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Old 23.01.2020, 09:22
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Mortgage re-fi appointment - Now or June/July?

One of my mortgage "tranches" is due in July. I'm wondering if any of the finance wizes around here could advice: should I meet with my bank NOW, or closer to the due-date in July? I guess interest rates are not particularly volatile right now (and low enough), so that it makes little difference one way or another. But it's much better to ask. What say you?
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Old 23.01.2020, 09:29
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Re: Mortgage re-fi appointment - Now or June/July?

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One of my mortgage "tranches" is due in July. I'm wondering if any of the finance wizes around here could advice: should I meet with my bank NOW, or closer to the due-date in July? I guess interest rates are not particularly volatile right now (and low enough), so that it makes little difference one way or another. But it's much better to ask. What say you?
Do you mean the last tranche before your mortgage renewal or just a regular tranche in the period of your mortgage? Generally, the banks wouldn't be willing for you to forward pay and might ask for an additional fee. Is your contract on fixed or variable interest rate? It never hurts to ask, but i am not sure what you're trying to achieve here
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Old 23.01.2020, 09:33
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Re: Mortgage re-fi appointment - Now or June/July?

It's a rather new-ish mortage, which I got in 2015. I did 3 tranches, 3 years, 5 years and 10 years. The 3 years I already re-financed 2 years ago, and in July the 5-year tranche is due. Of course I won't pay that off, and will re-finance it. Given the currently low interest rates, I'll probably try to fix it for as long as possible. My question is: should I use today's interest rates, or do we think that the may go yet lower in the short run, thus I should wait until the last minute?

Does that help?
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Old 23.01.2020, 09:44
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Re: Mortgage re-fi appointment - Now or June/July?

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It's a rather new-ish mortage, which I got in 2015. I did 3 tranches, 3 years, 5 years and 10 years. The 3 years I already re-financed 2 years ago, and in July the 5-year tranche is due. Of course I won't pay that off, and will re-finance it. Given the currently low interest rates, I'll probably try to fix it for as long as possible. My question is: should I use today's interest rates, or do we think that the may go yet lower in the short run, thus I should wait until the last minute?

Does that help?
Your guess is as good as mine With the current view, I'd bet interest rates WON'T increase in CH due to the already high value of the currency, the current appreciation of vs. the dollar and CHF seen even more as a value reserve asset. Having said that, the current negative interest rates are hurting the banks and the central bank wants to end them at some point.

This is independent financial advice and I am not liable for any financial losses you may or will incur
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Old 23.01.2020, 09:53
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Re: Mortgage re-fi appointment - Now or June/July?

Given what the long term interest rates are currently, there is relatively little chance that they are going to increase significantly in the next 6 months. However, if you try to fix the rate now there will be an additional charge that the bank will take to block that rate for you. Personally I would wait and then fix for as long as you can in July.
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Old 23.01.2020, 10:10
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Re: Mortgage re-fi appointment - Now or June/July?

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However, if you try to fix the rate now there will be an additional charge that the bank will take to block that rate for you. Personally I would wait and then fix for as long as you can in July.
I'll keep an eye out for that. Good advice.
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