Hi All,
Got another question here that I need support on.
Original Loan (Split)
162k - Fixed P&I Loan (for land purchase)
180k - Variable I/O Loan (Construction Loan)
Now that the house (PPOR) is completed and we have moved in. I want to consolidate my loan to make it just the one loan, I/O, with 100% offset. Which I learned from this forum is the way to go. The breakup cost at the moment is $488 as I walked in to the bank and talk to the branch manager asking for advise.
Future Plan -
Option 1: Convert current PPOR to IP and rent somewhere cheaper.
Option 2: Convert current PPOR to IP and buy another PPOR elsewhere.
Option 3: Pull out equity from PPOR and purchase IP.
(Estimated Equity by June 2014 - 40K)
Question:
Is it worth paying the $488 breakup cost if at the moment I have three options to choose from? Because I know full well that if I am to go with Options 1 and 2, changing my current loan structure is a must for max tax benefit. but what if i go with option 3 (i know $488 is a small amount to pay for some, but it is a significant amount to me who's just starting out)
Thanks for your help as always.
Got another question here that I need support on.
Original Loan (Split)
162k - Fixed P&I Loan (for land purchase)
180k - Variable I/O Loan (Construction Loan)
Now that the house (PPOR) is completed and we have moved in. I want to consolidate my loan to make it just the one loan, I/O, with 100% offset. Which I learned from this forum is the way to go. The breakup cost at the moment is $488 as I walked in to the bank and talk to the branch manager asking for advise.
Future Plan -
Option 1: Convert current PPOR to IP and rent somewhere cheaper.
Option 2: Convert current PPOR to IP and buy another PPOR elsewhere.
Option 3: Pull out equity from PPOR and purchase IP.
(Estimated Equity by June 2014 - 40K)
Question:
Is it worth paying the $488 breakup cost if at the moment I have three options to choose from? Because I know full well that if I am to go with Options 1 and 2, changing my current loan structure is a must for max tax benefit. but what if i go with option 3 (i know $488 is a small amount to pay for some, but it is a significant amount to me who's just starting out)
Thanks for your help as always.