Interest Only period is up

[kero]

Interest only terms for the first IP is up. Its has already been 10 years. As i understand, at the end of the 10 years, the repayment will revert to Principle and Interest.

Present options are:

1. let the replayments revert to P and I or
2. take the loan to another lender.

As i am getting pretty good cash flow and decent captial growth for this IP, I do not wish to sell it.

Any other options available?

your thoughts much appreciated.

 

[Aaron_C]

Change to a different lender (if you are able to)
10 years is already a very long time for one lender so unlikely they would extend it even further.

 

[Mick C]

Just ask the current lender for an internal refinance or extension.

If they say no, refinance - you be surprised, you might get a better rate + some equity as well

 

[MTR]

Interest only terms for the first IP is up. Its has already been 10 years. As i understand, at the end of the 10 years, the repayment will revert to Principle and Interest.

Present options are:

1. let the replayments revert to P and I or
2. take the loan to another lender.

As i am getting pretty good cash flow and decent captial growth for this IP, I do not wish to sell it.

Any other options available?

your thoughts much appreciated.

I asked for an extension and they agreed, give this a go.