Folks,
Seeking a feedback from SSers...
Soon to settle on our first IP..I have been quoted Std Var 8.74.
I am inclined to lock it in for 5 yrs @ 8.95 instead.
(peace of mind v/s cost argument)
However 2,3,4 yr fixed are over 9%. So 5 yr fixed looks attractive.
1. What are the advantages / disadvantages of this ?
2. What are breakup costs if say interest rates drop to 6%.
3. How do lenders work out these costs ? I am with CBA and they are vague about this.
4. I am on fixed @ 6.xx % for my PPOR and have been happy with it & hence inclined to.
5. One of my mates advises not to..since there may be some issues in refinancing if the IP value goes up. Can't see how..since I simply got a LOC @ 8.69% on our PPOR to put a deposit towards IP. So effectively refinanced did`nt I...or could I have done this better by some other way.
6. What do SSers think of IR over next 5 years ?
(I know banks pay Economists top dollar to work this out...but I am sure SSers are equally smart if not better)
Seeking a feedback from SSers...
Soon to settle on our first IP..I have been quoted Std Var 8.74.
I am inclined to lock it in for 5 yrs @ 8.95 instead.
(peace of mind v/s cost argument)
However 2,3,4 yr fixed are over 9%. So 5 yr fixed looks attractive.
1. What are the advantages / disadvantages of this ?
2. What are breakup costs if say interest rates drop to 6%.
3. How do lenders work out these costs ? I am with CBA and they are vague about this.
4. I am on fixed @ 6.xx % for my PPOR and have been happy with it & hence inclined to.
5. One of my mates advises not to..since there may be some issues in refinancing if the IP value goes up. Can't see how..since I simply got a LOC @ 8.69% on our PPOR to put a deposit towards IP. So effectively refinanced did`nt I...or could I have done this better by some other way.
6. What do SSers think of IR over next 5 years ?
(I know banks pay Economists top dollar to work this out...but I am sure SSers are equally smart if not better)