Bliss!

And if yours is a floating (up?) interest rate loan then you may want to call them up and ask them about your current interest rate.


They have some “offers” going on which they tell you only if you call them. They may tell you about an ‘interest reset’ option by which you can bring down your interest rate by paying a penalty (they call it processing fee). They have this to combat the huge number of customers refinancing their loan with other banks.


I could bring down my interest rate to 8.75 from 9.5 by paying 0.5% of the outstanding principle.


Well, I always expected that a floating rate loan will float up as well as down! In the last three years, my interest rate floated up by 2.75% but managed to float down only by 1.25%. But the bank still managed to sell new floating rate loans at 8.25% when my loan was at 11%. I’m not a financial wizard, but I can sense some foul play. Just because all banks do this doesn’t make it right!