My mortgage is fixed at 8.6% and I'd like to change to variable,
but the break fee is $30k. What should I do?
Q.
I bought my first property in July 2008 and due to my incorrect
judgment I locked my interest rates at 8.60%. Since the RBA has
dropped the official interest rates, would it be beneficial for me
to refinance in the long term? My mortgage break fee is
approximately $30,000.
A.
Do the calculations but you will almost certainly discover that
any savings you make by moving to a variable rate will be
eliminated by the break costs.
Each week financial advisor Noel Whittaker answers your
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