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How do i get out of my high fixed rate loan?

Thursday, 15 January 2009 3:35 PM

Those borrowers who fixed their interest rate before the sharp rate decreases are finding they have very high break costs to break out of their fixed rate and convert to variable. Break costs in the range of $30,000-$40,000 are not uncommon. The short answer is that there is not much you can do except weigh up whether this cost is worth paying in your particular circumstances. In most cases, the best position is to unfortunately just sit with your loan and wait out the fixed rate term.

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