All Topics / Help Needed! / Worst case interest rate?

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  • Profile photo of dreamergirldreamergirl
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    @dreamergirl
    Join Date: 2003
    Post Count: 15
    March 16, 2004 - 5:20 am

    When doing your sums, what (hypothetical) interest rates do you factor in? ie I’m going with 10% as worst case and 8.5% as average in terms of servicability (sp?)(looking at about the next 5-10 years)

    dreamergirl

    Profile photo of woodsmanwoodsman
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    @woodsman
    Join Date: 2004
    Post Count: 714
    March 16, 2004 - 5:23 am

    Dreamergirl,
    I would look at 5 year interest rates today and add 1-2%.

    James

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737
    March 16, 2004 - 6:01 am

    dreamer,

    Given that IR’s can go up every month [:(!] then I think it would be a good idea to factor in at least a few percentage points. Particularly if you’re looking at a 5-year budget.

    kay henry

    Profile photo of _se7en__se7en_
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    @_se7en_
    Join Date: 2003
    Post Count: 100
    March 16, 2004 - 6:07 am

    Bank already factor in a extra 2% in your loan servicability.

Viewing 4 posts - 1 through 4 (of 4 total)

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