All Topics / The Treasure Chest / Mortgage Insurance refundable?

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  • Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    August 30, 2003 - 1:03 am

    Hi all, I just heard a rumour that MI can be refunded if you refinance the mortgage within two years. Has anyone had experience with this?

    PS Congrats Richmond. Sorry, I meant you (not Richard as I said in my “what’s your profession” post) about the StumpCams. Do you ever use them?
    Jim.

    Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831
    August 30, 2003 - 1:17 am

    Hi Doogs,

    We often get good highlights off the stump cam for our news packages, ie if Brett Lee clean bowls someone and skittles the stumps…

    cheers
    r

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    August 30, 2003 - 1:21 am

    I must have made the little b..ers too tough R! They only ever bought serial numbers 001 and 002!
    J.

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598
    August 30, 2003 - 1:48 am

    Hi Doogs

    Yes, I’ve heard that LMI is refundable. However, I thought the period was 12 months. It does differ from lender to lender.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of JetDollarsJetDollars
    Participant
    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    August 30, 2003 - 2:30 am

    Jim,

    I just received monthly newsletter from the investors club. In the covered letter one of the National Operations Managers of the IC talk about MI is refundable provided you refinance within 2 years of the mortgage and make sure request for the refund. If you don’t requested then they will never refund it to you.

    Kind regards

    Chandara
    [Keep going, you’re nearly reach the end of financial freedom]

    Profile photo of HomeLoanGuyHomeLoanGuy
    Member
    @homeloanguy
    Join Date: 2003
    Post Count: 26
    August 30, 2003 - 3:14 am

    Refundable LMI….The policy is different from lender to lender as well as the Mortgage Insurer themselves (Usually GE Mortgage Insurance or PMI). As someone else has mentioned, you must request it!!, it’s never offered (to my knowledge).

    While this may seem obvious, and not always possible, I recommend to my clients to have 20% equity in their properties whenever possible. This eliminates the LMI premium from the borrowers’ point of view.

    Gary Y.

    Gary Young
    Home Loan Connexion
    Mobile 0407 64 66 32
    Fax +61 7 4636 4841

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    August 30, 2003 - 8:45 am

    Thanks all for your answers. Yes Chandara, that’s where I just read about it. I’m mainly thinking about my Daughter’s first PPoR. She’s got a good wage, but has only just started her career, and wants to get her own house asap. I’m assuming you might be able to refinance when your equity improves after a year, but I guess the main issue would be how much does it cost to refinance these days. Do you still have to pay for the full mortgage stamp duty again or has that recently changed with new rules?

    Profile photo of Cameron_2Cameron_2
    Participant
    @cameron_2
    Join Date: 2003
    Post Count: 6
    August 30, 2003 - 9:02 am

    Hi doogs,

    If you borrow new money, you pay mortgage stamp duty on it. The lil’ buggers in state gov. know how to rob us of a dime at any opportunity eh.
    Aparantly you even pay mortgage stamp duty again if you take your existing loan to a new security property – known as portability. How’s that for cheeky!! But MSD is not usually more than LMI. Talk to a broker for the first purchase, and they should be able to give you more specifics relevant to your particular situation for the next loan.
    Cameron

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 31, 2003 - 6:42 am

    Hi doogs

    The MI premium is actually refundable over the first 4 years on a sliding scale. 60% in the first year then reducing by 15% per annum til you get to 15% during year 4.
    Just bear in mind most lenders will not just send you the cheque you will need to request it.

    Cheers Richard
    [email protected]

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of ajwansajwans
    Participant
    @ajwans
    Join Date: 2002
    Post Count: 45
    August 31, 2003 - 7:10 am

    I refinanced with Member’s Equity (I highly
    recommend them BTW) within 9 months, they
    refunded 30% of the LMI that I’d paid.

    It was better than nothing I suppose.

    In Victoria Mortgage stamp duty is only payable
    on the difference between the old loan and the
    new amount, unless the borrowers are different.

    In my case my partner was added to the loan so
    we had to pay the whole MSD again.

    andy

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