Remember my post about being angry at our bank?

[Dutchie]

Well, we got a letter from the bank yesterday.
Our interest rate is being raised 0.2%.
I thought I remembered that it was raised not too long ago.
I looked it up.

Now I'm no longer angry - I am furious!!!
On May 1st - raised 0.2%
On July 1st - raised 0.2%
On Sept. 1st - raised 0.2%
Per Nov. 1st - raised 0.2%.

Yes, almost a full percentage point since May.
This is not only our bank but all banks are doing it here.
DH and I talked about this and we have looked into it.
The costs involved to change into a fixed rate are a LOT so we are going to attack the mortgage in a VERY agressive way and get rid of it ASAP.

[Michelle68]

That is crazy! Would the cost of getting a fixed rate be more than what you'll be paying in interest as yours varies? I'm with you on the mortgage, though. We have a fixed rate but we hope to have ours paid off in 8 years. (15 years early)

[Dutchie]

Here to change over would take a few 1,000 euros at least because of fees of the bank and notaries.

So we have decided to pay it down ASAP using everything extra that we have.

[Natalie]

If they keep raising the interest, yup, get it paid off asap. Not like it's a credit card that you want to keep, and can get to paying it off every month. Throw the EF at it (okay, maybe save some EF incase there is a need for it...), keep throwing the change at it. If there's other ways you can cut back and throw the savings at it, do that, too (maybe that latte every other day... or, in my case, that soda... )

[FrugalMomof3]

I agree with just trying to pay it down instead of refinancing, since the fees involved atleast here in PA can total over $5000 sometimes.