GREENSBORO, N.C. — While the Federal Reserve paused interest rate hikes in June after 15 months of increases, the Fed has increased interest rates once again.
Its federal funds target rate range is now at a 22-year high of 5.25%-5.50%.
While savers may continue to benefit from high rates, borrowers could once again see higher prices on their loans and lines of credit.
From Nathan Grant with MoneyTips.com:
Choosing a mortgage lender is an important decision to make, especially in 2023, where there may be more financial pressures than in past years, and the main considerations you should make are:
- Ensure your creditworthiness is at a good place so you qualify for the lowest mortgage rates, but also shop around for lenders so you can get a good range of interest rates.
- Compare lenders based on their closing cost requirements if your chief concern is about keeping your upfront costs low.
- Ask about underwriting so you have an idea of how long the overall mortgage process will take with a chosen lender.
In the meantime, continue to bolster your savings, lower your debt-to-income ratio, improve your credit score by paying down debt and avoiding late payments, and review your credit reports to make sure they are accurately reporting your financial standing and that nothing fraudulent is on there and dragging down your credit score.
"If you have a credit card, definitely think about paying it off each and every month. That is the best practice. To be able to only spend what you need to spend during the month," Ja'Net Adams with Debt Sucks University shared.
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