top up loan question

Californication

Hi Guys,

Just thought I'd ask... several people have mentioned that topping up the loan means paying off the old one at its settlement figure and taking out a new loan for the settlement figure plus the new loan amount. However, there's usually an interest penalty built into the settlement figure, so wouldn't it be cheaper to just have two loans (rather than closing the older one). Or am I missing something and the settlement figure is not the same as the settlement figure used to just pay the old loan off outright? Also, does the bank change the APR when you top up?

Cheers,
A

dings

Well, made the call.

After going through the process, needed to be referred to a Senior Underwriter. Unfortunately, as I was out on my lunch hour and already been out for over an hour, could't afford the extra half hour, so they're going to call me back tomorrow...

Anyone else had this, and what can I expect?

Cheers

Dings

PS - feel better for having got things moving.

foolishqueen

What did they get back to you wiuth dings? I too have an eggloan and am debating whether or not to ask for a top up.

Cheers.

dings

Declined me sadly... weren't happy with it being so close to my original loan.

I'm going to talk to my bank today.