Read on Twitter
When you come on to Twitter & you see a tweet that resonates with you, what do you do?
Do you take steps to put it into motion or you move?
A THREAD ON HOW I MAKE USE OF THE REPO RATE CUTS TO PAY OFF MY BOND
Do you take steps to put it into motion or you move?
A THREAD ON HOW I MAKE USE OF THE REPO RATE CUTS TO PAY OFF MY BOND
See i never really bothered myself with the reserve bank's interest rates cut announcements. I knew they meant I will be paying less on my monthly bond.
Then I would celebrate each time the bank sent me a letter informing me of the effects of the rate cut & my new installment
Then I would celebrate each time the bank sent me a letter informing me of the effects of the rate cut & my new installment
With each cut meant more money in my pocket. Who wouldn't like that? It is a nice feeling having extra cash.
The downside is not being able to track where the extra cash is going. We move, right?
The downside is not being able to track where the extra cash is going. We move, right?
One fateful day in beginning of 2019, I log onto Twitter & i came across a tweet:
"If you have a bond call your bank and tell them to keep your monthly repayments the same"
I don't remember the author of the tweet & can't find it anymore but it gave me sleepless nights
"If you have a bond call your bank and tell them to keep your monthly repayments the same"
I don't remember the author of the tweet & can't find it anymore but it gave me sleepless nights
What does this tweep mean?
Why would a person want to keep their installment the same?
Is the tweep crazy?
Does he/she know how nice it is to pay less?
But I just couldn't let it go. Why?
Then the quest begin
Why would a person want to keep their installment the same?
Is the tweep crazy?
Does he/she know how nice it is to pay less?
But I just couldn't let it go. Why?
Then the quest begin
I started reading on it & coming back to twitter to check if someone has not written anything in a language I can understand
Then I made the dreaded phone call to my bank. I'm nervous & I don't know what I am going to request is even possible.
I explain why I'm calling & they tell me the name of what I wanted & they activated it. It didn't take long
I explain why I'm calling & they tell me the name of what I wanted & they activated it. It didn't take long
After that with every announcement, the bank sents me a letter on the effect of the rate cut & what my monthly repayment would be but for the hold on my account my installment will be the same
Now you may ask, how is this helping me?
See I am technically paying more into the bond without feeling the pinch.
As it stands with all the repo rate cuts that have happened since I am paying almost 2k more than what I am supposed to be paying
See I am technically paying more into the bond without feeling the pinch.
As it stands with all the repo rate cuts that have happened since I am paying almost 2k more than what I am supposed to be paying
With more reading, I noted that there was a year "2008" where the repo was hiked & people couldn't afford their houses anymore.
With my arrangement, should the SARB announce a hike in the repo rate i will not feel the pain as i am used to paying the high monthly repayment.
With my arrangement, should the SARB announce a hike in the repo rate i will not feel the pain as i am used to paying the high monthly repayment.
Thank you to the tweet author. I wish I can give them credit 
