Posts Tagged ‘Home loan’

Singaporeans stay in overpriced HDB flats that are “Subsidized”

Do you know that there is a LAND TAX? (where government over-price the land price)

 

 

HDB flats are what most of Singaporeans stay in. It is a public housing program promoted in the late 60s and 70s to alleviate housing shortage in Singapore. HDB flats are apartments stacked in a high rise 10 to 20 storey. There are 3 room flats (2 bedrooms and 1 living room), 4 room flats (3 bedrooms and 1 living room), 5 room flats (3 bedrooms, 1 living room and 1 dining room). And many other variants as time goes by. Lately there is even Pinnacle at Duxton, a 50 storey HDB development in the heart of Tanjong Pagar. Some of these HDB flats a Pinnacle at Duxton sell for $645,800. How can such apartments be social housing? Just the home loan repayment alone would suck most home owners dry.

 

Here are some demographic statistic for you. The HDB flats now are many more times more expensive relative to the income level earned. You will take more number of years of your income to pay up your flat.

 

Let’s relook HDB’s social charter.

“Mission

We provide affordable homes of quality and value.
We create vibrant and sustainable towns. 
We promote the building of active and cohesive communities.
We inspire and enable all staff to give of their best.”

(HDB website)

 

When HDB were first started, it was very affordable. HDB flats 

The HDB flats of yester years are based on the cost of construction maybe with some land cost added into the equation. Therefore these flats cost only several thousands of dollars in the late 1960s (around $5000 to $9000). In the 1960s, a factory worker probably earned $150 to $200 dollars a month. Affording a HDB flat relative to their pay was quite possible, housing loans were sustainable it is usually only a small portion of their pay.

 

 

What are the figures from Singstat on salary and population?

 

Singapore’s median income per household (per month) is $5704 (Singstat, singstat.gov.sg/pubn/papers/people/pp-s17.pdf), while the average income in the 41th to 50th percentile income per household’s working adult is $1,506 (per month). Today, the total monthly median household income is $5704 (Singstat, 2010) while the average individual income from 41st to 50th percentile income is $1,506. Why don’t Singstat publish the income of people at the 50th percentile (i.e. Median) pay? Why publish meaningless data such as 41st to 50th and then provide an average of this value? I think Singstat has a misplaced sense of importance for certain economic statistics, showing in detail a lot of non essential statistics while breaking down into detail a lot of non consequential data. Note, the $1506 value of monthly income (from 41st to 50th percentile will be lower than the median income.)

 

These days, a HDB flat are priced at $250,000 to $400,000. Based on the maximum income cap (Household) of $8,000 to be eligible, this means that a HDB flat is 4 times the annual income. Based on average income of average of the 41st to 50th percentile of $1506 and based on a household of 2, that means that the household income is $3012 per month. This is slightly more than 10 times the potential income.

 

Today Singaporeans and permanent residents property buyer alike are making their voices heard that HDB prices need to be controlled better so that newly weds can afford the prices. HDB needs to re-focus itself on it’s social charter

 

HDB powers over the people in a dominant fashion

Today, HDB houses 82% (Singstat, http://www.singstat.gov.sg/pubn/papers/people/ssnsep10-pg25-29.pdf)  of Singapore’s Citizens plus Permanent residents which numbers 3.11m. Singapore’s Total Citizen + residents stands at 3.77m (as at June 2010).

 

Will Singaporeans become a minority in Singapore?

Singapore’s citizens stand at 3.23m as at 2010. (Singstat, http://www.singstat.gov.sg/stats/keyind.html#keyind) while there are some 5.1m in total.

 

Between 2006 and 2011, Singapore has accepted about 91,000 people to become citizens.

Politics are important in understanding the housing market. The PAP government needs to Balance the budget, therefore the Singapore government under PAP will need to bring in more people to create demand for Housing and then release land at sweet spot prices. Selling land is a major revenue earner. Next is of course grateful 1st time voters, these voters are most likely to vote for PAP to return the favour.

 

 

Although HDB as an organization do not make money, they nonetheless purchase land from the various government agencies at an elevated price, thereby creating massive revenues for the government.

