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Old 11-04-2021, 11:58 AM
retiredguy123 retiredguy123 is online now
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Originally Posted by DAVES View Post
Confusing to say the least. Interest rates are currently very low. I expect the supplied information that a new bond has a clause to renegotiate interest in 10 years, is correct.
It could well go up in ten years. My view. Mortgage was 3.5%, It is lower now. Bond is/was roughly 20,000 at 5%. If, that money/cost was in the house, the interest would have been 3.5%. Would you would we have bought our home for 20,000 more than we paid?
Note that there is no clause to renegotiate the bond interest rate with an individual property owner. The bond assessment office told me that the rate can only go down, never up, if they decide to renegotiate it with whoever holds the overall bond. It seems strange, but that is what the woman told me.