Question for the brokers – I have currently have a Low Doc variable rate with RAMS and Line of Credit linked to the IP. If i refinance the both loans after the 1 year period will i be up for more fees? I am using the self employed propack.
I am not sure if i can refinance both loans into 1 without paying more fees.
thanks for the help
Hi. You generally would not refi a loan like this for the first 2 years. You will be up for 2% of the loan amount (for first two years)plus the discharge fee, currently $295. This loan product is a great lo-doc loan though, with a very competitive interest rate, currently 7.47 %, so unless you are selling the property, it would hardly be worth the effort to refianance I would have thought. I notice some so called 'on line ' type loans' marginally cheaper rates, but not many. You would be able to get a new valuation done and increase your loan easily if your property value has increased of course without paying much at all. Maybe the LOC (which would be a higher rate) could be consolidated back to the other loan split to save you money, but without knowing your reasons or needs I am only speculating. All the best.
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