As the cost of living continues to rise, many homeowners are seeking innovative strategies to manage their finances. Thankfully, with some foresight and planning, it is possible to significantly reduce the costs associated with homeownership. Here are five practical tips to help you save money and empower your financial health in 2025 and beyond.

1.  Apply for the Homestead Exemption for Your Home

The Homestead/Farmstead Exclusion (Act 50) provides for a reduced property tax assessment on qualifying owner-occupied properties for county tax purposes only.   Only your primary residence is eligible for the exclusions.  If approved, the first $18,000 of your assessed value are excluded from tax.   Applications must be received by March 1.  Once you apply and are granted, there’s no need to apply again.  You can obtain the application by calling your county assessment office.

2.  File a Tax Assessment Appeal

Many municipalities and counties are considering tax increases in 2025.  You should consider filing an appeal if your tax assessment is out of line. It ensures fairness in property valuation.  Reasons to consider a tax appeal include a recent increase in the millage rate for your local or county taxing authority, the description of your property with the assessment office is inaccurate and your property is over-valued due to outdated assessment techniques or changes in area property values.  You can talk with one of Fiffik Law Group’s experienced tax assessment attorneys for advice on whether an appeal might be a good idea for you.

3.  Request Cancellation of Private Mortgage Insurance

You have the right to remove PMI for many mortgages, once you have paid down your mortgage to a specified point. Ending PMI reduces your monthly costs.  The cost of private mortgage insurance, or PMI, is about 0.5 to 1.5% of the loan amount per year. This annual premium is broken into monthly installments, which are added to your monthly mortgage payment. So a $300,000 loan would cost around $1,500 to $4,500 annually — or $125 to $375 per month.

You have the right to ask your servicer to cancel PMI on the date the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. The first date you can make the request should appear on your PMI disclosure form, which you received along with your mortgage. If you can't find the disclosure form, contact your servicer.  You can ask to cancel PMI ahead of the scheduled date, if you have made additional payments that reduce the principal balance of your mortgage to 80 percent of the original value of your home.  You can also have your home appraised and it’s possible that it’s increased in value and, as a result, your current mortgage balance is at 80 percent of the original value of your home. 

 4.  Reduce your Homeowners Insurance Premiums

If you want to hunt down the best value for your insurance dollar, comparison shopping is a good way to start. Companies’ judgments of you and your property won’t be identical, so you may get a more favorable price from one company than from another. Just make sure you’re comparing coverage apples to apples.  Other tactics include bundling your homeowner’s insurance with auto coverage.   You could ask your agent whether increasing your deductible will result in premium reductions. You might also clean up your credit score.  Poor credit scores can generate premiums twice as high as those for customers with good credit.  If you installed a new roof or made other repairs to your property, ask if these will help with costs.

5.  Cut Utility Costs

Embracing energy-efficient habits, such as turning off the lights when you leave a room, can help reduce monthly utility bills.  Unplug devices when they’re not being used.  The United States Department of Energy reports that homeowners can save anywhere between $100 and $200 each year by unplugging devices not in use.  Seal poorly sealed windows and doors.  Install a programmable thermostat to lower the temperature in your house at night or when you aren’t at home.  Consider lowering the temperature of your water heater as well.  Most properties don’t need water heaters set higher than 130 degrees Fahrenheit. You could also use a water heater blanket and hot water pipe insulation to conserve energy throughout the home.

Final Thoughts

Homeownership is a major financial responsibility — but it shouldn’t be a continuous monetary burden.  We’re all looking to make our money stretch even further in 2025.  We hope these tips are helpful to you.