 

Many people pay for their HDB using CPF. And HDB is a controlled market.

 

Expensive housing pegged to market prices (which is being propped up with the deliberate under-supply of HDB houses) are leading to huge land sale revenues for the Singapore government. And the government through the HDB is selling these expensive housing to it’s Citizens. Singapore Citizens are ending up much poorer and without much retirement funds as expensive housing depletes CPF funds.

Homeless in wealthy Singapore

Mah bow Tan’s HDB screws people up again 

Mr. Alvin Eng was retrenched earlier and chalked up huge arrears in HDB loan repayment. Now that he has found employment and wants to repay the loan, but HDB wants him to pay up in full or evict him, dealing him with a fatal blow.

 

Singapore has a successful home ownership programme where 80 percent of its residents own their own home.

 

Has it really sorted out the problem?

 

While 80 percent of Singaporeans do live in government subsidised housing loan, often referred to as Housing & Development Board (HDB) flats, they are only leases of their 99-year leasehold property.

 

When people fall on hard times, HDB will not hesitate to repossess their HDB flats. They are the overlords over the people.

 

This usually happens after they have defaulted on their HDB home loans many times.

 

One Singaporean, who has found himself about to be homeless is 37-year-old Alvin Eng.

 

“I will be probably be homeless soon as the HDB wants me to pay the outstanding loans which amounts close to $30, 000,” says Eng.

 

HDB has sent him a letter on the 5th May 2010 to notify him about acquiring his flat.

 

Singapore government squeezes the last drop of life out of Singaporeans

Mr. Eng has a 16 year-old daughter. He bought an overpriced HDB flat in May 2009 and once he was out of job, life became unbearable.

 

Mr. Eng obtained a HDB “concessionary” loan of $391k for 30 years. This means that a HDB which has a lot of terms and conditions attached to it is sold for more a ridiculous $400K plus. Concession certainly needs to be redefined.

 

His monthly installment is $1, 569.

 

Alvin fell on hard times in July 2009 and defaulted on his HDB loan. His last job was a freelance investment broker when he was retrenched.

 

He has so far accumulated arrears of loan installments for 18 months amounting to $28, 905.90.

 

His total outstanding loan stands at $405, 475.85 which is more than the original loan.

 

HDB rejects appeal

In the hope of restructuring his HDB loan, Eng went on to see his MP, Matthias Yao.

 

However, his appeal was rejected by the HDB.

 

HDB argued that Eng had not followed previous payment arrangements since Aug 2010. Of course, you can always flog a dead horse like what HDB did and say, “The horse didn’t run”. So much for a socially run program, which has become unfeeling and a revenue collection arm of the government land sales program.

 

Due to bad economic policies in the last decade, Singapore is rotting away. Immigration was the only salvation. Singapore government swamped Singaporeans to the tune of 40%. Every 10 person you see in Singapore, 4 are foreigners, making things too costly and providing a quick relief to the economy, but NOT to the people.

It wasn’t easy for Alvin to get back on his feet and now works as a Product Services Specialist with a phone company, he said he tried to pay down the HDB Loan  in small amounts, but HDB rejected it saying they require a minimum payment of $1569.

HDB loans are home loans granted directly by HDB board and serviced from CPF savings.

In addition, the HDB said he had illegally subletted his flat without prior permission since January 2010 to August 2010.

 

Alvin claimed he was unaware that HDB deemed it an illegal sub-let.

 

Do you really own the flat since you have to follow tons of rules and can’t even rent it out. Is it an asset? HDB sets strange rules and regulations. A flat can only be rented out after the minimum stay of 5 years has been fulfilled.

 

HDB views illegal sub-letting of their HDB flats as a serious offence.

 

Alvin cannot downgrade to a smaller flat as he has not fulfilled the minimum stay period criteria.

 

HDB usually allows downgrading for hardship cases like Eng’s to recover the outstanding loan amount.

 

As for now, Eng and his family are likely to lose their HDB flat unless he can come up with the $28, 905.90.

