Good Deal or Bad?

can some opinions help me decide what to do? i got a contract to settle in 10 days and my bank want me to choose to pay LMI 8k ish from my pocket at 4.59% interest rate or LMI paid by them at 4.99% interest rate. keep in mind i am taking -ve gearing for a ride on this property. its my first IP.
 
ask yourself: how long will you keep the loan? How much extra will that 0.4% cost you over the term of the loan? How much will they charge you if you move banks before x years?
 
Which lender is this?

Do the sums - how much will that 0.4% cost you? For eg it will be about $1600/yr on a $400k loan so it could get very expensive over 30 years.

That is a really crap rate @ 4.99% - how large is your loan?
 
Back
Top