Forum Replies Created
[offtopic]
This thread is about a calculator – keep it real!
[rolleyes4][rolleyes4][rolleyes4][rolleyes4][rolleyes4]Liz
Mortgage Lender
[uneasy]
I hate to hear all this doomsday talk looming about lo docs… what do you think it means for us brokers??
Lucky me I only have two lo-docs on my books (both unregulated), but I have since found that one of them is DEFINATELY an inflation of figures…. not that I knew at the time!
Who do you think is going to cop the blame??
It seems to me each party has an element of greed![thumbsdownanim
Liz
Mortgage Lender
Hi Fullout,
A lot of lenders will let you take out a loan with them and then do a “top up” loan after a few months, but they must be willing to actually get a new valuation if you think that the value has increased. I would be very conservative in your estimations of the value if it’s only been a few months, just in case you don’t get the val you wanted.
Point two, this is just not the way it works with banks…. they either lend you 100% irrespective of whether you have funds in an account with them or not.. St George will to a high lend, but if you have $20K already you may want to stick to a more conventional product to save on your interest rate.
Don’t know of any banks that will lend on the real value if the purchase price is lower, especially at a higher LVR as the Mortgage Insurers are even tougher then the banks.
If you really think this property is worth it you the only course of action I can see for you is to put your $20K down as deposit, fund the rest, do the renos, in 3 months request the bank does a re-valuation (fees involved) and see if you get the val you want to get to the equity. Failing a decent valuation your exit strategy may be to sell. Further, if you are Mortgage Insured and sell within the year you may be entitled to a portion of the LMI refund….
[2way]Liz
Mortgage Lender
Hi Wayne,
Looks like that vacant block of property (land?) is sucking your borrowing capacity dry. You have no rental income coming from it – perhaps it is time to get a construction loan?? This will be easier then trying to get finance for another home.
As far as I can see the banks will indeed take the FULL repayments on the property, not just your half. They have to take into account that if your parents stop paying, you will have to cover that amount, banks like to think in terms of “worst case scenario”, put that hat on whenever you talk to them and you will have a much clearer understanding of WHY they think that way. Policy policy policy.
If you aimed a little lower, and applied for an IP with a “projected” rental income of $150 (to increase your borrowing capacity, this would need to be proven if you found a property), one of my lenders may lend you up to $160K (I say MAY as I am just going off what you have said here).
What are you doing with the block in Yanchep?
Good luck,
Liz
Liz
Mortgage Lender
None personally but it’s still pretty cheap. I was up in Port D earlier this year (just north of Cairns) it is BEAUTIFUL there. The people are lovely too, alot of people liken it to Noosa before Noosa took off in price. It’s becoming a big tourist destination, with the season going for 9 months of the year. Good luck!
Liz
Mortgage Lender
Two of the big four will consider studios under 50sqm. Your maximum LVR will be 80%.
Liz
Mortgage Lender
What sort of a park? I grew up backing onto a reserve, which was not a problem except for one neighbour trudging through our yard as a shortcut!
I have a friend whose house backs onto a reserve who has always hated it since she got robbed though. I guess ultimately it depends on the area.
If it was a play park I wouldn’t be too worried except that I think they do attract youths at night with nowhere else to go and sit! (I have seen this happen)
Still I am leaning towards Steve’s comment, that it is probably more of a bonus. It also means you are not crammed between two neighbours… and you also have one less neighbour, that can be a good thing![winking]
Liz
Mortgage Lender
Nifty ey!
[wink2] Thanks iambored… (You got a nick?)
Alternatively Jaffasoft has created some good online calculators I havn’t seen yet but look for his post in the “Help Needed” thread.
Liz
Mortgage Lender
Hi Nathan,
We have covered this topic in a few other threads and I ended up offering to send my excel sheet of the P & I calculator to people, just PM or email to request it.
The actual formula is a little complicated as it involves working out an amortising balance over the loan term (some nifty algebra involved). In excel you can just use the PMT function to work this out, which is what I have done with my calculator (it will give you the same results as the banks).
Liz
Mortgage Lender
LMI guidelines are changing alot, I would be inclined to use those calculators found on the websites, but only as a guide. Each of my lenders seems to have a slightly different rate of LMI which they pass onto the client (strange but true).
Liz
Mortgage Lender
Oh Ok Pisces I see your point. I agree.
If they can make money out of people like that go for it.
I do wonder though, how people can preach how rich they are from doing this or that, when CLEARLY they are making most of their money from charging ludicrous rates for their seminars???
Liz
Mortgage Lender
Congratulations Jo
[drummer][biggrin][biggrin][biggrin][juggle]
Liz
Mortgage Lender
You will actually have funds from the grant left over in your pocket of around $1000 at settlement with all of your costs taken into account.
