how to calculate equity

[RumpledElf]

Self-employed sucks. We're self employed + parenting payment and stuff, so we're safer down in lo-doc 60% land lest they get too picky about us getting < $10kpa from half a dozen sources. 60% limits you soooooo much.

 

[stinadaze]

so you borrow only 60%? not even 80%? mmmmm that does suck

sorry to be a nuisance, but i didnt quite understand what you were saying when you refered to bannks getting picky??

 

[RumpledElf]

Some of them don't count anything from Centerlink as income at all. Move that income to a lo-doc and they do. Its just them being picky - its all money. Go figure. Its why I'm hoping to find a big house in the same area for less than we'll get if we sell ours (I only have $90k releasable equity and $200k equity in total) - in theory we'll just end up with the same size loan and some small change, or a smaller loan, and might even be able to get away with just paying $350 for a security substitution on settlement day rather than a complete new loan application.

 

[Nikolina]

can i ask what LMI is and how is it caculated? I just got 85% LVR. Should i be worried about LMI?

 

[Nikolina]

ahhh it's Lender’s Mortgage Insurance - Lucky, i avoided that with my loan!

 

[Learnings]

Correct me if im wrong - but I belive in the OP's situation inregard to LMI you only need to "top up" the LMI to the new value.

So you dont need to pay the FULL lmi on the new valuation.

New LMI figure - LMI previously paid = $your contribution

 

[jaimeandrenee]

Correct me if im wrong - but I belive in the OP's situation inregard to LMI you only need to "top up" the LMI to the new value.

So you dont need to pay the FULL lmi on the new valuation.

New LMI figure - LMI previously paid = $your contribution

cld U pls Explain?