Past Due: Radio 143 – What Rising Interest Rates Mean to You
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What’s all the hubbub about interest rates, anyway? What does it mean if they go up and how could that impact me?
The writing on the economic wall is that we can expect to see interest rates climb in the days ahead. Today we discussed how that will impact decisions we make in the following areas:
1) Consumer credit – borrowing on credit cards, car loans, and student loans. While working on paying these debts off, you may make different decisions as interest rates fluctuate regarding what to pay off first.
2) Mortgages – if planning to refinance or buy a home (I shared my criteria for what someone looks like that is prepared to buy), sooner than later should be your mantra – rates aren’t going to get any better.
3) Saving – we discussed how savers have been punished over the last 10 years and now their discipline will be rewarded.
4) Investors – interest rates play a key role in all asset classes, but especially when deciding a strategy between stocks and bonds.
Episode 135 – Do-Overs: Buying A Car – My car-buying decision cost me a fortune…in interest and depreciation. We don’t advocate borrowing on assets going down in value; I experienced it firsthand.
BankRate.com – Use their mortgage calculators to determine your break even time period with closing costs should you elect to refinance your house.
Trusted Partner Joey Hansen – Joey is fantastic and will be happy to help you nail down a great rate with minimal closing costs if you’re looking to buy a home or refinance your current mortgage.