Hello,
I`m a first time user on this forum so please be gentle with me.
My husband and I have one investment property which we are going to do a few cosmetic improvements to, and when finished expect to have around $40k worth of equity. When we started out trying to get a loan no-one would touch us, even though we had an excellent credit rating and my husband earnes a very good wage because we didnt have a property already the only company that would finance us is a gov lending company, now that we have the property and some equity we want to refinance to an intrest only loan, we will have exit fees to the tune of around $2000 from this loan, and we want to use as little of our money as possible, will another bank refinance and include the exit fees and all other costs for a second property, and can anyone guide me through the prosess, from the begining .Do we need to get the house valued by an appraiser or will the banks just come and have a look and tell us what they are willing to give.
Thanks in advance for any help.
Abundance and properity to all.
Jill[biggrin]Hi Jill & welcome to the forum,
Yes your exit fees & costs etc can be deducted from the surplus funds by the new lender when you refinance, and the new lender will carry out the valuation.Regarding finance structure,
I would suggest you keep your loans on the Two properties separate as this will help avoid cross colaterisation issues later on down the track.
You can achieve this by using the surplus funds from the refinance to fund the deposit required on the new loan for the 2nd investment property.There are other issues to consider, such as Loan to Value Ratio, keeping in mind mortgage Insurance will apply on most lending over 80% LVR, I hope this helps.
Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Gonnaberich,
I can only talk from personal eexperience when I refinance back in early 04.
It was very simple in that I put in my application with the new bank and they then had my properties valued.
From this they advised how much I could borrow based on my serviceability and the valuations.
I only wanted to payout the old loans and so gave them a total that I wanted paid out.With my case it took me almost 2 months to get all the contract details correct in that some wording was wrong and I wanted no fees. At settlement the bank people got the payout from the old loans which included all fees that the old leader was charging for payout and then bank arranged them to be paid out.
As I had already made extra repayments to the old loan there was money left over which they gave to me.
TO me it was like applying for a new loan needing all the doco I had from the first loan. Even tho it took some time to complete was very easy and today with interest rates low you should be able to get a intro rate cheaper then your current rate.
ChrisAll post are IMHO.
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