Donna Maicher
HomeMy ListingsView Area Listings•  Foreclosures•  Short SalesInside ToursMortgage InfoCommunity InfoSchool InfoAbout MeContactLoginHelpful LinksBlog
RE/MAX 440   Donna Maicher
101 Quakertown Ave.  Pennsburg, PA  18073
Office Phone: 215-679-9797    Phone: 215-679-9797  Fax: 267-354-6869  Cell: 267-249-6850
donnamaicher@comcast.net
< Back to My Blog

Homeowners Ask: Will a Rise in the Key Interest Rate Impact My Mortgage Payment?

September 28, 2016 2:09 am


Approximately 90 million people could see an increase in their monthly debt payments, including their mortgages, should the Federal Reserve Board raise the key interest rate 0.25 percent, according to recently released research by TransUnion. Most of those people, however, would be able to afford the increase—in fact, 90 percent would see their debt payments go up by less than $10 per month, at an average $6.45.

“Most consumers have the financial capacity to absorb a $7 increase in their monthly payments, especially if they can plan ahead for the increased obligation,” said Nidhi Verma, senior director of Research and Consulting for TransUnion, in a statement.

Ten percent, however, do not. TransUnion researchers report that segment is susceptible to “payment shock,” a “change in monthly payment obligations.”

“Fortunately, we believe it is highly unlikely the Fed will raise rates more than 25 basis points at any one time over the near term,” said Verma. “This pace gives potentially impacted consumers an opportunity to adjust. In many cases, making minor changes to household spend would allow consumers to accommodate the payment shock.”

The key interest rate, or “benchmark,” informs the movement of mortgage rates, which, to date, remain attractively low.

Source: TransUnion

Published with permission from RISMedia.

FacebookLinkedin
<br />
<object allowNetworking="all" allowScriptAccess="always" allowFullScreen="true" type="application/x-shockwave-flash" id="" codebase="http://fpdownload.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=7,0,0,0" width="250" height="318" align="middle" data="http://downloads.thespringbox.com/web/wrapper.php?file=RSS Reader.sbw">
<param name="movie" value="http://downloads.thespringbox.com/web/wrapper.php?file=RSS Reader.sbw" />
<param name="flashvars" value="param=http%3A%2F%2Ffeeds.feedburner.com%2FRismedia&param_style_borderColor=000000&param_style_brandUrl=&memberId=thespringbox" />
<param name="quality" value="high" />
<param name="wmode" value="transparent" />
<param name="allowNetworking" value="all" />
<param name="allowScriptAccess" value="always" />
<param name="allowFullScreen" value="true" />
<param name="bgColor" value="0x000000" /><embed bgColor="0x000000" allowNetworking="all" allowFullScreen="true" allowScriptAccess="always" src="http://downloads.thespringbox.com/web/wrapper.php?file=RSS Reader.sbw" flashvars="param=http%3A%2F%2Ffeeds.feedburner.com%2FRismedia&param_style_borderColor=000000&param_style_brandUrl=&memberId=thespringbox" quality="high" wmode="transparent" width="250" height="318" align="middle" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer" /></object>
<div style="font:11px/12px arial;width:250px;margin-top:2px;"><a href="http://www.springwidgets.com/widgetize/23/?param=http%3A%2F%2Ffeeds.feedburner.com%2FRismedia&param_style_borderColor=000000&param_style_brandUrl=&width=250&height=318" target="_blank">Get this widget!</a></div>
<p>