Skip to main content
edited tags
Link
Dheer
  • 57.2k
  • 18
  • 89
  • 170
Tweeted twitter.com/#!/StackFinance/status/49747844646715393
Source Link
timbo
  • 191
  • 4

Does it make sense to switch from a 30 year 6.99% loan to a 6.89% loan (Australia)

I have recently bought an apartment and have an outstanding loan for $200K. I looked around but the bank I presently bank with somewhat surprisingly offered me the best rate at 6.99% (discounted off their standard rate). After a few weeks of home ownership, I have been offered a 6.89% rate by the bank I had my home deposit savings with (they have a great high interest savings account). It will cost me $700 to exit my present loan. Does it make sense to move to the lower rate? Paying off the loan before the 30 years is very important to me. Neither loan has any additonal costs such as monthly fees, etc.