How will rising interest rates affect your loans?
As you’ve probably heard, the Federal Reserve Board has discussed raising the Federal Funds Rate at least three times this year, which will most likely lead to higher mortgage interest rates. For almost 10 years, loan interest rates have been low, and taking out a loan has been relatively painless. Although the recent interest rate hike isn’t likely to have an immediate impact on your loan payments, you may see a change over time. Below, we highlight how the federal funds rate increase may impact five different types of loans: mortgages, home equity products, auto loans, student loans and personal loans/lines.
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