Even though refinancing a mortgage can save you thousands of dollars you will be stunned that not that many individuals in reality take the time to do it. If you considered the time it requires and figure out the cost saving and equate that to how much you get paid per hour it could be like not going to work for several weeks. Consider the following aspects so that you can see how easy it is to refinance your home loan today.

Current Mortgage Interest Rate

It is decidedly a good indication for you to research refinancing when your current interest rate is higher than available mortgage packages on the market. A first step to take is to go back to your current bank or financial institution and ask them to revise your package, otherwise known as repricing. If your lender comes back with an offer, it will ordinarily be better than your existing one. You can then compare this offer with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

When you take up a mortgage, there may be a lock-in period where your housing lender will charge you a penalty fee, normally a percentage of your outstanding loan amount, if you were to fully repay your home loan. Almost all mortgages also come with a clawback period where the lender will claim back “freebies”, such as legal expenses, that they “gave” you when you take up your loan (Note: lock-in period is separate from clawback period). It may not be worthwhile for you to refinance due to such costs.

Loan Quantum

The larger your loan amount, the greater your savings for the same decrease in interest rates. For instance, 1% on a loan of S$100,000 is much less than 1% on a loan of S$500,000. However, fixed cost to refinancing, which represents mainly of legal fees, do not vary much with loan quantum. The difference between your current and refinancing interest rates, therefore, has to be bigger for a relatively smaller mortgage as fixed cost eats into a more substantial portion of your interest rate savings.

Perceived Interest Rate Movements

Your view on how interest rates is moving can be a factor when thinking whether you should refinance. If you are presently on a fixed rate package and think interest rates are dropping, you may want to refinance to a floating rate package. Conversely, if you are on floating rates and believe interest rates are skyrocketing, converting to fixed rates may be a solid choice.

Personal Financial Assessment

If there is a change in your financial state, you may want to vary your package details via refinancing. For instance, you are opening your own company and do not want unpredictability in other areas. Give some consideration to taking up a fixed rate package. Maybe you want cash to invest in another property. Consider increasing your loan quantum. Or your monthly income has increased and you want to reduce interest loan payments. Consider reducing your loan tenure.

Consider calling us today if you are looking for refinancing in Singapore. We can save you a lot of money plus give you the latest advice all for free.

Article Source: Singapore Refinancing Your Home

The line of work you have for for several years now pays you enough to permit you to support your needs; so, why are you still living with your parents? Although your parents may not express it, they may harbor some ill feelings about your sponging ways. It’s high time that you accept that you are an adult and be responsible for your own survival.

What? You are saying that you are still too young to buy your own place of residence? Here’s the awful truth: You will never get your youth back so it’s time to realize that you’re a grownup. Before you know it, with your mooching ways, you’ve already hit old age and you have acquired nothing. Put in something for your future while you still have the opportunity to do so.

Furthermore, if you plan on having a family in the near future, what would your home life look like? Would there be harmony in the one dwelling where you reside with your partner, your kids, your pets, and your mother and father? Your married life could be a very short experience. If you don’t move out of your mother and father’s house, you may find that your plans for establishing your own family will suffer. Not a very rosy prospect.

Nonetheless, that is a future scenario. How about gleaning into the current situation?

There is nothing as freeing as buying your own house. Your actions may be more or less influenced by your parents if you live in their house. But if you if you own the abode in which you live, you can have absolute freedom, such as in the decorating decisions. You can play music as loud as you like (and as long as your next-door neighbors have no complaints). You can bring company over and let them stay for as long as you like. You can do anything you like!

For a first-time potential homeowner such as yourself, the housing loan sector can be a somewhat daunting region. Professional housing loan consultants can assist first-time homeowners (such as yourself) in their aim of buying a house. A housing loan consultant will make mortgage preparations, provide you with essential information regarding housing loan packages, and assist you in your selection of the lending corporation that will let you borrow money to acquire your new house.

Once all negotiations and money matters are completed, you are now a full-fledged homeowner. Congratulations!

Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

Ever envision stepping into your new home with your new husband or wife as you begin your life as one? Naturally, we all wish to have our dream home with our dream man. But unless you have a lot of cash lying around enough to buy a home, getting your dream house may take ages. Even with your partner’s help, between your wages both, it will be years or even decades before you can actually buy a small place, let alone your dream home. That’s when home loans come in.

Housing loans able people to live in a house they haven’t paid in full yet. They don’t need to save up for years before they can own a home; they just need to pay on a regular basis while they already live in the place. Picking Out a place isn’t just like pointing at the first grandest place you two have decided on. You have to verify which one is the most pragmatic place you can pay Although you can apply for loan payments for your home, you still need to pay for it in the years to come. Be prepared to have a large piece of both of your wages taken out to keep up with the payment.

While you are still living separately, save for the down payment. There are places you can purchase that doesn’t need down payment, but your options are limited. And besides, deposits would mean lower loan needed.

Starting a fresh life with each other calls for tying loose financial ends separately. Let’s face it, the cost of your engagement ring, your wedding rings, and the wedding event itself are not exactly bargain-priced. Don’t bring them into the union. It would be better if you can extinguish them completely before merging your funds together. Husbands and wives with high debt may get a harder time being accepted for a home loan. Plus, because mortgage lenders take your debts into account, you may wind up with higher interest rate.

Ask a house loan consultant to assist you in determining the price range you can afford. You may be eyeing that posh condo or that suburban two-storey, but whatever you buy should also depend on what you can afford.

Bear in mind, everything affects your house loan conditions. If you have lots of debts and very little savings, you will most probably wind up with small housing loan. And because you are applying as a pair, both of your records are going to be considered.

It is best that before you and your spouse pledge to a major purchase together, such as your house, settle each of your own financial affairs first. Purchasing a home isn’t just like buying a pair of pricey shoes. You two are going to pay for it for the better part of your lives, so make certain both of you are really committed to that long-term obligation.

Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

Congratulations! You are now financially viable and the moment is ripe for you to make your first house purchase. And you have set your eye on just the place you know could be your home where you can build a blissful life with your future family.

But hold on in there for a minute. Before you sign any contracts or part with your hard-earned money for the down payment, you need to look at a few issues involving the house you are buying. Buying a house is probably going to be the biggest purchase you are going to have in your life, after all. You would not wish to rue this decision.

People have a tendency to let their feelings control their decision-making when they are buying a house. They dismiss glaring matters that should have been dealt with right at the start. So, after moving in and after experiencing first hand the consequences of these glaring issues, they become disillusioned and disappointed at their decision.

Therefore, to save yourself from the griefs of wrong decisions, here are several things to consider before you buy the house you have set your heart on.

1. Consider the neighborhood

A neighborhood may seem safe and welcoming when you first saw the place. However, prior to purchasing a house, exert effort to drop by the neighborhood at different times of the day (lunch hour, afternoons, evenings, etc.) to have an overall picture of the atmosphere in the neighborhood.

2. Consider the community

We know that we could safely raise our kids in a community where neighbors take care and look out for each other.

3. Consider the structural defects

The structure you see could be the house of your dreams. However, it is prudent to closely inspect the building to see signs of potential problems, such as leaks, issues about plumbing and electrical wiring, and invasion of pests.

4. Consider the space

Considering that most of the time people purchase their first house because they are establishing their own families, they must make sure that their home is spacious enough for additional family members.

5. Consider the price

Before you will be approved for a housing loan, a banking or lending institution will appraise and assess your credit track record, your earnings, your employment background, and your assets. Make sure that you secure a pre-approval of the mortgage so that you are aware if you would be able to afford the house of your dreams.

Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

Many people are unaware that they have the option of switching their loan to other investor; others are simply uninterested. They simply become firm with their first lender but they don’t know that it could nring higher interest rates. Due to the amount of housing loans and the term that the loan is amortized over, the interest can ranges from thousands to hundreds of thousands of dollars. The following factors may help you consider reinvesting your home.

