- Joined
- Aug 29, 2010
- Messages
- 59
Hey guys, I'll try to keep it short. I'd really appreciate some input from some of you more experienced investors. Please let me know what you think.
Current debt:
$12,000 student loans (6K at 4% & 6K at 6%)
$5000 renovation debt at 9% (unsecured LOC)
Duplex purchase price $82,000 with 5% down.
Currently owe $74,000 on the mortgage and the value of the property is now $120,000 (conservative figure).
80% LTV = 22K equity to pull out.
Legal and appraisal fee's = $820 which will be rolled into the new mortgage.
It would be through Scotiabank and fall under the same mortgage, however, my 74K mortgage would remain at my current rate of 2.2% and the new 23K would be at a rate of 3.39% fixed for 4 years (currently best rate I've been offered). It was explained to me briefly. Basically, it will not be a "second mortgage" but a separate entity of one mortgage, thus I will still have one simple monthly payment.
Scotiabank was willing to pay for legal and appraisal fee's ($820) if I went with a 5yr fixed, however, the current rate for such a term on a refinance is 4.9%.
All funds would be put towards my debt listed above right away, essentially making me debt free except for my 2 mortgages. HELOC doesn't really make sense as I can get a better rate by refinancing and plan on using all the funds right away. Any left over funds would be put towards renovations right away as well on my second property.
...so much for keeping it short! Sorry! What do you guys and gals think? Does this make sense? Or is there a better way of doing it that I'm not aware of.
Cheers.
Chris
Current debt:
$12,000 student loans (6K at 4% & 6K at 6%)
$5000 renovation debt at 9% (unsecured LOC)
Duplex purchase price $82,000 with 5% down.
Currently owe $74,000 on the mortgage and the value of the property is now $120,000 (conservative figure).
80% LTV = 22K equity to pull out.
Legal and appraisal fee's = $820 which will be rolled into the new mortgage.
It would be through Scotiabank and fall under the same mortgage, however, my 74K mortgage would remain at my current rate of 2.2% and the new 23K would be at a rate of 3.39% fixed for 4 years (currently best rate I've been offered). It was explained to me briefly. Basically, it will not be a "second mortgage" but a separate entity of one mortgage, thus I will still have one simple monthly payment.
Scotiabank was willing to pay for legal and appraisal fee's ($820) if I went with a 5yr fixed, however, the current rate for such a term on a refinance is 4.9%.
All funds would be put towards my debt listed above right away, essentially making me debt free except for my 2 mortgages. HELOC doesn't really make sense as I can get a better rate by refinancing and plan on using all the funds right away. Any left over funds would be put towards renovations right away as well on my second property.
...so much for keeping it short! Sorry! What do you guys and gals think? Does this make sense? Or is there a better way of doing it that I'm not aware of.
Cheers.
Chris