Not bad ey?
Liz
Mortgage Lender
I see your point Pisces… but I think there are plenty of differences
I’m not a big fan of expensive seminars, I know alot of people who go to them and talk about them so *glowingly*, but have not actually seemed to benefit from them?? In fiscal terms or life goal terms (depending on seminar). I think they are all motivational seminars and they are an addiction!!!
I’m not all skeptical, but I think my point is that to pay $5,000 for something I could have figured out myself by reading a few books is just not my thing.
However, when selling a property for the highest price – at least your definately getting something for your money. Furthermore a majority of the time a bank has an interest so a valuation will ensure you arn’t getting ripped off. If there is no bank interest it costs $200 to get a val (if you really can’t figure out the market yourself), as a percentage of total cost 0.08% I can ensure I’m not getting ripped off, at least to a degree.
If I looked at a $5000 seminar and could pay someone $4 (.08% of cost) to tell me whether its a rip off or not I would…
…actually I’d rather keep the $4 hee hee.
Selling property is different to selling information, at least with the foremost you are getting something concrete in return!
Liz
Mortgage Lender
Apples,
Regardless of the lender if you want to borrow OVER 90% you will need to show consistent savings over the last 6 months to a minimum of 3% of the purchase price, so $2550.
Unless you go for a 90/10 product which means maximum LVR of 90% but no genuine savings requirement, funds for 10% can come from anywhere. Some major banks have this product, including NAB (Homeside).
I would also need to check you can get LMI in your postcode – and for whatever the property type is. If you borrow up to 95% of the value of your propery (assuming it is OK with the Mortgage Insurers), it may cost you a few hundred more dollars for the premium, but ultimately it will leave you with more cash in hand for renovating the house.
Pretty much all lenders will lend 90% but it all depends on the postcode and sometimes the property type. You can narrow down the lender by figuring out what sort of loan product or features you need, and also whether you need a non-genuine savings product.
For a 90% deal on a property at $85000 the LMI Premium will be around $820, assuming postcode is ok.
Liz
Mortgage Lender
[ohno] Am I going nuts? Where did the previous posts go?
I look silly now responding to ghost posts!!!
Who did that?
Owell, blondes will be blondes [glum]
Liz
Mortgage Lender
Hi Jo,
Wow you shall certainly come in handy! Am emailing you now!
Thanks,
Liz
Mortgage Lender
Hey Rob,
Well I do honestly think that Jo is trying to remain impartial to your own recommendations.
Her reference to me being “very helpful” may relate to the thread found in “Help Needed” – “Formula for calculating Repayments” and I have indeed actually been helping her with creating a few calculators… (which was fun) She was so grateful that I have been blushing ever since, so I think she is giving me a rap here because of that, not so much directed as an anti-Rob tactic.
Thanks for your kind words too though, you have actually returned the favour already so can the modesty![wink]
Re: the gender issue, I don’t think it’s a pity we bring this up, in fact it happens to be something I am quite involved in. Although there is some truth to the fact that some women prefer to use women professionals (I know I do, sometimes I find men a bit too firm and blunt in communications), it should not be about segregating the sex’s, but ensuring your professional aide works the best for you. With women we feel less threatened.
Still, in many cases people just want the BEST regardless of sex! Which is probably the more logical choice for some!
As I mentioned I am looking at creating an association for women seeking financial freedom.
As a member of the Australian Businesswomens Network I highly recommend their services to any woman in business who is local to Sydney or Melbourne, it is simply amazing the lengths women will go to in an effort to help one-another!
Sorry Rob if you feel left out, but in my association men will be more then welcome to participate and make use of the services [suave2]
(sorry all for long boring post – why don’t i have a word limit?)
Liz
Mortgage Lender
Shucks Jo! You are ever so kind.
Tinkerbell most of us brokers probably think we are hot stuff! There seems to be no shortage knowledgeable ones floating around the finance boards.
Feel free to give me a call or email me if you think I can help.
It’s an interesting point you make Jo, I have found women are more likely to be the investor of the couple, and in my opinion, women communicate better with women. I have a long standing partner and I still find myself talking to a brick wall sometimes!![laughing]
Sorry guys, it’s just as much our fault as it is yours! LOL
Liz
Mortgage Lender
One thing I have learnt is that the Unit number on the physical units, as compared to the lot number on the Title of the property can sometimes be different! Perhaps this sheds some light on the mystery??? I have seen this happen to a valuer before – i had valuer on one phone saying he was knocking at the door, and client on other phone saying she was at the door and nobody was there. It was because the valuer had looked at the diagram of the blocks on that big sheet diagram…(damn what are they called??).
You guys get my drift anyway I’m sure.
Liz
Mortgage Lender
