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Thread: Mortgage Rate - need help

  1. #1
    Join Date
    May 2009
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    Default Mortgage Rate - need help

    Hi, my existing bank offered to reprice my loan package to variable rates with a 3 yrs lock-in.
    Yr 1 - 1.08% (MR less 3.42%)
    Yr 2 - 1.18% (MR less 3.32%)
    Yr 3 - 1.48% (MR less 3.02%)

    Bank claim that its the lowest and its good for those with no intention to sell their property within the nex 3 yrs, and SIBOR packages are not encouraged. Is that true?? Will Mortgage rate increase within these few yrs. Should I continue with my existing bank? Very confused

  2. #2
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    Jun 2009
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    Default

    what is MR?

  3. #3
    Join Date
    Oct 2010
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    Quote Originally Posted by yyly1327
    Hi, my existing bank offered to reprice my loan package to variable rates with a 3 yrs lock-in.
    Yr 1 - 1.08% (MR less 3.42%)
    Yr 2 - 1.18% (MR less 3.32%)
    Yr 3 - 1.48% (MR less 3.02%)

    Bank claim that its the lowest and its good for those with no intention to sell their property within the nex 3 yrs, and SIBOR packages are not encouraged. Is that true?? Will Mortgage rate increase within these few yrs. Should I continue with my existing bank? Very confused
    you think bank want to help you save money?
    since bank tell you not to take SIBOR, you go ahead and take SIBOR.
    dont be like a goldman muppet.

  4. #4
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    Apr 2010
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    39

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    Quote Originally Posted by Arcachon
    what is MR?
    MR = Mortgage Rate ?

    I believe this is OXXX Bank. MR is their proprietary rate which is benchmark according to the direction of the north/south/east or west wind, which basically means that it is their own discretion to adjust the rates. Doesn't have to be tie in with SIBOR whatever - it is what i call a suka suka rate ?

    Correct me if i am wrong.

  5. #5
    Join Date
    Nov 2008
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    Quote Originally Posted by bigbertha
    MR = Mortgage Rate ?

    I believe this is OXXX Bank. MR is their proprietary rate which is benchmark according to the direction of the north/south/east or west wind, which basically means that it is their own discretion to adjust the rates. Doesn't have to be tie in with SIBOR whatever - it is what i call a suka suka rate ?

    Correct me if i am wrong.
    I was also approach by this bank and was offered their internal rate (which is not transparent). He discourage me to take SIBOR as he said SIBOR is not stable. But finally I still decided to take SIBOR rate as it is very low now and not likely to increase soon (in my opinion). Anyway I can change to another rate within the same bank upon TOP. So the risk is low.

  6. #6
    Join Date
    Mar 2012
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    41

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    Quote Originally Posted by bndreve
    I was also approach by this bank and was offered their internal rate (which is not transparent). He discourage me to take SIBOR as he said SIBOR is not stable. But finally I still decided to take SIBOR rate as it is very low now and not likely to increase soon (in my opinion). Anyway I can change to another rate within the same bank upon TOP. So the risk is low.
    I agree board rate is not transparent and can be suka suka changed by the bank anytime. Then again, SIBOR is also set by the banks, except they will have to drink alot of kopi discretely if they want to manipulate it.

  7. #7
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    May 2009
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    Default

    Thank you for sharing.

  8. #8
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    maybe you can consider fixed rates at average 1.35% over 3 years. your avg rate is 1.25. For 0.10% higher and fixed, I think it's a small extra margin for peace of mind.

  9. #9
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    Quote Originally Posted by hopeful
    you think bank want to help you save money?
    since bank tell you not to take SIBOR, you go ahead and take SIBOR.
    dont be like a goldman muppet.
    haha, so can I say our company will help you?

  10. #10
    Join Date
    May 2009
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    Quote Originally Posted by newbie11
    maybe you can consider fixed rates at average 1.35% over 3 years. your avg rate is 1.25. For 0.10% higher and fixed, I think it's a small extra margin for peace of mind.
    The fixed rate 2 yr lockin package which they offered is at, 1.38% fixed 1st year & 1.68% fixed for 2nd year. Actually, the reprice package offered is not attractive at all. And they claim they value existing customer.

  11. #11
    Join Date
    Sep 2009
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    maybe you can shop around for lowest rate and ask if existing bank can meet?

    if meet, then onz!

    if not, then just switch la...

  12. #12
    Join Date
    Aug 2009
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    Quote Originally Posted by yyly1327
    The fixed rate 2 yr lockin package which they offered is at, 1.38% fixed 1st year & 1.68% fixed for 2nd year. Actually, the reprice package offered is not attractive at all. And they claim they value existing customer.
    Get used to it they always value NEW customer.

    If u r totally penalty free, can go try Citi. SIBOR + 0.7 for 3yrs.

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