With the change of mortgage lender, we have also changed the terms of the mortgage itself. Despite the Swedish central bank AKA Riksbanken, warnings about another 2-3 smaller increases in the policy rate, we believe, and many with us, that the policy rate will fall in the long term. Because of this, we have chosen variable interest.
This means that the interest rate is fixed in 3-month intervals. When you have variable interest, you can make extra repayments. Our agreement with our new mortgage lender entered into force before the latest policy rate came into effect. This means that our first 3 months have a slightly lower interest than we expected, about $600 per month. How we will do in the future remains to be seen, but this particular month we choose to make an extra amortization on the mortgage. Whether it is the right decision or not, the future will tell.
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