10 words you should know about real estate borrowers

  1. Down Payment
    Refers to the amount of money that must be paid after booking and signing the contract. The proportion is approximately 10-20% of the full price.

If the project has not started or is currently under construction, you can pay down payment on the project. (But have to understand the requirements of each project clearly before) or in the case of a completed project ready to transfer May be set to pay a down payment, for example 50,000 baht.

  1. Loans
    Refers to the amount of money that a financial institution such as a bank can lend to use to buy a house. Typically, the bank approves the loan amount in the range of 80-95% where the borrower will pay interest on the loan amount. Make a contract, set a certain period to repay the debt. And installments in installments
  2. Installment
    Refers to the amount to be paid in monthly installments. Calculated from the loan amount Interest rate And term of loan
  3. Fixed rate loan.
    Refers to the interest rate on a loan given a specific number over the life of the loan agreement or during a specific period. Do not go up or down according to economic conditions, such as a 5% interest payment per year for 4 years, we will lose the interest rate of 5% over a period of 4 years without change.

The advantages of a fixed interest rate are You don’t have to worry that your loan payment will go up. And help borrowers to plan their own finances precisely

  1. Floating Rate
    Refers to the interest rate on the loan that will change according to the announcement of the financial institution. Which will go up and down according to economic conditions In a year when the interest rate is lower, we will pay the interest cheap. At the same time, in any year when interest rates are higher, we have to pay more interest. The rate of interest changes will depend on each bank. Each year the adjustments were made differently.

6.MLR (Minimum Lending Rate) or (Minimum Loan Rate)
Refers to the interest rate that banks charge from prime customers. Type of loan with a term such as Have a good financial record Have enough collateral Most of the time, this type of interest rate is applied to long-term loans with a fixed term. Home Loans

  1. MRR (Minimum Retail Rate)
    Refers to the loan interest rate that banks charge to premium retail customers.This is linked to the MLR interest rate so that it can reflect the different risk levels between large and retail customers, plus the maximum margin at the bank. The Bank of Thailand issued a circular dated 10 August 2001, canceling the difference of not more than 4 percent per year in order to increase the risk of Equal competition offering credit services To meet the needs of customers in more ways

Check MLR and MRR interest rates.

8.LTV (Loan to Value)
Refers to the home loan ratio compared to home value. For example, a house worth 1 million baht, the bank lends a loan amount of 9 hundred thousand baht, meaning that the LTV is 90%. Buying a house requires a higher amount of savings. The ability to buy a house will decrease.

  1. DSCR
    DSCR (Debt Service Coverage Ratio) is the ratio of income to debt settlement. Which the bank will take into account the loan to the borrower Which will compare the proportion with the formula (Monthly income รท Installment amount per installment), in which the appropriate proportion is 3.0 or more, or income is 3 times the debt burden. If your DSCR is lower than 3.0, it means that you have too much debt. Or the chances of applying for a loan through will be less
  2. Mortgage
    A mortgage is a type of loan agreement in which a “mortgage” uses real estate as permitted by law, such as a title deed, a house, etc. registered with the “mortgagee” as collateral for debt repayment. The mortgage contract must be made in the presence of the Department of Lands only. By clearly stating that the mortgage loan amount amount. And what is the property to be mortgaged