answered
Q: Hi, I have an interest only loan for 840,000 on an investment property worth $1.2M… the rate is 4.85%. I spoke to the bank and they said if it was a principal and interest loan they would reduce it 3.99%. Is there really that much of a difference between interest only and P&I loan?
A: Thanks, John and Craig for taking the time. It does seem like the banks are being opportunistic and taking advantage of a government policy. Do you see the margins increasing and should I look at refinancing - 4.85% is high, thank you?
question
Q: Hi, I have an interest only loan for 840,000 on an investment property worth $1.2M… the rate is 4.85%. I spoke to the bank and they said if it was a principal and interest loan they would reduce it 3.99%. Is there really that much of a difference between interest only and P&I loan?
