Mortgage Loan Basics
 Posted By | Mar 24, 2008

A mortgage loan is a loan secured by real property through the use of a mortgage (a legal instrument). However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.

A home buyer or builder can obtain financing (a loan) either to purchase or secured against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.

Mortgage loan types

There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation and legal requirements.

Interest: interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be higher or lower.

Term: mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization.

Payment amount and frequency: the amount paid per period and the frequency of payments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid.

Prepayment: some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment.

The two basic types of amortized loans are the fixed rate mortgage (FRM) and adjustable rate mortgage (ARM) (also known as a floating rate or variable rate mortgage). In many countries, floating rate mortgages are the norm and will simply be referred to as mortgages;Combinations of fixed and floating rate are also common, whereby a mortgage loan will have a fixed rate for some period, and vary after the end of that period.

In a fixed rate mortgage, the interest rate, and hence periodic payment, remains fixed for the life (or term) of the loan. In Malaysia, the term is usually up to 30 years (15 and 30 being the most common), although longer terms may be offered in certain circumstances. For a fixed rate mortgage, payments for principal and interest should not change over the life of the loan, although ancillary costs (such as property taxes and insurance) can and do change.

In an adjustable rate mortgage, the interest rate is generally fixed for a period of time, after which it will periodically (for example, annually or monthly) adjust up or down to some market index. Common rate being refered to in Malaysia is called Base Lending Rate (BLR).

Loan to value and downpayments

Upon making a mortgage loan for purchase of a property, lenders usually require that the borrower make a downpayment, that is, contribute a portion of the cost of the property. This downpayment may be expressed as a portion of the value of the property (see below for a definition of this term). The loan to value ratio (or LTV) is the size of the loan against the value of the property. Therefore, a mortgage loan where the purchaser has made a downpayment of 20% has a loan to value ratio of 80%. For loans made against properties that the borrower already owns, the loan to value ratio will be imputed against the estimated value of the property.

The loan to value ratio is considered an important indicator of the riskiness of a mortgage loan: the higher the LTV, the higher the risk that the value of the property (in case of foreclosure) will be insufficient to cover the remaining principal of the loan.


Value: appraised, estimated, and actual

Since the value of the property is an important factor in understanding the risk of the loan, determining the value is a key factor in mortgage lending. The value may be determined in various ways, but the most common are:

1) Actual or transaction value: this is usually taken to be the purchase price of the property. If the property is not being purchased at the time of borrowing, this information may not be available.

2) Appraised or surveyed value: in most jurisdictions, some form of appraisal of the value by a licensed professional is common. There is often a requirement for the lender to obtain an official appraisal.

3) Estimated value: lenders or other parties may use their own internal estimates, particularly in jurisdictions where no official appraisal procedure exists, but also in some other circumstances.


Source: http://en.wikipedia.org/wiki/Mortgage_loan

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Comments (5)
wrote:
Sep 13, 2015 (17:15)
for ; MRTA/MRTT vs TAKAFULINK /INVESTMENTLINK pls email to azlaneo@yahoo.com.my
wrote:
Sep 13, 2015 (17:14)
MRTA/MRTT vs TAKAFULINK /INVESTMENTLINK
Untuk pengetahuan semua MRTA atau Mortgage Reduced Term Assurance merupakan sejenis perlindungan insurance untuk pinjaman rumah. Tujuan individu membeli polisi MRTA tidak lain adalah sebagai perlindungan kewangan terhadap baki pinjaman yang belum dibayar sekiranya berlaku kematian atau hilang upaya kekal keseluruhan atau Total Permanent Disable (TPD) kepada peminjam. Jadi polisi MRTA ini akan membayar baki pinjaman yang terunggak.
Ciri-ciri MRTA/MRTT
1. Bayaran lump sum (sekali gus).
2. Biasanya akan dimasukkan didalam loan sekiranya jumlah premium terlalu mahal (bagi membolehkan bayaran secara bulanan).
3. Sekiranya premium dimasukkan bersama pinjaman, premium tersebut juga dikenakan faedah oleh pihak bank. Jadi, jumlah premium yang perlu dibayar akan lebih tinggi dari sepatutnya.
4. Tempoh perlindungan sama seperti tempoh pinjaman.
5. Jumlah perlindungan akan berkurangan mengikut pinjaman.
6. Lebih murah berbanding dengan life insurance atau takafulink sekiranya dikira dari sudut jumlah caruman.
7. Tiada nilai tunai.
Bagi mereka yang aktif dalam pelaburan hartanah (jual-beli hartanah), setiap kali kita buat pinjaman kita perlu memohon plan MRTA dan sekiranya kita ingin menjual hartanah tersebut, kita perlu batalkan MRTA tersebut. Dan seterusnya sekiranya kita ingin membeli hartanah lain, kita perlu mengambil sekali lagi MRTA yang lain. Dan sudah tentu pada masa itu umur kita telah meningkat dan menyebabkan premium lebih mahal. Kalau mahal masih ok lagi, tapi kalau dah sakit sampai syarikat insurance/takaful pun dah tak nak amik kita sebagai pemegang polisi. Macam mana?… Masa tu dah tak de chance nak amik MRTA lagi.









