Agricultural Land Loan

Agriculture business is booming in all third world countries. I’m from Malaysia and since last 10 years, I always hear many millionaires are made from agriculture business. Our land value in rural area is cheaper (averagely US$5,000/acre). If you could make at least $1,000 from each acre a month then you could get back your investment in your land area in just 5 months of agriculture business operations. Let me know if you can’t make that $1,000 in your 1 acre land area. This is just a minimal income per acre that you can get. The possibility of getting higher income is higher.

That is why; we can see many agriculture business millionaires in just short period of time. Most of the government organization will provide subside and less interest rate for agri land purchase and business support. If the product is so highly in demand, you might even earn more than Shoemoney in just 2 years time. This is the beauty of agriculture business. Not all banks will provide agriculture land loan facility. Usually, agriculture land loan facility will be given by governmental organizations.

If you have planned to start agriculture business, try searching for rural area land and employ foreigners as your workers. The turnover could be higher and who know, you might pay up the loan in just 2 to 3 years time.

Commercial Property Loan

Commercial property loan is different than home mortgage loan. The interest rate for commercial property loan is commonly higher than normal home mortgage loan. Most credit providers will not give longer terms of settlement for commercial properties compared to housing loan. This means that, any commercial property loan need to be settled as early as possible.

Why the banks do declares that commercial property at higher risk than home property? Yes, commercial property categorized as higher risk in loan facility calculation. That is why, the loan approved amount usually lower compared to home loans. There are several reasons that put commercial property at higher risk. Usually, the economy plays an important role here. If any economic crisis happens, then the loan taker might face difficulties in paying up the dues because of lower business transactions. This crisis always happens once in 10 years bubble. I have personally seen from 1987, 1997 and 2007. It looks like it will repeat again in 2017 and 2027.

During crisis, banking industry is the first victim that faces a lot of losses. This is because, some banks don’t take this matter serious and offer commercial property loan as a normal home loan rates and terms. Commercial property loan is best to complete as early as possible. This is a safe action for the buyers too. They need to bring umbrella before rain. Don’t always give comment that the economy is bad, that is why we couldn’t pay. If you are not prepared for worst case scenario, then you might not meet your target.

Second Mortgage Loan

If you already bought a house using mortgage loan facility and planning to buy a second house for investment or other purpose, you need to apply for second mortgage loan unless if you want to buy it for cash. I’m strongly suggesting not buying any property cash because you may find difficulties in taxations, insurance, etc. Trust me; I have a few premier customers who have a lot of money just buying and using mortgage facility to have safe taxations for their side.

Applying second mortgage loan can be a little harder than the first mortgage loaned. However, most of the providers of the first mortgage will try their best to win the second mortgage loan facility by offering better rates and additional services to keep the customer stay with the bank. I’m suggesting to survey around for all options on mortgage loan rates and outlines. Who knows, you might find a better one. Usually, the same providers will approve the second mortgage loan with lesser percentage of purchase value. Let’s say for example, you are purchasing a second home at $100,000. The same provider that has your first loan facility might give you 80% loan amount from the value while new providers will give 90% (considering this as a normal rate).

If you don’t mind of paying extra deposits, then this shouldn’t be a problem for you. But, if you want to go for higher loan amount, then try to find new providers and apply as a new customer. All your loan facility will be appeared to the bankers before approving your second mortgage loan. Make sure you have enough income supporting documents and be a paymaster without having any late payment on any of your credit facility. Even credit card will be included in credit facility list. Make sure, you don’t have any bad record credit with all your credit facility for at least 12 months before applying for a new loan.

Debit cards

If you have phobia or any bad experience of using credit cards before, try switching to debit card. Debit cards only allow you to use the balance in your account. If there is no balance, then the transaction will fail. It is easier to use and safe in sense of credit card misuse. It is just like a prepaid card. If you have enough or sufficient balance in your debit card account, you can use it as long as it does not exceed the balance.

Now, you can control your spending limit each month as per your desire. You can pay any bills or other online payments with debit card. Debit card is accepted widely by many suppliers. It is equivalent as Credit card too because it carries MasterCard or Visa on it. It works exactly the same with credit card, just no interest place on any transaction. Debit card processing is very simple. It is instant as your credit card too.

Not all bankers offering debit card services because they still want to push their credit card and get some interest from it. But, debit card will still gaining popularity in small and medium income groups. They are not able to support any large amount of transaction if anything goes wrong with their credit card. The problem with credit card is, whenever you pay your bills properly and keep maintaining your account with the provider, they will increase the credit limit to you.

This will give more drive to spend money not to safe it. So, if you tired of credit card interests, switch to debit card and enjoy the same facility as you get from credit card.

Best Credit Card Deals

Credit card is the most common credit facility that anyone can have. If you pay all your dues, then it is like heaven for you using credit card. But, if you fail to pay, then the interest rate will be different, in most cases it will be higher than the normal ones. This is how the credit card providers make money. If you think you are not afforded to pay back the credit facility in your card, then it is better to terminate the service. It is like buying power that someone possessed. The more power we have, the higher the desire to spend. So, try to limit yourself with 1 or 2 best credit card deals that you can get and stick with it.

Not all credits card are offering good services. Nowadays, most of the credit card providers offering zero cost annual fee which is good. When I use to work as a mortgage officer, I still can sell credit card to my customers. This is diversifying products sales team. Not only credit card sales team can do credit card sales, but mortgage sales team also can sell credit cards. It will be easier for us to push credit card to customers because our main product is mortgage loans.

Any approved mortgage loan facility under me; I will give free credit card to them saying that it is a complimentary from our bank. But, in real it isn’t. I’m just selling another service of my bank and get my commissions add on. So, if you walk in any bank and looking for other product, make sure you don’t prey for this type of marketing strategies. You have the rights to say “NO” to the credit card in any situation. But, most of the time, my customer accepts the card.

