Here is why the fed raising rates make a difference 👇
Most people are living pay check to pay check and every dollar counts.
one of the biggest expenses has to do with a mortgage payment.
Lets say an interest rate of 2% on a 400k mortgage was locked in, this is the monthly payment
one of the biggest expenses has to do with a mortgage payment.
Lets say an interest rate of 2% on a 400k mortgage was locked in, this is the monthly payment
Now after a couple of rate hikes here is the going rate if you have 700+ credit
If its not as great you will be paying about another percent
For kicks will just call it 7.5
The payment nearly doubles
The payment nearly doubles
With each percent increase on the interest rate having a compounding effect on the monthly payment.
If people are living paycheck to paycheck, and the price of everything going up where does the extra money come from
If people are living paycheck to paycheck, and the price of everything going up where does the extra money come from
To make ends meet people do not have extra money to spend which causes the economy to slow, which then causes lay offs because businesses are not making as much, causing more people to have less money because dont have a job.......
summary: flywheel in the wrong direction
summary: flywheel in the wrong direction
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