Fixed rate loans
Fixed rate loans
Looks like everyone wants to fixed their home loans now.. If i take on a fixed rate home loan, can i make any extra repayments at all????
Re: Fixed rate loans
I heard on the news that the interest rate has bottomed and the banks are all going to increase their home loan rates. Should I be fixing?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Fixed rate loans
You can never tell if it is the best time to fix or not. Economists seem to be changing their mind everyday about this issue and the banks seem to be charging much higher rates for their 3, 5 and 10 year fixed rates then is appropriate considering what rates are expected to do.
For this reason we really can't give you any advice as to if now is a good time to fix. We can only advise you of the cheapest fixed rate loans when you do apply with us.
Most lenders do not allow extra repayments on a fixed rate loan. Some however have flexible fixed rate loans that allow unlimited repayments as long as you don't close the loan account.
For this reason we really can't give you any advice as to if now is a good time to fix. We can only advise you of the cheapest fixed rate loans when you do apply with us.
Most lenders do not allow extra repayments on a fixed rate loan. Some however have flexible fixed rate loans that allow unlimited repayments as long as you don't close the loan account.
Re: Fixed rate loans
Hi All,
What the pros and cons are of fixing, or even splitting?
What the pros and cons are of fixing, or even splitting?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Fixed rate loans
Pros:
* You know your repayments.
* Peace of mind.
* Security.
* You will be better off if rates rise.
Cons:
* Loss of flexibility (extra repayments limited).
* High exit fees.
* You will not benefit from rate decreases.
* You cannot refinance easily.
* Often you may end up paying more than with variable.
* You know your repayments.
* Peace of mind.
* Security.
* You will be better off if rates rise.
Cons:
* Loss of flexibility (extra repayments limited).
* High exit fees.
* You will not benefit from rate decreases.
* You cannot refinance easily.
* Often you may end up paying more than with variable.