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From: Anonymous
Hello all
We were given bank approval to borrow $200,000 on a P&I loan.
We went shopping and have had offers accepted on two properties, $98,000 and $120,000. We will put in the shortfall and pay purchasing expenses. Additional security is by an existing IP financed through the same bank.
My question is: Is is advantageous to have a separate loan for each property. One disadvantage is paying the $8 per month service fee on 2 loans.
We plan to renovate 1 property immediately & therefore increase equity. The other property is tenanted & we will leave it as is for the time being, but will renovate later.
Would having one loan for both properties make accessing increased equity more difficult?
Jane
Hello all
We were given bank approval to borrow $200,000 on a P&I loan.
We went shopping and have had offers accepted on two properties, $98,000 and $120,000. We will put in the shortfall and pay purchasing expenses. Additional security is by an existing IP financed through the same bank.
My question is: Is is advantageous to have a separate loan for each property. One disadvantage is paying the $8 per month service fee on 2 loans.
We plan to renovate 1 property immediately & therefore increase equity. The other property is tenanted & we will leave it as is for the time being, but will renovate later.
Would having one loan for both properties make accessing increased equity more difficult?
Jane
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