วันพุธที่ 25 กรกฎาคม พ.ศ. 2561

How to Save Interest on Your Home Loan

Saving interest largely depends on your budget for the equity and the monthly dues. If you have only a few dollars to pay for the equity, then you need to lengthen the term of the loan or opt for a short-term loan. Usually, short-term loans have higher monthly dues. During the planning stage, you may want to consider two things to save on your loan interest. First, is your capability to provide bigger cash equity. Second is the maximum amount you are able to pay for your home mortgage monthly dues. The logic is very simple. You may pay a bigger amount in your equity and then choose a short-term loan with a lower interest rate. However, if your pocket does not permit you to pay for a bigger equity at the moment, then you may opt for longer term that allows partial prepayments.

Some loans may require you to pay some fees or penalty when you make a partial prepayment. Even though this option lowers the amount of the principal, the opportunity cost of the fees and charges the bank or lender is going to impose when you make the partial prepayment should be carefully evaluated against the savings you expect to make out of the partial loan settlement. With this condition, you should learn to weigh carefully if your plan fits with the terms and conditions of the bank or lender.

Selecting a bank loan is better than the HDB loan in a low interest rate climate. Banks normally offer interest rates much lower than the HDB. In general, banks offer a fixed rate loan, long-term loan, short-term loan, and a floating or variable rate loan. However, if you intend to buy and possess a private property, then you can only finance them using the bank. There is a refinancing or repricing strategy you may apply later where you are able to terminate the existing loan and then apply a ทาวน์โฮมมือสอง กรุงเทพ new one with a lower interest rate to another bank. Timing is important when planning to switch a loan package. Selecting the best home loan package is quite difficult because they all look the same and the ideas are all quite interesting and attractive.

Most of the home mortgage packages are based on the SIBOR or the SOR rates. You just need to examine the bank spread usually placed atop the SIBOR or SOR rate. If you think you are still not satisfied with the offers, then try considering the interest caps. You should know how high your interest may rise at a certain period of time. Also, there are packages offered where you can apply for an interest free renovation rate. Compute your savings and decide on the best home loan mortgage offer.


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