BAGAIMANA TAKAFULINK BOLEH DIJADIKAN SEBAGAI SATU OPTION DALAM MENGGANTIKAN MRTA/MRTT?
Ciri-Ciri Takafulink
1. Bayaran secara berkala (regular), jadi tidak perlu masukkan bersama pinjaman, dan ini boleh mengelakkan kita daripada dikenakan faedah oleh bank.
2. Jumlah perlindungan sekata sepanjang tempoh caruman atau sehingga umur kita 80 tahun.
3. Jumlah perlindungan yang fleksible. Boleh diubah mengikut keperluan perlindungan pinjaman.
4. Jumlah caruman (premium) yang tetap. Walaupun umur meningkat,caruman ( premium) tetap sama. Ini akan menjimatkan kita dalam jangka masa panjang.
5. Tidak perlu menamatkan polisi sekiranya hartanah yang pinjamannya dilindungi oleh takafulink ingin dijual atau dipindah milik. Dan sekiranya kita ingin membeli hartanah baru, boleh gunakan polisi yang sedia ada untuk menjadi sebagai cagaran bayaran pinjaman sekiranya kita meninggal dunia atau lumpuh kekal keseluruhan.
6. Boleh digandingkan dengan pelbagai manfaat perlindungan lain yang agak penting seperti Dana Penyakit Kritikal, Dana Kemalangan, Elaun Harian Dihospital dan sebagainya.
7. Ada nilai tunai dan perkongsian untung hasil dari keuntungan wang caruman yang dilaburkan oleh syarikat.
8. Warisan pendapatan Islam (100% HIBAH kepada pewaris)
9. Waiver caruman (premium) jika mengidap penyakit kritikal (operator Takaful akan sambung caruman(premium)
10. Peluang Keemasan untuk mendapatkan pelepasan cukai pendapatan (hanya tinggal lagi sebulan untuk tahun 2010 (kwsp+insuran = RM7,000 setahun)
11)Mempunyai nilai simpanan tunai **RM50,000>>> (**mengikut jumlah pinjaman) apabila setelah selesai pinjaman
12.Berpeluang menyelesaikan pinjaman lebih awal daripada tempoh yang ditetapkan
Untuk makluman jika anda telah mengambil perlindungan MRTA/MRTT untuk rumah anda....anda masih berpeluang untuk mengambil program MFCP nie bagi melindungi harta anda seperti melindungi financing kereta anda dan lain-lain overhead anda.... serta boleh dijadikan juga sebagai Takaful Gaji untuk anda & family anda....dan juga anda boleh mewariskan Takaful gaji ini dengan cara Hibah (100%) kepada yang tersayang.



Bagi tempoh masa yang panjang, cara ini lebih menjimatkan disebabkan kita tidak dikenakan interest atas premium sekiranya premium tidak dimasukkan dalam jumlah pinjaman. Selain dari itu, jumlah peruntukan premium untuk akaun simpanan peserta (PIA-participant investment account) selepas tahun ke 7 dan seterusnya adalah 100%.
Jadi? Anda boleh gunakan wang tersebut untuk melangsaikan pinjaman perumahan dengan lebih cepat dari tempoh yang sepatutnya. Secara tak langsung ini akan dapat mengurangkan kadar keuntungan (interest payable) kepada pihak bank, dan seterusnya dapat menguntungkan anda sebagai peminjam.

Kesimpulan
Secara kesimpulannya, dapat kita nilai bahawa perlindungan jenis Takafulink lebih menguntungkan berbanding MRTA. Mungkin kadar bayaran (premium) yang perlu di bayar untuk setiap satu jenis perlindungan adalah berbeza, namun jika kita lihat jangka masa panjang, dengan perlindungan jenis Takafulink secara tidak langsung dapat memberi anda perlindungan di samping menggalakkan anda menyimpan untuk hari tua. Ia juga fleksibel. Disamping itu polisi Takafulink juga boleh digunakan untuk mengurangkan cukai pendapatan yang dikenakan.

P/S: JIKA ANDA MENGAMBIL PINJAMAN SECARA ISLAM....CARILAH PERLINDUNGAN (TAKAFUL) UNTUK MELINDUNGI PINJAMAN ANDA SECARA ISLAM (TAKAFUL) SUPAYA MUAMALAT KITA AKAN MENDAPAT KEBERKATAN ALLAH TAALA DAN MENJADI AMAL JARIAH KITA UNTUK AKHIRAT.

wrote:
Feb 21, 2015 (15:08)
for islamic MLTA.pls.email..to azlaneo@yahoo.com.my
foc sharing
klangvalley wrote:
Jun 17, 2009 (21:00)
Buyer is recommended to get a fixed rate mortgage loan in Malaysia. For investors looking to buy property for investment, it is advisable to look for a housing loan with the lowest lock-in period. Need financial advise in Klang Valley for your property financing? Visit me at
http://www.Klang-Valley.com
jimmy123 wrote:
Jun 03, 2009 (14:53)
Mortgage loan is a loan which uses real estate as a security. The mortgage loan is an agreement to deposit a home or other real estate as security. A borrower can either obtain this loan directly from the lender, or sometimes consult mortgage brokers who are more experts in handling the whole process well. This unit analyses the financial situation of the borrower and provide them the most suitable lenders. It is relatively better to let experienced brokers handle your home mortgage loan. http://www.allfinancialservices.net/

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