Don’t simply accept any credit card in the market. Survey first and choose for the best credit card deals that you can get. Also, double check is there any hidden clause there. Happy hunting.

Student Loan Consolidation Rates

Most students are bond to some student loans. It is easier for them and provides enough time for them to concentrate more on studies to get good results. If they don’t take up any loans, they need to depend on their parent’s money. Personally, I don’t like to owe my parent’s after 18 years old. It is my full responsibility for my education expenditures. This is what we call as preparing to be independent. But, only a few parents will support their children in education fees. Mostly, these parents are from very rich background. Not all have the ability to support their children’s higher education fees and expenditures.

So, getting student loan will be the perfect choice for many. Personally, I took PTPTN loan from the Government body of Malaysia. I believe it is part of government. The interest rate is only 4% annually. I feel it is the cheapest anyone could get for loans. Some of my friends that supported by their parents even take up the loan because it is so cheap interest rate. They dump in the money in Fixed Deposits and earn annual income from it while studying. Luckily, the terms of PTPTN loan says that it only count the interest rate after finishing the studies of 3 years.

Paying up student loan will be a hassle if our income is insufficient. So, consolidating student loan with other properties will be the best choice. It might help you to save the interest rate in long run. There are many companies offering these services. Check up for student loan consolidation rates from various providers and choose the best product that help you to save money. Remember, there maybe a few hidden clauses that the salesman would hide from you. Try to dig the flaws from their competitors and clarify with them whether it is true or not. After examining a number of providers with all the hidden clauses reviewed, choose the one that offers best service for your situation.

Personal Loan

Applying for a personal might be the easiest and fastest way to get fast cash in our hand. Most of the personal loan approvals take not more than 2 days. Averagely, it will only take 24 hours to know our application is approved or not. Most of the time, personal loan rates are not as low as mortgage loan and not as high as credit card interest rates.

It is wiser to get a payday loan instead of using your credit card because of the interest rate is much lower compared to standard credit card rates. Nowadays, there is huge list of companies providing personal loan secured services. How you going to find that is suitable for you? We need to get more details about interest rates, other charges involved, any hidden charges involved, etc.

The best and easiest way to find out these details is to ask from their competitors. Personal loan debts can increase if you take from multiple service provider and don’t pay up the loans. Some even says personal loan bad ok. But, it is wiser to settle the debts before getting other loans. If you are unable to settle the existing loan, then what is the surety that you can pay the new loan?

If you want to avoid all these hassles, try to use your own money. Have more savings and avoid using credit card instead change it to debit card. Now, you are on your own.

Insurance for your mortgage is a must

Not so sure if your provider gives you an option of choose to have home loan insurance for your mortgage or not. For me, insurance for mortgage is a must! Whether it is for your new house purchase or mortgage refinancing, loan insurance is a must. It is to protect our child and family if anything bad incurs in future. Nobody can predict the future and it is best to have secured one for our loved ones.

It is wise to choose perfect lender insurance for your home loan. Your home loan provider might have bonds with certain insurance company. You need to ask them whether you are free to choose any insurer of your choice. If the provider does not allow you to do so, then it is not a very reliable service.

Mortgage protection service comes in a few products. You need to compare it properly before signing up. Some used the terms like MRTA and MLTA. Study properly on the benefits and disadvantages of both or more products before choosing one. Compare the prices quoted, flaws, restrictions, from various insurers. Remember, by signing up for mortgage protection services, you actually protecting your kin to have a perfect home without any worries to pay for your debts.

Mortage Loan on Daily Rate vs Monthly Rate

What is it the difference between daily rate and monthly rate?

Daily rate means that the interest is calculated on daily basis on the outstanding balance. Monthly rate means that the interested is calculated on monthly basis. It is always easier to calculator rate to get it done for us. But, there is huge difference if you understand on interest rate on daily basis and monthly basis.

Imagine if you could pay the same amount of money that you are paying now and the loan supposed to end after 30 years but it can end in just 20 years or much earlier. This saves half of your money. Let’s say your mortgage annual rate is at 15%. This is just an example. Your mortgage average rate could be lower or higher depends on the provider.

Just a simple calculation:

Mortgage Annual Interest Rate – 15%
Mortgage Monthly Rate – 15% divide 12 months = 1.25% /each month.
Mortgage Daily Rate – 15% divide 365 days = 0.041% /each day.

If you pay today $1000, your outstanding loan amount reduced $1000 that contributes lesser in daily interest calculation. So, interest daily rate is a money saver compared to any mortgage discount rate. If you going for a mortgage loan shopping, make sure it is daily rate basis and not monthly rate basis.

Everything about Refinance Your Mortgage Loan

What is refinancing a mortgages means?
Refinancing mortgage means you transfer the loan facility that you are currently paying for your home or house from one bank to another bank or provider because you can save more money and time to finish up the home loan.

Each term the banks introduces new terms and services that can save a lot of your hard earned money. Mortgage business becomes more competitive if we have a lot of competitors providing mortgage loan facility. Mortgage rates can be varying for each provider, but the low mortgage rate usually catches our interest.

Mortgage refinancing products is more competitive than new home loans products because the providers need to attract customers to leave from other banks to sign up for their services. They need to have strong reason why someone should leave the existing service providers. That is why the home loan refinancing rate usually cheaper than new home mortgage rates.

So, before you look for 2nd mortgage loan, try to check first on refinance option on your first property. Can you save more with it? It can give you more space to pay on your second mortgage easily. Normally, the penalty period is only for 5 years in any bank. So, after 5 years paying loan to one particular bank, you can shop for your refinancing again. This you can do on every 5 year bubble. Please double check on your loan agreement on penalty issues before refinance.