TODAY

TODAY   |  June 13, 2013

Jean Chatzky: Lock your interest rates down now

TODAY financial editor Jean Chatzky offers guidance as mortgage rates and other interest rates rise to just under 4 percent, a sign of the economy’s recovery.

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This content comes from Closed Captioning that was broadcast along with this program.

>> on the west side of "the new york times" this morning, big news for borrowers. last few years, we've been able to count on interest rates always seeming to head lower and lower. as the economy improves, that's about to change. let's bring in financial editor jeanne chatzky. you want to be happy because it's a sign of the economy improving. what do we see?

>> we've seen mortgage rates pop from 3.5% at the beginning of may just to 4% now. just to put that in perspective, if you've got a $250,000 loan, you're pagan extra $1,000 a year in interest.

>> car loans , student loans , interest on all those things going up.

>> so the takeaway from this is lock your interest rates down now. if you're in the market for a mortgage, lock it in. refinance your car loan . look at your personal loans . flip side , though, for savers, if you are a saver, don't put your money in a five-year cd. if rates go up, you want to be able to capture that.

>> cash is cash.

>> exactly.

>> you missed the opportunity, right?

>> rates could fluctuate a little bit on the way up, but this is the definite trend we're seeing.

>> thank you.