Increased Interest Rates

[Mumprenuer]

A few months ago I requested that our home loan interest rate be reviewed as we had had the loan for about 5 years..the rate was dropped, now 3 months later we get a notice that the interest rate has been increased by double what it had been reduced. (Does that make sense?)

Eg. reduced by .25 but increased by .50. A phone call to them and they basicly told me 'tough luck' now I'm wondering....

Is it worth while refianacing...the hassles of set up costs etc etc.

Any ideas here?

Thanks

 

[BV]

Hi
It depends on what loan you have and who it is with.
Do you want to give us some more info?
Cheers
Bill

 

[Mumprenuer]

Collins-securities (linked via Anz somehow) as, I think a line of credit...basicly we use the account as a savings/everyday account.

The exact rate was 7.90% went down to 7.34% in July then they increased it to 7.99% Sept...

 

[Rolf Latham]

Hiya

Sounds like you might be one of the ones getting involved with the softening of the credit markets...............not unusual right now with many securitised lenders.

ta
rolf

 

[BV]

Hi
If the loan size is high enough you could probably do better than 7.99 with another lender.
Have you had this mortgage for a while and do you know what the exit fees are?
Cheers

 

[Mumprenuer]

Had for over 5 years. Only $150 fee. However I have since spoken again with them they now will change me over to a new loan with no fees (for me) with an interst rate of 7.59...could I do better then that?

Thanks

 

[BV]

I don't believe you can.
Is it over a million $ loan?
Cheers

 

[Mumprenuer]

No ...only 250k

thanks

 

[BV]

then your new rate is a good rate.
Cheers