Latest Interest Rate

When your current interest rate is higher than available housing loan packages on the market, it is time for you to consider reinvesting. Ask your bank or financial institution to reprice your loan package. Your lender might give you an offer. Make a comparison between this offer and with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Time Periods

Lock-in period is when your lender give you a penalty if you want to fully repay your loan. Many housing loans have drawback period. This is when the lender will take back what they gave you when you get your housing loan. Lock-in period and clawback period are different from each other. Because of this, reinvesting is not recommended.

Loan Quantum

The higher the amount of your loan, the greater your savings for the same decrease in interest rates will be. Yet fixed cost to reinvesting does not vary much with quantum loan. The difference between your current and reinvesting interest rates has to be larger for a relatively smaller loan as fixed cost consumes into a more significant part of your interest rate savings.

Distinguish Interest Rate Movements

Analyze how interest rates flow. If you are currently on a fixed rate package and believe interest rates are dropping, you may want to reinvest to a floating rate package. However, if you are on floating rates, try to switch in fixed rates if the interest rates are increasing.

Own Financial Evaluation

Think of reinvesting when your financial states change. Try to get a fixed rate package. Consider increasing your loan quantum. When your monthly income increased and you want to decrease interest payments, try to reduce your loan tenure.

Find out more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking.

When it comes to mortgages, many individuals don’t refinance. A substantial number are oblivious they have the alternative of shifting their loan to different financier; others are simply apathetic. They stick with their very first loaner and the “reward” for such loyalty tends to be higher interest rates. Due to the magnitude of mortgages and the tenure that the mortgage is amortised over, the interest we are speaking about here can easy stretch from 1000’s to 100,000’s of dollars. Take a look at the following factors to see whether it’s time for you to consider refinancing.

Current Interest Rate

It is decidedly a positive indication for you to research refinancing when your current interest rate is higher than available home loan packages on the market. A first step to take is to go back to your current banking company or financial institution and ask them to revise your package, otherwise known as repricing. If your lender comes back with an offer, it will normally be better than your existing one. You can then compare this offer with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

When you take up a housing loan, there may be a lock-in period where your housing lender will charge you a penalty fee, commonly a percentage of your outstanding loan amount, if you were to fully repay your loan. Almost all home loans also come with a clawback period where the lender will claim back “freebies”, such as legal subsidies, that they “gave” you when you take up your housing loan (Note: lock-in period is separate from clawback period). It may not be valuable for you to refinance due to such costs.

Loan Quantum

The larger your mortgage amount, the greater your savings for the same decrease in interest rates. For example, 1% on a loan of S$100,000 is much less than 1% on a loan of S$500,000. However, fixed cost to refinancing, which comprises mainly of legal fees, do not vary much with loan quantum. The difference between your current and refinancing interest rates, therefore, has to be bigger for a comparatively smaller home loan as fixed cost eats into a more significant part of your interest rate savings.

Perceived Interest Rate Movements

Your view on how interest rates is moving can be a factor when thinking whether you should refinance. If you are presently on a fixed rate package and think interest rates are dropping, you may want to refinance to a floating rate package. Conversely, if you are on floating rates and believe interest rates are rocketing, changing to fixed rates may be a positive choice.

Personal Financial Appraisal

If there is a change in your financial state, you may want to vary your package details via refinancing. For example, you are opening your own business and do not want unpredictability in other areas. Give some thought to taking up a fixed rate package. Maybe you want cash to invest in another place. Consider increasing your loan quantum. Or your monthly income has increased and you want to minimise interest loan payments. Consider reducing your loan tenure.

If looking through this article is giving your a headache or you simply want to save yourself the trouble, contact us for a non-obligatory mortgage interview. Our professional consultants not only frees up your time but also do not charge any fees to help you get the best deal. Refinancing does not have to be a boring process.

Learn more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking.

