5 Yr fixed - 4 months early - renew at same rate

[toony]

I have a 5 Yr fixed rate loan at 6.99%. I wish to renew it 4 months early for 5 yrs at the same rate of 6.99%

They tell me it will cost $1500 for the pleasure. Is this correct. I have done this in the past and i am sure it did not cost me?

Any thoughts from the brokers here!!!!

 

[Aaron_C]

which bank is this?

 

[Rolf Latham]

the balance of the remaining term is a broken contract............so there is an economic break cost with this lender.

While u can get the same rate today, thats not necc related to the cost of funds at the time for your lender.

I have no real idea, but it looks like rates may be trending down, so you MAY have a better window when your current fixed rate expires

as always, there is a risk there

ta
rolf

 

[Mick C]

I have a 5 Yr fixed rate loan at 6.99%. I wish to renew it 4 months early for 5 yrs at the same rate of 6.99%

They tell me it will cost $1500 for the pleasure. Is this correct. I have done this in the past and i am sure it did not cost me?

Any thoughts from the brokers here!!!!

To re-fix cost only $200-300 ( app fee)
The $1500 charge is for

1. the $200- 300 app fee (above)
2. 60 days Lock in fee - $600 (depending on lender)
3. Break fee, your still breaking your contract 4 month early.

So really if you wait it out and i guess in a way take the gamble that either the fixed rate offer remains the same or decrease...you can save your self $1000 at least.

Regards
Michael