Lenders Mortgage Insurance?
Jul 8th 2011, 10:17 am
#31
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Thread Starter
Joined: Sep 2007
Posts: 5,768
Re: Lenders Mortgage Insurance?
Excellent! ... 
... but ta for the heads up.
Cheers ... 
Yeah spoke to bank today and they told me I can empty house and return keys to bank with a letter from us both explaining why. Bank will change locks next day and have it on the market, but she warned me how once ppl know it's a house repo, they'll be after a bargain!
LMI will cover any shortfalls, but as already said she confirmed the insurance company will then come after me for the money.
Will get it on the market ASAP and see how we go I spose.
... but ta for the heads up.
Yeah spoke to bank today and they told me I can empty house and return keys to bank with a letter from us both explaining why. Bank will change locks next day and have it on the market, but she warned me how once ppl know it's a house repo, they'll be after a bargain!
LMI will cover any shortfalls, but as already said she confirmed the insurance company will then come after me for the money.
Will get it on the market ASAP and see how we go I spose.
Jul 8th 2011, 10:31 am
#32
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Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Lenders Mortgage Insurance?
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
Jul 8th 2011, 10:34 am
#33
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Joined: Sep 2007
Posts: 5,768
Re: Lenders Mortgage Insurance?
What a farce LMI is!
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
$9,870 for the LMI too! .... pfffft!
Jul 8th 2011, 10:58 am
#34
BE Forum Addict
Joined: Jun 2003
Location: Sydney beachside
Posts: 3,505
Re: Lenders Mortgage Insurance?
What a farce LMI is!
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
And buyers who have to pay for LMI do get a benefit it - they get the ability to borrow the money in the first place. Without it, no-one would lend them anything.
Jul 8th 2011, 11:12 am
#35
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Lenders Mortgage Insurance?
Banks are extremely good at assessing risk. They've assessed (unfortunately but correctly here) that most people with less than a 20% deposit are a high risk. No-one is forced to pay the LMI - they can save for a higher deposit or buy a cheaper property where their deposit is equal to 20% of the total.
And buyers who have to pay for LMI do get a benefit it - they get the ability to borrow the money in the first place. Without it, no-one would lend them anything.
And buyers who have to pay for LMI do get a benefit it - they get the ability to borrow the money in the first place. Without it, no-one would lend them anything.
Jul 8th 2011, 11:17 am
#36
Joined: Jun 2006
Posts: 4,555
Re: Lenders Mortgage Insurance?
How did the GFC happen?
Banks are extremely good at assessing risk. They've assessed (unfortunately but correctly here) that most people with less than a 20% deposit are a high risk. No-one is forced to pay the LMI - they can save for a higher deposit or buy a cheaper property where their deposit is equal to 20% of the total.
And buyers who have to pay for LMI do get a benefit it - they get the ability to borrow the money in the first place. Without it, no-one would lend them anything.
And buyers who have to pay for LMI do get a benefit it - they get the ability to borrow the money in the first place. Without it, no-one would lend them anything.
Jul 8th 2011, 11:29 am
#39
no stressin no fussin....
Joined: Aug 2007
Location: Fantasy Island....
Posts: 12,616
Re: Lenders Mortgage Insurance?
Excellent! ... ... but ta for the heads up.
Cheers ...
Yeah spoke to bank today and they told me I can empty house and return keys to bank with a letter from us both explaining why. Bank will change locks next day and have it on the market, but she warned me how once ppl know it's a house repo, they'll be after a bargain!
LMI will cover any shortfalls, but as already said she confirmed the insurance company will then come after me for the money.
Will get it on the market ASAP and see how we go I spose.
... but ta for the heads up.Cheers ...
Yeah spoke to bank today and they told me I can empty house and return keys to bank with a letter from us both explaining why. Bank will change locks next day and have it on the market, but she warned me how once ppl know it's a house repo, they'll be after a bargain!
LMI will cover any shortfalls, but as already said she confirmed the insurance company will then come after me for the money.
Will get it on the market ASAP and see how we go I spose.
Jul 8th 2011, 11:31 am
#40
no stressin no fussin....
Joined: Aug 2007
Location: Fantasy Island....
Posts: 12,616
Re: Lenders Mortgage Insurance?
What a farce LMI is!
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
So I'm a bank...and nobody forces me to lend you money, and I should be pretty good at assessing the risks, but I give you the money, as long as I'm insured against the risk I decided to take. BUT, I'm not going to pay for that insurance myself, no, I'm going to get you to pay for it, but you won't get any of the benefit of it, even the opposite in fact!
What a bizarre system!
Jul 8th 2011, 11:46 am
#42
no stressin no fussin....
Joined: Aug 2007
Location: Fantasy Island....
Posts: 12,616
Jul 8th 2011, 11:49 am
#44
Banned
Joined: Apr 2008
Posts: 592
Re: Lenders Mortgage Insurance?
Hey Paul,
Good luck mate, what a palava, renter for life me tinks, never like decorating anyway, well apart from the toilet basin after a good ruby murray!
Keith....Just to lighten the mood!
Good luck mate, what a palava, renter for life me tinks, never like decorating anyway, well apart from the toilet basin after a good ruby murray!
Keith....Just to lighten the mood!
Jul 8th 2011, 11:53 am
#45
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Thread Starter
Joined: Sep 2007
Posts: 5,768
Re: Lenders Mortgage Insurance?
... I hear ya! Yeah prob repeating myself but kids and dog won't be with us in 5 years. We'll rent a house to accommodate them till then, and then CBD living I reckon. Nice lil unit with a bar downstairs thank you.