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From: David Edwards
Hi All,
Love this forum and would really appreciate some advice.
Just got finance approval for my first IP. Problem is I need to refinance my exiting fixed home loan to reduce the principal owing. I have 2 options and would like to know which would be the best.
Option 1 – Reduce loan to $80K, with a Line Of Credit of $50K. Cost to refinance - $4650.
Option 2 – Reduce loan to $130K with no Line of Credit. Cost to refinance - approx $2K.
I’m inclined to stick with option 2 and hold out for 6-12 months but the risk is that interest rates could come further down, which would cost even more to refinance if I wanted to obtain the LOC facility.
Regards
Ted
Hi All,
Love this forum and would really appreciate some advice.
Just got finance approval for my first IP. Problem is I need to refinance my exiting fixed home loan to reduce the principal owing. I have 2 options and would like to know which would be the best.
Option 1 – Reduce loan to $80K, with a Line Of Credit of $50K. Cost to refinance - $4650.
Option 2 – Reduce loan to $130K with no Line of Credit. Cost to refinance - approx $2K.
I’m inclined to stick with option 2 and hold out for 6-12 months but the risk is that interest rates could come further down, which would cost even more to refinance if I wanted to obtain the LOC facility.
Regards
Ted
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