Category: Mortgage Broker

5 things you need to know about  Lenders mortgage insurance (LMI)

Are you a mortgage broker wanting to learn a little bit more about some of the many types of insurance a lender may offer? Many brokers find it useful to learn a little more about what they’re about to get themselves into. One of the most common questions people ask is about lender’s mortgage insurance (also known by its initialism – LMI). This article seeks to help you better understand what lender’s mortgage insurance is and whether or not it will effect your job as a successful mortgage broker.

What is Lender’s Mortgage Insurance (LMI)?

Lender’s mortgage insurance is a type of insurance that the lender (the instituion financing the loan – usually a bank) takes out so that they are better able to lend money to borrowers (the home owner) who have a smaller deposit when purchasing a mortagage. Traditionally, most people try to have a sizeable down payment, but this type of insurance is directed towards borrowers than are trying to finance greater than 80% of the value of the property. These types of mortages are generally more risky for the lender, and LMI lets Australian borrower’s take out the loan they need without more risk on the part of the lender.

What does LMI do?

Lender’s mortgage insurance is a one time purchase in the form of an insurance premium through a mortgage broker melbourne that protects the lender in case the worst happens and you default on your mortgage. Although the home itself may act as “security” for the loan, an LMI provides extra coverage in the event that the sale of your property with all fees included does not cover the entirety of your loan. This can happen a lot when the market is down.

When do you pay for the LMI?

The lender will pay for this insurance and the cost is generally added to the loan and included in their monthly payment.

How much will the LMI cost?

The cost of the LMI depends on the amount you are borrowing. Generally speaking, the higher the percentage you’re wanting to take out, the more expensive the premium will be. Expect around several thousand dollars. If you’re like to do a rough calculation yourself, plug the numbers you’re expecting into this helpful calendar (http://www.genworth.com.au/online-tools-forms-and-reports/lmi-tools/lmi-premium-estimator). You can also check with your mortgage broker.

What happens to the LMI if I decide to refinance?

This type of insurance is lender specific and can not be transferred. You may have to pay the cost again if you do decide to refinance, which may outweigh the positive benefits of refinancing your loan. Before you decide, speak with your lender or your mortgage broker. They will help you make an educated decision.

How can you avoid having to pay for LMI?

The best way to avoid paying for LMI is with good financial planning. If you’ve saved more than 20% of the loan cost as a down payment, you will not have to take this type of insurance out. If you aren’t able to do that, consider asking for help via a gift or a guarantor (usually a family member who will offer their property as additional security).

Lender’s mortgage insurance (or LMI) is best avoided, if possible, by working with a qualified mortgage broker and with good financial pre-planning to allow for as large of a down payment as possible. Check out www.mortgagebroker247.com.au for additional information.

Managing mortgage brokers: know all the advantages you could get

Check out the advantages that a person may have to opt for the property mortgage and when this type of mode is more suitable. Also learn why a mortgage broker Melbourne can really help you make the right decision when mortgage time comes over in your life. Make sure you do not waste any more precious time, when you need help with serious issues such as mortgage, always have the help of high quality professionals.

What is mortgage after all? Understand it from day one!

Quite common among those who seek money to pay down debt or make various projects, the mortgage begins to gain more space in the Australian market and is also known for real estate refinancing names or loan with collateral property. Allowing the beneficiary has access to amounts that can reach up to 60% of the property value given as collateral, the mortgage of goods is one of the modalities with lower interest rates (which may revolve around only 1%) and terms longer discharge (about 20 years), making it a very attractive option for those who need money and knows their own finances. Mortgage brokers Melbourne help you find the plans and the options that best fit your needs and budget.

Mortgage can really save you cash every month!

Financial control is essential to embark on this type of operation, taking into account the fact that it is possible to lose the assets given as collateral if debt settlement is not done the right way. According to the law that monitors this type of transaction, financial or bank that granted the loan could already make the grantee lost their well after just one unpaid installment, however, the most common practice in the market is the take the property only after three or four arrears. That is another reason why having mortgage brokers Melbourne is essential: they will guide you all the way, from day one – providing you the best services and counselling possible. They are specialized and know everything you need to enjoy the options mortgage offer you the most!

Why say yes to mortgage andmortgage brokers Melbourne?

As soon as you get approval for a mortgage, you will be able to choose which mortgage provides the most advantageous options for those who want to expand a business, renovate the house, pay off more expensive debts, paying a college, make a wedding party or even pay a honeymoon in style and so on. Remember that before you have access to a mortgage, the company responsible for the loan will investigate your credit history, and it is essential to keep the bills on time, as this may cause the process becomes much easier. This is exactly what you will be able to get and mortgage broker will be able to help you get exactly where you want to be: whether it is in a brand new big house or in the most beautiful place in the world for you.

Find out more informations here: http://www.theguardian.com/money/2014/nov/24/mortgage-broker-bank-building-society

A Bright Career Ahead: Becoming a Mortgage Broker

A Bright Career Ahead: Becoming a Mortgage Broker

Being a mortgage broker can in fact be one of the very best careers today. It not only comes with its own rewards but opens up a door to a world few have knowledge about. The real estate and lending market is really quite unique in a sense because while thousands and thousands have a mortgage they don’t really know too much about the people behind it. So, why should you look into becoming a mortgage broker?

Can Start Your Own Business

First and foremost brokers who are fully trained have a lot of options available to them. They can work alongside an established company or create your own business. This can be absolutely fantastic because starting a business gives you the freedom to do whatever you want. You can work for the people you want to work with and earn a lot of money also. The great thing about becoming a mortgage broker Melbourne is that you can start a wonderful new business and have a career you treasure also.

A Bright Career Ahead: Becoming a Mortgage Broker

Have Flexible Hours

Another reason to think about becoming a broker is because of the hours you keep. If you have your own business then you are the one who chooses when and where you work. This isn’t just good for those with a busy lifestyle but a young family also. Of course, you don’t just have to work the regular 9-5 hours. It is amazing and it will be something you want to consider also. A mortgage broker usually keeps some strange hours, but they can be flexible for most giving them more freedom to enjoy the things they love most.

Help Others Find Their Perfect Home

Getting the right mortgage can be difficult but helping others to reach their dream home can be very rewarding. This is something you want to think about because it can be quite good. If you love to help people then this is the career for you and you never truly know where the job will take you. You are going to love to help others find their perfect mortgage. A mortgage broker Melbourne also meets a lot of people.for related information, click on : https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/using-a-broker

Potential for Success

The great thing about becoming a mortgage broker Melbourne is that you have so much potential. Right now there are millions of people who want to buy their own home and that means they are going to need a mortgage broker. As the market improves and the demand increases so does the potential for brokers. Of course, it isn’t as straightforward as it sounds but if you are willing to do the hard work then success can be around the corner.

Enjoying a Bright Career as a Mortgage Broker

When it comes to choosing a new career, one of the best options to consider is becoming a mortgage broker. This can be a wonderful career and something that you want to think about when searching for a new direction. You will find a mortgage broker’s career is quite varied but at times exciting and a lot of fun. Will you become a mortgage broker Melbourne?