Liability Review

Credit card review

Assess whether you are effectively utilizing their benefits and rewards, ensuring you are getting real value from them. Carefully review the annual fees associated with each card to determine if they are justified by the benefits they offer. Additionally, consider how different types of rewards, such as cashback versus airline miles, align with your spending habits and financial goals.

Mortgage refinance  

Before deciding to refinance your mortgage, consider the terms of your mortgage, particularly the interest rate and remaining term. Evaluate potential risks of variable rate mortgages in the current interest rate environment. Many lines of credit will also reset at least annually. The impact of these interest rate changes can have a negative impact on your cash flow.

Furthermore, the Tax Cuts and Jobs Act decreased the limit on mortgage-interest deductions for new mortgages. Most itemizing homeowners can deduct mortgage interest paid on up to $750,000 worth of acquisition debt, on their primary residence or vacation home if the debt was put in place after December 15, 2017 and up to $1 million in principal if the debt was put in place prior to December 16, 2017. Homeowners exceeding these limits may want to evaluate if restructuring their debt would result in increased deductibility or rate savings.

Credit lines 

Lower-cost credit lines can increase your financial flexibility. Review your options using a margin line, pledged-asset line, or home-equity line of credit. Even in a higher rate environment, adding credit before it is needed can help to increase your financial flexibility.

Credit report check 

Monitor for fraud and ensure your file is accurate before you ask a prospective lender to review it during underwriting. You can access your free credit report at www.annualcreditreport.com, the official free credit report available from the three most prominent credit bureaus: Equifax, Experian and Transunion. By regularly monitoring your credit report, you can identify any errors or discrepancies and stay informed about your credit health.