Consumers Are Feeling the Squeeze

Many households are feeling increasing financial pressure, and the latest data suggests it's not just lower-income families. Recent surveys found that 64% of households earning $50,000 to $100,000 and 41% of those earning $100,000 to $250,000 report living paycheck to paycheck.

While many of these households are still paying their bills, they're saving very little. In many cases, families report having only $500 to $1,000 remaining at the end of each month after covering their expenses. That leaves little room to absorb unexpected costs such as car repairs, medical bills, or job disruptions.

At the same time, continued inflation, elevated consumer debt, and the possibility of additional Federal Reserve rate hikes could put even more pressure on household budgets. Higher rates can increase the cost of variable-rate debt such as credit cards, home equity lines of credit (HELOCs), and some auto loans. Unfortunately, higher interest rates don't lower the cost of necessities like groceries or gasoline, so many families may continue to feel stretched.

For homeowners, however, this may be an opportunity to review their mortgage and overall financial picture. Depending on their situation, refinancing could help:

• Consolidate high-interest credit card or personal loan debt into a lower-cost mortgage.

• Eliminate private mortgage insurance (PMI)

• Access home equity to strengthen cash reserves or improve overall financial flexibility.

Every homeowner's situation is different, but a mortgage review can identify opportunities to improve monthly cash flow and create more breathing room in the household budget. Give me a call today to learn how we can explore your options.