From: Steve Tarr
There seems to be a bit going on with Split loans and the legal ability to claim the compounded interest. In "Building Wealth Story by Story" this is briefly touched on and makes it clear that without the ability to gain the compounded interest there really is no point in deferring the rental income into your home loan. Has anyone taken up this opportunity and experienced differently?
According to my calculations (without claiming the compounded interest portion), I can quickly reduce my home loan by taking rent from 1 of my properties which in turn will create greater equity in my home to borrow against. The net effect at the end of 1 year is a greater reduction in the combined amount of the 2 loans.
can anyone assist with any thoughts??
steve
There seems to be a bit going on with Split loans and the legal ability to claim the compounded interest. In "Building Wealth Story by Story" this is briefly touched on and makes it clear that without the ability to gain the compounded interest there really is no point in deferring the rental income into your home loan. Has anyone taken up this opportunity and experienced differently?
According to my calculations (without claiming the compounded interest portion), I can quickly reduce my home loan by taking rent from 1 of my properties which in turn will create greater equity in my home to borrow against. The net effect at the end of 1 year is a greater reduction in the combined amount of the 2 loans.
can anyone assist with any thoughts??
steve
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