Federal Interest rates just got higher for the 5th time this year. The 3-point hike is the highest increase we’ve seen in 14 years. We spoke to Dan Hernandez, Certified Financial Planner and President of Milestone Wealth Management this morning about how this spike can affect you.
1) Pay off/pay down variable rate loans. Many credit cards/Home equity lines of credit will have interest that’s variable, therefore going up as rates rise
2) Lock in fixed rates. If you’re contemplating a mortgage, it’s likely rate will go up further. Lock in fixed rates asap.
3) Utilize fixed interest rate investments that are going up. Some companies offering over 4% interest if you lock in and invest for 5 years
4) Shop around:
- Shop around for savings rates from banks. Rates are going up!
- Shop around on credit cards and loans. Not all companies are going up at the same rate. There are differences. A $300,000 30 yr mortgage has gone up over $500/month since beginning of year. 3% to 6%. And in all probability will go up more over the next couple of months.