We have engaged FMS from the forum as our mortgage broker.
Just had a great meeting with him, where he went through the basics of financing for property investment.
I am not the type that understand financial matters easily, my maths skills are poor, probably at Year 8 level. I learn by being shown, rather than by reading. To credit, however, I am brilliant at writing, history all the arts subjects so I'm not completely thick. I just don't do maths.
I understand the basics.
I understand LMR, LVR .. typo typo (edit) I understand why you pay interest only, I understand the difference between redrawing on your mortgage and a line of credit. I understand how we can borrow $1.2million (not that we will) without having to borrow $1.2million in one hit and pay interest on it (yes, despite reading a few books that's what I thought).
I understand cross-collateralisation, and I understand how you buy one, hold, repeat - apparently we can do that 3 x before we need to
I even understand the tax benefits of the way one structures their loan.
FMS was really down-to-earth, (my kind of person), patient (necessary with Miss Maths dumbo here) and in no way pushy (have had that in the past, one hung up on me when I said I wasn't ready to proceed with a purchase).
I am feeling such a sense of a relief that I now understand the basic financial concepts, and at no time did I feel like a dummy, any and all questions I asked, some of which I thought were really dumb, he answered and said I am not the only one who asks them.
Next step on our journey is to restructure the loan on our PPoR, and we buy. Hooray!
Just had a great meeting with him, where he went through the basics of financing for property investment.
I am not the type that understand financial matters easily, my maths skills are poor, probably at Year 8 level. I learn by being shown, rather than by reading. To credit, however, I am brilliant at writing, history all the arts subjects so I'm not completely thick. I just don't do maths.
I understand the basics.
I understand LMR, LVR .. typo typo (edit) I understand why you pay interest only, I understand the difference between redrawing on your mortgage and a line of credit. I understand how we can borrow $1.2million (not that we will) without having to borrow $1.2million in one hit and pay interest on it (yes, despite reading a few books that's what I thought).
I understand cross-collateralisation, and I understand how you buy one, hold, repeat - apparently we can do that 3 x before we need to
I even understand the tax benefits of the way one structures their loan.
FMS was really down-to-earth, (my kind of person), patient (necessary with Miss Maths dumbo here) and in no way pushy (have had that in the past, one hung up on me when I said I wasn't ready to proceed with a purchase).
I am feeling such a sense of a relief that I now understand the basic financial concepts, and at no time did I feel like a dummy, any and all questions I asked, some of which I thought were really dumb, he answered and said I am not the only one who asks them.
Next step on our journey is to restructure the loan on our PPoR, and we buy. Hooray!
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