Advantages of LMI

March 24th, 2010 10 Comments
Posted by

Impulse buying is easy if you have enough funding, or enough credit,  There is no need to wait or save up for a purchase, and often the only drawback is that you have to pay a little more for instant loans.  The idea and concept behind Lenders Mortgage Insurance or LMI is similar.  You get to purchase a house with only a minimal deposit or no deposit at all.  Of course few would call buying a house or any form of real estate impulse buying, but the concept is the same.

However, the main reason that LMI exists is for the protection of the lender.  What the borrower does at the start when LMI is required is to pay a premium of a considerable amount to cover the property mortgaged.  This enables the bank or lender to take more risks in case of inability of the borrower to make the required repayments, and when the property is sold at auction, the sale is not enough to cover the costs of the loan.

Although it may seem like LMI can only benefit the bank or lender, there are also incidental benefits to the borrower.  The most obvious benefit is the fact that the borrower is able to immediately purchase the property.  This saves the borrower from needing to pay rising housing costs, and he can limit himself to interest payments and the payment of the required premiums.

The problem with LMI is thay while lenders and banks make use of it, the identity and rates and actual costs related to LMI are often left undisclosed to the prospective borrowers.  Due to the fact that the fees are left undisclosed, then it becomes more difficult for the borrower to budget possible expenses.

In order to get a more accurate figure of how much LMI costs it would be best to consult the home loan experts.  They can provide you with a free LMI Calculator to give you a clear idea on how much LMI you have to pay depending on your particular circumstances.

10 Comments

  1. Rqrfud says:

    types of allergy pills common prescription allergy pills allergy over the counter drugs

  2. Nechif says:

    acid reflux medications prescription list ramipril 10mg canada

  3. Oamkeu says:

    accutane 20mg cheap accutane tablet buy isotretinoin 10mg pill

  4. Exwudx says:

    buy amoxicillin 250mg sale order amoxicillin 250mg generic amoxicillin over the counter

  5. Pwcoso says:

    super strong sleeping pills meloset uk

  6. Yvjyei says:

    order accutane online buy accutane pills accutane over the counter

  7. Cpafvl says:

    ventolin without prescription albuterol for sale online order ventolin inhalator online

  8. Uzunsm says:

    order omnacortil 5mg generic prednisolone 5mg pill order prednisolone 10mg pills

  9. Orakmg says:

    order furosemide 100mg generic lasix 40mg uk where to buy lasix without a prescription

Leave a Reply