Pondering Refinancing

Mr C divulged that he recently refinanced some of his mortgages. His new mortgage rates made my eyes drop out of my head.

He negotiated a 0.6% SIBOR ARM for a 3 mil mortgage package, without lock. That’s not all. Despite it being a SIBOR linked rate, he got the bank to agree to fix the rate at 0.6% for the first four years. Essentially, he gets a 0.6% fixed rate mortgage for four years while he is free to refinance anytime.

0.6%???!!!! Heck, my bank pays more on my fixed deposit accounts! I wonder how they make any money on that? And I had thought that my current rates (1.12%) were pretty low already. Of course, Mr C’s loan is for a cool 3 mil, and that’s only one of them. The banks are salivating for his business.

My 1.2 mil seems rather paltry next to that, but I think I’m still going to check with my banker if he can do anything for me, and maybe….hint a little that I could walk. I’m going to shop around a bit, and check if those banks who lost my business earlier if they are interested in regaining it.

I do think it will be somewhat awkward considering that the loan has only been disbursed last month and I just made the first payment beginning of this month. That’s a rather short time to be considering refinancing the loan, but I guess I have to suffer some small pain to get the gains. My calculations indicate that every 0.1% I can shave of my rate equals $100 off my monthly repayment!

To quote Mr C, that’s money just for the asking, no need to work 5 lousy hours, beg, borrow or steal to get that. What’s not to like!

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