 

“I really do not know what will happen should I lose my home. Most likely, we will be homeless,” says Eng.

 

HDB did not reply to our email query as of press time.

 

Perhaps Mr. Khalil Adis was right, HDB is not an investment, but a 30 year slavery bondage. 

I Thought I Knew It All Concerning Best Home Loan Until I Read These Hints

It is difficult to define the best home loan in general and universal terms because the appreciation criteria vary from case to case. Once you consider it fit to buy a home or to choose a home refinancing plan, you’ll start shopping around for a home loan or mortgage, and you will eventually make the best financial deal, the best home loan. Therefore, you have to compare all the costs for the loan or mortgage since comparing and negotiating will be likely to help you save a lot of money – maybe thousands of dollars. If you manage to keep the payment and the loan at a low rate, then, you are the first one to benefit from the situation.

Do not limit your search to one lender only, and try to get info and quotes from various sources. Different lenders as it is the case with thrift institutions, mortgage companies, credit unions or commercial banks will surely offer different prices and loan options. That is why you should contact more lenders if you really want to get the best home loan. Another possibility is for you to talk with a mortgage broker, who’ll run all the transactions and try to get you profitable loans from several sources; in other words you’ll be referred to several lenders. Even if they have access to a larger selection of loan products or offers, even if they generally contact different lenders in connection with your application for a loan, yet they are not forced to get you the best home loan if you have not hired them to act as your agents. Therefore reconsider your collaboration with one lender or one brokerage agency only.

You cannot borrow the money with the same satisfaction if a number of factors that condition the best home loan reach are neglected. Rates, points, down payments, private mortgage insurance and fees should all be discussed and analyzed in detail. It is important to know whether the loan you are interested in has a fixed or adjustable rate, since with an adjustable rate loan, when the interest loan rates increase the monthly down payment will follow the same tendency. This is just one example to prove why it is so important to compare what you find out about lending services and only then decide which one is the best home loan to suit your needs.

Getting Mortgage Loan Approval

Getting approved of a home loan is complicated. A good job, good credit, and reserves in the bank cannot assure that a homeowner might meet the loan underwriter’s criteria for financing.

Take note that home loans are different and each lender has different criteria. For the underwriters, the criteria are pretty black and white. You either meet it or you don’t. It doesn’t matter that your income could qualify you for a home twice as expensive.  Without a good credit score, work experience, you won’t get approved on your mortgage loan application.

In general, there are a few criteria that are pretty standard throughout the mortgage lending world:

Consistent Work Experience – Lenders like to see two years of work experience within the same field, preferably from the same employer. However, you may not be able to get approval for your home loan especially if it is in a different field.

Sufficient Debt to Income Ratio – To get a home loan a lender likes to see that you’re current debt is manageable in relation to your income. By and large, your total debt plus the mortgage loan should not exceed 35% of your total income. Without consumer debt, lenders will usually not allow your home loan to exceed 28% of your current income. There are different government loan programs with different standards, so as there are certain guidelines that one need to follow.

Down Payment – Almost all home loans require at least some down payment. One of the few remaining housing or mortgage loans that doesn’t require a down payment is the rural housing loan.  FHA home loans usually require 3.5% down. Conventional loan often require 10-30% down in order to issue a loan.

Cash Reserves – Not only do lenders want you to have money to make a down payment, but they also want you to still have cash in the bank after your down payment. For most investment properties like Homes for Sale in Lehi UT, banks require six months worth of payments as reserve in your bank account.

Credit History – When you want to buy a property, you need to have a credit history.  In other words, you have to have past loans.  You also have to have a decent FICO credit score. A middle FICO score of above 740 guarantees the best interest rates.  Your chances of getting approved are low if your credit score is below 620.

Before shopping for Homes for Sale in Phoenix Arizona, you’ll want to get approved for a home loan to see if it’s even possible.  One of the best ways to get the home loan possible is to ask multiple lenders, banks, credit unions, and mortgage brokers.

