The interest rate cut announced yesterday by the reserve bank surprised most of the economist as every one expected an "unchanged" announcement. This is good news for everybody with debt. You will save about R264/m on a bond of R800 000, which will result in a saving of R3168 over a year. (R64000 over the 20 years)
If you decide to keep your monthly installment the same will you reduce your repayment term with about 5 years. This will have the same effect on your total payment made over the total period as a 8.75% interest rate.
It does not matter which way you look at it, this rates cut is a small gift from the reserve bank. Spend / Invest it wisely.
Greetings
Friday, March 26, 2010
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About Me
- Jacques
- Since 1997 am I a full time real estate professional with all the basic qualifications and registrations required by the EAAB but also obtained a Diploma in Sectional Scheme Management (STSM) from the UCT