Once you decide to take up a housing loan, the immediate thing that tempests your brain is choosing between fixed and floating rate of interest. It is easy to get dumbfounded at this stage if you are not financially trained.

If the media and banks are shouting about increased interest rates you make feel pressed to go and rush into fixing your home loan rates. Your bank or financial advisor may even advise this.

Now ideally as it should be, we take for granted that once you select fixed rate plan for yourself the rate of interest will remain unaltered for the entire period you have fixed the interest rate for irrespective of any incidental increase in the same. But actually this is not necessarily the case.

Here we demystify the nature of fixed interest rate housing loan transaction for you so that you can make an educated decision over the subject.

* Read the small print of your home loan document. You will find that the bank has the right to serve you thirty or sixty-days notice period that it intends to increase its interest rates.

* The bank’s first-year rates are binding on the bank only for that short period of 1 or 2 months. The 2nd-year home loan rates are not binding at all. Neither are the bank’s 3rd-year loan rates.

* Force Majeure Clause

So, while you read your mortgage agreement papers, you can spot statement like this:

“Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the period of the agreement.”

This is called Force Majeure Clause that enables the lender to undertake appropriate adjustments in the interest rates on home loans they approve to their borrowers.

So remember to look at refinancing every couple of years so that you do not pay too much. If you select a good mortgage broker company you can save a lot of money over the life of your home loan and in almost all cases the consulting cost is free.

There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.

Fixed rates are sometimes offered for up to 3 years. Still, other lenders can offer up to 5 years or 10 years. In many Western countries, fixed rates can be made throughout the loan tenure.

Floating rates can be categorized into published rates or board rates. Published rates are mainly rates that are published daily, case being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are decided by the individual bank or financial institution. Most lenders tie their board rates to particular financial bech marks such as the SIBOR but the direct factors are often vague and variations in board rates tend to be ambiguous.

In general, there are no confinements on emigrants having housing loans in Singapore but do pay attention of the following.

Loan to Value

The maximum loan to value (LTV) in Singapore is 90% of the purchase price or valuation, whichever is lower. Housing loan packages for 90% funding are limited as some loaners do not offer maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.

Income Proof

To get approval for a housing loan your current income tax assessment or a letter of appointment from your local employer is required. Tax assessments from some countries may not be honored by the local mortgage lenders.

Landed Property

The approval from Singapore Land Authority is mandatory before emigrants can purchase restricted properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.

In-principle Approval

You may also take an in-principle approval ahead buying. Consider of hiring a honored and professional housing loan consultant. This may help you save time and money with your loan approval.

Once you resolve to avail a mortgage, the immediate thing that storms your brain is choosing between fixed and floating rate of interest. It is easy to get stuck at this level if you are not financially trained.

Usually, when the news papers splashes reports on banks raising housing loan interest rates in and their impact on Monthly Installments, you may take for granted that it is better to select fixed home loan rates. In fact, your banker may also suggest you to go for the same.

Now ideally as it should be, we assume that once you select fixed rate plan for yourself the rate of interest will continue unchanged for the entire period you have fixed the interest rate for irrespective of any incidental increase in the same. But actually this is not necessarily the case.

Here we demystify the nature of fixed interest rate housing loan transaction for you so that you can make an informed decision over the matter.

* Read the small print of your home loan document. You will find that the bank has the right to serve you thirty or sixty-days notice period that it intends to increase its interest rates.

* The bank’s first-year rates are binding on the bank only for that short period of 1 or 2 months. The 2nd-year home loan rates are not binding at all. Neither are the bank’s 3rd-year loan rates.

* Force Majeure Clause

So, while you read your housing loan contract, you can spot clauses like this:

“Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the period of the agreement.”

This is called Force Majeure Clause that enables the bank to undertake appropriate alterations in the interest rates on home loans they approve to their borrowers.

So remember to look at refinancing every couple of years so that you do not pay too much. If you select a good mortgage broker company you can save a lot of money over the life of your home loan and in almost all cases the consultation cost is free.