Federal Reserve Raises Short Term Interest Rates; What That Means For You
DETROIT (WWJ) - Short term interest rates are going up a quarter of a percent. The announcement Wednesday from the Federal Reserve -- the third since December.
Sixty-five percent of Americans carry a credit card balance from month to month says WWJ Business Editor Murray Feldman, for every $1000 they don't pay off - they'll pay about $25 more a year in interest.
This is the third such hike since December but now that above figure grows to $75 a year for every $1000 you don't pay off -- and we're only six months into the year.
For a $25,000 car loan -- you'll pay about $40 more a year -- unless car-makers pick up the extra cost through customer incentives.
How does this effect you on the home mortgage front? If you've got a $75,000 mortgage or home equity loan -- not on a fixed rate -- you'll be paying about $15-$20 more in your monthly payment.
