Any advice as what to do

jen51 - 2020-12-10 21:31:00

fix for 24 months ..

pf - 2020-12-10 22:01:00

I just broke one and refined for 2 years at 2.45%. cost me $1000 but in the year it would have stayed at 3.74% I would have spent more than $2500 on interest.
Locked in fixed rate of 2.39% for other which comes off in jan upped payments hugely

aromatherapy - 2020-12-10 22:04:00

Great time to pay as much debt off as possible.
Refix for lower rate but keep repayments the same.
If you think rates will fall - fix for short time or go floating.
If you think rates will rise - fix for longer.
"You pays your money and you takes your choice."

pcle - 2020-12-11 07:13:00

I'd refix for 12 months and keep payments the same or higher then review in Jan 22

jeffqv - 2020-12-11 11:58:00

I'd leave it floating, only get a fixed term when interest rates start to rise again, which will be in a while

catwoman1974 - 2020-12-11 20:03:00

catwoman1974 wrote:

I'd leave it floating, only get a fixed term when interest rates start to rise again, which will be in a while

Gone are the days when floating was maybe 1% above a 5,6,7 or greater% mortage rate, which made sense if you were in a position to make sum lump sum payments. Nowdays with rates from about 2.49 fixed and floating about 4.5 you need really special circumstances to go floating.

brouser3 - 2020-12-12 12:49:00

pcle wrote:

Great time to pay as much debt off as possible.
Refix for lower rate but keep repayments the same.
If you think rates will fall - fix for short time or go floating.
If you think rates will rise - fix for longer.
"You pays your money and you takes your choice."

There does come a time tho' when many prefer to have some 'discretionary' cash available along with some easily managable debt rather than be busy putting everything into having no debt which means nothing left over for other things in life. Ever heard of the phrase ' asset rich, cash poor'. Similar to being the 'wealthiest person in the cemetery'.

brouser3 - 2020-12-12 12:54:00

brouser3 wrote:

There does come a time tho' when many prefer to have some 'discretionary' cash available along with some easily managable debt rather than be busy putting everything into having no debt which means nothing left over for other things in life. Ever heard of the phrase ' asset rich, cash poor'. Similar to being the 'wealthiest person in the cemetery'.

I'd say asset rich/cash poor relates to being mortgage free in a good house with nothing to spend.... As long as you have a mortgage the bank owns you and you're asset.

carstauranga001 - 2020-12-12 13:32:00

Yes above, both have a point, You need to pay the mortgage, all good, the house will go up in price which if sold will cover that anyway, (9 out of 10 times), you also need to have a life , like travel,cars, food, many great things that make life fun, so all in all you need to get that balance. Life is fun, do what makes you happy, life is short. Each to their own.

msigg - 2020-12-12 15:15:00

just fixed one mortgage at 2.39% for 12 months
fixed another mortgage for 6 months at 3.09%
so hopefully interest rate has gone down closer to 2.0% then
will consider fixing a low rate for five years
google Tony Alexander - he offers some good information
http://tonyalexander.nz/test.php

johnoc - 2020-12-12 19:14:00

brouser3 wrote:

Gone are the days when floating was maybe 1% above a 5,6,7 or greater% mortage rate, which made sense if you were in a position to make sum lump sum payments. Nowdays with rates from about 2.49 fixed and floating about 4.5 you need really special circumstances to go floating.

Recession will hit NZ next year, so why fix a mortgage?

Edited by catwoman1974 at 12:24 am, Sun 13 Dec

catwoman1974 - 2020-12-13 00:20:00