This concept of claiming back LMI is very much against what I have seen. OK people seem to be doing it but given it is a once off fee for a 25 yr loan and the risk is in the early stage I can’t understand why any smart insurer would pay it back.
Mrs ezi…there are many many inaccuracies in your post regarding how builders lend 100% against their properties. They cannot overprice the property and hide the costs in the purchase price…i don’t wish to get into a slanging match over this but you are wrond and I suggest you rethink your comments.
As for your comments on you can’t get something for mothing that maybe true but lending somebody 100% of a house is not a scam as you suggest.
PM me if you wish to continue with your uninformed statements but don’t spread more rubbish on here.
Perhaps the mortgage insurers make more money by paying back a small refund but not having to insure that loan anymore?
There must always be a logical reason (bottom line fiscal benefit) why large companies do these things. My understanding is that they only refund within the first few years and the refund is only small in proportion to original fee. This would mean more bang for their buck wouldn’t it… eg. as a mortgage insurer you are writing off a large portion of the risk, but you are only giving back a small amount of the fee, and all within the high risk period.
I think this is smart practice, and of benefit to the customer too, win win.
Liz Wilson
Mortgage Lender
Hi what a shame, We all can’t be right.
I think I am but any one else who doesn’t agree with me is intitaled to their own opinion .
and I am always happy to listen and learn.
There was one building company [not so long ago] who did no deposit 100% lends and they had a very friendly bank, who did the loans for the builder..
Both the bank and the builder got there knuckles wrapped [and much publisized], when it was found the homes and the land where over priced..and when the clients went to sell their properties they where told the properties where not worth what the buyer had paid..so although there are good deals out there, one should be very carful and do their own investigating…and if I was a young man with a differing opinion politely ,state your opinion and not be rude. Being rude will not win you any brownie points.and others will not think you are smart, they will only think “oh that boy has a long way to go”every one uses this forum to learn and help others with our own experiances…It is up to the individual to read ,take in or discard the information offered, as the reader pleases.
I will not comment on this subject again as I find it displeasing[offtopic]Its Ms EZy [buz2]
its better to keep mouth shut and let people think you are a fool than open mouth and confirm it.[confused2]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
