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Your August Financial To-Do List

As summer wraps up, taking some time out to handle a few timely financial housekeeping tasks can make sure that you’re in good shape headed toward the end of the year.

Given today’s low interest rates, it’s worth checking to see if you could get significant savings by refinancing your mortgage. It’s also a smart time of year to double check your withholding at work and to beef up your home security.

Read on for those and other tasks that should be on your August financial to-do list, as well as insight on which items are on deep discount this month:

Consider Refinancing

Thanks to rising home values, homeowners who previously may not have had enough equity to refinance may now qualify, and today’s rates are pretty attractive, at less than 3.5 percent for a 30-year fixed mortgage. It generally makes sense to refinance if you can cut at least a half a percentage point off your current interest rate and you’re planning to stay in the home for at least the next five years. Use this calculator to see whether the savings are worth it for you.

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Also for your to-do list, now is a good time to lock in a low rate if you’re in an adjustable-rate mortgage, since rates won’t stay this low for the long term. The Mortgage Bankers Association predicts that 30-year fixed rates will reach 4.5 percent next year and pass 5 percent in 2018. To qualify for the best rates, you’ll need good credit and at least 20 percent equity in your home.

Secure Your Home

The summer months are the peak time for home burglaries. Especially if you’re planning an August getaway, it’s a good time to add updating your home security to your to-do list. Make sure you’ve got quality deadbolts on all your exterior doors as well as a solid doors and frames. An alarm system can provide additional security and serve as a deterrent to would-be criminals, but read through your contract carefully to make sure its doesn’t include gotchas like early-termination charges if you move. If you do upgrade your locks or install an alarm system, notify your home insurance company since many offer discounts to homeowners with those features.

You can further secure your home by trimming hedges and trees so that they don’t block windows, setting interior lights on timers (or upgrading to smart lights you can control remotely), and installing motion-activated lights outside. Check in with your local police department to see whether they offer a home safety inspection program, and to let them know if you’re going to be out of town this month.

Double-Check Your Withholdings

If you’ve had any big life changes this year, such as getting a new job that significantly changes your income, getting married, or having a baby, you may want to add to your financial to-do list adjusting your withholding at work in order to prevent a tax surprise at the end of the year. This TurboTax calculator can help you figure out the right withholding for you. You can make a change at any point in the year; just ask your employer for a new W-4.

Take Advantage of State Sales Tax Holidays

While they’re aimed at families sending kids back to school, anyone can benefit from the savings on purchases of things like computers, clothing, and office supplies during state sales tax holidays. Fourteen states offer a break on sales taxes for certain purchases at some point in August so this a good month to put shopping on your to-do list. The discount applies to online purchases as well, as long as you make them during the designated period.

Buy Items on Deep Discount

If you are sending kids back to school, this is the month that you’ll find the best deals on backpacks and other school-related items. Look for a school bag with two straps that doesn’t fall more than four inches below your child’s waistline.

Research by Consumer Reports product experts, who track prices year-round, shows that August is an ideal time to find end-of-season deals on things like air conditioners, dehumidifiers, and outdoor furniture.

Now’s also a good time to start thinking ahead toward winter and nab a deal on a snow blower. It may seem like a strange thing to add to your to-do list but while it’s possible to spend thousands on these machines, there are some quality models available for $700 or less in August. Of course, you’ll have to buy last year’s models in order to get the best deals.



More from Consumer Reports:
Top pick tires for 2016
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7 best mattresses for couples

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