Hi all,
I own a single property in Frankston with around $223,000 owing (it's a 3 br unit good condition, good location and I believe valued at around $270,000+). I am 2 years into a 5 year fixed rate period with RAMS (I know, I’ve learnt a lot in the last year or two).
I am getting married this year and would also like to renovate the kitchen. I'm looking at borrowing around $15,000 to help cover the costs. The property I’m in will become an investment property around midyear when my fiancée and I move a little closer to the city (we will rent).
In terms of personal loans CUA had the best deal that I could find which was for three years at a rate of 11.2% (variable), $120 establishment but no early / extra repayment fees.
It would not be sensible for me to break from my RAMS loan at the moment as the fixed rate break costs would be huge. I have spoken to RAMS and they have advised me to complete a loan variation application form requesting the extra money that I require. I'm a complete novice with this stuff and I am after some opinions on whether this is the best way to proceed? I was told that there would be a $220 valuation fee plus mortgage insurance costs but for the month of January the normal $295 application fee has been waived.
How exactly does the above situation work? RAMS would add the extra $15000 to my loan but how would I then access it? As I said I have no idea with this stuff....
Any help would be greatly appreciated.
Regards,
Dean.
I own a single property in Frankston with around $223,000 owing (it's a 3 br unit good condition, good location and I believe valued at around $270,000+). I am 2 years into a 5 year fixed rate period with RAMS (I know, I’ve learnt a lot in the last year or two).
I am getting married this year and would also like to renovate the kitchen. I'm looking at borrowing around $15,000 to help cover the costs. The property I’m in will become an investment property around midyear when my fiancée and I move a little closer to the city (we will rent).
In terms of personal loans CUA had the best deal that I could find which was for three years at a rate of 11.2% (variable), $120 establishment but no early / extra repayment fees.
It would not be sensible for me to break from my RAMS loan at the moment as the fixed rate break costs would be huge. I have spoken to RAMS and they have advised me to complete a loan variation application form requesting the extra money that I require. I'm a complete novice with this stuff and I am after some opinions on whether this is the best way to proceed? I was told that there would be a $220 valuation fee plus mortgage insurance costs but for the month of January the normal $295 application fee has been waived.
How exactly does the above situation work? RAMS would add the extra $15000 to my loan but how would I then access it? As I said I have no idea with this stuff....
Any help would be greatly appreciated.
Regards,
Dean.