2nd tier lending

[Frezzinghot]

I’ve been offered 2nd tier lending at 10.8% fixed for 30yrs. I’m not intending on keeping it long term just until test rates come back down then I will refinance to a MS bank. Question is how good is the rate, I understand it will always be more expensive but how does this rate compared to other lenders?

[Frezzinghot]

I need to clarify the above post, this is a top up only and not a home loan.

[donna]

Can you explain further Frezzinghot - I didn't think we had any lenders that offered 30 year loans - top up or otherwise.

Re. the rate, I've always listened to the regulars on here that say keep the fixed short to medium term if you can afford to do it.

cheers,

Donna

[brokerman]

I’ve been offered 2nd tier lending at 10.8% fixed for 30yrs. I’m not intending on keeping it long term just until test rates come back down then I will refinance to a MS bank. Question is how good is the rate, I understand it will always be more expensive but how does this rate compared to other lenders?

I do more second tier than just about anyone so know the market well. That's about average in my opinion, they start at 8.84% and most between 9.5 and 11.5%. Hope that helps.

[Frezzinghot]

I do more second tier than just about anyone so know the market well. That's about average in my opinion, they start at 8.84% and most between 9.5 and 11.5%. Hope that helps.

Thanks, what is the ability to negotiate a better rate? The loan term is 30yrs but would obviously refinance to a MS lender once test rates drop. Do you see this as a common strategy atm?

[brokerman]

Usually no movement on the rate and yes the average loan term is around 2 years so short term to fix something.