Interest rate is a double edged sword except when you have cash earning bank interest and outstanding mortgage with the bank.
笨mummy just received a letter from the bank that her interest rate is going to increase from 1.6% by another 0.6% to 2.2%. She was surprised to receive the letter from the bank announcing this considering that the rate was increased from 1.3% to 1.6% around Aug/Sep 2018 and in less than 6 months another increase announcement.
Although the terms and conditions allow her to re-price her mortgage, the current housing loan rate offered by the same bank is of a relatively higher rate. She is seriously considering whether to start to pay off the outstanding loan using cash Nov 2019 when her lock-in period end as it seems the trend of higher interest rate is here to stay.
笨mummy just received a letter from the bank that her interest rate is going to increase from 1.6% by another 0.6% to 2.2%. She was surprised to receive the letter from the bank announcing this considering that the rate was increased from 1.3% to 1.6% around Aug/Sep 2018 and in less than 6 months another increase announcement.
Although the terms and conditions allow her to re-price her mortgage, the current housing loan rate offered by the same bank is of a relatively higher rate. She is seriously considering whether to start to pay off the outstanding loan using cash Nov 2019 when her lock-in period end as it seems the trend of higher interest rate is here to stay.
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