What the Fed interest rate increase means to you

What the Fed interest rate increase means to you

CLEVELAND, OH (WOIO) - For the first time in just under a decade the members of the Federal Reserve feel the economy is stable enough to raise the interest rate.

This move is a signal that for the first time since the financial collapse in 2007 banks can start to make money again with better margins.

The initial increase is just one quarter of one percentage point, .25 percent.

There are indications, however, that the feds will increase it a full point throughout 2016.

If and when that happens, here's what financial experts say will happen:

In housing, anyone who gets a 30-year mortgage will end up paying about an extra $26 a month for a total payment of $1,454.

For a loan on a car, drivers will see a minimal increase of just about $16 on a $25,000 loan.

Interest rates on your credit cards will basically mirror the Fed's move.

If it goes up one percentage point, so will your interest rate.

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