Interest Rates

[primal]

That's a good bargain Orpheus1

[jp_rocks]

which bank is that jp_rocks. $8.5k cash with 4.09%. Its a good deal. Unless there is some catch like fees, etc

BNZ. The only catch I'm aware of is the clawback period for the cash being 4 years, but I've taken that into account.

[Nick G]

Nice, time for a chat with the bank I think.

I broke 850K of loans 6 months ago and paid $10K for it. I'll have made that back in under a year of doing the break if I can fix at 4.09%. I was fixed for ages so I think it's going to be about $35K saved.

I do have a nice floating deal at 4.87% so have been sitting on that.

[Orpheus1]

That's a good bargain Orpheus1

Cant see a lot of downside with that myself...

Locked in for 2 years however.

Only thing I can think of is to split the $765k over 1 to 3 years in equal amounts?

[primal]

2 years is long time and BTW bnz charge monthly fee if I am not wrong. Splitting is good idea but for small period of time.
Mine is also split. One is on fixed with one year interest and other on offset variable where no interest is charged. So I am only doing repayment on fixed. Works alright for me.

[Orpheus1]

2 years is long time and BTW bnz charge monthly fee if I am not wrong. Splitting is good idea but for small period of time.
Mine is also split. One is on fixed with one year interest and other on offset variable where no interest is charged. So I am only doing repayment on fixed. Works alright for me.

Not BNZ but they still charge $12 per month for the reviving credit.
Im wondering if there are other fees per account?
Might tell them to wave them all to get it across the line...

[primal]

They have to make money some where. That's $144 per year.

[Orpheus1]

They have to make money some where. That's $144 per year.

Think theres 4 accounts and if they all charge a fee it def adds up.

And I just don't like "Monthly fees"...

[Perry]

And I just don't like "Monthly fees"...

Unless it's rental income
is my guess.

[eri]

^

that's not a fee

it's a product consumed

[Nick G]

You can ask them to waive the fees. I think mine is. And it may be by entity and not account.

[primal]

They are too smart to waive the fee.

[Fenix]

Just fixed 50,000 of a 150,000 loan (was 200 originally) for 3 years at 4.49.. Savings deposit rates are going down (kiwi bank 2.5 down to 2.25) so maybe fixed rates down too, but fed will probably hike so hard to know. Left 2/3rds floating and I'll see what happens over the next week or 3 before fixing another 3rd or not. I leave a portion floating so I don't have fee's for putting my income straight into it

[ivanp]

Fed has already hiked by 0.25% and as I understand plans to hike another 4 times in 2016 - I guess that means we are at the bottom of mortgage rates now?

[eri]

^
maybe

how linked is our economy

to tiny changes in theirs?