andie_pandie
25-10-2007, 07:36
Well as you are probably all seeing in the news lately there is a huge focus again on the interest rates. Yesterday was a big day with regards to the latest inflation figures and they are predicting another rate rise possibly in the middle of the election campaign which is a first.
If this does occur then this will be the 10th interest rate increase since 2002. If the rates increased by .25% then on a $250K Mortgage this will be approx $50 per month extra in repayments.
If you have a fixed mortgage then at least you know you are safe until it rolls off fixed. If you are on variable and you are worried about the rates continuing to increase and you intend on staying in your home for quite some time then you can look at the possibility of fixing your loan (please note there are conditions on fixed loans).
You can also look at putting together a budget, this is a very good idea particularly for people whom are living week to week. There is a lot of stress with regards to personal debt such as credit cards, personal loans, car loans etc.
Another option if you have equity in your home is to look at debt consolidating to reduce the stress, such as Credit Cards, Personal Debt etc. With credit cards the interest rates can be exceptionally high, and sometimes people are only just covering the interest component and effectively are just paying interest on top of interest. By putting into the mortgage you can work out how much you have been paying and paying at a lesser rate of interest should be able to repay that debt quicker. Note you still need to focus on getting the additional debt down as you do not want to end up taking this debt over a longer period.
If you are looking at purchasing in the future always factor in a 1-2% increase, that means that if the rates did increase you know that you can afford the repayment.
Xmas is also coming up and this is a time when money can get out of control. Please be careful and do not overspend.
If anyone needs any further info or assistance you are more than welcome to PM me.
Regards Andrea
If this does occur then this will be the 10th interest rate increase since 2002. If the rates increased by .25% then on a $250K Mortgage this will be approx $50 per month extra in repayments.
If you have a fixed mortgage then at least you know you are safe until it rolls off fixed. If you are on variable and you are worried about the rates continuing to increase and you intend on staying in your home for quite some time then you can look at the possibility of fixing your loan (please note there are conditions on fixed loans).
You can also look at putting together a budget, this is a very good idea particularly for people whom are living week to week. There is a lot of stress with regards to personal debt such as credit cards, personal loans, car loans etc.
Another option if you have equity in your home is to look at debt consolidating to reduce the stress, such as Credit Cards, Personal Debt etc. With credit cards the interest rates can be exceptionally high, and sometimes people are only just covering the interest component and effectively are just paying interest on top of interest. By putting into the mortgage you can work out how much you have been paying and paying at a lesser rate of interest should be able to repay that debt quicker. Note you still need to focus on getting the additional debt down as you do not want to end up taking this debt over a longer period.
If you are looking at purchasing in the future always factor in a 1-2% increase, that means that if the rates did increase you know that you can afford the repayment.
Xmas is also coming up and this is a time when money can get out of control. Please be careful and do not overspend.
If anyone needs any further info or assistance you are more than welcome to PM me.
Regards Andrea