I need your guys thoughts on our situation please.
We have a family home 64% LVR with 11.5 years remaining and a rental 84% LVR with 22 years remaining . Been paying P&I on both and topping up the rental which is sucking up cashflow. We are just about to refix the rental and have been given the option to extend it back out over 30 years which would free up approx $300 a month if we left on P&I or $700 a month if we put it on interest only.
That leaves us with 3 scenarios
Option A: Leave both on P&I with remaining years to pay as they are and continue paying down principle on both
Option B: Leave rental on P&I but extend back out to 30 years and put extra $300 on family home – reduces time to pay on family home to 10 years
Option C: Change rental to interest only and put extra $700 on family home – reduces time to pay on family home to 8.9 years
My question is, which option are we better to go with and also because the family home is still on a fixed rate with a year to run, will the bank let us make the extra $700 a month payments anyway?
We have a family home 64% LVR with 11.5 years remaining and a rental 84% LVR with 22 years remaining . Been paying P&I on both and topping up the rental which is sucking up cashflow. We are just about to refix the rental and have been given the option to extend it back out over 30 years which would free up approx $300 a month if we left on P&I or $700 a month if we put it on interest only.
That leaves us with 3 scenarios
Option A: Leave both on P&I with remaining years to pay as they are and continue paying down principle on both
Option B: Leave rental on P&I but extend back out to 30 years and put extra $300 on family home – reduces time to pay on family home to 10 years
Option C: Change rental to interest only and put extra $700 on family home – reduces time to pay on family home to 8.9 years
My question is, which option are we better to go with and also because the family home is still on a fixed rate with a year to run, will the bank let us make the extra $700 a month payments anyway?
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