Just wanted some thoughts on this setup and make sure I am not creating any future issues.
I currently have one loan @ $250K:
- $35K P&I (Parental Guarantor)
- $215K IO
I want to:
- Refinance current loan, release equity ($40K), remove guarantor
- One loan with $290K IO (combined above two loans and release $40K equity)
Then create a new loan for second purchase $450K:
- Using my dad for a guarantor to remove LMI
- Use $40 equity for purchase cost, 5% deposit and a rainy day fund
Is there any issues with this setup? My dad is happy to do this and trust me so no issues there. Would this be a good strategy to purchase properties and replicate?
Thanks in advance.
Steve
I currently have one loan @ $250K:
- $35K P&I (Parental Guarantor)
- $215K IO
I want to:
- Refinance current loan, release equity ($40K), remove guarantor
- One loan with $290K IO (combined above two loans and release $40K equity)
Then create a new loan for second purchase $450K:
- Using my dad for a guarantor to remove LMI
- Use $40 equity for purchase cost, 5% deposit and a rainy day fund
Is there any issues with this setup? My dad is happy to do this and trust me so no issues there. Would this be a good strategy to purchase properties and replicate?
Thanks in advance.
Steve