Ah yes, inflation is back with a vengeance. Or that is what the pundits on Wall Street want to believe. The core Consumer Price Index is up to 2.4% in the last 12 months so the Federal Reserve must continue to head off the dreaded inflation "monster" by raising interest rates, albeit short-term interest rates, and risking a recession. Good luck.
I have said before that I really believe that the Federal Reserve is fighting a weak dollar, not inflation, and they need to raise interest rates to sell the bonds to finance the deficit. No, you can't keep going in the red, whether its personal or governmental, without paying it back and also paying a price.
Which now gets me around to the headline. Because the Federal Reserve is definitely raising interest rates this month and at least one or two months more this summer the following is going to be happening:
1. Home Equity Lines of Credit will go up 1/4% to 3/4%
2. Credit card interest will be going up
3. Student Loan Payments will be going up and of course gasoline is already up and most likely will also be going up as we hit the summer driving season. Because gasoline is going up the following also will be rising:
1. Airline tickets
2. Freight, which translates to higher delivery charges
3. Petroleum-based products, especially those related to building, will be more expensive.
You can ride these things out and raise your budget several hundred dollars a month or you can call us, Manhattan West at 949-5553 or write to me @MortgageMinuteGuy.com and we will get rid of all of your debt by rolling it into a new mortgage. The new mortgage will be at a lower rate and probably a shorter amortization (the time it takes you to pay back your loan), and will include reserves from the equity in your place.
I can't take away the high oil prices and their effect on you, but you aren't going to have to continue to watch your monthly bills go up. As I said in the headline above "Your Choice".
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.