I have a one million dollar 17 year residential property loan at 2.20% fixed for 2 years which I have served for 11 months. Is it worthwhile to refinance for 30 years at 1.9%? - Seedly
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Carol Lim

Asked 3w ago

I have a one million dollar 17 year residential property loan at 2.20% fixed for 2 years which I have served for 11 months. Is it worthwhile to refinance for 30 years at 1.9%?

Time to refinance?

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Will
Level 2. Rookie
Answered 3w ago

It is a good time to refinance as rates are currently quite low. As I'm sure you're aware, refinancing at that lower rate should save you $130/mo and $1,500/year

However, without knowing every detail about your current loan and refinancing offers, I would point you to some other considerations:

  • Can you do better than 1.9%? (as I write this, yes!)

o Check out ValueChampion’s page which features the best current refinancing rates https://www.valuechampion.sg/best-home-loan-refinancing-singapore

  • How long will your new rate be fixed? What is the rate structure following this period?

  • Refinancing fees can be significant, I suggest enquiring with your current bank/new bank

In general, refinancing can save homeowners a lot of money, but it can also be complicated depending on your circumstances. If you are interested, our home loan broker partner helps walk you through the nitty gritty. Click the “Check Rates” button on our page to get personalised assistance.

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