hi
im looking at a vendor finance property at the moment and found one that i like. however i work out the interest rate from the weekly instalment to be 7.5% pa
i dont mind paying that extra for 3-4 years (saving for 20% deposit) but im just wondering how would i go and refinance the loan with bank (of course at cheaper interest) in the future.
i read online that we have to be able to refinance within a timeframe or else we would lose the deposit, is that correct?
say i can save 20% deposit in that 2-3 years (within timeframe) what are the risks that the bank wouldnt lend it to me because its a vendor finance property?
also having made the repayments for 2-3 years, do i refinance the total loan amount at that time or the original contract price? i know there wont be much difference in principal loan having only paid it for 2 years but just want to know which value the bank will take. if they can get the valuation of the property at that time that would be better
im looking at a vendor finance property at the moment and found one that i like. however i work out the interest rate from the weekly instalment to be 7.5% pa
i dont mind paying that extra for 3-4 years (saving for 20% deposit) but im just wondering how would i go and refinance the loan with bank (of course at cheaper interest) in the future.
i read online that we have to be able to refinance within a timeframe or else we would lose the deposit, is that correct?
say i can save 20% deposit in that 2-3 years (within timeframe) what are the risks that the bank wouldnt lend it to me because its a vendor finance property?
also having made the repayments for 2-3 years, do i refinance the total loan amount at that time or the original contract price? i know there wont be much difference in principal loan having only paid it for 2 years but just want to know which value the bank will take. if they can get the valuation of the property at that time that would be better