Which Mortgage

There are different kinds of mortgage loans available out there and choosing the one that is right for you can be tricky if you do not know about them.

 Which Mortgage

The very first thing to know is that there are two types of mortgage loans, fixed rate mortgage loans and adjustable rate mortgage loans for the Hillford at Jalan Jurong Kechil. Your everyday garden variety mortgage loan will have a rate of interest is something that remains fixed for the period of time for which it is taken (be it 15, 20 or 30). Similarly, true to its name, the adjustable rate mortgage loan will have fluctuating interest rates that will make your payments sometimes high and sometimes low. It all depends upon the London Inter-Bank Offer Rate, a rate index which keeps on changing.

Advantages and disadvantages of each type of mortgage loan

Now there are both upsides and downsides to these loans individually. Talking about the fixed rate mortgage loan first, the advantage is that it offers you stability. Always go for this loan when you are sure about something you have invested in (like the house you wish to buy or build) and will pretty much have the same income over the coming years. The downside to this loan is that this stability comes at a price; your interest rate gets fixed for the entire time period and it isn’t cheap either; you probably need to pay 10 to 20 percent of the loan (something that can be avoided with adjustable rate mortgage loan). Then again if you cannot make such large payments then you need to get Private Mortgage Insurance to increase your monthly payments which again is going to cost you money.

 

Now looking at the adjustable rate mortgage loans, these are best for you when you do not wish to live in the house you bought for long and will probably sell it. The advantage of this loan is that they offer lower interest rate for the first 3 to 5 years. Many of the mortgage loan people will set a cap for you to define the range within which your interest rate will fluctuate. The possible disadvantage with this loan is that sometimes the interest rate may go very high and that may cause you a problem; the important thing here to remember is that these loans can make your payment really low at times as they fluctuate a lot.

Now before you decide upon a loan on The Hillford Condo at Jalan Jurong Kechil, always ask for the APR or the Annual Percentage Rate which will let you know the exact expenses you will be bearing (will let you know about other taxes to be added). So choose well and choose according to your comfort level.

Hillford Condo Valuation

When it comes to valuation of a property, it does not matter if you are a buyer or a seller. Valuation of a property needs to be taken into serious consideration so that a buyer can get the best out of his investment without overpaying or paying below valuation. As an investment’s rental yield is based on the purchase price, the valuation becomes the single most important component.

The most common practice in determining the valuation of a property is using the average price of the property transacted in the immediate vicinity of the property concerned. As buyers might be looking for their ideal property, experts warn against paying too high a premium for their dream property due to spur of the moment emotions. This applies to property owners who are looking to sell their property. These owners might attach a premium to their property.

Property experts have pointed out that although sellers sets the price which they would like to sell, it is ultimately the buyer who decides its worth. Therefore, sellers who price their houses above the immediate vicinity price may leave the thought that the property is overvalued and results in no sale of the property.

In the world of free information as well as the ease of information, a buyer who has making an important decision of buying a property must have done his homework in determining the price of a property. Even though a buyer has done his homework, he might buy on impulse. A rule of thumb is not to buy a property which is more than 3% of the average price of a property in the area.

Given that The Hillford is a 60 years old lease private condominium development in the area, there is not a property in the Jalan Jurong Kechil vicinity that we are able to use to determine the valuation of the property.

However, we can extrapolate the surrounding condominiums remaining lease and calculate the valuation based on its ratio. This will give us a good indication of the valuation of Hillford Condo.