Witch bank advised me today they want us to pay a break fee of $ 15,000 to let me out of a $586,000 5yr loan fixed at 7.15% until May 2012.
I asked, how do you work that out?
The answer was that the current fixed rate for a similar loan is 8.1% and that is what they work off.
I said, but aren't you getting out of a cheap loan so you can lend the same money at a higher rate - Shouldn't you be paying me $ 15,000?
The answer was, the computer says 'no'.
Can anybody offer me enlightenment here?
Belbo
I asked, how do you work that out?
The answer was that the current fixed rate for a similar loan is 8.1% and that is what they work off.
I said, but aren't you getting out of a cheap loan so you can lend the same money at a higher rate - Shouldn't you be paying me $ 15,000?
The answer was, the computer says 'no'.
Can anybody offer me enlightenment here?
Belbo