In the last few months rates have increased more than 2% and that can cost you a lot more in the long run when purchasing a home. Add to that the fact that lenders add in more things the lower your score is - remember they are deciding on the risk they are taking that you will be able to pay back the loan, and pay off the home.
If your FICO score is under 740 you need to take a look at the article that CNBC posted up on Thursday.
They even cover 5 ideas on how to improve your credit score.
The article is called: Mortgage rates are rising. Here’s why your credit score matters and 5 ways to improve it
Link to the article: https://www.cnbc.com/2022/04/14/heres-why-your-credit-score-matters-and-how-to-improve-it.html
Have you heard that the Federal Interest Rates are going up? And that it is to discourage folks from buying, and that allows the market to settle down?
Basically it encourages folks to take a second look at the money they are borrowing, and what the cost to pay it back is going to look like. This can apply to everything from buying a home (your mortgage) to buying a new vehicle (auto loans) to expanding or starting a business (business loans) and even going to school - student loans.
But did you know it also can effect stocks, bonds and even bank deposits?
Forbes Advisor had a good article last week that breaks down the basics titled What Happens When The Fed Raises Interest Rates?
We are all hearing about the increase in prices on just about everything these days. USA Today just did an article/video this morning about the increase of federal interest rates (the first in three years) and talks about how another 5-7 are still ahead of us.
Yes you will be seeing higher rates on mortgages, credit cards and more.
You can see the full article and video - How Fed's first rate hike in more than 3 years will affect credit card, mortgage, savings rates