Buying a Foreclosed home (First time homebuyers guide)

So what is property foreclosure? It happens when the borrower isn’t able to pay his loans on time. Then, the lender would declare the borrower as default. Thus, sell the property to recover the loss.

Whether you want to invest on real estate or you just want a fine living, you can’t help but deal with foreclosure. Why? Mainly because, foreclosures are ultimately cheaper in price, and so it is second to none choice for individuals searching for a home and wanting to cut costs. There are such things you must learn about foreclosure process before you should deal with it

Step 1: Find the property that suits you in West Valley Utah foreclosures listing. But also, considering these three foreclosure procedures shall help you decide when to buy a foreclosed home.

These kinds of foreclosures require different technical issues and legal procedures.

  • Pre-Foreclosure or Lis Pendens
  • Auction for Trustees or Sheriff’s sales
  • Bank Owned or Government Owned for repossessions

If you have problems with financing, then look for an agency that will help you

This agency shall help you financially to purchase the property you want. The agency usually buy the foreclosed home and then will have you pay for it at a reasonable amount of interest at a certain period of time. This serves as a great favor for you, so you can get the house you want effortlessly and save money as well. Compare quotes given to you by these companies or banks. The lesser the interest, the better the deal is. You should definitely understand all the fees to be paid. It is important to have a legal professional with you when going through this process.

Look for a real estate agent

I’m not really saying that everyone should require a realtor except if it’s your first time to buy a property. Realtors in most cases enable you to proceed through all of the vital legal processes attached towards the procedure. And in situation like this, getting an agent would be very effective as first-time homebuyers are often prone to be fooled. A real estate agent is sure to know what to do.But keep in mind that it is still vital that the realtor you ask help from is affiliated with a reliable company. The company he comes from would often determine if this individual gets fast results out of the offers you’ll be encountering.

Seek the owner

Officially, the person who owns the title is still in possession of the house. This will vary depending upon the status of your foreclosed estate. But commonly, you settle legal aspects when it comes to ownership with the person that owns the title. It’s vital that your lawyer sees thru the procedure up until the end. Buying foreclosures requires one to have a legal professional who knows the procedures well.

Well, just a reminder – Make sure you do your research on how to buy foreclosures!

Mortgage Leads for Brokers

In the olden days, you were at the beck and call of your realtor, the vendor and the financial consultant. With a set rate mortgage, they made a decision the rate, the sales price and the conditions of the contract. They made the options ; you paid the bills. Early in the times of the internet, online mortgage leads fast became favored. What you used to need to pay for ; you could now get in just one or two seconds and with a couple of possibilities. Advanced versions today allow you to make complicated comparisons of different sorts of mortgages and can generally help you in calls of when or whether to buy, sell or foreclose. One of the bonuses is you can often receive mortgage calculators promptly online. Mortgage calculators are dynamic tools thanks to The speed and accuracy with which they can deliver information. If you’re looking to discover how much mortgage you’ll pay, a mortgage calculator can research and give you a figure in a couple of seconds. Time is one of our most dear commodities. Mortgage calculators permit us to use time better because they investigate so many variables of house purchasing lightning speed. If you had to spend the time sitting in a mortgage broker’s office while they figured out out each alternative possible to get you the best mortgage, then you’d be there at least an afternoon. And that’d be for the possibilities for only 1 bank. A mortgage calculator allows you to use the IRs for any quantity of mortgage corporations in your area. Then it authorizes you to input different variables eg the time period you need to pay the mortgage. You set the information for different costs of homes, and not a single, so you know what your best fiscal options are. There are a variety of mortgage calculators. A few of them are pretty typical and just permit you to pinpoint the monthly home loan payment for a fixed interest mortgage leads or a variable rate mortgage. Others are way more powerful. They permit you to do a comparative research exploiting the same loan calculator. By employing the mortgage calculator together with a home budget calculator, you can speedily get a precise top-level perspective of your financial viewpoint, and whether now could be the best time to get a new property. Apart from the sophisticated information that the Computer is ready to address, the best part of employing a mortgage calculator is that it gives you accurate info in a format you understand. You do not have to read pages and pages of difficult finance terminology and do complex calculations to discover what you really wish to know. The mortgage calculator doesn’t confuse you with the selling ploys of a bank or broker. As an alternative you input easy figures and get an easy calculation – within a few seconds – and without leaving your office or home! Mortgage calculators are robust tools because they put you in control! You make that appointment with your realtor or loan company confident that you know your monetary status and which mortgage you want. You also have the satisfaction of knowing you’ve checked out all possible choices to find your ultimate mortgage leads. A good mortgage calculator is like a slide rule. If you understand how to use it, you can beat a Computer. Lots of the mortgage calculators on the internet even include methods to work out how much you are able to afford. That turns out to be helpful if you like eating.

