What Does Interest Rate Hikes Mean, Really?

The Feds raised interested rates .25% on Wednesday. The first rate increase in 9 years!

So, what does interest rate hikes mean? And how will this one affect your home buying power in 2016?

What does Interest rate hike meanLike some of you, I was very interested in seeing what the interest rate hike would do to the real estate market in our area and more importantly, what baring would it have…if any, on your ability to buy a house.

Talking with my lender, I was quickly and quietly assured this rate hike would not be that Earth shattering! In fact, most of the markets responded quite favorably to the news.

This latest news got me thinking, “If interest rates go up and down all the time, what does an interest rate hike by the feds mean?”

My lender told me folks looking to make big purchases like cars and homes don’t need to necessarily run out tomorrow and make their purchase. But, it’s a clear ‘wake up call’ to be prepared for their pending purchase.

In particular, home buyers want to be diligent in know exactly what their interest rate will be for their loan and how this recent hike will make a difference in what they can afford should they wait until late Winter or early Spring to buy. He said, “Talk to a lender now…even if you do not (or can not) plan to buy for another 3 months.” It’s never too early to get your finances in order! He also told me it’s those buyers who are well aware and educated in the process that ultimately have the strongest buying power! Made sense to me!

The folks who will see the affects of the interest rate hike are credit card holders and those folks with IRA’s just to name a few.

So, What Does Interest Rate Hikes Mean?

Well, in this case, it appears to mean the economy is moving in the right direction and the Feds are confident enough that a .25% interest rate hike can only help and strengthen said economy. Reports that the Feds main interests where to encourage investment and job creation, and to control inflation with this hike seems to indicate their intent.

In my humble point of view, I’m only interested in how this impacts my clients and their overall happiness. Selfishly, I want things to stay on the same tract it’s been on and see my buyers and sellers continue to achieve their real estate goals. If this recent action by the Feds does nothing to alter how my folks reach their dreams of home ownership in 2016…then I’m AOK!

 


Janet 
SimonsI am passionate about Real Estate and eager to answer all of your real estate questions! Text or Call me at 360-880-2356 or email me directly to ask about Buying, Selling or Investing in today's Real Estate Market - serving Lewis County & Thurston County, WA.

Janet Simons | Certified Residential Specialist | Real Estate Broker
Mountain Valley Real Estate


3 Simple Ways to Improve Your Credit Score

I recently met with a home buyer who presented themselves with a bit of a credit issue. That’s my fancy way of sayin’ “They weren’t going to get a loan unless they fixed their credit and improved their FICO score!”

So, I went out did some research and found this great website www.myfico.com which had this really easy to understand article on what my new client needed to know and do to get his credit fixed and score up.

In full disclosure, I have a great lender who does a wonderful job with all my “credit challenged” clients and fully endorsed the information www.myfico.com offered below!

So, with that…here is what I sent to my client…

How to repair my credit and improve my FICO Scores

It’s important to note that repairing bad credit is a bit like losing weight: It takes time and there is no quick way to fix a credit score. In fact, out of all of the ways to improve a credit score, quick-fix efforts are the most likely to backfire, so beware of any advice that claims to improve your credit score fast. The best advice for rebuilding credit is to manage it responsibly over time. If you haven’t done that, then you need to repair your credit history before you see credit score improvement. The tips below will help you do that. They are divided up into categories based on the data used to calculate your credit score.

3 Important Things You Can Do Right Now

  1. Check Your Credit Report – Credit score repair begins with your credit report. If you haven’t already, request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your score and it may contain errors. In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau.Read more about Disputing Errors on Your Credit Report
  2. Setup Payment Reminders – Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.
  3. Reduce the Amount of Debt You Owe – This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

More Tips on How to Fix a Credit Score & Maintain Good Credit

Visit www.myfico.com to get more tips NOW >>


Janet 
SimonsI am passionate about Real Estate and eager to answer all of your real estate questions! Text or Call me at 360-880-2356 or email me directly to ask about Buying, Selling or Investing in today's Real Estate Market - serving Lewis County & Thurston County, WA.

Janet Simons | Certified Residential Specialist | Real Estate Broker
Mountain Valley Real Estate