Hi,
Finally bought our first investment property. We're in our early 30's, owe $16K on our principle place of residence (worth $600K+) and have $40K in the bank. We have bought the property for $375K + Stamp Duty. My understanding is that these are our options:
1) Pay off our principle place of residence completely and use this as collateral to avoid paying the Lenders Mortgage Insurance.
2) Refinance both loans to avoid paying the Lenders Mortgage Insurance;
3) Redraw $40K from the principle place of residence + $40K in the bank so we only borrow 80% and therefore no Lenders Mortgage Insurance;
4) Borrow 95% and just capitalise the $10K mortgage lenders insurance.
Also looking at buying another property in the next 6 months or so.
Finally would like to have another child in the next year or so, which will mean we're on one income. I earn alot more than my husband, so we'll need to budget over this period. Any comments or suggestions would be greatly appreciated.
Finally bought our first investment property. We're in our early 30's, owe $16K on our principle place of residence (worth $600K+) and have $40K in the bank. We have bought the property for $375K + Stamp Duty. My understanding is that these are our options:
1) Pay off our principle place of residence completely and use this as collateral to avoid paying the Lenders Mortgage Insurance.
2) Refinance both loans to avoid paying the Lenders Mortgage Insurance;
3) Redraw $40K from the principle place of residence + $40K in the bank so we only borrow 80% and therefore no Lenders Mortgage Insurance;
4) Borrow 95% and just capitalise the $10K mortgage lenders insurance.
Also looking at buying another property in the next 6 months or so.
Finally would like to have another child in the next year or so, which will mean we're on one income. I earn alot more than my husband, so we'll need to budget over this period. Any comments or suggestions would be greatly appreciated.