The Trump Economy Begins: 4 Money Moves Homeowners Should Make Before Inauguration Day
Written by
Deborah Sabinus
Edited by
Amber Barkley
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Many factors impact mortgage rates and house prices, including government policies. While the president doesn’t set rates, some policies can contribute to uncertainties in the housing markets, from mortgage rates to the cost of housing materials for building.
With the inauguration of President-elect Donald Trump coming quickly, some changes in policies may be implemented soon, like increased tariffs that could increase the cost of building materials or tax cuts that could end up driving housing prices higher. To gain insight on money moves homeowners should make before Inauguration Day, GOBankingRates spoke to Nathan Richardson, founder of CashForHome.com.
Not a homeowner yet? Find out which money moves to make if you’re planning to buy soon.
Evaluate Your Mortgage
Evaluating your present mortgage rates, interest rates and housing loans is important to understand how change in any of these components can affect your ability to make your payments or sell your house.
Richardson said, “It’s important to assess if refinancing might save you significant money in the long term, as economic policies and interest rates are likely to change following a new administration. This helps to rescue monthly payments, as well as overall interest costs, especially when rates are expected to increase.”
Check on Property Taxes
“It is wise for homeowners to check on property taxes and make sure they’re updated with any deductions or benefits [they] may qualify for, because tax policies could be different after [the] inauguration,” Richardson said.
While property taxes vary according to state, they can increase or reduce the cost of owning a home.
Utilize Cost-Effective Upgrades
Low-cost upgrades help you to put your home on the high side of the housing market scale. These upgrades can benefit you beyond a higher home price — they can also provide some tax relief.
Richardson explained, “A homeowner may plan a home energy audit or consider cost-effective upgrades, like insulation or solar panels, which could benefit from tax credit influences.”
With tax and regulation changes likely coming during Trump’s second term, it’s wise to take advantage of any current incentives now, and perhaps start budgeting for future upgrades that might come with tax incentives in the next four years.
Plan for Your General Financial Stability
If you’re able, consider paying off any high-interest debts, like credit card debt, so you stop accruing interest and are able to use all of your income for expenses and future plans.
And if you don’t have a full emergency fund — at least three to six months of expenses — set aside what you can in a high-yield savings account now, and make a plan to save up the rest. With an uncertain economy during the transition period ahead, preparation is key.
These moves will help homeowners set themselves up for financial stability and ensure they don’t lose out, no matter the change in policies and market fluctuations.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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