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Refinancing loan
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I took out a loan for £28000 three years ago at 4.4%. I currently owe 16000 and have three years remaining.
I thought I'd look at refinancing as the rates are so much less now have been offered 2.8% but borrowing 16000 over three years the monthly payment is the same! What am I missing?!
I thought I'd look at refinancing as the rates are so much less now have been offered 2.8% but borrowing 16000 over three years the monthly payment is the same! What am I missing?!
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Comments
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Your settlement should be £15,000 after 3yrs, not £16,000? Does that figure include any early settlement fees?
You're looking at about a £10/month reduction at those rates.0 -
You could save more and not have to pay an early settlement fee, by overpaying the loan as much as you can and as often as you can.
Also have you actually been offered (that is you have applied for a loan) a loan at the lower rate or have you seen an ad by your lender?1
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