Vic Wasteland Thread

[blah_blah]

I want to be able to pay off as much as I want... Most fixed rate cap the repayments at something like 10k p.a or something...

Is this on a rental?

Never understood the point of interest only...how can it be a a good thing to never own the house and pretty much just pay 'rent' to the bank

This is on my main residence

Interest only and Principal and interest can be essentially the same.

The only difference is that with IO you have the option of putting in less if you want.

I always put in more than i have too, and I can draw it out if i ever needed to.

It gives you the flexibility.

You can always make payments of the 'Principal + Interest' each month on a IO loan

[dezz]

ah I get ya. You could always refinance to 20-25yrs as opposed to 30yrs? That would make it a bigger repayment each month.

+1 will be refinancing my investment to an Interest only and P&I for my house

I already pay more than the minimum, the idea is to do that at the lowest possible interest rate while not being limited to how much you can put on the loan, over the minimum

[dezz]

This is on my main residence

Interest only and Principal and interest can be essentially the same.

The only difference is that with IO you have the option of putting in less if you want.

I always put in more than i have too, and I can draw it out if i ever needed to.

It gives you the flexibility.

You can always make payments of the 'Principal + Interest' each month on a IO loan

Yeah that I get, you've got it sitting there in redraw... So say your loan was $500k, but you have $300k that you've paid into the loan account, which you can access if you need /want it... But you're paying interest only for the remaining $200k.

Thats pretty much what I'm doing only not with an interest only loan... My loan let's me take as much or as little as I want at any time with no fees so it's essentially my savings account now too... I just don't plan to touch the money I've got in redraw unless it's to buy another house

[Leroy Peterson]

My boss has been in the FIFO professional game for 10yrs.

Had invested all his money into stock market. Made an absolute killing.

Would tell me stories how he would drop $60k in one company & double it in 3 months time etc

yet is still working.

lemme guess, wife at home no work?

how many jetskis?

[Rekin]

I already pay more than the minimum, the idea is to do that at the lowest possible interest rate while not being limited to how much you can put on the loan, over the minimum

Yeah so refinance for a shorter period of time; ie.

$500k @ 30yrs @ 4.95% P&I = $2,669/month

$500k @ 25yrs @ 4.95% P&I = $2,909/month

[alr33x]

This is on my main residence

Interest only and Principal and interest can be essentially the same.

The only difference is that with IO you have the option of putting in less if you want.

I always put in more than i have too, and I can draw it out if i ever needed to.

It gives you the flexibility.

You can always make payments of the 'Principal + Interest' each month on a IO loan

Well one significant difference is if you keep paying IO you still owe your initial loan at the end so PI is always better if possible

Ham might know but I thought you could only do IO for a set amount of years?

[blah_blah]

Well one significant difference is if you keep paying IO you still owe your initial loan at the end so PI is always better if possible

Ham might know but I thought you could only do IO for a set amount of years?

Yup, thats why I put in the P&I amount

It just gives you the option to put in less or redraw more should you ever need too

[joeyjoejoejuniorshabadoo]

Nah can do IOL as a line of credit facility over standard contract length.

It's not something we ever recommend for owner occupiers or amateur investors.

Most loans revert to P&I after 5 years max

[joeyjoejoejuniorshabadoo]

Yeah so refinance for a shorter period of time; ie.

$500k @ 30yrs @ 4.95% P&I = $2,669/month

$500k @ 25yrs @ 4.95% P&I = $2,909/month

Bad idea, because risk.

I deal with people every day who were in dezz's position (dezz used as example as pat's comment directed towards him) then got sick, injured, fired etc etc...

You never know what the future holds.

[L33SH]

Yeah that I get, you've got it sitting there in redraw... So say your loan was $500k, but you have $300k that you've paid into the loan account, which you can access if you need /want it... But you're paying interest only for the remaining $200k.

Thats pretty much what I'm doing only not with an interest only loan... My loan let's me take as much or as little as I want at any time with no fees so it's essentially my savings account now too... I just don't plan to touch the money I've got in redraw unless it's to buy another house

Offset account, had the same thing on my loan

[HEKT1K]

You can come live with me if shit happens Dezz

[Down_Shift]

You can come live with me if shit happens Dezz

mad invite?

[alr33x]

Nah can do IOL as a line of credit facility over standard contract length.

It's not something we ever recommend for owner occupiers or amateur investors.

Most loans revert to P&I after 5 years max

Oh I didn't know, the 5 year thing is what I thought was the rule for everyone. I do P&i cos my aversion to debt

[joeyjoejoejuniorshabadoo]

Oh I didn't know, the 5 year thing is what I thought was the rule for everyone. I do P&i cos my aversion to debt

It's the general rule for most loans with an IOL component.

[alr33x]

Interesting

[Rekin]

Nah can do IOL as a line of credit facility over standard contract length.

It's not something we ever recommend for owner occupiers or amateur investors.

Most loans revert to P&I after 5 years max

Yeah revert to P&I and higher payment required to make up for the 5yrs of interest only.

[Down_Shift]

Too much home loan info and tips here, need to go to kmart to buy a new notepad.

[dezz]

Yeah so refinance for a shorter period of time; ie.

$500k @ 30yrs @ 4.95% P&I = $2,669/month

$500k @ 25yrs @ 4.95% P&I = $2,909/month

I don't see the point in that when I can pay as much as I want at the moment, but if something were to happen, my minimum is lower than it would be with your example above... Just need to get the interest rate lower to smash it even quicker...

Bad idea, because risk.

I deal with people every day who were in dezz's position (dezz used as example as pat's comment directed towards him) then got sick, injured, fired etc etc...

You never know what the future holds.

This, doesn't make any sense to raise your minimum required payment if you're repayments aren't capped.

You can come live with me if shit happens Dezz

Monica. We'd be combining the awesome bachelor pad potential we both have at the moment, but both seem to get nothing out of.. It'll save us the hassle of sending eachother snaps telling how poor our love lives are..

[joeyjoejoejuniorshabadoo]

Not to mention you if you go fixed rate you can not sell for any reason until the fixed period is up without getting absolutely f**ked on economic costs

[HEKT1K]

Monica. We'd be combining the awesome bachelor pad potential we both have at the moment, but both seem to get nothing out of.. It'll save us the hassle of sending eachother snaps telling how poor our love lives are..

Lol so efficient