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Thread: Re-Pricing vs Re-Financing

  1. #1
    Join Date
    Jul 2009
    Posts
    1,823

    Default Re-Pricing vs Re-Financing

    My Friend has a Bank loan for HDB, the outstanding amount is about $90k. She has just got the letter from the bank to change the rates from 2.38% to 4.35%!
    I have checked with other banks for refinancing, they are not keen because the amount is less than $100k.
    I then asked the bank for repricimg, they say it can offer below 2%.
    We are going to the bank to do the paper work next Monday. What are the catches we need to watch out? (Lock in? Floating? Etc)
    How about if my Friend just pay it in full?

    Thanks a lot!

  2. #2
    Join Date
    May 2012
    Posts
    4,035

    Default

    Pay off then sell and buy another one or change to private to restretch the loan and get lower rates.

    Quote Originally Posted by richwang View Post
    My Friend has a Bank loan for HDB, the outstanding amount is about $90k. She has just got the letter from the bank to change the rates from 2.38% to 4.35%!
    I have checked with other banks for refinancing, they are not keen because the amount is less than $100k.
    I then asked the bank for repricimg, they say it can offer below 2%.
    We are going to the bank to do the paper work next Monday. What are the catches we need to watch out? (Lock in? Floating? Etc)
    How about if my Friend just pay it in full?

    Thanks a lot!
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  3. #3
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by richwang View Post
    1. We are going to the bank to do the paperwork next Monday. What are the catches we need to watch out? (Lock in? Floating? Etc)

    2. How about if my Friend just pays it in full?

    Thanks a lot!
    1. Should ask what is your friend need instead? Is your friend going to sell or stay?

    2. Should ask what return can your friend do to the money if don't pay it in full.

  4. #4
    Join Date
    Jul 2009
    Posts
    1,823

    Default

    She is staying there. Bank eventually offer her reprice at 2%+
    If less than 80k loan, it will be harder.
    So get ready to pay full when falling Low.

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