Top Three Questions for 2026 Cash-Flow Planning
DO I WANT TO MAKE ANY HOME IMPROVEMENTS?
Financing upcoming home improvement expenses with a cash-out mortgage or home equity loan might make sense in your situation. Here are the two main drawbacks of paying cash for home improvements:
- Savings Depletion: A large project could quickly deplete your savings. Think about this in the context of the next 3-5 years. What other large expenses do you expect, and would it be useful to keep your savings on hand?
- Opportunity Cost: If a home improvement loan costs less than what you’re earning in your investment accounts, you may be better off investing your money instead of paying cash for the improvements. For example, would it be more useful to invest that money in a college savings plan for your kids or grandkids, or perhaps contribute more funds to your retirement account? Talk to your financial advisor for more details on this.
CAN I LOWER MY EXPENSES WITH A DEBT CONSOLIDATION LOAN?
A debt consolidation loan is typically where you trade in your higher-interest-rate loans and credit card debt for a lower-interest-rate mortgage, home equity loan, or home equity line of credit. You may be able to lower your blended interest rate, which is the overall total interest you're paying on all your debts combined. Contact me so I can review your balances, interest rates, and monthly payments. We'll see if a debt consolidation loan may lower your expenses.
IS THIS A GOOD TIME FOR ME TO BUY OR SELL A HOUSE?
The Federal Housing Finance Agency recently reported that home prices climbed 2.2% year-over-year from Q3 2024 to Q3 2025, with 76 of the top 100 largest metros seeing a rise in home prices. This is on top of the house price appreciation of the prior several years. Selling your house in 2026 may be a great way to benefit from some tax-free capital gain if you qualify for the primary residence capital gains tax exclusion. As for buying a house in 2026, interest rates are at their lowest levels in over a year. This means monthly payments have become more affordable, and it's a good time to buy a house. Contact me to run the specific numbers for your situation.
Your mortgage is most likely your single largest debt, and your home is most likely your single largest investment. Contact me to schedule a free annual review of your mortgage, real estate, and cash-flow options!
Source: HomeQB