How Much Will My Payments Be?
Your payment will vary depending on how much you borrow, the interest rate and the length of your loan.
For example, say you are borrowing $250,000 for 30 years with an interest rate of five percent. If the value of your home is $300,000, you can expect to be make a payment of $1,334.23.
Because your Loan to Valuation Ratio is 83.33 percent, you will also have to pay Lenders Mortgage Insurance at the time of settlement. The insurance only protects the lender in the event of a default, but it also encourages lenders to lend to people who do not have a 20 percent deposit. The cost of Lenders Mortgage Insurance increases as the LVR increases and you should carefully assess this cost.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it’s applicability to your financial situation. Please consult your own financial advisor.