my mortgage broker

without posting all the nitty grittys of the email they sent me ill just post what i didnt agree with and see if other agree or disagree with this advice

In the short term it will be most beneficial to refinance home loan with the lender that will best suit your requirements going forward.

At this stage it will be best to keep deal at an 80% to avoid mortgage insurance costs.

However as outlined below it is still best to keep loans at 80% where possible as LMI (Lenders Mortgage Insurance) can get very costly.

Refinance Homeloan $128,000 Secured by both House or House & Land (either will keep under 80%)

Security
------------
We recommend above loans to be secured by new investment property, plus existing house & block - LVR will be under 80% - therefore no LMI will be applicable

it doesnt sound like there thinking along the same lines as me and going against what I and alot of you would think....????

i said i didnt want to cross any loans and there recommending crossing all of them together!
they didnt tell me my max borrowing amount so i can actually go look for a property....? and thats something i had asked... is it too hard to get that or what?


EQUITY

PPOR Value $185,000 Owe $127,000

Land Value $ 85,000 Owe $ 28,000

Total Value $270,000 Owe $155,000

Current Equity $115,000
do i really have 115k equity because if i topped up loans to 80% it only equates to 61k?...
 
Your mortgage broker should be looking to capitalize the lmi, not avoid it.

Find one that's on your wavelength

My last broker advised me to CC, that's when I started looking for another.
 
The advice you've been given is bad for an investor.

Find a decent MB. There are a number of good ones on the forum here. They even own a few IPs and have a clue.
 
my thoughts exactly

i know dont cross
and lmi is handy at anything under 300k

so just to answer the question how much equity do i have...
 
so just to answer the question how much equity do i have...

How much equity you have is irrlevant : )

How much ACCESSIBLE equity is what you want to know I guess

at 80 % lvr, assuming thats possible with the locn (?) 61 000

at 90 % lvr, 88 000



Now I agree that LMI is a good risk management tool and is often useful, BUT Bman, we know zippo about the rest of the transaction, your fluffy bits ( goals expectatiosn risk profile etc) so its hard to say if its for you

Your broker may be warning you off LMI because they believe it wont be easy to get the loan through above 80............

ta'rolf
 
Seriously you need to get a new mortgage broker. That is bad advice. BTW your equity will still be $115,000, since your debt goes up by the same amount as your assets (i..e equity is same).
 
How much equity you have is irrlevant : )

How much ACCESSIBLE equity is what you want to know I guess

at 80 % lvr, assuming thats possible with the locn (?) 61 000

at 90 % lvr, 88 000



Now I agree that LMI is a good risk management tool and is often useful, BUT Bman, we know zippo about the rest of the transaction, your fluffy bits ( goals expectations risk profile etc) so its hard to say if its for you

Your broker may be warning you off LMI because they believe it wont be easy to get the loan through above 80............

ta'rolf

i knew someone would say that, understandable though

the thing is theres no fluffy bits
i said i didnt want to cross my loans and that i dont mind paying LMI
and asked for the max borrowing amount
and refinancing my current loan to an IO

i only went in there so they could help structure my loans yet i basically had to tell them what to do
i was going to refinance to an IO loan for my current PPOR top it up to 80% LVR for funds as a deposit and find out how much i could borrow so i knew what price range i could afford to look at
i said i dont want to cross my loans, dont mind paying LMI and want to know the max amount i can borrow

instead i get told to cross all my loans together
dont pay LMI and dont get told how much i can borrow... (one of the main things i went in there for...?)

and with the equity thats exactly right all i need to know is how much ACCESSIBLE equity i have
i dont care if i have 1million dollars of equity if i cant use any of it whats the point of telling me that?
 
no,
the ones on here know what there talking since they actually have property themselves,"practice what they preach" so to speak
id suggest reading there posts and seeing who you think will help you
theres 3 of them in the last 6 posts
 
no,
the ones on here know what there talking since they actually have property themselves,"practice what they preach" so to speak
id suggest reading there posts and seeing who you think will help you
theres 3 of them in the last 6 posts

Are you now speaking to them for additional financial options :confused:
 
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