How Interest Rates Affect You
6 years ago
Interest rates can have a huge impact on your finances, especially if you carry a lot of debt. Here’s some important information that can help you manage your money more successfully:
- Mortgages. You may pay more as the rates go up if you have an adjustable-rate mortgage. Financial advisers definitely recommend an adjustable-rate loan with a five or seven-year fixed period.
- Home-equity line of credit. You
can use your home-equity line of credit if you can pay off the amount
you borrow within three years. If you’re unable to pay off the amount
in three years, obtain a home-equity loan with a fixed rate. For bank
rates, go to www.bankrate.com.
- Credit cards. When Federal Reserve rates rise, expect to pay more. It’s best to pay off or pay down your credit card debt, or switch to a lower interest rate credit card, Go to www.cardweb.com for credit card rates.