Next time a finance company in receivership auctions their property portfolio, go have a look, you will be very surprise.
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george.
Also in same boat....on 5/11 I made enquiries re breaking a fixed term to lock in the 6.99% rate....It was going to cost $1700.00.
Made enquiries 2 days ago...to break the same mortgage to get the 6.99% rate was now going to cost $5000.00.
I am fixed at 8.89% for a year which expires in september.
George I think we touched before with this subject as we're with BNZ also. We went from fixed to floating a week or two back, originally on a 4 year deal at 8.99%, and only 3 years into it. It cost about 1% of the mortgage value to change, but we'll save that in less than a year with the prospect of more to come.
It also allows us to offset interest cost with total money also, allowing for any funds on deposit.
SSB
Worked out that even with the fee added to the mortgage, we would be about
12,000 better off after the 3 years, assuming 6.5% compared to our 8.3.
Will check on Monday what happens after 6 months and/or if the same deal
can apply to a longer term.
The shrewd one must be chuckling at our dilemmas. To be honest, I would also be
hesitant about buying at the moment, but also working my butt off to save
the deposit and hoping prices didn't get away on me.
Am looking at a printout of the economic wheel - will post details here soon.
George
The economic clock from the top (approximate)
12 Sharemarket peak
1 Rising property values
2 High interest rates
3 Falling commodities and share prices
4 Falling overseas reserves and rents
5 Harder to obtain finance
6 Falling property prices
7 Low/falling interest rates
8 Higher unemployment
9 Rising share and commodity prices
10 Rising overseas reserves and rents
11 Easier finances
then back to our sharemarket peak
According to this we are at about 7-8 o'clock with possible more
unemployment to come then a rising sharemarket - but this could be
months or years away. Don't know if that helps in timing the markets
or not.
George
George, ritchie - count yourselves lucky. I was talking to my step brother in the weekend and he is staring down the barrel of a $13k charge for breaking a 2 year mortgage, fixed at the height of the market (9.7% ish, in April I think)!!! Yikes.
are you a robot?