hi,
i am currently with Haven. I built a new house 2 years ago (all in finished at 107 euro square foot).
4 months ago i switched from 3.5% to Havens 2 % fixed rate for 4 years. i paid about 1300 breakage fee. My broker had initially set me at 3.5%.
lately, im seriously thinking about exiting out of this 4yr fixed and go for the 10yr fixed at 2.85% (i dont think the 10 year was available until lately). Its going to cost me 70 euro a month extra.
i have 25 years left on mortgage, theres about 175 K left on it (i had a large deposit to build).
anyway, im wondering, what happens after my 4 years are up, if in the meantime the ECB raises rates by 2%, is this 2% proportionally added onto each of the rates the back has? (for example, is 2% added onto the 2.85% 10 year, so in 4 years a 10 year would be 4.8 %?
im sick about this, dont know what to do.
ive a young family, for the sake of 70 euro extra a month, i think i might opt of the 10 years.
looking at the mortgage graph over the last 30 years, 2.85% for 10 years appears low, and mortgages can go much lower.
thanks
Oriel
i am currently with Haven. I built a new house 2 years ago (all in finished at 107 euro square foot).
4 months ago i switched from 3.5% to Havens 2 % fixed rate for 4 years. i paid about 1300 breakage fee. My broker had initially set me at 3.5%.
lately, im seriously thinking about exiting out of this 4yr fixed and go for the 10yr fixed at 2.85% (i dont think the 10 year was available until lately). Its going to cost me 70 euro a month extra.
i have 25 years left on mortgage, theres about 175 K left on it (i had a large deposit to build).
anyway, im wondering, what happens after my 4 years are up, if in the meantime the ECB raises rates by 2%, is this 2% proportionally added onto each of the rates the back has? (for example, is 2% added onto the 2.85% 10 year, so in 4 years a 10 year would be 4.8 %?
im sick about this, dont know what to do.
ive a young family, for the sake of 70 euro extra a month, i think i might opt of the 10 years.
looking at the mortgage graph over the last 30 years, 2.85% for 10 years appears low, and mortgages can go much lower.
thanks
Oriel