Credit Score Myths

Credit score is important to lenders. How? A FICO (Fair, Isaac and Company) credit score is a number that companies granting credit use to assess an applicant’s risk. In other words, it gives them a picture on how well you will be able to repay the loan that they are considering of giving you. According to the Credit Education Center, about 65 percent of your credit score is based on your payment history, which includes payments on your credit cards and loans, and the amount of money you owe on your accounts. This score can affect whether you get a loan or credit card so, it is good for you to know the common myths that hinder you especially from pursuing your dream of purchasing or getting a home loan for a home.

1. I Have to Pay a Fee every time I check my Credit Score – Before making any purchase or making a loan application, you need to know your credit score and some are reluctant to do so because they think they have to pay to every time they need to find out about their credit score. This is a myth. Yes, you have to pay but it’s going to be only a small one time payment free to annualcreditreport.com and checking your score will definitely not pull your score down.

2. A Credit Repair Company can improve my score – Definitely not the best way to improve your score. A credit repair company by definition is an organization that helps you to manage your finances better and offers you assistance to improve your credit score through various ways like checking the accuracy of your credit reports with the credit bureaus, settling any credit report dispute as it arises, repairing credit in the wake of bad debts, and so on. However, this is not the best way to improve your score. You can pay your bills or monthly mortgage payments on time, lower your balances, and reduce the number of credit card accounts that you have.

3. My Bad Credit Score Will Never Change – Of course not. Having foreclosure and short sale notes on your credit report can last for years, but they will disappear once you have made some improvements on your credit like paying down credit cards and paying all of your bills on time.

4. I have to use my credit card more often to build good credit rating – This is totally hilarious! It’s actually even better if you’re not going to use your credit card at all rather than using it and rick your score by not being able to pay on time, which can definitely ruin your credit score.

In order to win, we need to play the game by the rules. We need to be informed of the rules. Just like in making purchases or getting a home loan for your dream home at Rosamond California Real Estate, you need to know the facts as well as the myths in order to get the best deal.

The Huge Benefits And Reasons Why People Prefer House Loan Refinance

House refinance in other words may very well be called refunding on the same property. Home finance loan refinances tend to be used up ordinarily to pay back the primary mortgage loan as well as keep on the next loan having a favorable rate of interest. A mortgage refinance constantly decreases down the interest rate from your common loan rates. This specific worthwhile home finance loan refinancing charge would be the biggest factor to re-finance your property loan. There also can be several other numerous necessities when planning on taking up the next home loan or a refinancing plan.

Top reasons to apply for a Home Loan Re-finance

Perhaps you may choose to alter the tenure time period of the original financial loan. Maybe you might even get a house loan re-finance rate to help lessen the amount of the pay back schedule. A faster repayment allows you unburden the applicant from the lending options. Shorter mortgage tenure may very well improve the rate of interest slightly. However paying of the loan instantly could invariably save a lot of dough.

House loan refinancing rate, that’s bargained difficult to obtain within the desired rate, is the most important aspect for a borrower. A few borrowers could frequently go for a mortgage loan refinance rate to improve the varying interest levels with a fixed one. In the home mortgage refinance loan on the same property, you can certainly acquire a fixed interest rate.

Greatest things about a solid House Loan Refinancing Rate

In case the rate intended for a home loan refinance is really small then it can prove to be a good deal saving of money. Your house loan refinancing rate is bargained between the loan provider as well as the borrower to make it as small as possible. The home mortgage refinance rates have to be compared between the a variety of websites delivering diverse prices, fees and conditions. An acceptable comparability and a great bargain will assist you to fix the finance difficulties of your debtors.

