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