What does a 0.15% increase in interest rate mean?
Aug 27, 2009 Interest Rates
We ask this question because as I was watching this morning’s news, one finance commentator said that a 0.10% to 0.15% increase in variable loan rate would mean something like $300 – $400 a week.
I find that incredible. The commentator was probably referring to the gross repayment amount and not the resultant increase in home loan repayment. But even that, we still find the assessment not appropriate considering that borrowers have varying levels of mortgages.
It’s good after almost an hour the same program flashed another report that a 0.15% increase would mean approximately $27 per month on a $300,000 mortgage.
That’s more like it.
We hope next time, finance analysts and commentators will double check their calculations before opening their mouth and start scaring the listeners out of their pants.
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