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How To Pre Qualify For A Home Loan

Getting prequalified is not the same with being approved.  Mortgage prequalification is a preliminary approval from a lender or bank that confirms your income, credit score and history as acceptable in order for them to grant you a mortgage loan for your home at homes for sale at Reisterstown MD.  Getting prequalified is just a preliminary estimate and it doesn’t guarantee approval.  But this is a very important step because through this you’ll know what the credit requirements are.

Since there are different kinds of mortgage loans, there are also different kinds of requirements that you need to meet to get you prequalified.  One example of a mortgage loan is the FHA loan.

Basically, FHA loans requires only a minimal down payment among the home loan options available and this makes them the easiest type of real estate mortgage loan and the most flexible type to qualify for.  To prequalify and obtain approval of this type of loan, a home owner should have a minimun credit score of 620.  Homeowners with credit scores below the requirement need more time to go through the underwriting process.

To prequalify for an FHA home mortgage loan, you need to know the following:

1. At least two years of stable employment history with the same employer and with a steady increasing income

2. A credit report with less than two thirty day late payments in the past two years.

3. Bankruptcy records must be at least two years old while foreclosure records must be at least three years old.  This means you must have a good credit record for the past three years.

4. Approximately 30 percent of your total monthly gross income is the required mortgage payment.

Home loans are designed to help Americans fulfill their dream of homeownership.  The advantages of being approved are numerous especially if you are planning to buy a home from Suffolk Virginia homes like less than 3.5% of Sales Price for the down payment, 100% Financing options available, sellers can credit up to 6% of sales price towards buyers costs, and so on.

Remember that prequalifying for an FHA loan does not automatically guarantee that you can now purchase your dream home from Denver Colorado Short Sales.  However, it means that your borrowing power and what you can afford in terms of a monthly mortgage payment have been assessed

Facts on Second Home loan Loans

Your house can in no way be fully done. There are often few improvements that you may prefer to make at all occasions. There are always details breaking which will require fixing etc. at this kind of instances you may not often have the money to pay for these changes and touches. A 2nd home loan loan possibly the greatest possibility to use at this kind of occasions. A 2nd house mortgage is a apply in which you attract up a different loans from a financial institution mortgaging the same property which you had although acquiring your first loans.maandlasten hypotheek netto hypotheek berekenen hypotheeklasten berekenen

In most cases even though drawing up a 2nd mortgage on your home you have due to it thorough imagined and possess virtually compensated off your initial loan. The second loan describes which your home requires precedence in case you are not able to pay off the money rented.

The charge of curiosity on the second home loan loans is larger than one which is new because it is a riskier circumstance to be in from the viewpoint of the bank. Although deciding to go in for a second loan always chose esteemed banking institutions which possess fastened rates. Constantly examine the wonderful prints on the doc completely prior to you sign it. If achievable constantly get it checked up by a lawyer. Guarantee that the financial institution you are approaching does not possess an incredibly elevated processing and application fee. Therefore you need to do a lot of explore and acquiring out prior to you zero straight down on one bank. Communicate to family members and neighbors for far more recommendations.

Most loans can be stretched for a twenty year time period with smaller month-to-month repayments; nevertheless it caters to your pocket. When you possess used the loans remember why you have the rented the income and use it for that objective alone. Do not arbitrarily go concerning utilizing the further cash on various pointless acquisitions and forget concerning the total purpose of the loan.

As soon as you have taken the loan keep in mind to only indicator out the exams if you are assured of becoming able to pay back such amounts as published on the exams. The bouncing of a examine can be dealt with penal codes.
A second mortgage home is a boon for people who need to possess much more in lifestyle but cannot pay for to do so proper away. It may take some time and a couple of sacrifices when you decide to go in for a 2nd mortgage loan loan but all in all it is an definitely wonderful alternative if you genuinely desire a lot more in lifestyle!