Techniques for updating a position of overlaid image content using IMU data to reflect subsequent changes in camera positions to minimize latency effects are disclosed. A “system camera” refers to an integrated camera that is a part of an HMD. An “external camera” is a camera that is separated from the HMD. The system camera and the external camera generate images. These images are overlaid on one another and aligned to form an overlaid image. Content from the external camera image is surrounded by a bounding element in the overlaid image. IMU data associated with both the system camera and the external camera is obtained. Based on that IMU data, an amount of movement that the system camera and/or the external camera have moved since the images were originally generated is determined. Based on that movement, the bounding element is shifted to a new position in the overlaid image.