2012 Housing Loan Subsidies (Associated Press)
in Banking, Insurance & Loans ·
I’d like to reopen this discussion:
- For those who took out loans back in 2011 and have now hit that four-year mark, has your bank reached out to discuss future terms?
To be specific, my bank notified me that my interest rates for years five and six will remain unchanged. However, regarding the seventh year onwards, they’ve asked me to decide within a 90-day window and come in to sign a contract amendment.
The seventh year isn't slated to begin until September 2017, which implies I should be signing this amendment nearly 20 months before it actually takes effect. As part of this, I am being asked to choose between a fixed rate of 5.4% or a variable rate consisting of 4.35% plus the 12-month Euribor.
The loan is denominated in Euros.
Is it standard practice to face such an early deadline for signing an amendment that won't even go into effect for another 20 months?
Furthermore, what are your thoughts on these interest rate options—do they seem favorable or poor in the current climate?
- For those who took out loans back in 2011 and have now hit that four-year mark, has your bank reached out to discuss future terms?
To be specific, my bank notified me that my interest rates for years five and six will remain unchanged. However, regarding the seventh year onwards, they’ve asked me to decide within a 90-day window and come in to sign a contract amendment.
The seventh year isn't slated to begin until September 2017, which implies I should be signing this amendment nearly 20 months before it actually takes effect. As part of this, I am being asked to choose between a fixed rate of 5.4% or a variable rate consisting of 4.35% plus the 12-month Euribor.
The loan is denominated in Euros.
Is it standard practice to face such an early deadline for signing an amendment that won't even go into effect for another 20 months?
Furthermore, what are your thoughts on these interest rate options—do they seem favorable or poor in the current climate?