**Reply:** 1.1.1.1

**From:** Astro Boy

Hey rolf - thanks for that.

Looks like I'm at the steep end of the curve:

assuming:

- Interest only

- approx $450k loan

- NSW

- established property

- 5% genuine savings

- which ever insurer is cheapest! (do I have a say - or is this up to the lender)

I would be up for... $10k+? and if the loan value was to change - say $400k or $500k?

thanks again rolf

ab

On 4/23/02 11:47:00 PM, Rolf Latham wrote:

>Hi AB

>

>LMI is calculated as a

>Percentage of the loan amount.

>

>There are a number of things

>that affect the premium and

>aome of them are:

>

>1. The amount borrowed. Up to

>300 k there's one scale, btwn

>300 and 500 is another scale

>and > 500 theres another

>scale.

>

>2. Whether the loan is P&I or

>Interest Only, commonly there

>is a 25 % mark up in the

>premium where there is an

>interest only loan.

>

>3. New property vs established

>property. .25 to .35 % extra

>for new is becoming common.

>

>4. 3 % or 5 % genuine savings.

>

>5. And of course, one of the

>biggest issues is it an 85 %

>loan or is it a 95 % loan.

>

>6. Which state you are in

>determines how much stamp duty

>you pay on the premium, at

>btwn 5 and 11.5 %.

>

>7. Whihc mortgage insurer is

>used.

>

>

>To show the variance, lets

>look at a 250 k P&I loan at 85

>% in QLD with 5 % genuine

>savings for an established

>property. Approx premium would

>be around 2150.

>

>Now lets look at an Interest

>only loan at 400 k at 95 % for

>a new property with 3 %

>genuine savings In NSW. This

>would be a cool 17 000.

>

>Bit of a variance

)

>

>Ta

>

>Rolf