Suspect rate drop.. should I hold off on lump sum?

NewEdition

Registered User
Messages
273
Seems like there are some banks reducing their mortgage rates.
I dont have a massive mortgage and will be in a position to pay off maybe 10k on my variable rate.
My rate is around 3%
Say it dropped to 2.8% for example
Is is better to pay the 10k now or hold off until the suspected drop happens or does it actually make no difference?
 
Well.. The logic in my head was that I am paying it off while at a higher rate.
Whereas waiting for example one month and the rate drops, would it not be better to pay off then?
Is my logic wrong?

I know what you mean by pay off asap.. i do not ind to wait too long, a matter of a qeek or two to see what happens
 
There is no benefit to waiting until the rate drop to pay off the lump sum. There is a cost of waiting however being the c.3% you'll pay on the 10k while waiting for the rate to drop.
 
Makes no difference, you are being charged interest on a daily basis, in fact you will benefit more by paying it off when the rate is higher.
 
Back
Top