Originally posted by muppet
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Best interest rate for long term
Hi All,
I have an IP coming off a 5 year term which was @ 7.95%. Term was 5 years. Can anyone tell me the best rate I can get for a 4 year term.
Currently on interest only and want to start paying principle now to reduce the loan. Loan comes off term in march.
Thanks
FH
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^^^ pretty good rate for 4 years in my opinion. Check out Interest.co.nz Generally has every single rate all on one page and updated to today's rate. Next best is ASB's 6.70% over 4 years.
Just remember, 4 years is a long time and anything can happen. Certainly wouldn't put 100% of lending on fixed. Depending on Europe and China things will get better or worse... toss a coin.
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Originally posted by sbw View Post^^^ pretty good rate for 4 years in my opinion. Check out Interest.co.nz Generally has every single rate all on one page and updated to today's rate. Next best is ASB's 6.70% over 4 years.
Just remember, 4 years is a long time and anything can happen. Certainly wouldn't put 100% of lending on fixed. Depending on Europe and China things will get better or worse... toss a coin.
Any ideas?
FH
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Originally posted by freezinhot View PostWhat do you mean by 30% equity?
Someone more knowledgeable than me: could you get away with taking the other 30% from a revolving credit with another bank, secured against another property? I don't see why not...
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You've been paying over the odds on interest rates for the past 5 years, so why jump in and immediately begin paying over the odds again for another 4 years?
I'd put it all on floating, and continue paying it off as fast as you can (if that's what you want), you'l pay it off even faster on floating than you would on fixed.
If you go fixed you're immediately paying another 1.2% more than you would be on floating.
The way I see it, if you go floating you are GUARANTEED to be saving money right now and virtually guaranteed to be saving money for the next year at least. If you go fixed you are GUARANTEED to be losing money from day one, and you have a POSSIBILITY to be saving some money 1 or 2 or 3 years down the track. Yes, it's a gamble whichever way you look at it, but to willingly pay more interest on your loan from day one is silly imho, more so because you have been doing it for the past 5 years already.
The time of fixed rates has come to an end now...
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