With mortgage rates up sharply, many more homebuyers are turning to adjustable rate loans. These can be more affordable, at least at first. But they come with a big risk. Is it worth it?
we re watching wall street. the federal reserve announcing it will be raising interest rates for the first time since 2018 by a quarter of a percentage point. it s almost exactly two years after the fed slashed rates in an effort to offset the effects of the covid-19 pandemic. for more on what this move means to you, we re joined by nbc s tom costello and cnbc s steve liesman. steve, bottom line this for me. what are the short and long-term implications for consumers? for consumers we re talking about potentially higher rates for your credit cards. if you have an adjustable rate mortgage, that will go up. if you have an adjustable rate loan, it could be a private student loan, could be a private equity loan, those will go up as well. the bottom line is this is the first of many rate hikes to come. we expect as many as six this year alone. so if you are, in fact, one of those people who has heavy
blame. the debt crisis, here you go. the deepening stalemate. president obama reaches out to a new player and the game is you. in norway, breivik s father wish his son would have killed himself rather than slaughter dozens of people. bp has a big turnaround. the company raked in more than $22 billion in profits for the quarter! the debt, minute-by-minute, the nation inches closer to the brink of twault. the countdown less than seven full days before the federal government runs out of money and unable to pay its bills. in washington a stark message is delivered between the president and the speaker of the house. their parties are desperately divided and you and i are about to pay the price. we are covering all of the angles from wall street to the white house. ali velshi getting really creative and looking at the cost americans could face even before time officially runs out. of course, dan lothian with the politics and the posturing. ali, let s start with you. the mar
never borrow using adjustable rate loan is a myth. you really have to look at, again, what your life about? if you are somebody that may get bonuses from one year to the next, it may be better for you to use a loan product where you can pay down a loan faster. maybe that means adjustable rate loan. maybe that means it s an interest-only loan that allows you to put one lump sum down and it adjusts your money payment once you have done that. so your cash flow from one month to the next might get better for yourself. again, it really depends on what your life is all about. that s what i tell my clients is, you know, i can t sit here and tell you that this is not a good loan for you because your life is different than somebody else s. julie: last one. we have got to make it quick. buy low and hold for decades. yes. this is something people really need to be careful of. you can t buy and hold any stock
large number of adjustable rate loan that is will start to reset about halfway through the year on homes that are way under water. homeowners owe more on the mortgages than the homes are wort worth. people up and down the income spectrum. regulations on wall street. action on wall street, big time technology shares are rising. dow jones is down more than 21.5 points, s&p is off 3.5 and nasdaq is down almost 6. move over, bill gates. carlos slim is the new top billionaire in town. not really in town, actually. what do we know about this guy? how did he make all his money? new details in three minutes. huge stories on msnbc.com. al qaeda is shifting its strategy or what it considers to be a success.