Asked by Anonymous
My current bank OCBC's fixed rate for 2 years lock-in, was 1.78% then dropped to 1.7% this month. If we do a partial or full payment in that time, there's a 1.5% penalty.
I have the capacity to pay back the full loan by next April. We've saved $100k now, which is not earning much in savings interest due to cap on maximum amounts and poor economic outlook. We wanted to use it to pay off some of the loan, but it'll delay us by another month at least.
My current interest is 2.65%. I am out of the lock-in period.
We were offered 3-mths SIBOR +0.6%, but are afraid of their terms saying they can switch to their other rates.
Wondering if we should just stay on with our current floating MB interest rate, and then pay off once we're able to, OR
Reprice to Fixed Interest, and then when we're able to, suffer the 1.5% penalty as it is still cheaper than 1.7%.
We've no head or clue about REITs and are very risk aversive. Husband's foreigner. Current house is Condo. Not eligible for HDB.
I have the capacity to pay back the full loan by next April. We've saved $100k now, which is not earning much in savings interest due to cap on maximum amounts and poor economic outlook. We wanted to use it to pay off some of the loan, but it'll delay us by another month at least.
My current interest is 2.65%. I am out of the lock-in period.
We were offered 3-mths SIBOR +0.6%, but are afraid of their terms saying they can switch to their other rates.
Wondering if we should just stay on with our current floating MB interest rate, and then pay off once we're able to, OR
Reprice to Fixed Interest, and then when we're able to, suffer the 1.5% penalty as it is still cheaper than 1.7%.
We've no head or clue about REITs and are very risk aversive. Husband's foreigner. Current house is Condo. Not eligible for HDB.
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