Hi,
I am currently in a non conforming loan for one of my IPs. I would can make additional payments into the loan of $35K this year, and in doing so will reduce the amount owing to $188K. Then if I refinance into a interest only loan at 6.5% for the $188K that would make my repayments about $1020 per month. Which is $700 less per month then what I am paying now. By doing this I will then only be $200 per month out of pocket on the loan after rent is taken into account. And if I have a offset account with this loan will that mean that any money that I put into that offset will reduce my balance owning and dynamically change my monthly payments accordingly?
Does this plan sound OK? Is this do-able? Does refinancing & IO loans with offset work in this way?
Thanks
Sebastian
You wrote every thing perfect! and Plan is ok I think you must be knowing you might have to pay high penalty when you will leave your current loan if it’s new loan.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]
MSN ID: amitash, Yahoo Id: bornguruNZ loan pre approval from OZ in 48 hours,Low Doc from 6.85%,Investment loan 95%+
Talk to one of the Agents who do interest free loans. You may find you can do something good there if you have 12 months good payment history.
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[withstupid]
The forumite formally known as Big Rob
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