we have decided to do renovations on our house. (we have had it for sale for 18 months with 250000 on it original had 270000, the realestate agents advised us not to drop it any further and we dont really want to anyways). we have decided to stay put and make this into our permanant home.
we purchased the house for 230000 at the start of 2010 and i think our loan started at 207000. currently we have 22000 in the redraw and a balance of 174 000.
soon after purchasing the house we changed to fortnightly repayments and a long time later i realised this changed our loan term. our contract is a 30 year term and when we changed to fortnightly it changed our term. so currently we have a 21 year term, when really it should be a 26 year term. so if we take out our redraw money and even look at increasing our loan we dont really want to do this with a 21 year loan term.
will the bank extend it back to the original term of having roughly 26 years left or could we even refinance to extend it back to 30 years to allow us to extend our loan?
how does equity work?
i realise we need to go and speak to the homeloan advisor but just wanting to get a bit of a handle on it now.
sorry about the essay!