I have taken government housing loan RM460k with flat rate 4% since 2019. As the recent housing loan interest rate has dropped to 2.95%, I am thinking to refinance it. However, I am worried that in the future the housing loan interest rate will increase more than 4%. What is your advise on this and what is your prediction on housing loan rate in the next 30 years?
I am afraid that I cannot predict the future accurately. There might be times the interest will rise. But it can be possible that the interest rate will remain low for an extended period (maybe decades).
When the interest rate is not favourable to you in the future, you can also choose to refinance to a better package.