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Poland Mortgage Quote Lesson/advice


rt3d  
6 Jul 2010 /  #1
Hi All

Could any one explain in details, the meaning of the following..
and the advantages and disadvantages of what to look for
when seaching for the right Mortgage Quote.

Many Thanks..

Loan Details
--------
Loan to Value (LTV): 90%
Loan Term In Months: 360
Repayment Scheme: Equal
Instalment Amount after Mortgage Registration: 1852
Instalment Amount Before Mortgage Registration: 2100

Pricing
--------

Base Rate: 3,87%
Intrest Margin: 1,95%
Nominal Intrest rate: 5,82%
Interim Bridge Insurance: 1,20%
Interim Intrest rate: 7,02%
Intrest rate type: Variable
Loan Origination Fee: 2,00% 6300 PLN
Property Valuation fee: 750 PLN
APR: 6,28
Wroclaw Boy  
10 Jul 2010 /  #3
Loan to Value (LTV): 90%

Loan offer for 90% of the value of the property

Loan Term In Months: 360

Time to repay 360 months = 30 years.

Repayment Scheme: Equal

Pay back what you borrow plus interest of course

Instalment Amount after Mortgage Registration: 1852
Instalment Amount Before Mortgage Registration: 2100

Your monthly repayments before and after your property has been registered in the title deeds register, takes bout 6 months to register depending on the municipality.

Base Rate: 3,87%
Intrest Margin: 1,95%
Nominal Intrest rate: 5,82%

Your interest rate is 5.82%, the banks profit of that is the 1.95%.

Interim Bridge Insurance: 1,20%
Interim Intrest rate: 7,02%

Looks like theyve included a company insurance scheme on the loan of which its equal to 1.2% of the loan. Check that with the broker, they usually make quite a bit with these insurance deals. The interest on that seems a tad high.

Intrest rate type: Variable

Although your interest rate is 5.82% at the time this contract has been drawn up it is variable which means it will fluctuate with the base rate, if that increases or decreases so will your monthly repayments.

Loan Origination Fee: 2,00% 6300 PLN

This is the banks commission for setting up the mortgage, so your loan is 315,000 in total? Its quite resonable.

Property Valuation fee: 750 PLN

This is the fee theyre charging for conducting a valuation of your property.

APR: 6,28

Looks like theyve bumped up the interest rate to cover the extras. Need a bit more information for that one.
OP rt3d  
14 Jul 2010 /  #4
Many Thanks Wroclaw Boy, your a STAR..:)
Would you Recommended this is reasonable
Wroclaw Boy  
19 Jul 2010 /  #5
Would you Recommended this is reasonable

Seems reasonable enough to me just getting a contracted offer these days is difficult enough, my only advice is be very cautious of foreign currency loans - for example a CHF (Swiss franc) loan to be paid back in zloty. Currency fluctuations affect the monthly repayments significantly.

So did you take it?

I'm guessing no in relation to your latest thread: foreign currency property
loco polaco  
30 Sep 2010 /  #6
If you can avoid variable rate, you ought to as your payments can easily become unaffortable if the base rate happens to skyrocket.

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