Any experience with Hibor linked mortgages?



ORIGINAL POST
Posted by C 19 yrs ago
Majority of banks offer Prime based mortgages as I'm aware, but at least BoA offers Hibor-based mortgage product. Anyone had any experience with this? Pro's and cons of being Hibor-based?


thanks for input.


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COMMENTS
crj 18 yrs ago
We have been offered the below from BEA:


1. P-3.15% (2 years) & P-3% thereafter

2 years penalty Full: 3%, 2%

Partial: @$500.-

Handling fee: $1,000.- (recommended to waive)


2. 1 month / 3 months Hibor+0.5% (3 years) & Hibor+0.6% thereafter & ceiling capped p-2.8%

2 years penalty Full: 2%, 1%

Partial : 0.5%

Handling fee $1,000.-


Currently, HIBOR is 4%, which makes the HIBOR option very attractive, but if HIBOR goes up to 5%, then being attached to P -3 is much more attractive.


What are the benefits and risks of opting for a HIBOR based mortgage?

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crj 18 yrs ago
I just learned DBS has a better offer than BEA!


P-3.0 or HIBOR + 0.55 - whichever amount is lower each month.

Capped at P-3.0.


And it comes with a cash rebate.


That solves the whole decission making problem!

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