Hi all
Just a quick one for the mortgage experts out there, if you bought an IP and due to the high LVR had to pay Mortgage Insurance, if you were to refinance the loan with another lender at roughly the same LVR and loan size as the original would you have to pay the mortgage insurance again.
In my situation i bought for $300K and borrowed 288 IO. Have been made alert to a significantly cheaper product with another lender (taking into account set up fees,etc) but just wasnt sure if i would be up for the M.I again which would not make the switch worthwhile.
Thanks
PS. Also, can anyone explain to me the difference bewteen postive gearing and positive cashflow ??
Hi Matt
Regretfully Yes. Depending on the terms the MI company has with your lender you may receive a partial refund.
In saying this I am sure can switch products within your lender which may assist.
If you want to tell me who the lender is and what product you have we can make a suggestion or two.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi Richard
I thought that might have been the answer i wasnt looking for. I actually just got off the phone to my lender ING. I am currently on the Home Loan Saver (7.54%) product which they no longer offer.He did offer though to switch me to their Mortgage Simplifier product at a slightly lower 7.4% with no fees and charges. When i told him that i was considering changing lenders i was told that they would waive the product sitching fee.
Based on your answer about Mortgage Insurance i think i might just go with the free switch and get the small saving per month. Amazing what they can do just by ringing them.
Does this sound like the best thing for me to do
Cheers
Hi ,
is this the best thing to do, well that is hard to say as everyones circumstances are different. Have you made a savings, if the answer is yes then it would seem you are in a better position.Yes sounds like the way to go.
Any saving your lender offers at no cost is worth it.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi Matt E – you negotiator you! [biggrin] The mortgage simplifier is a nice basic fee free loan product, good interest rate, and you just saved yourself $300 their usual loan switching fee.. Well done and congratulations on your deal. All the best.[strum]
Hi Matt E – you negotiator you! [biggrin] The mortgage simplifier is a nice basic fee free loan product, good interest rate, and you just saved yourself $300 their usual loan switching fee.. Well done and congratulations on your deal. All the best.[strum]
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