Hi everyone,
I am a regular viewer on here but this is my first post so I hope you can all help.
I currently own a IP in Brisbane which I made a big mistake fixing for 5yrs at 8.97% (lesson learnt - dont always listen to the media). I did this because I was afraid of the double digit interest rates due to inflation.
It has been fixed for 1 year and 3 months.
The property is worth $320K-$340K. My loan is $247000 at 8.97%. It will cost $17000 (which I would add to the loan) to break the fix rate and return to a 5.05% variable.
Payments now at 8.97%: $1880 / month
Payments at 5.05% variable: $1111 / month
I know that the media is talking about interest rate rises but I have been doing a lot of reading on here that says this is all just media hype.
I would like to here what advice the SS community has to offer
Should I keep my fixed loan or break it?
I am a regular viewer on here but this is my first post so I hope you can all help.
I currently own a IP in Brisbane which I made a big mistake fixing for 5yrs at 8.97% (lesson learnt - dont always listen to the media). I did this because I was afraid of the double digit interest rates due to inflation.
It has been fixed for 1 year and 3 months.
The property is worth $320K-$340K. My loan is $247000 at 8.97%. It will cost $17000 (which I would add to the loan) to break the fix rate and return to a 5.05% variable.
Payments now at 8.97%: $1880 / month
Payments at 5.05% variable: $1111 / month
I know that the media is talking about interest rate rises but I have been doing a lot of reading on here that says this is all just media hype.
I would like to here what advice the SS community has to offer
Should I keep my fixed loan or break it?