Travel Insurance: Be Sure to Read the Fine Print
You’ve probably noticed offers for travel insurance when you’re shopping for vacation venues online. While coverage can provide peace of mind, you’ll want to make sure you’re getting the coverage you want before you buy. Many policies have certain exclusions that are only mentioned in the fine print.
Here are some that may affect you, depending on your planned destination and activities.
Flight cancellations. If your airline issues you a credit instead of a refund, insurance may not provide you with a cash refund.
Preexisting medical conditions. These are often excluded, which means you’ll need to add a special waiver to your policy.
Civil unrest, terrorism, and political instability. Headed to a less popular destination? Many policies will cover what’s defined as “war and terror attacks”, but not civil unrest.
High-risk activities. While scuba diving, skydiving and zip lining are popular vacation activities, many policies don’t cover what’s defined as an adventure sport. So, if you’re headed to Mount Everest, you may be on your own.
Natural disasters. If a hurricane or tropical storm has been given a name before you buy your policy, any cancellations related to the storm probably won’t be covered.
Scams and fraud. Let’s say you’re visiting Austria and a friendly stranger talks you into buying fake tickets for the Vienna State Opera. Your insurance probably won’t reimburse you for this loss or other scams.
To avoid disappointment and a dent in your bank account, check out a “cancel for any reason” policy. These generally cost more but provide better, more flexible coverage. However, even these may have a few restrictions. Choosing a policy with a “free look” period that allows you to cancel within a certain time is also recommended.
Source: seattletimes.com
In the News
Some of The Best States for Career Advancement
If you’re a recent graduate or worried that funding for your job may end, it may be time for a move. Worker shortages still exist, and your skills may be worth more in another state.
The following states share high percentages of college-degreed and STEM workers, together with effective workforce training programs. Only two (Connecticut and Washington) are NOT right-to-work states. The rest are, which means that you won’t be required to join a union.
North Carolina
Educated Americans have made the Tar Heel State their third-most popular destination. The state’s Department of Commerce predicts there will be 500,000 additional jobs by 2032.
Washington
Workers here are the nation’s most productive, accounting for more than $191,000 in economic activity per job in 2024. It also provides higher levels of worker protection and boasts America’s highest number of STEM jobs.
Florida
Concerned about lack of skills? Florida’s worker training programs are among the most effective, with 86% of participants finding a job within six months. However, the state has a lower percentage (5.4%) of STEM workers than many others.
Tennessee
Like Florida, The Volunteer State believes in a trained workforce. More than 82% of participants in worker training programs found employment within six months. Tennessee also offers a lower cost of living than the other states featured in this article.
Connecticut
Home to one of the country’s most educated workforces, workers here are among the most productive, accounting for more than $171,000 in economic output per job last year.
Source: cnbc.com
Credit and Consumer Finance
Managing Credit Card Debt: How Much Is Unmanageable?
Rising consumer prices and stubborn inflation are conspiring to force more consumers to rely on credit when cash is tight. However, this type of debt can be a difficult problem to solve, especially as higher credit interest rates push account balances higher each month.
Today, the average cardholder carries thousands in credit card debt, which may be exacerbated by rising interest rates. Some find themselves in a vicious cycle that’s hard to escape.
Here are some signs that suggest that you or a loved one may need assistance.
You can’t pay more than monthly minimums. If your take-home isn’t enough to make a sizeable dent in your credit card debt, this is a red flag. It’s similar to treading water, as growing interest rate charges often make it nearly impossible to tackle the principal balance.
Your credit utilization ratio exceeds 50%. Credit utilization is FICO-speak for the percentage of available credit you’re currently using. At this level, you’re heavily dependent on credit to cover the basics. If and when your cards are maxed out, minimum payments rise as well.
You’re charging groceries and other basics. This means that your credit payments have grown to the point where you can’t cover essential expenses. It also means that debt is preventing you from maintaining basic financial stability.
Your debt-to-income (DTI) ratio exceeds 40%. Ideally, your monthly debt payments (except your mortgage) should add up to less than 36% of your gross (pre-tax) monthly income. If credit card debt has pushed your DTI above 40%, you’re approaching the danger zone for debt problems.
Our refinance calculator can assist you in quick calculations to determine what savings you might see in refinancing your debt
Source: cbsnews.com
Did You Know?
Watch for AI-Fueled Impersonation Scams
While artificial intelligence (AI) has been helpful to both businesses and consumers, it’s also provided criminals with new strategies for converting your money into theirs.
Over 9,000 of these crimes were reported between early 2024 and early 2025. Over 50% of victims reported that their personal information had been acquired by an AI-assisted scammer. Bank and credit card account details were also targets.
AI can be used to create a variety of convincingly fake scams. These include business emails, aka phishing, and websites that resemble your bank’s site but are set up to steal personal and/or financial details.
Voice cloning is another method. Scammers may go online to find videos made by anyone from a family member to a business partner. This makes it easy for them to create these types of fake messages:
– Requests from bank employees that ask you to confirm account details.
– Calls or voice messages from family members who are in trouble and need immediate cash.
– Messages from celebrities that ask you to contribute to a fake fundraiser (the real fundraiser is the scammer behind it).
– While new scams are created with AI every day, the types of information they attempt to acquire are similar. Social Security numbers are most popular, followed by driver’s license details, payment card numbers, and financial account numbers/passwords.
If you receive any type of communication that you feel may be fake, don’t respond until you’ve checked it out thoroughly. Call the source of the message on a published phone number if possible and consider contacting local law enforcement on a non-emergency line. In addition, report the scam at the FTC’s Report Fraud website.
Source: propertycasualty360.com