Refinancing Your Loan

Refinancing Your Loan

Refinancing your home or property is a big decision that could drastically affect your financial future, for the good or the bad, depending on how smart you go about the process. Take the time to explore all of the different refinancing options you have available to you.

Many loan agents offer you refinancing deals that seem too good to be true, and while most of them seem to have your best interests at heart, do try to keep in mind that they are not paid unless they approve you for a loan–and you take it.

Refinancing your mortgage can lower your monthly payments, lower the amount of interest you pay on your loan, or even shorten the term of your mortgage without having to pay a penalty for early mortgage pay off.

Refinancing a mortgage usually involves allowing a loan company to pay off your original home loan in return for you signing a loan contract with them. Most times, the second loan is more beneficial to the mortgagee, especially for that present time.

Of course, when thinking of refinancing, you are going to want to make sure that it will be in your benefit! The penalty costs of paying off your loan or mortgage early, the cost of appraising your home, related legal fees, misc fees, and stamping fee are all amounts that should be taken into consideration when one is refinancing.

As far as your current loan is concerned, these are all costs that, more often than not, have already been taken care of and you could be making things worse for yourself by taking these things on again, especially if your reason for refinancing is a rather tight financial situation.

Talk to your mortgage bankers and they might be helpful in helping you in your decision.

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Property investment in Malaysia

Property investment in Malaysia

Real estate investing is a topic that many people wonder about. The earning potential of a smart investor is extremely high, because unlike nearly every other type of investment, real estate does not typically decrease in value.

When you are looking for a way to ensure your security for the future, or to build a retirement portfolio, real estate is a good vehicle to use.

Real estate investments give you much more than just somewhere to ‘stash cash’; they give you the ability to continuously increase the value of your investments to an almost unlimited level.

Before you get started, here are some things to keep in mind about real estate investing:

  • How much do you intend to invest
  • Are you buying it to collect rental or looking for capital gain
  • How much you are able to borrow from the bank
  • What is the cost of the property
  • What is the expected returns from the said property
  • Is the expected returns higher than the cost of borrowing
  • How easy the property can be disposed if you plan to do so
  • What is the actual price of the property, is it over priced
  • What type of property to buy
  • Where is the location to buy
  • What is the demand and supply of such property

Do you realize that real estate investors are often not first time investors? While first time investors are not discouraged from purchasing an investment property, seasoned investors often decide at some point to pull cash from their other investments in order to purchase some sort of property. Why? The answer is simple. Real estate is far less volatile than many other investment vehicles.

So, if you are looking for a way to make some cash with a minimal investment, real estate may be the answer you’ve been waiting for.

As you know, in Malaysia, if you are to invest in unit trust, you might have to come out with 100% cash for the investment whereas you may get a loan for property investment.

Many people do not realize just how simple it is to become a real estate investor and use the power of leverage to build wealth virtually overnight.

A seasoned investor already knows the value of leverage. Real estate is the one investment area where you can definitely use money to make money without question. Once you have a single investment property, you will find the process of getting more much simpler. Real Estate moguls have made their fortunes using this philosophy.

Do check with your banker or mortgage broker to find out more.

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