Borrowing costs up front?

[MopTop]

I want to refinance against equity for investment purposes LOC. I don't have another separate LOC to pay for stamp duty and sundry loan costs.

Therefore I can either pay these costs up front out of my pocket, or I can pay them out of the loan funds.

I'm not sure which way to go on this.

Anyone got any advice about how to weigh up the decision?

cheers
MT

[Brenda Irwin]

Depends on if you like to pay interest or not on your costs. You need to assess if you have anything better to do with your cash.

[likewow]

Depends on your personal circumstances. If its ok with you and you can afford to borrow costs, then go for it. If not, dont.

Its a common thing tho and investors do it all the time when using equity to borrow more. Developers commonly borrow principal, costs and the interest payments for their loan as well!

[MopTop]

Thanks your your replies Brenda & Wow. I'll think it through in terms of "opportunity cost".

cheers
MT