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Mortage

Discussion in 'Introductions' started by Jaswinder, 26th Feb, 2010.

  1. Jaswinder

    Jaswinder New Member

    Joined:
    26th Feb, 2010
    Posts:
    1
    Location:
    Melbourne, Vic
    Hi every body,
    I have been stucked in fixed rate mortage. I am ready to pay early repayment fines around A$11,000 to my leander to refinance a better deal, because i can pay extra 10,000 in first few months of the year which i now can not pay.
    Please suggest me the best way how can i get a better deal in these circumstances to cover these extra costs.
    Thanks
     
  2. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    You have two options really, if interest rates are going to rise in the next months by RBA, then the economic costs to refinance should drop, so you could wait a time for this.
    Alternatively you would look at getting your property revalued with another lender and refinancing to a the higher loan amount which includes the break costs.

    The statistics for fixed rates as to who benefits, lender or borrower, is about 86% in favour of the lender. People generally fix at the wrong time and is costly. Get the timing right and you can be ahead but fixing should be thought of more an insurance measure.
    Good luck
    Greg